A new study from Zero Waste Europe and Searious Business shows reusable packaging is an “economically viable” alternative to single-use packaging when “certain conditions are met”.
The cost-benefit analysis, “The economics of reuse systems – a study into what makes a financially viable reusable packaging system“, conducted by Searious Business, identified return rates, number of average use cycles and retention time are key to creating a financially healthy reuse system.
Three open-loop packaging categories were investigated, food containers for takeaway food (PP), secondary transport packaging (FIBC) and beverage containers (PET bottles), using Spain, Italy and Germany as archetype countries.
Searious Business says the economic viability was based on return on investment for a reuse systems provider and the accumulated costs of single-use plastic packaging versus reusable plastic packaging for a system user.
The question is not ‘if’ but ‘how’ we need to make prevention and reuse a living reality in Europe and beyond.
Commenting on the study, Nathan Dufour, Reuse Systems Manager at Zero Waste Europe, said: “Today the question is not ‘if’ but ‘how’ we need to make prevention and reuse a living reality in Europe and beyond.
“This study is yet another clear demonstration that in a matter of only a few years, well-designed high-performing systems for reuse will help reconcile economics with pressing environmental concerns.”
The study found that reusable takeaway food containers are cheaper for service users, and system providers achieve a return on investment between years 3 and 4.
In secondary transport packaging, the study also showed that the return on investment for a systems provider is achieved between years 2 and 3 and the user costs are similar.
Finally, the study found reusable beverage containers are economically advantageous for the users, and the return on investment for system providers can be reached between years 5 and 6.
Packaging users often overestimate the risk of switching to reusable packaging.
Willemijn Peeters, CEO and founder of Searious Business, commented: “Packaging users often overestimate the risk of switching to reusable packaging. This study mathematically proves that reuse is financially viable, and it doesn’t even begin to consider the external costs of continuing business as usual. Reuse must be a priority to prevent plastic waste before it becomes pollution.”