PAC Global Webinar

Reusable Packaging Growth Stories: Striving for Viability at Scale

Reusable packaging pilots and start-ups are rapidly emerging worldwide, but viability at scale is a huge challenge, and examples are rare. This webinar focused on two reuse growth stories — one B2C and one B2B — and on key topics related to economic and environmental viability.

Key Takeaways:

1. For return-based models the average return rate is a key indicator for environmental (and economic) viability, and is much more meaningful than test data for the # times a container may be reused. For example, a 95% return rate equates to containers being reused, on average, 20x, whereas a 67% return rate sees the average drop to just 3x.
   
   
2. Credible life cycle assessment (LCA) can provide useful guidance on the average # of reuses required to "break-even" in terms of environmental impacts, in comparison to one or more single-use alternatives. So, depending on the solutions to which it's being compared, a reusable packaging solution can have multiple break-even points.
   
   
3. With increased experimentation we are gaining insight as to which channels are better suited to achieve viability. For example, in e-commerce it's not clear that return rates are sufficient with B2C clothing returns, but as Mike Newman noted, Returnity's experience shows that rates are more than sufficient when the returns are part of a clothing rental system, as well as with well-designed B2B transport packaging systems. 
   
   
4. The devil is in the details: every step of the reusable package's journey has challenges which must be addressed. With reference to the Bringing Reusable Packaging Systems to Life report Compass Group Canada's Jennifer Lambert offered insights associated with the key steps along the user journey. Just two examples of many: the importance of rigorously streamlined onboarding for users, and staff training at point-of-sale. 
   
   
5. Friendlier's Jacquie Hutchings underscored the importance of container design as fundamental for reusable packaging system success -- in terms of both functionality and environmental impact viability. Considerations include: durability, weight, stackability, ease-of-cleaning, ease of distinguishing from single-use, traceability, functionality (e.g., microwaveable), and end-of-life pathway(s). For example, with respect to the link between durability and environmental impact, it's important to be realistic about the # of reuses a container will get, and avoid "over-engineering" -- which will make the break-even point higher, and much harder to attain. 
   
   
6. Reuse at scale requires widespread adoption and behaviour shift, which is achieved by ensuring that reuse is easy, accessible, and communicated effectively.

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