In this Reusable Packaging Roundup, we think about systematic change and our shift to reusable packaging systems. Top-down regulatory change at the federal or EU level, for example, or bottom-up entrepreneurial reusable packaging models, both have a place in transforming our packaging systems, as do local governments such as Aarhus, Denmark. Here is a weekly rundown:
Reusable Packaging Roundup
Did Single-Use Lobbyists Truly Prevail in the Battle for Packaging Rules? These Cities Beg to Differ
Nathan Dufour of Zero Waste Europe recently scribed an engaging article that provides optimism for future success, even after the disappointing result of the PPWR.
“March 2024 ended one of Europe’s most contentious policy battles for sustainability in recent times,” he wrote. “Many hoped the Packaging and Packaging Waste Regulation (PPWR) would signal the end of the era for single-use packaging in Europe. Far from it. The result was an intense fight, marked by the raucous bombardment of single-use lobbyists through the halls of power, who got their way for many materials, and ensured that recycling, instead of reuse, remained paramount in the EU’s waste hierarchy.”
He then reported on some more positive news, including the preparations in Paris. The Paris Olympics will serve as “both a temporary showcase and a testbed for these sustainable practices, with the first-ever use of a reusable cup system for the biggest sports event on the planet. Other examples of progress in include the Netherlands, which instituted a 15 cent Deposit Return System in 2021. More recently, a scalable reuse ecosystem has been launched, starting with a test phase in the challenging environment of the Rotterdam Central Station.
Aarhus, Denmark has partnered with Tomra, as Dufour reports:
Facing annual waste management costs of approximately €5mn, 48% of which stems from food and drink packaging, the city views this initiative as a crucial step towards resolving its waste management issues. Supported by a significant investment from Tomra, this first-of-its-kind project in scale and approach leverages voluntary participation and economically attractive incentives, including a deposit system integrated with major credit card companies for instant refunds. In a matter of a few months, the well-designed and convenient system is already reporting nearly 300,000 cup returns through the system and an overall return rate well above 80 percent.
While buoyed by such examples, Dufour laments the lame PPWR outcome, noting that “effective reuse hinges on robust system designs that the PPWR could enhance.” Top-down matters, but ultimately, you control what you can, often bringing us back to local and entrepreneurial initiatives.
Six things to consider when building reusable packaging models
By participating in the impact accelerator TRANSFORM, Unilever is working toward changing the packaging system. It is a joint initiative between Unilever, the UK’s Foreign, Commonwealth & Development Office (FCDO) and EY. It supports innovative small and medium-sized enterprises (SMEs) and entrepreneurs, providing market-based solutions to key environmental challenges, including plastic pollution. Here are six takeaways from their recent article:
1 Refill solutions take time to establish
Enterprises and brand owners must develop partnerships with retailers and work together to change consumer shopping patterns. Volume uptake is often slow at first, and refill models won’t work for all products. So it’s important to prioritise items that are most suitable and that can be launched and scaled quickly and to support consumers through behaviour change.
2 Consumers often prefer to bring their own reusable packaging
When it comes to home care products, consumers often prefer packaging to be functional and are less concerned about its appearance. For personal care products, however, appearance is more important.
3 Various factors determine what kind of solution is required
Understanding the technology, consumer and regulatory requirements in a market will determine if a high- or low-tech solution is right. High-tech machines are better at ensuring product quality, but they come at a cost. This is a challenge when operating with low margins and in low-income markets. They are also more complicated to deploy and can have unexpected drawbacks. Aside from the obvious environmental advantages, the biggest benefit of refill models in low-income markets is providing consumers with cost savings, as they are paying just for the product and not the packaging.
4 It’s critical to ensure product quality is trusted
Enterprises and brand owners must put in place strategies to build trust, as refill models can be perceived as allowing for product tampering, which is a concern for both brands and consumers.
5 Store owners have a key role
Shopkeepers can be reluctant to adopt new technology, especially when shelf space is at a premium. However, once convinced, they can influence the model’s success by selling the idea to their customers. Enterprises can educate store owners on the environmental and cost benefits of refill products and provide training to store owners to help them boost sales.
6 Leveraging local champions can accelerate uptake
Tapping into local community champions – such as store owners, local communities and NGO leaders – is a powerful way of encouraging consumers to use refill stores. If a well-respected individual is engaged, it can influence community behavior.
Funding: Vytal Secures €6.2 Million
Vytal, a leading provider of software-enabled reusable packaging solutions, has raised €6.2 million in a growth financing round led by Emerald Technology through its Sustainable Packaging Innovation Fund, with participation from Ventis. Existing investors Kiko Ventures, Grazia Equity and Rubio also contributed, reinforcing their commitment to Vytal’s mission to foster the circular economy by using technology and data to maximize the value of reusables.
Lack of Funding: Kamupak Calls It Quits
“We regret to inform you that Kamupak’s journey will come to an end,” the company wrote on a LinkedIn post. “All the way leading up to this day we have had a strong hope that we could solve our financial situation and be able to continue our mission to create circularity in take away packaging and reduce single use waste. It has now unfortunately been clear to us that we are forced to take this difficult decision.” A casualty of a watered-down PPWR?
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
