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Can reusable containers compete with cheap, single-use packaging?

Reusable packaging in supermarkets is already being rolled out, as shown by Belgian retailers’ recent collaboration – but competing with cheap, single-use plastic will be challenging.

Supermarkets in Belgium – Albert Heijn, Aldi, Carrefour, Colruyt, Delhaize and Lidl – have launched a new reusable packaging coalition that aims to accelerate the use of reusable packaging.[NM1]

By the middle of 2025, shoppers will be able to buy their mushrooms from the Mechelen region in a reusable container, which will then be industrially washed and refilled by the producer.

Convenience and affordability are critical factors for reuse systems to compete effectively with single-use alternatives. The new coalition in Belgium will therefore showcase how competing companies can work together on sustainable packaging solutions.

“Our mission is clear: to scale up reusable packaging through unity and innovation,” said Elke Gijsbrechts, Colruyt Group’s expert in sustainable products. “By coming together […] we can create a system that works for everyone and truly makes an impact.”

Standardisation of the packaging across different supermarkets is key: it will get consumers on board, so they don't have to think about where to return which packaging. Scaling one reuse and return model across multiple companies, both large and small, requires them to use brand agnostic – or plain – packaging. It’s an almost impossible concept for marketing teams to grasp but one that sustainability leaders have been pushing behind the scenes.

Pilots to date have been small scale and met with mixed levels of success. The majority have been industry-led.

“We now need bold policies and targeted economic measures to help make reusing (packaging) the natural habit of consumers and businesses alike,” said Nathan Dufour, reuse systems manager at Zero Waste Europe (ZWE), an NGO.

In September, ZWE helped produce the first European Reuse Barometer, which showed a “rapidly growing” reuse industry in Europe across sectors including retail and takeaway. Those involved in packaging technology and early trials have also been buoyed by how engaged consumers are: 78% of the reuse systems report return rates above 75%, which demonstrates strong consumer commitment, according to InOff Plastic, which was also involved in the barometer, alongside Planet Reuse and New European Reuse Alliance (ERA).

Within the retail sector, reusable bottles were the most common packaging (43% of all solutions surveyed), compared to 13% for food containers. Glass is the primary choice of material, largely due to the prevalence of glass bottle return and refill schemes in place across Europe. Across the respondents operating in the retail sector, 73% operate a ‘return on the go’ model and 20% operate a ‘return from home’ mode.

The use of automated return systems is increasing too. The extensive network of return vending machines (RVMs) in Germany, for example, plays a “pivotal role” in scaling the use of reusable packaging.

The barometer noted: “Germans are familiar with using these machines to return bottles and reclaim their deposits,” so adapting these machines to accept various packaging types is a “natural progression”. It’s also worth noting that people prefer returning potentially dirty containers or cups to a machine rather than to a person.

How collaboration rather than confusion can cut carbon

None of the reusable retail packaging solutions involved in the barometer have run a dedicated life cycle assessment (LCA) to determine the environmental benefits of the schemes versus single-use packaging. Consumers tend to see reuse as ‘greener’ than single-use, as do many supermarkets; yet understanding the carbon impact of one system versus another is complicated.

There was, for example, intense lobbying at EU level during the PPWR negotiations with those representing the paper packaging sector in particular arguing that single-use is ‘more sustainable’ than reuse. The claims were contested by NGOs and scientists alike. Retailers and packaged food and drink manufacturers are increasingly aware that reuse will have to (eventually) play a part in them reaching their net-zero targets.

Research in 2023 run by the Ellen MacArthur Foundation (EMF), Systemiq and Eunomia, showed that returnable plastic packaging “has better environmental outcomes
than single-use plastic packaging across almost
all scenarios, applications, and performance indicators that were studied”.

The report, which also involved input from the likes of Danone, Nestlé, PepsiCo, The Coca-Cola Company and Unilever, highlighted the importance of scale, standardisation and collaboration: when levels of these are high the greenhouse gas emissions savings achieved range from 35% to 69%; meanwhile, water and material use are reduced by 45% to 70% and 45% to 76% respectively.

“No single organisation can drive the necessary change by itself; it will require a collaborative effort from businesses, policymakers and financial institutions,” explained EMF plastics lead Sander Defruyt. “Together they can kick start the reuse revolution and get the world on track to tackling the plastic crisis.”

Currently, many of the reuse systems in grocery are what EMF calls “fragmented”, or low-scale systems that are unlikely to reach cost parity (or in some cases carbon parity) with today’s highly optimised, large volume single-use systems.

The barometer also showed profitability for reuse remains a problem: 52% of the reusable packaging solutions surveyed have not yet reached profitability. Some 57% of the solutions expect to become profitable within five years with the rest looking at six to 11 years. The average amount of funds raised to date is between €3 to €5m.

Standardisation is key to reducing the costs throughout the reuse supply chain – reducing logistics, handling and manufacturing costs. Efficiently-stackable packaging also saves 2.5 times the space in logistics and storage, which is vital for bringing down costs in transport and storage, and climate impact. Having as few packaging formats as possible reduces complexity in sorting, logistics, and cleaning. Compare that to the myriad formats and materials in today’s supermarkets and the shift to reuse will involve a totally new retail environment for food and drink.