Simplicity and Convenience are the Keys Driving the Growth of Refillable and Reusable Packaging
Since efforts to "reduce" and "recycle" packaging waste cannot provide a complete solution, some in the industry are increasingly focusing on "reuse" to provide the additional part of the solution. A new report by Smithers, titled "The Future of Reusable and Recyclable Packaging to 2027", delves into the circular economy movement and argues that companies should replace single-use packaging with reusable packaging.
Reusable packaging offers more durable plastic containers or metal or glass containers that can be refilled at the store, returned to the store, or refilled at the consumer's own home. Although, in order for the reuse process to work effectively, consumers will demand simplicity and convenience.
According to Smithers' data, the sales of refillable and reusable packaging reached 35.1 billion US dollars in 2017, growing at an annual rate of 3.4%, and will reach 40.1 billion US dollars by 2021. It is expected that the sales of refillable and reusable packaging will be 42 billion US dollars in 2022, and are projected to increase by 5% annually from 2022 to 2027, reaching 53.5 billion US dollars. By 2021, the sales of refillable and reusable packaging are estimated to account for 4% of global packaging sales. By 2027, the sales of refillable and reusable packaging are expected to reach 4.2% of global packaging sales.
Since 2017, there has been a significant amount of small-scale development for reusable and refillable consumer packaging. However, much more work remains to be done. If refill and reuse are to become more mainstream, it is necessary to provide consumers with more information about the trials of daily household products and expand pilot projects.
There is no single reusable model that is applicable to all products and every situation. Different consumers have different needs and desires, which depend on many factors - where they live, how they shop, and what they buy. Similarly, different product categories work better in "stores" rather than at home, and vice versa. Success depends on customizing solutions accordingly, eliminating barriers to entry, and making the system as simple as possible.
Citizens and industries collaborating together
Collaboration is also crucial for the success of reusable packaging plans. This involves input from retailers, manufacturers, delivery services, civil society organizations, and of course, consumers (the "buyers"). The government can also play a key role, especially in helping to promote innovation and encourage investment. Consumers also indicated in the survey that they are willing or already using supplementary services, but few are habitually using them.
Technological development
The current technological developments in refillable and reusable packaging include better cleaning machinery and refill mechanisms, improved designs and durability of refillable packaging, and the gradual introduction of smartphone applications to promote consumer adoption of reusable packaging. Looking ahead, the use of smart packaging, smartphone applications, and "tracking and tracing" technologies is likely to become even more prominent in the field of reusable packaging.
Material market
Glass is currently the largest material type used to produce refillable and reusable packaging for the mature enterprise-to-consumer niche market. Plastic is the second largest material, while the use of metals is mainly limited to reusable water bottles.
Plastic is the largest material type used in the developing market for producing refillable and reusable packaging. Following closely behind are glass and metal. Metal is the largest material type used for refurbishing intermediate bulk containers and drums in the industrial and transportation sectors, followed by plastic drums.
End-use market
The reusable and refillable packaging is further divided into two sub-markets: mature or mature markets and developing markets. The mature markets include the enterprise-to-consumer and industrial/transport enterprise-to-enterprise markets. The mature enterprise-to-consumer sub-market includes three main end-use areas; beverage, household care and personal care packaging (mainly the supplementary packaging market in Japan).
Consumer packaged products, including household care and personal care items, have been at the forefront of the developing market trend towards reusable packaging. The products are packaged using reusable or fully recyclable materials, such as rigid plastics, metals, glass and engineering plastics.
However, the food industry has been relatively slow in adopting refillable and reusable packaging. Here, more and more pilot projects are using business models such as "refueling at home", "returning to the store", or "refueling in-store from the gas station". Refillable and reusable packaged foods were initially mainly concentrated on dry foods. However, since 2021, other foods have begun to be provided in refillable and reusable packaging forms, including sauces and spreads, dried fruits, grains, candies, and salty snacks.