By moving away from disposable packaging, companies can address the global problem of plastic waste. According to the United Nations Environment Programme, only about 9 percent of the 9.9 billion tons of plastic generated globally since the 1950s has been recycled. And almost half^PDF of the plastic waste poisoning marine life, contaminating food, and clogging waterways and sewers comes from consumer packaging. As citizens and governments wake up to this plastic pollution problem, they’re turning to business to solve it. In response, companies are trying to craft new approaches to plastic, whether reducing overpackaging or rolling out biodegradable materials made of seaweed and cornstarch. But one solution — the reuse and refill business model — stands out for its potential to shift consumer behaviors while unlocking new revenue streams and cost savings for companies. It’s easy to see why cheap, sturdy, and lightweight plastic quickly became a convenient, even innovative, packaging option for consumers. The popularity of plastic skyrocketed in developed countries in the 1970s after the invention of the polyethylene shopping bag. Within two decades, plastic packaging had flooded the world; consider how, in developing countries, companies have marketed items as varied as shampoo and hot sauce in tiny single-use sachets. Products in cheap, throwaway packaging solved immediate consumer problems — for example, by offering unbeatable value pricing to millions of low-income consumers — but created a long-term health and environmental disaster. Now, businesses such as Chilean startup Algramo, literally meaning “by the gram,” are tackling the crisis by offering the same value to consumers, but in reusable containers. Algramo makes products including rice, detergent, and other everyday staples available in small, affordable quantities via smart vending machines and reusable containers. Its bottles are equipped with RFID tags that allow consumers to earn discount credits with each use, incentivizing them to refill rather than throw away the containers. Flush with funding from Closed Loop Partners, Algramo is set to introduce this innovation in the U.S., too. It has good reason to do so: On a per capita basis, North America, Japan, and Europe generate the most plastic waste. Algramo is in good company. As part of the New Plastics Economy initiative, launched two years ago by the Ellen MacArthur Foundation and the U.N. Environment Programme, more than 400 organizations have set concrete targets toward reducing plastic use by 2025. Many of those companies, both startups and established brands, are testing reuse and refill solutions. Their motivations aren’t strictly altruistic: The Ellen MacArthur Foundation estimates a US$10 billion business opportunity in converting even 20 percent of global plastic packaging to a reusable model.  

It's hard to picture now, but one day, something other than coronavirus might change your trip to the grocery store. Imagine entering your nearest chain grocery store to find nuts, pasta, flour, and fresh produce sold exclusively in bulk, with high-tech measuring and distribution methods specific to each product. In the cleaning and houseware aisles, there's laundry detergent, shampoo, and lotion getting dispensed into reusable bottles, which the store will clean upon return. It's not totally impossible. But for now, David Pinsky, a plastics campaigner at Greenpeace, notes that if consumers want package-free options, very few, if any, major retailers provide them. No one wants to get stuck with tons of excess packaging after buying some soap or pasta. Sometimes, though, it just...happens. That's not your fault: Grocery store experts note that most consumers focus on cost and convenience when they set foot in a store, and it's unlikely they look for the items with the least packaging. For consumers focused on cost and convenience, it would certainly be a lot easier to avoid generating packaging waste if that waste just wasn't there in the first place. That's where package-free efforts come in. Getting major grocery stores to go entirely package-free is likely a pipe dream, according to grocery store experts, plastics and waste experts, and small, package-free store owners. In all likelihood, big chains probably won't ever get there. But a radical overhaul to the way packaging is made, used, and dealt with in big chain stores? That's more possible — and likely a better goal.

What package-free efforts mean for our plastic addiction 

The Environmental Protection Agency estimates that containers and packaging alone, which includes food-related containers, comprise over 23 percent of the materials going into landfills in the U.S. That's a problem because the plastic packaging waste from retailers, particularly single-use plastics that are sometimes used for just seconds by a consumer, can last for lifetimes in the environment, says Pinsky. Plastic pollution is already known to devastatingly harm our oceans and wildlife. A 2019 study from the Center for International Environmental Law also found that greenhouse gas emissions currently produced when making and managing plastic threaten the global community's ability to keep temperature rise below 1.5 degrees Celsius, and that the threat will become worse if plastic production grows as planned until 2050.  Grocery retailers could be part of the solution by moving away from single-use plastics, though. Part of the trouble right now is that supermarkets typically don't release data about their plastic footprint, Pinsky notes. Because of this, it's difficult to estimate the impact of going package-free at a given chain. Instead, by focusing on recycling to address plastic pollution, Pinsky notes that retailers "often feed into the industry narrative that individual responsibility will solve the problem; that the customer is to blame for the pollution crisis." A 2019 Greenpeace report, which Pinsky co-authored, evaluated the overall plastic footprints of big U.S. retailers, including Costco, Walmart, and Trader Joe's. Greenpeace did so based on each company's policies around mitigating their plastic footprint, actual reduction, and transparency concerning single-use plastic. With their metrics, no store scored better than 35 out of a possible 100, a failure in his book. While we don't know every store's plastic footprint since complete plastic footprints are not available publicly, we've seen glimpses. While Kroger, Trader Joe's, Costco, and Whole Foods didn't provide Mashable with their plastic footprints when asked, Trader Joe's, Costco, and Whole Foods sent Mashable information about their plastic reduction efforts. Walmart, for its part, says it will release data on its plastic footprint in a forthcoming Environmental, Social & Governance Report for 2020, marking its first year doing so, according to Walmart's press team. When Kroger began phasing out plastic bags in 2019, National Geographic wrote "The company calculated that they handed out about 6 billion plastic bags a year, about six percent of the total number of bags distributed annually across the country. That’s the equivalent of about 32,000 tons of plastic, or enough to fill over 3,000 moving trucks jam packed with bags." It wasn't always this way. Before the advent of the grocery behemoths we see today, how people typically accessed food involved a lot less packaging, says Marc Levinson, an economist and historian who chronicled the changes to retail juggernauts in his book, the Great A&P and the Struggle for Small Business in America. Think of, say, a milkman reusing glass bottles, or a general store selling portions from bulk items. The evolution of how Americans access and eat food is nuanced, long, and, ultimately, fascinating. Grocery aisles packed with ready-made food in disposable packaging marks the current chapter of this saga. It's a story centered on convenience and cost, say Levinson and Jon Steinman, the author of Grocery Story: The Promise of Food Co-ops in the Age of Grocery Giants. In plenty of cases, packaging is necessary to preserve, transport, and sell products, says Darby Hoover, a senior resource specialist for the Natural Resources Defense Council (NRDC) focusing on the food system. On the other hand, for lots of products, the packaging just serves marketing purpose, Levinson points out. A cashew in a giant tub is just a cashew, but a cashew in a package with a company's label on it becomes a marketable entity. "A package is a billboard," Levinson says. "From the point of view of sellers, they don't want to go back to the days when products were sold in bulk." In the 19th century, if you were trying to buy, say, molasses, your local grocer would simply pour molasses for you. There was no such thing as "name-brand" molasses.

