A $10 billion business opportunity exists to convert 20% of the world’s disposable plastic packaging into reuse models. This is a win-win situation for customers and a key element in the fight against plastic pollution. To take advantage of this opportunity, all stakeholders must work together to develop new models for consumption, production, and distribution.
Reuse is a new way of looking at packaging. Packaging could not be considered a “throwaway item” with the sole purpose to protect a product. Instead, it could be used as part of the product. This will bring benefits to both businesses and consumers.
The Ellen MacArthur Foundation has released a new book, Reuse: Rethinking Packaging. It showcases many reuse models that go beyond the traditional reusable shopping bags.
All reuse models are consumer-oriented and follow the principles of’refilling at home’, “refill on the move” or “return from home”. Each of these options presents its own challenges and opportunities.
The Ellen MacArthur Foundation based its assessment of over 100 reuse models and interviews from more than 50 experts in this field has identified six ways these reuse models could bring substantial benefits to consumers and businesses.
1) Reduce costs by using compact products
Refills for reusable containers can be supplied in concentrated form to reduce transport costs up to 90%. Blueland, for example, offers window cleaning detergent as a tablet.
2) Customization to meet individual needs
Some reuse models let consumers personalize their purchases. Pepsi Spire is a soda dispensing system that allows users to mix and match flavours and choose the quantity they want. It also lets them personalize the packaging.
3) Optimize operations through sharing designs
Reusable packaging can be shared across brands and value chain to achieve economies of scale in distribution and logistics. Coca Cola Brazil launched a reusable universal container that is compatible with all brands.
4) Create brand loyalty through deposit and reward programs
Refillable and reusable packaging reward and deposit schemes can help increase brand loyalty. Repack, for example, offers customers discount coupons for online shopping if they return their reusable packaging.
5) Enhance customer experience through superior design
Loop offers products from well-known brands in durable, reusable packaging that is easy to use and maintain. Because the production cost can be divided across multiple uses, this is possible.
6) Use smart systems to gather intelligence
RFID tags, sensors, and GPS tracking can be used to smartly make use of reusable packaging. This allows for insight into consumer preferences and business operations. Systems such as the MIWA intelligent retail and supply system use smart, reusable capsules to track stock levels, monitor supply chains, and automate reordering.
These benefits can be combined and lead to more profitable business models that are based on a better customer experience. SodaStream, for example, is not only reducing shipping costs and building brand loyalty by eliminating water from the beverages, but it also allows the user to create a highly customized experience that allows them to mix and match flavours.
Reusing will require you to rethink your business model and make investments. There are many benefits to be had. A previous study by the Ellen MacArthur Foundation found that 20% of plastic packaging can be recycled into reuse models. This is a $10 billion opportunity.
Over 350 signatories to the New Plastics Economy Global Commitment have recognized the importance of reuse. This commitment recognizes that recycling is not enough and requires a new approach to how products are sold. Over 100 signatories to the agreement have pledged to shift from single-use packaging to reusable packaging, where applicable, by 2025.
The launch of the ‘Consumers Beyond Disposability’ platform
The Future of Consumption initiative of the World Economic Forum supports responsible consumption patterns by exploring innovative solutions. Innovation is only possible if there are ambitious pilots and large investments that show that it can be scaled up in practice. Industry leaders, innovators, designers, and governments need to rethink the role packaging plays in how consumers interact with products.
The World Economic Forum launched a platform called “Consumers Beyond Disposability” to facilitate large-scale adoptions of innovative solutions that reduce waste. It brings together business, government, and civil society. The platform will bring together stakeholders to help them identify, guide, and accelerate innovative solutions that can deliver better outcomes for consumers as well as the environment. The reuse research of the Ellen MacArthur Foundation will be a valuable knowledge base and analytical framework that will inform the platform’s multistakeholder agenda.
A Platform Steering Group will support the advancement of the ‘Consumer Beyond Disposability’ agenda and drive impact. The alliance can draw on real-world experiences to learn from their successes. Loop, for example, is currently piloting its durable packaging design in major cities. It is now inviting other stakeholders to work together to create new standards and environmental impact measures, as well as incentives to encourage widespread adoption of innovative solutions by consumers and businesses. It is time for stakeholders and businesses to take action.
