Plastic is past it: the irresistible rise of reusable packaging

Article published in Le Temps, 5 February 2024 with Felix Phillip, Head of Circular Economy Research at Lombard Odier Investment Managers

The fight against plastic pollution has become a global emergency. The seriousness of the situation is clear, and it is reflected in increases in consumer awareness, regulatory efforts (including at international level) and corporate commitments to solving the problem.

However, progress has so far been limited. Packaging waste is at an all-time high and global recycling rates remain low. Fossil-based plastics are gradually being replaced by recycled or bio-based paper packaging, but performance requirements and concerns around cost competitiveness are proving obstacles to mass adoption.

That’s why tackling the plastic waste crisis effectively means making better use of the materials we already have – primarily through the concepts of reuse and refill.

Read also: Capturing the plastic waste opportunity

Will reuse and refill herald the return of the milkman?

Reuse and refill aim to minimise the amount of packaging that is thrown away. By putting packaging to use again, we can reduce demand for new materials and decrease the environmental impact associated with their production, transportation and disposal.

The idea of reusing packaging is not new. Milkmen used to deliver fresh milk to our doors in reusable glass bottles. The empty bottles were later collected, sterilised and reused, considerably reducing waste. This model illustrated the principles of the circular economy long before the term became popular.

A remarkable resurgence of interest in refill and reuse has occurred in recent years. We’ve seen the emergence of a vibrant ecosystem of ventures, initiatives, pilots and collaborations involving brands and retailers. Challenges are inevitable whenever profound change occurs, but the industry is gradually maturing.

Read also: The 10 principles of circular economy

This evolution is paving the way for larger-scale refill and reuse solutions, bringing us closer to a sustainable future with far lower levels of waste. We at Lombard Odier have identified different success factors that make us optimistic that real change will materialise in the not-too-distant future.

A people-first approach to packaging

Encouraging people to adopt new habits and embrace reusable packaging can be difficult. Solutions will only succeed by attracting consumers; they must make it easy for people to switch to alternatives, and they can do so by offering incentives such as hassle-free deposits and real-time information.

There is no one-size-fits-all model for reuse and refill: solutions need to be tailored to specific use cases. For the hotel and catering sectors, adoption rates for reusable packaging are promising as it could give them the key to unlock significant reductions in plastic waste. Refill solutions are also particularly well suited to hygiene and care products, especially when sold through e-commerce channels. Some companies have built business models around offering refillable products on a subscription basis. This offers convenience for consumers while helping them alter their habits, and this builds customer loyalty. In Switzerland, the 900.care brand offers not just refillable solutions but also ships powder concentrates rather than products diluted with 90% water. These models can considerably reduce plastic waste as well as carbon emissions.

Read also: How sustainable cosmetics brand Beauty Disrupted is reinventing the humble bar of soap

Reuse and refill systems often require the installation of entirely new infrastructure and can involve numerous stakeholders: collection firms, cleaning companies, redistribution channels, as well as brands, retailers and regulators. Strong partnerships that bring together complementary skill sets are essential to develop refill and reuse models. They will also create economic and environmental benefits.