What small stores are doing, and what big chains can learn 

If you actively seek out items with less packaging, you're probably not going to big chains anyway. You're turning to alternative options that have popped up to meet this desire: package-free stores and delivery services; co-ops offering food in bulk; refillable stations for basics like shampoo and lotion. It's not like a big chain trying to cut down on packaging operates the same way as these stores and services (more on that later) but understanding what has — and hasn't — worked can help illuminate what could. Take the Czech company MIWA, which Pinsky says has features that could be appealing to a big grocer otherwise hesitant to adopt reuse models. MIWA's "smart containers" help automate the weighing of bulk purchases, as well as payment, and provide usage data, which he notes is valuable for retailers since they care about consumer behavior and restocking needs. There are other innovations out there, too. In the realm of grocery deliveries, there's Loop, which offers customers major label products like Häagen-Dazs, Crest, and Tide that arrive in a "Loop Tote." (Customers pay a refundable deposit for each package.) When the reusable containers are empty or in need of a refill, people send them back to Loop in the tote, where they're cleaned and reused. CEO Tom Szaky says Loop solves the negative consequences of throw-away packaging, while "maintaining the virtues of disposability — affordability and convenience." Typically, Szaky says, manufacturers aren't incentivized to care about their packages after they're with the consumer, which leads to a plethora of inexpensive, disposable packaging. Under Loop's system, though, the package for a product becomes an asset to the manufacturer: Szaky says manufacturers want to make packages durable and long-lasting so they can withstand as many reuses as possible. As is, Loop can fill a major need with respect to eliminating packaging in grocery deliveries. (Steinman notes that in June, online grocery sales hit a record of $7.2 billion, with 45.6 million households using online grocery services.) Down the road, Loop also intends to expand its in-grocery store presence worldwide, Szaky says. (A spokesperson says Loop is first scheduled to be in stores in 2021.) Big chains can also innovate after examining the challenges that smaller, package-free stores might encounter. First, not everything can be sold through bulk or refillable methods, even at smaller stores. At Sustain LA, a zero waste company that sells refillable home and beauty products, Leslie VanKeuren Campbell, the company's founder, and her team sell things like dish liquid, body lotion, and mouthwash at refillable stations at farmer's markets, in its store, and through deliveries. She notes that it might be harder for a large chain to have a proprietary, spill-proof dispensing system than it was for her when Sustain LA opened its own brick-and-mortar shop. Even on her own store's scale, finding the right pumps for particular items proved difficult. Sometimes, depending on the consistency of what was being dispensed, pumps could get jammed or take a while to dispense. (To this end, there are particular pumps that work better for, say, shampoo, than other items.) At a small store, this is mainly a minor inconvenience, but for a big chain it could be a major deterrent, VenKeuren Campbell points out. At Sustain LA, if a customer gets frustrated, the staff can quickly help, but at a bigger chain, a dysfunctional pump could lead to a big loss in sales. Then there's the way in which bulk items get converted into refillable or reusable formats. Steinman notes that when his local co-op tried to go package-free, they found that disposing of the containers for bulk laundry liquid being purchased actually carried a bigger environmental impact than what they would have saved by not using individual containers. (VanKeuren Campbell says Sustain LA typically refills bulk containers with vendors, or they donate big drums to animal shelters, or send them back to vendors.) "Beans still get to the store in something," Hoover of the NRDC says. "There's never zero packaging."

What's stopping the package-free revolution?

In large part, Levinson sees the lack of package-free options as a logistics problem: For big chains with massive amounts of traffic each day, even seemingly minuscule decisions can have a rippling impact. "For modern food retailers, logistics is extremely important, and packaging is important to decide those logistics," Levinson says. "There's a concern in shaving every hundredth of a cent possible." For the Walmarts and Whole Foods of the world, it's not quite as simple as scaling up the same practices as smaller companies. They operate on a much bigger scale than mom-and-pop package-free options, Pinsky says similarly. Take bulk items: Bread, coffee, and other dry goods could be sold in bulk in more places, Steinmain notes, in the sense that they can be sold without packaging. Logistical concerns get in the way, though: Levinson points out that cashiers need to weigh bulk items at checkout which slows down the line. It seems minor, he says, but for a big chain that would lead to a loss of sales that few seem willing to give up. "The key stress test is to test these things for scale," Szaky, of Loop, says. "Any extra work; they're not going to be able to do it. It's just not going to be possible." Ultimately, though, Hoover maintains that big chains need to address the root of the waste to really get packaging (and specifically plastic packaging) out of their stores: suppliers. In 2019, the Break Free from Plastic initiative conducted 484 cleanups in 50 countries (and six continents) and identified the brands whose products showed up as litter most often. The audit revealed the same brands had the most plastic waste for a second year in a row: Coca-Cola, Nestlé, and PepsiCo. The Walmarts, Krogers, and Costcos of the world have sway with suppliers. If a grocery chain actually wants to go package-free, Hoover notes it would have to communicate that desire to the suppliers covering their products with (potentially unnecessary) packaging. This is one place in which big chains actually have potential for package-free options in a way that smaller mom-and-pop stores don't: The Walmarts, Krogers, and Costcos of the world have sway with suppliers, Hoover notes. Mashable asked Whole Foods, Walmart, Trader Joe's, Kroger, and Costco about the roadblocks towards package-free options. Kroger, Costco, and Whole Foods declined to comment. Commenting on bulk methods overall, a Trader Joe's spokesperson told Mashable via email that Trader Joe's has evaluated the use of bulk bins in its efforts "to minimize waste and shift to sustainable packaging," but "with the expansion in the number of stores and focus on reducing waste, the use of bulk bins is not a sustainable option for us at this time." That said, the spokesperson maintains "[Trader Joe's is] constantly evaluating options and are committed to making improvements." Trader Joe's didn't comment on other roadblocks. When asked about the potential financial deterrent of slow lines from weighing more bulk items, Walmart had no comment. When asked about mechanical troubles associated with refill stations that might deter a larger chain from implementing them, Ashley Hall, director of strategic initiatives at Walmart, told Mashable via email: "We believe the issues can be addressed and it is a technology to watch." When asked about reducing packaging by communicating a desire for less packaging with suppliers, Hall writes: "Since 2006, Walmart has been encouraging suppliers to reduce packaging in the products we sell," adding that the company distributes a voluntary survey to suppliers about their product packaging. Levinson agrees that these giants can impact what suppliers make, including items with less packaging, but the likelihood of chains doing that out of the goodness of their hearts is slim, in his opinion. "They know what's moving, and what's not moving," Levinson says. "If they decide the 32-ounce [container] isn't moving, they'll tell the supplier. The consumer is calling the shots here." Still, how can you call the shots when you're not able to decide what shots are available in the first place? Without more package-free options, you're stuck picking between a 16-ounce plastic container, or a 32-ounce one.

Where do we go from here?

