“Stop thinking disposable, think durable”: TerraCycle’s Loop reimagines production and consumption models

07 May 2019 --- A grocery order where products are delivered undamaged – yet spawn no disposable packaging destined for the trash or recycling bin after use – is the future envisioned by TerraCycle. The waste management expert launched the embodiment of this vision last year in a project called Loop. The platform is a home-delivery service that offers consumers the option of avoiding single-use models when doing groceries by delivering products in durable, reusable packaging.

Among the brands taking part are household names such as Procter & Gamble (P&G), Nestlé, PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop and Coca-Cola – but the platform is also open to private label and smaller brands.

“Through Loop, we are trying to provide an option for every brand and retailer by partnering with retailers and existing e-commerce platforms. That is how we will get to scale. We are not here to reinvent the distribution model. This part will be integrated into the retail environment – in France with Carrefour and in the UK with Tesco,” Laure Cucuron, TerraCycle General Manager, tells PackagingInsights.

We need to rethink production, consumption and distribution models. We need to stop thinking disposable – think durable instead, she notes.Laure Cucuron, General Manager at TerraCycle.

A shifting consumer landscape
The landscape of consumerism is changing, and Loop is a first-of-its-kind model that could both drive and prosper from the changing scene. “It’s a revolution in the B2C area of experience and use,” she says.

Consumer demands are becoming increasingly green. In the UK, half of the population feel guilty about the amount of plastic they use and even more, 82 percent, are actively seeking to reduce the amount they throw away, according to a recent YouGov Custom survey. Reusable models that tout a more zero-waste profile may well excel in the current environment. 

As Cucuron describes, Loop is a “revolution in the B2C area of experience and use.”

In this way, the key to the success of Loop will be showing the modern, sustainability-oriented consumer that moving to groceries modeled on a circular economy can be a simple transition.

“Giving the option to move from disposable to durable for brand, retailer and consumer is the first step. In terms of consumer experience, we need to provide convenience for people who want to be green but are strapped for time. They might not feel that it is accessible to visit bulk stores to refill their supplies, for example. Convenience is what’s great about this possibility. By working with mainstream retailers, we will, hopefully, convince people it’s easy to move to a durable lifestyle,” explains Cucuron.

Convincing brands is also a significant part of the process, and Loop already touts having some of the biggest names in the FMCG space as converts.Signal refillable toothpaste tablets in durable glass containers.

“We must show that the model works for the brands and companies involved, which will attract others. We are asking brands to change their production and supply chain and suggesting that refilling products might become a big part of their activity. Showing its scalability will be important, and plugging Loop in the retailer environment will be the answer to getting to scale fast as they already have a distribution model.”

A reverse logistics model
For consumer goods, there will be an online shop available via the website for brands and private label. The products are then delivered in a reusable tote bag that is filled with empty packages once used. Following pickup, they are refilled and cleaned and sent back to the starting point for (re)distribution. There is a standalone option where Loop does everything and an integrated model where they work closely with partners, Cucuron notes.

The carbon emissions that would result from a large fleet of Loop vehicles on the road could potentially undermine the sustainability goals of the project. However, Cucuron highlights how Loop will be plugged onto existing logistics routes rather than having its own vehicles to minimize emissions. The transport issue is a common query due to its visibility, she explains, further noting that the company has run several life-cycle assessments (LCA) to gain a full picture of the sustainability of the platform.

These assessments have shown that if a product within Loop can withstand five uses, the sustainability output would be the same as a standard e-commerce platform, where products are at best recycled, and at worst, end up in landfill. Loop’s packages are designed to withstand 100 uses, denoting a further minimized footprint.

The real environmental kicker comes from producing the packaging itself. 

 “The transport issues attract a lot of attention, but the consumers don’t see the extraction of the raw material to make the packaging in the first place, but this is really where the impact comes from. The extract and transformation of raw materials are significant – even the scientists who have explored this were surprised by this. So, it’s also about education and understanding the full cycle and not just the transports and logistics – that’s actually a small impact,” she says.

In this way, the material choice for these durable packs may have a larger environmental impact in terms of production than a single-use plastic product may have. However, when pressed on this point, Cucuron highlights the fact that according to LCAs conducted by the organization, the reuse model is much more beneficial for the environment, even if the packaging is more environmentally-costly to create to begin with.

TerraCycle’s closed-loop solution has already launched in Paris and will begin in London and New York shortly, with future launches planned for Germany and parts of the US.

TerraCycle is taking a step into the unknown with Loop. Although they may not have all the “economic” answers for the future, they are clear that they are set on being transparent with the brands they work with. “It’s the same with our recycling programs – we know it is technically possible and will bring value to the company, planet and society, but exactly how it will go, we don’t know yet,” Cucuron concludes.

Laure Cucuron will be delivering a speech at The Recycling Event, held in Coventry, UK, July 2, entitled, “Creating a Loop. How manufacturers and the recycling industry are developing new packaging recycling models.” The event will be a major occasion for the packaging industry, from manufacturers, local government to retailers and those working in recycling, resource and waste management.

By Laxmi Haigh