Grocery store experts say that for some customers and grocers, forgoing certain forms of packaging, or using reusable containers when handling food and hygiene items, sounds perilous amid the spread of coronavirus, leading to resistance to package-free efforts. That concern isn't founded, necessarily — a cohort of 125 virologists, epidemiologists, and health experts recently said consumers can safely use reusable containers during the pandemic. The Centers for Disease Control and Prevention provides specific advice for preventing the spread of the virus while grocery shopping, adding: "There is no evidence that food or food packaging play a significant role in spreading the virus in the United States." Still, some states, counties, and cities, have rolled back plastic bag bans which went into effect before the pandemic. (Additionally, in the early days of the coronavirus' spread in the U.S., the Plastics Industry Association lobbied the U.S. Department of Health and Human Services to declare that bans on single-use plastics presented a public safety risk.) "In a way, we've gone back many decades," Steinman says, in reference to the increased use of single-use plastics in stores during the pandemic. "I'd like to think we'd be able to move past this, and get back on track with package-free shopping." Pinsky sees a decrease in momentum as "largely temporary." If there's one thing the pandemic quickly revealed for people, it's that our sense of "normal" is hardly static. There have been massive overhauls to the ways in which we get basic goods in the past, but where the current moment will take package-free options down the road remains to be seen. It could go many ways: Maybe the plastics industry, reinvigorated by single-use plastic ban reversals amid the pandemic, will continue its stronghold; maybe consumers, now more aware of the systems in which they live, will push back on their limited options for accessible, package-free food. Maybe packaging will be the next lobbying effort in statehouses and city halls across the country, after plastic bags and styrofoam clamshells. "It's really a turning point for the world that we need," Pinsky says, referencing both the Black Lives Matter movement and the pandemic. "We need to rethink the way the world has been operating."

As virus-wary customers opt for grocery delivery instead of in-store browsing, an eco-friendly startup is offering U.K. shoppers a way to cut down on all that consumer-goods packaging. Loop, a spin-off of New Jersey recycling specialist TerraCycle Inc., is starting a trial with supermarket operator Tesco Plc that lets consumers order products like Heinz ketchup and Nivea shaving balm in containers designed to be returned and refilled over and over again. Shoppers can order the products via a local Loop website, with Loop keeping a small deposit that’s returned when it gets the packaging back for reuse. The U.K. is Loop’s latest market -- it already operates in the U.S. and France, while expansion to Canada, Japan and Australia is coming in this year and early 2021, the company said. Related: The Milkman Model Is Back, This Time for Shampoo and Haagen-Dazs In a phone interview, Loop and TerraCycle founder and Chief Executive Officer Tom Szaky said the company’s sales remain strong amid the Covid-19 pandemic that has roiled the consumer landscape. Tesco CEO Dave Lewis said in a statement that the grocery chain “has a clear ambition to reduce packaging” and the partnership will help it develop new plans using reusable containers. Loop, which has partnered with big companies like Coca-Cola Co. as well as smaller ones, ships customers’ orders in stainless steel, glass or aluminum packaging. When the container is emptied, shoppers can either request pickup of the containers or they can drop them off at 2,500 collection points in the U.K. The jars, canisters and bottles are sorted, professionally cleaned and returned to the manufacturer for a refill. “The professional cleaning means people aren’t afraid” to use the service during the pandemic, Szaky said.  

While there’s no scientific evidence to support this claim, there’s a widely shared consensus that most people eat ice cream directly out of the container. While a seemingly unimportant detail in the production of this popular dessert, for Nestlé, it was one of the most critical considerations as it planned out a new, radical design for its Häagen-Dazs ice cream brand. In January of 2019, Nestlé announced a partnership with TerraCycle, a global recycling organization that was rolling out a first-of-its-kind home delivery service called Loop. TerraCycle, known for its mission to eliminate waste by creating new products from the collection of hard-to-recycle materials, has been around for two decades. Last year, during the World Economic Forum in Davos, Switzerland, TerraCycle founder Tom Szaky unveiled Loop, a shopping platform that will enable people to consume products in customized, brand-specific, durable packaging that is collected, cleaned, and refilled. As the world shines a spotlight on sustainability initiatives that factor in recycling single-use packaging, Loop takes the eco-friendly, green model to the next level by introducing reusable containers. And some of the biggest food and beverage and consumer package goods (CPG) companies including Unilever, Procter & Gamble, Clorox, Mars, Coca-Cola, PepsiCo, Nestlé, and more, were onboard for the pilot program that launched last year. For its part, Nestlé joined Loop as it committed to expanding its global efforts to develop new packaging designs that minimize the impact on the environment, noting that by 2025 the company plans to make 100% of its packaging recyclable or reusable. As part of the Loop pilot program, Häagen-Dazs ice cream was delivered in a reusable, stainless-steel, double-walled ice cream container, which keeps product fresh and cold while maintaining the pint at a comfortable temperature for the person eating the ice cream straight from the container. The design also enables the ice cream to melt quicker at the top, and its rounded edges means the last spoonful doesn’t get stuck in the corners of the container. “The package design process was a critical part of the entire Loop process,” said Steve Yeh, a project manager at Häagen-Dazs. “It’s not just about making a reusable container, it’s also about creating a high-touch consumer experience.” According to Yeh, the Häagen-Dazs package went through a total of 15 iterations before it finally launched. “Nestlé committed major resources to design and develop the original package.” The team also worked closely with Loop on developing breakthrough cooling technology for the Loop Tote, which the ice cream container is delivered in via UPS. Terracycle officials admit there is a cost to manufacturing partners committing to Loop—from the investment in new durable packaging to the design of the product to the time spent understanding how to handle new packaging lines and how to scale to meet demand. But the reality today is that sustainability efforts are here to stay. And any new endeavor is going to require an upfront investment. According to a new business intelligence report from PMMI, the Association for Packaging and Processing Technologies (and Automation World parent company), packaging sustainability has moved beyond a trend and is now a global shift. Released in March 2020, the report, “Packaging Sustainability: A Changing Landscape,” reveals how sustainable packaging initiatives at CPGs are affecting machines, materials, and packaging formats. The report states that the global sustainable packaging market reported that total value of revenue was estimated at $220 billion in 2018 and is predicted to reach $280 billion in 2025, growing at a compound annual growth rate of approximately 6%. The report is based on information collected from 100 sources and 60 interviews. The majority of the CPGs interviewed are looking to switch to lighter weight, recyclable, and sustainable materials to reduce waste. About 36% of the CPGs interviewed are exploring the circular model of reuse/return/refill. The circular economy For decades consumers have been participating in the “throwaway lifestyle,” where single-use products are disposed of resulting in massive amounts of waste. According to the Environmental Protection Agency, the total generation of municipal solid waste (MSW) in 2017 was 267.8 million tons or 4.51 pounds per person per day. Of the MSW generated, more than 94 million tons of MSW were recycled and composted, equivalent to a 35.2% recycling and composting rate. In other words, we don’t have a good track record for recycling. TerraCycle thought there must be another way—which is Loop. “The genesis of Loop is a tighter, closed-loop system that has manufacturers taking back ownership of their packaging,” said Ben Weir, Loops’ business development manager for North America. “It’s bringing about the reusability of packaging in something that is durable and long-lasting and that can be cleaned and used hundreds of times.” It’s not a new concept, but rather a throwback to the milkman model in which consumers returned the glass containers. What’s new is the aesthetic benefits that will drive consumer brand perception—and, while not obvious at first—it is a better economic model for the manufacturer. “The concept of a circular economy is an economic model, not a sustainability framework,” said Tim Debus, president and CEO of the Reusable Packaging Association (RPA). “By decoupling growth from the consumption of finite resources, maintaining product values at their highest, and building market resilience to source material disruptions. It is estimated that the circular economy offers $4.5 trillion of value from new growth and innovation opportunities, and the world today is only 8.6% circular.” There is an enormous opportunity, but manufacturers may hesitate due to the upfront investment related to packaging design and retooling machinery. According to Nestlé’s Yeh, the company used its Bakersfield, Calif., facility to ramp up its production of ice cream in reusable and durable containers for the Loop pilot project. “We decided to retrofit an existing line to support the platform versus investing in a new line. It was not an easy changeover and required some reengineering. Some of the changes involved installing more modern equipment including better code daters and more modern metal detection.” Yeh said they also incorporated improvements to existing processes, which requires additional staff to handle the containers. “Once the platform expands, we would then visit a fully automated system.”

Loop, the zero-waste, refillable packaging delivery service, has announced that it is expanding nationally in the US this summer and coming soon to the UK, Canada, Japan, and Australia. Terracycle, which runs the service, has partnered with Kroger and Walgreens in the US, Loblaw in Canada, Tesco in the UK, and Carrefour in France. Terracycle piloted the Loop service in New York and Paris and later expanded to a few regions along the US east coast. Consumers order products from over 200 brands, including products from major international consumer goods companies such as Unilever, Nestlé, Coca-Cola, and Procter & Gamble. Customers place orders online and receive it in a reusable Loop tote, with all of the products within coming in refillable packaging. Goods range from pantry items, perishables, home goods, and personal care products. Once finished, users request a pickup for empties, which is then picked up. Your empty containers go back to Terracycle, where they are then cleaned, sanitized, and refilled for the next customer. The announcement comes as consumers flock to grocery delivery services from companies such as Instacart and Amazon over fears of contracting COVID-19 and being in the vicinity of possibly contagious shoppers in-store. While delivery services provide relief from possible contact with coronavirus, Loop is the only service that offers zero-waste packaging. Loop is currently inviting interested consumers to sign up on their waiting list.

Companies like Coca-Cola used to collect 98 percent of their bottles, and new entrepreneurs are learning from their tactics. TRENTON, NEW JERSEYIn the flood of innovative solutions that have emerged in the last several years to save the world from plastic pollution, Tom Szaky’s fix may be one of the most audacious. Don’t misunderstand. He has not tried to come up with yet another formula to make plastic magically biodegrade like leaves on the ground, a goal of many entrepreneurs that remains elusive. Nor has he devised new ways to remake disposable plastic packaging into new plastic packaging. Instead, Szaky has gone old school with a concept that dates to the turn of the last century—returnable, refillable containers. The idea was introduced to the world by Coca-Cola in the early 1920s, when Coke was sold in expensive glass bottles that the company’s bottlers needed back. They charged a two-cent deposit, roughly 40 percent of the full cost of the soft drink, and got about 98 percent of their bottles back, to be reused 40 or 50 times. Bottle deposit programs remain one of the most effective methods ever invented for recovering packaging. Ten months ago, Szaky launched Loop, an online delivery service that uses sturdy, reusable containers. The bold part of his venture—or risk, if you are one of his financial backers—is that Loop pushes far beyond the uniformity of returnable beverage bottles and sells more than 300 items, from food to laundry detergent, in containers of various sizes and made from various materials. His signature product is Haagen-Dazs ice cream that comes packed inside a sleek, insulated stainless steel tub guaranteed to prevent its contents from melting. Slightly disheveled in jeans and a hoodie, Szaky looks every bit the millennial entrepreneur. Now 38, he dropped out of Princeton 17 years ago to become an innovator in the garbage business. He founded TerraCycle, a small waste management company, 10 miles from the Princeton campus. He figured out a way to recycle diapers, cigarette butts, and a long list of other non-recyclables. In time, he became more interested in restoring the circularity of that earlier era and eliminating the disposability from packaging altogether. “Loop’s theory is let’s learn from the past and go back to a model where when you buy your deodorant, you’re borrowing the package and just paying for the content,” he says.   This refillable steel Häagen-Dazs ice cream container is from Loop, a company that packages everyday items into reusable containers. Loop is part of the resurgence of refillables as a serious option to plastic waste. The beverage industry is expanding its use of returnable bottles; an Oregon brewery claims to have started the United States’ first state-wide refillable beer system. More significantly, efforts like Loop’s to reinvent packaging for products that don’t fit easily into the refillable category have attracted startups and some of the world’s largest corporate players. Starbucks and McDonalds are partnering in a pilot program in California known as the NextGen Cup Challenge to sell coffee in reusable cups. If it works, the companies could spare the world the remains of billions of paper cups lined with a thin film of plastic that prevents leakage. And in Chile, a small startup called Algramo is working to replace single-serving packets known as sachets that are sold by the billions in Africa and Asia. The concept was to make coffee, toothpaste and other products affordable to impoverished people who couldn’t afford to buy in larger amounts. Sachets are mostly not recyclable and have made the glut of plastic litter in those nations worse. Algramo, whose name means “by the gram” in Spanish, is creating a vending machine system to dispense food and cleaning products into reusable containers. Last December, it won the National Geographic and Sky Ventures Ocean Plastic Innovation Challenge’s prize for using circular economy principles and a $100,000 purse. As Szaky tours Loop’s warehouse, where newly filled containers are shipped out and returned empties taken in, he notes the irony that this age-old method has only flowered again because waste has become a global crisis. “Five years ago, we couldn’t have done this,” he says. No one would have signed on. Not consumers, who pay a healthy, refundable deposit. And not the companies he’s convinced to join his experiment. Consumers and product retailers might have laughed at the idea as too unrealistic and inconvenient, neither being the ingredients for success.The shipping expenses alone, which involve up to six transfers, would have given investors pause. Then, almost overnight, the game changed. Szaky pitched his idea to the World Economic Forum in Davos, Switzerland, and convinced Nestle, Unilever, Proctor & Gamble, Coca-Cola and PepsiCo, among others, to sign on.

A spotlight on plastic waste grows

It’s easy to lose sight of how quickly the landscape of plastics has shifted. Only a decade ago scientists and plastic manufacturers and retailers were still arguing about whether disposable plastic was even a serious issue. In 2011, when Ocean Conservancy met with scientists, activists, and plastics industry executives in an effort to set up what eventually became, in 2012, the Trash Free Alliance so all parties could work together, no consensus on the issue existed. “There was the question, is this just unsightly or a real problem?” recalls George Leonard, the conservancy’s chief scientist. “People retracted back into their corners. The NGOs said, ‘The world is coming to an end,’ and the industry sector said, ‘We don’t think it’s a problem.’” The debate effectively ended with publication in 2015 of the first solid numbers showing plastic waste washing into the ocean at an average rate of 8.5 million tons a year. The years that followed produced a glut of anti-plastic campaigns, bans of shopping bags and other products, pledges by retailers to use more recycled plastic in new packaging, industry investment in recycling facilities, and cleanups of existing waste. A count of scientific studies assembled by Richard Thompson, the British marine scientist who coined the term microplastics, reveals how rapidly plastic came to be considered an environmental crisis. In 2011, the year of Leonard’s meeting, 103 scientific studies containing the words “plastic” and “pollution” were published. The count in 2019, using the same code words, was 879 studies. “Thank goodness we’re over the hump,” says Chelsea Rochman, a marine scientist at the University of Toronto who is leading a working group of scientists trying to sort out which of the various solutions are most effective. The consulting firm Systemiq, with offices in London, Munich, and Indonesia, is also making a similar assessment. The results of both projects may further shape the debate on how to proceed. In the meantime, it helps to consider where things stand today: Of the 9.2 billion tons of plastic ever manufactured, 6.9 billion tons have become waste. Most of that—6.3 billion tons, or to put it another way, a whopping 91 percent—has never been recycled. The number seemed so shocking that the UK’s Royal Statistical Society named it the international statistic of the year in 2018. That’s the same year that China stopped buying the world’s waste, and recycling has only become more troubled since. Beyond recycling, 12 percent of plastic waste is incinerated, mostly in Europe and Asia. About 79 percent goes to a landfill or leaks into the natural environment. As a measure of how quickly plastic production accelerated in recent decades, half of all plastics ever made has been produced since 2013. Production is projected to double in the next 20 years, according to a 2016 report by the World Economic Forum. Finally, plastic is exceedingly cheap to make. And its low cost is one of the main impediments to developing an economically viable, global system for recycling or otherwise disposing of plastic waste. “Recycled and reclaimed plastic has little value. Virgin plastic is cheaper to make,” Leonard says. “Why would you do anything else other than make more new plastic? It’s not a good business decision to do anything else.”

Back to the future

Aside from the economics, most of the solutions that might reduce plastic waste are hobbled by a passel of problems: still-to-be-solved technical challenges, misinformation, a lack of uniform standards that leaves consumers confused. Biodegradables often don’t actually biodegrade, especially in the oceans, where they’re much more likely to fracture into microplastics. Most compostables need very high heat to break down, requiring processing in special, industrial composters. Compostable material will not biodegrade, for example, in landfill. The two terms are often used interchangeably by consumers, but are not the same. Material labeled biodegradable can contaminate compostable material if added to the mix. Mechanical recycling, which involves grinding plastic waste into small bits that are melted and remade into new plastics, is also easily contaminated by incompatible types of plastic, dirt, and food residue. Plastics reprocessed by this method can only be remade so many times before losing strength and other characteristics. Chemical recycling, which returns plastics to their requisite molecules, alleviates much of both problems. Industry analysts regard it as the option showing the most promise, and the numbers of companies involved in developing chemical recycling is growing. But it’s still a big bet. It’s expensive and questions remain as to whether it can be scaled up enough to make a difference. In any event, both forms of recycling, as well as composting, are dependent on what remains the most dysfunctional component of dealing with plastic waste: Someone has to collect it all and sort it. Loop first launched last May in and around New York and Paris. It plans to expand to the UK, Toronto, and Tokyo later this year, and to Germany and Australia in 2021. The product line, Szaky says, grows by one or two a week and a new retailer joins, on average, once a month. Because consumer behavior is very hard to change, Szaky thinks the refillables business must come as close as it can to mimicking the ordinary shopping experience. He has partnered with Walgreens and Kroeger to set up aisles of refillables, similar to bulk food aisles, making refillables even more convenient to use. As technicalities of handling plastic waste are eventually resolved, it is the consumers who may become the toughest challenge of all. Plastic as a material is not the villain, but the way it’s used, he says, and the idea of single-use plastic is a concept that is now 70 years old. He poses a rhetorical question: “What do we as shoppers care about? Convenience, affordability, and performance. Not one of those three things has anything to do with sustainability.” He argues that consumers are the most important actors in sorting out the plastics mess, with the ability to effect corporate change with their wallets. “We vote blindly, day after day after day, with money, telling companies what we want, and we need to take that seriously,” he says. “We should buy less and make sure the things we buy are circular.”

Like many environmentalists, Tom Szaky, CEO of TerraCycle, believes reuse must play a large role in solving eco-challenges, but he doesn’t think sustainability guilt will be enough to change behaviors. Aesthetics, however, might. At a session at the NRF Big Show, Mr. Szaky provided some early learnings on Loop, a service the waste recycling company developed that allows shoppers to purchase orange juice, laundry detergent and other CPG items in reusable containers. Users put down a refundable deposit via the Loop website when ordering. Loop delivers the items in reusable glass or metal bottles to shoppers’ doors and then retrieves the empties for cleaning and reuse. Participating retailers, including Carrefour, Kroger and Walgreens, act as pickup and drop-off points.   Mr. Szaky assumed consumers would embrace Loop due to sustainability concerns. He admits, however, that it’s hard to overcome the “unparalleled convenience and affordability” that came when the “disposable lifestyle” was commercialized in the 1950s. “Even with all that awareness, even the enlightened folks are constantly voting over and over again for a disposable world with their money,” he said. Encouragingly, many consumers are embracing Loop because of the aesthetic appeal from upgraded packaging that includes stainless steel. “Most people come into it because of beautiful design, then love that it is sustainable,” said Mr. Szaky. In some cases, upgraded packaging adds features. A Häagen-Dazs stainless-steel reusable in the Loop program is thermally insulated to not only keep the ice cream frozen longer but to keep the surface warm to the touch. The concave vessel also makes the ice cream easier to scoop. Said Mr. Szaky, “It’s just a way better overall experience.” Some containers may even help improve flavors. Coca Cola, which is bringing back its original iconic package, said Coke tastes best in a glass, followed by aluminum and finally PET plastic. Convenience may also play a role in converting shoppers. With hand or dish soap, many households already pour store-bought bottles into different containers. Mr. Szaky stresses that the ease of returning reusables has to match the ease of disposables. “Our overall mission here is to give consumers a disposable experience where they throw out the packaging, don’t clean it, don’t sort it — a completely disposable experience. But act reusable behind the scenes,” he said.

• Kroger and Loop Announce Exclusive Grocery Retail Partnership – Loop
• Can Loop make packaging reusability a reality at scale? – RetailWire

Old car seats. Cigarette butts. Used contact lenses. Most people think of this kind of detritus as future landfill, but Tom Szaky sees all this and more as recyclable. He’s the CEO and founder of TerraCycle and its newest initiative, Loop. Both are circular economy solutions that bridge the gaps between consumers, corporations, and waste. TerraCycle, founded in 2001, is a private recycling company that focuses on capturing and repurposing hard-to-recycle items by partnering with corporations and governments. Loop, launched publicly in mid-2019, takes on the problem of waste even more aggressively by working with brands to provide reusable packaging for common consumer products — think Tide laundry detergent or Häagen-Dazs ice cream. HBR asked Szaky, a global leader on reducing waste, about what he’s learned about how consumers, companies, and the government are — or aren’t — helping to reduce the massive amounts of waste humans create on a daily basis. In this edited interview, he also offers advice for business leaders who are interested in pursuing circular models. You’re sitting in a unique position between brands and consumers. What conversations are you having on each side? And which side is more resistant to the argument for sustainability? In the past two years I’ve seen a big shift in how consumers view waste. They’ve woken up to all the negatives of garbage and have started to see it as more of a crisis. That said, consumers are still voting with their dollar for things that benefit them personally, like convenience, performance, and overall price. They’re very vocal, but they’re not necessarily shifting their actual purchasing. Now, the vocal nature of the consumer alone does create a really exciting thing: Brands are waking up to this trend. Even more so, lawmakers are waking up and passing legislation that is affecting consumer product companies, like banning plastic bags and straws. In France in a few years, takeaway food packaging — plastic plates, cups, and utensils — will not be used if you eat in restaurants. These laws are then creating ripples across the consumer product retail industry. Is your feeling that governments are filling gaps that businesses have left? Or are they nudging consumers along, encouraging them to take the action they profess to support? It’s more complicated than that. Plastic straws weren’t seen as a problem up until maybe two years ago; then they became the icon of what’s wrong with plastic and disposability. After a huge public outcry, lawmakers started passing legislation banning the straw. Then companies proactively banned straws before even more legislation actually took hold. So a push from consumers led lawmakers to take action and then corporations jumped in. Now the plastic straw is effectively dying. But it took all three nudging each other. Tell me about the kinds of conversations you’re having with investors and other stakeholders as part of starting and leading two companies. What’s it like to be in the sustainability sphere, especially as a new startup? We started developing the concept for Loop just two years ago, which absolutely makes it a startup. TerraCycle is 16 years old and more of a growth company. So I have two different perspectives. TerraCycle has grown every year since the beginning, but in the past two years it has exploded. Corporations that wouldn’t have signed with us before are now signing on. And corporations that are signed on are going deeper. We grew our revenue 30% organically in 2019, compared to 2018, and expect the same in 2020. This is driven primarily by everything moving faster and companies wanting to go deeper versus big new surprises or new industries that have been asleep now waking up. In parallel, we also raised about $20 million for Loop Global and about $20 million for TerraCycle US. The key change there is that investors are looking much more for authentic impact investments. This is entirely correlated to garbage becoming a crisis. I don’t think Loop could have existed even five years ago because of the ask. Essentially, we’re asking CPG [consumer packaged goods] companies and retailers to fundamentally redesign packaging and accept major changes to the economics of packaged goods delivery — in other words, to treat packaging as an asset instead of a cost. Because of changing views on garbage, they’re increasingly willing to say yes to that. So what is happening now in the startup world is that more audacious ideas that solve these issues — like Loop — are on the table. Do you think existing companies are going to be able to make this shift? Or is it going to have to be new companies that are entering the market? Both. I think that we’re going to see some organizations die because of this. Others will pivot. And new companies will fill out the balance, just as with any shift. Look at tech, for instance. How many retailers survived it? Some did a great job, right? And some, like specialty big-box retailers — Toys “R” Us, Linens ’n Things, Staples in Europe, et cetera — died in the process. The key in this instance is to pivot and reinvent the organization, noting that this is easier said than done, as it takes tremendous short-term sacrifice. I believe that it won’t be industries or sectors that pivot versus die, but individual companies. Some organizations, like Nestlé, Unilever, and P&G, are taking these issues seriously and making the difficult decisions that may negatively impact the short term but lay the foundation to be relevant in the long term. Inversely, organizations — like many big food companies in the U.S. — are blind to what’s coming and will likely be overtaken by startups that are building their business models around the new reality that is emerging. When you’re having conversations with investors for TerraCycle or Loop, what are they concerned about? What do they want to know? There’s suddenly a lot more interest in this topic in the investment community, and I think investors would tell you that they really think sustainability is almost a requirement for the future. Fifteen years ago, when we were raising capital for TerraCycle, people invested because of impact and purpose; it was like they were considering giving money to an NGO. Today, investors would tell you that they really think sustainability is a requirement for the future. They are looking at the sustainability index not just as “Oh, I am feeling good about where I’m putting my money” — now it’s moved to sustainability being critical for business longevity. A lot of what we’ve seen major corporations do is market sustainability in that “purpose” bucket, and not in the “business” bucket, with pledges and other high-profile commitments. Is this changing? Are large corporations able to move from the emotional bucket to the business bucket the same way investors are? The most famous of the pledges is the Ellen MacArthur Foundation pledge, which more than 400 businesses and organizations have signed, signaling their intent to eliminate their use of new plastic. It basically says that, by 2025, they will make their products compostable, recyclable, and reusable. And they will significantly increase their use of recycled content by this date. Now, let’s be candid about why they’re pledging. Since waste has become a crisis in the past two years, many companies have come to the position that they have to solve it or they will be legislated out of it. The best way to get ahead is to make future promises, partly because you don’t have to do anything between today and the promise day, right? If everyone promises that by 2025 all this great stuff will happen, they are not really responsible in the present. I’ve talked to chief sustainability officers of some of the world’s largest CPG companies who honestly have no idea how they’re going to pull it off. They have no f—cking idea what they’re going to do and are saying things like, “Well, the industry will figure it out.” That’s scary. Here’s what I think will happen come 2025 with this particular promise. There is a difference between the promises to be “recyclable” and made from “recycled content.” In other words, most companies, via the Ellen MacArthur Foundation, have pledged that by 2025 they will be 100% recyclable and independently made from a high percentage (typically 25%) of recycled content. I think that the majority of companies will say that they made their package “technically recyclable” but that the recycling industry is to blame for not then “practically recycling” them. I think maybe 90% of companies making these promises will fail and then point to the fine print, saying, “Oh, we made our packaging recyclable, but the recycling systems don’t have the capability to recycle it today.” That’s going to create a big reckoning that will piss off consumers even more, backfiring on brands. So those 10% that succeed, how do they do that? They’re just getting ahead of it. Here’s an example: Some companies are now buying futures on recycled plastic so they know they will have the volume, which is an unheard-of thing in procuring plastic. A good example is Nestlé. The key line in their recent press release is this: “To create a market, Nestlé is therefore committed to sourcing up to 2 million metric tons of food-grade recycled plastics and allocating more than CHF 1.5 billion to pay a premium for these materials between now and 2025.” One of the things that interest me about your company is how you collaborate with so many companies. How difficult is this? Could you go it alone? We absolutely need to collaborate. These are systemic problems, and to solve the system you need multi-stakeholder collaboration. Loop could only exist with massive multi-stakeholder collaboration. There would be no other way to pull it off. And I think we need more and more of that. What makes collaborations like this work? Trade groups and consortiums don’t work. The problem with an industry group, at least in my experience, is to get the group together so they can publicly say that there is a multi-stakeholder discussion. But the outcomes are usually nothing. So how do we create true multi-stakeholder system change? Because if you’re going to change the system, you need all the stakeholders to agree. With Loop, we consciously tried to create a multi-stakeholder collaboration. And look at what happened: It’s working. We’re adding a brand every two days since we launched, and most major multinational CPG companies have joined: Procter & Gamble, Unilever, Mars, Nestlé, PepsiCo, Coca-Cola, et cetera. We’ve also added a retailer every three weeks since our launch, including retailers around the world. Loop is live in France (via Carrefour) and the U.S. (via Kroger and Walgreens) via e-com, and is expanding in both countries to in-store later this year. It is also launching in Canada (via Loblaw), the UK (via Tesco), Germany (via a retailer we will announce in February), and Japan (via AEON), all this year. And finally, we have seen tremendously positive consumer insights — people want Loop, and they like the experience when they get access to it. I don’t see too many companies with similar models out there yet. Loop is a major systems change that requires a large coalition of multi-stakeholders. That is, no company can do it on their own — everyone has to act together. What I am seeing is a lot of groups calling us and saying, “How did you do the Loop thing, and how can we apply that type of system or process to whatever our topic may be?” They ask this because, typically, multi-stakeholder collaborations are slow and hard to drive results from. What do you tell them? I tell them that you cannot run such a platform by committee. There needs to be a “chair” that makes the decisions, even if the decisions are unpopular, and creates the urgency to make sure everything is moving forward quickly. You also set public deadlines that everyone can agree to. For example, it’s why we launched at the World Economic Forum last year — that was a deadline everyone could align on.

• 
• When it comes to packaging, aesthetics matter.
• With Loop, companies treat packaging like an asset.
• Brands are using Loop to learn about customer habits.

  When he founded TerraCycle in 2001, Tom Szaky was in the business of keeping tough-to-recycle products out of landfills. In 2019, he expanded that mandate with a service called Loop, which focuses on reusing packaging instead of merely recycling it. In partnership with several well-known brands, Loop offers household goods from olive oil to laundry detergent in reusable containers that are either delivered direct to consumers or available through two major retail outlets, then collects, cleans and refills them—much like a modern-day milkman. When Szaky sought to better understand why people were purchasing items through Loop, he was surprised by the results. Survey data revealed that two-thirds of Loop customers were mainly drawn to the program because of its packaging design; only one-third prioritized the sustainability aspect. Since Loop is all about saving the planet by eliminating waste, Szaky had expected the inverse. “A better experience with packaging is the primary driver,” Szaky told Adweek. “The secondary driver is sustainability.” Earlier this week, during a presentation at the National Retail Federation’s annual conference in New York, Szaky stressed the importance of aesthetics in consumer decision-making. While people often buy shampoo twice as often as they buy conditioner, Loop shoppers purchase an equal amount of Pantene shampoo and conditioner, according to Szaky. Why? Although he didn’t disclose exact figures, internal polling revealed that people thought the bottles—which come in a matching gold-and-white color scheme, and feature images of sea life—looked good together. But it’s not just about beauty. Szaky argued that tubs of Häagen-Dazs ice cream sold on Loop are simply better than the typical cardboard cartons found at grocery stores because they’re dual-layered, providing thermal insulation so that consumers’ hands remain warm while the ice cream stays frozen. The inside of the container is also concave, making the ice cream easier to scoop out. Szaky added that even the product itself can benefit from better packaging. The team at Coca-Cola apparently told him Coke tastes best in a glass bottle, then aluminum, then plastic. One key change that allows for better packaging design through the Loop system, as opposed to a convenience store or vending machine, is the transfer of package ownership from consumer to manufacturer, Szaky said. When a company is responsible for a durable container meant for multiple uses, it’s treated like an asset as opposed to the cost of goods sold. Since Loop requires a security deposit with each purchase, companies are given extra leeway to invest even more money into their packaging design, generating better functions and features. “Can you imagine what you could do with a package budget of $30 per unit?” he said. He noted that customers have shown little to no sensitivity to the deposit price, either. A can of Clorox disinfecting wipes, for instance, costs $5.49 to purchase, plus an additional $10 deposit. Despite this, Szaky said Clorox wipes are one of the top five best selling products on the site. Last week, another Clorox brand, Glad, began selling sandwich bags on Loop for $4.99 with a $10 deposit. Once ordered, consumers receive 100 plastic bags in a square metal tin, along with a yellow zippered pouch to put the used bags in for recycling later. According to Nick Higgins, Glad’s marketing director, the package took six weeks to design, and consumer feedback throughout the process was positive. “If you think about our traditional manufacturing system, it’s been engineered to deliver products in a way that people use them and then it’s their responsibility for how they ultimately want to dispose of them,” Higgins said. While it’s still too early to tell how Glad’s metal tin is performing on Loop, Higgins said the brand is excited to gain insights into how people might reuse its products. “As a brand, we want to continue to make progress in this area,” he said. “Using something like Loop as a learning partner to understand consumer habits and practices, and the business models associated with that, is what makes this really attractive to us.” Loop, which debuted in May 2019 in select cities in the U.S. and France, is scheduled to roll out in the U.K., Canada, Germany and Japan later this year. Presently, the platform works with retailers Walgreens and Kroger, and about 100 major CPG conglomerates, including Pepsi, Nestle, Unilever and Procter & Gamble. While Loop has yet to make an official announcement, Szaky said the company will soon reveal new partnerships with a fast-food company and high-end cosmetics brand.         Szaky added that since Loop began, it has, on average, added a new brand every two days and a new retailer every three weeks. While the program remains in test mode, he’s optimistic that Loop will continue to grow. “Disposability is our competition,” he said. “It’s an easy enemy to hate, thank God.”

The statistics are sobering. Virtually every piece of plastic ever produced still exists and there is more microplastic in the ocean than there are stars in the Milky Way, according to Earth Day Network, Washington, D.C. It is thus little wonder that 100,000 marine creatures die every year from plastic entanglement—and those are the ones that are found, according to Ocean Crusaders, an organization based in Australia that specializes in waterway cleaning. These same creatures consume the plastic, which we humans then consume from our dinner plates, meaning there’s plastic in us too. Containers and packaging constitute 30% of all waste, per the U.S. Environmental Protection Agency, and the large amount that isn’t recycled is dumped into landfills or is incinerated, leaving behind noxious air pollution. It’s a compounded problem that continues to mount, with forecasts predicting that the amount of plastic will increase fourfold by 2050. But moves are afoot to change this dire state of affairs. Retailers and consumer packaged goods companies are looking for new ways to provide products that eliminate or vastly reduce packaging, such as proliferating bulk food sections and experimenting with processes that use less plastic. Scientists are also devising ways to make CPG packaging compostable or 100% recyclable while circular systems are being developed in which consumers refill containers for commonly used household items. But to make change happen on a big scale, everyone needs to be on board. Urged on by consumers that are increasingly decrying excessive packaging that is perceived as being wasteful at best, and reckless at worst, many American companies, which are also not happy with the present state of affairs, are looking for solutions to what is becoming a very grave problem of crisis proportions. The solutions are complex and multifold. “When you think about the myriad products, and the ways consumers use them, we need lots of solutions,” says Meghan Stasz, VP of packaging and sustainability for the Grocery Manufacturers Association (GMA), Arlington, Va. Reducing packaging is important not only to minimize the effect it’s having on the world but also to improve public perception. The people who care most about packaging waste are millennials and Gen Zers, who are increasingly the customers of tomorrow. “Packaging has become a hot topic of late because shoppers are becoming more concerned about their impact on the environment, especially younger shoppers,” says Tory Gundelach, VP of retail insights for New York-based consulting agency Kantar. “And more and more, they’re happy to put their dollars behind the companies that align with them.” According to research from Kantar, nearly two-thirds of millennials and Gen Z consumers say they prefer “brands that have a point of view and stand for something.”

The Circular System

The solution to plastic and packaging reduction that’s perhaps gaining the most traction is the system of refillable, reusable containers. Loop—which offers products in reusable glass and steel containers that are delivered to and picked up directly from consumers’ homes—launched at the World Economic Forum in Davos, Switzerland, a year ago. It has since debuted pilot programs in New York and Paris. Developed by Trenton, N.J.-based TerraCycle, Loop has the backing of CPG giants such as Procter & Gamble, Unilever, Pepsi, Coca-Cola, Danone and Nestle, as well as smaller companies such as Nature’s Path. It offers about 100 brands and is constantly adding more, including private label items. “We treat small companies the same as large ones,” says Benjamin Weir, business development manager of North America for TerraCycle. “We help them expand and show them that packaging is a great way to differentiate.” Photograph courtesy of TerraCycle The more brands involved, the greater consumer adoption of Loop is likely to be, he says, because shoppers will be able to meet all their needs at one store—or through one e-commerce site—“and we can capture as much of their basket as possible.” Here’s how Loop works: Customers purchase products through its website, and when the products are depleted, they leave the empty packages on their doorstep for free collection by UPS, a Loop/TerraCycle partner, which returns them to Loop for sanitization and reuse. Each container requires a deposit, which is refunded upon its return or at the end of a subscription. Items that can’t be reused, such as diapers, can be collected for recycling. Retailers are joining the Loop throng too. The Kroger Co. and Walgreens are credited as founding retailers in the U.S. “Our commitment to innovative solutions on our path to Zero Hunger Zero Waste aligns perfectly with Loop’s mission to create a convenient circular packaging platform for consumers,” Jessica Adelman, president of The Kroger Co.’s Zero Hunger Zero Waste Foundation, has been quoted as saying. Being involved with Loop is almost the cost of doing business today, says Virginie Helias, chief sustainability officer of Cincinnati-based Procter & Gamble. “Nine of 10 consumers now say they have a more positive image of a company when it supports a social or environmental cause, and half say they make purchase decisions based on a shared belief with the brand,” she says. Procter & Gamble is committed to making huge changes, and it fully backs the Loop system. “The idea of getting rid of disposable packaging and replacing them with beautiful, durable, refillable packaging is a huge idea and we are very committed to make it work,” Helias says. All of the companies involved with Loop are faced with a new and exciting challenge: creating new packaging. This packaging is much more durable, plastic-free and is good-looking enough to sit on any home’s counter.

In—and Out of—the Loop

Companies need to step up and take responsibility, says Darby Hoover, senior resource specialist for the Natural Resources Defense Council in New York: “If you introduce a package, your responsibility has not ended, and it should not be the responsibility of the consumer. [Companies] need to say they’re responsible for packages through the end of their life. That’s what’s powerful about a program like Loop.” Gundelach of Kantar supports a program such as Loop because it takes that responsibility away from the consumer. “It’s more likely to resonate than asking the shopper to do it themselves,” she says. And while this isn’t a perfect solution—she points to the emissions from the pickup vehicles, for example—Gundelach believes it’s a step in the right direction. “To do this on any meaningful scale is extremely complicated and takes the partnership of many different parties, but I think this is a longer-term solution,” she says, adding that companies in the CPG industry will have to reach some agreements that they will use the same sort of process. The losers in the Loop system could be the retailers, who may see sales declines for products that are now delivered by the modern-day “milkman.” But Stasz of GMA doesn’t anticipate that, noting that she “can’t imagine it would have more of an effect than e-commerce.” While the e-commerce model is phase one for Loop, eventually consumers will be able to shop for Loop in the stores of the company’s retail partners. This should start in 2020, Weir says, and is phase two. This program will be implemented through retail partners such as Kroger. It will go live in Kroger and Walgreens at 25 to 50 stores in a condensed geographic area. At these stores, consumers drop their used packaging in a Loop bin and pick up a new product in reusable packaging from the shelf. This would be a pay-as-you-go model vs. the e-commerce program, which offers consumers the option of subscription on demand. Consumers “will be able to shop and act as normal and have the option for durable, reusable packaging,” Weir says. He could well be right. According to GMA, nearly two-thirds (65%) of Americans say they’d be very likely to buy goods in refillable packages.

The Product Line

CPG companies are making their own mark on plastic reduction. Two years ago, Pepsi launched Drinkfinity, a reusable bottle/recyclable pod system for flavored water. Meanwhile, Coca-Cola is making a bottle from recycled marine plastics; Colgate unveiled a new recyclable toothpaste tube; Nestle committed to 100% reusable and recyclable packaging by 2025; and Unilever has vowed a 50% plastic reduction by the same year. London-based Unilever is also going out on many different limbs. In the Philippines, it launched the Hair Refillery, a shopping mall pilot that lets consumers refill bottles from brands such as Dove and Tresemme. In the U.K., Cif cleaning spray is now sold with refill cartridges that consumers put in existing bottles and fill with water. The trigger heads on the original spray bottles are designed to be used thousands of times. And in Chile, Unilever is piloting an app-powered, intelligent dispensing system that uses electric tricycles to deliver laundry detergent to homes. Companies are either reducing the plastic (using less per product), finding a plastic that can be 100% recycled or exploring alternatives, which include bioplastics produced with bacteria, seaweed, corn, mushroom rot, wood pulp and even shrimp shells. However, CPG companies are still facing some backlash because they’re still producing single-use products. “We’re continuing to see a major commitment by the CPG companies to improve their packaging,” says Stasz of GMA. “That means different things to different companies. To packaging design, to new kinds of materials, to delivering products to consumers in new ways and in new formats. From research we did this year, all the largest 25 CPG companies in the world have made public commitments that 100% of their packaging be recyclable or compostable by 2030 and some as soon as by 2025.” Recycling in itself has become a problem. In 2018, China stopped accepting U.S. imports of recyclable materials, and across the U.S., recycling is becoming more expensive. So much so that many towns and municipalities to eliminate curbside recycling programs. This is all the more important because recycling is becoming a big issue: Less than 14% of plastic packaging—the fastest-growing form of packaging—is recycled, according to the Natural Resources Defense Council. Eighty-seven percent of Americans told GMA they are very concerned about single-use plastics and packaging waste. It’s vital that more emphasis be placed on recycling, says Melissa Craig, senior manager of packaging sustainability for Unilever North America, Englewood Cliffs, N.J. Unilever’s new packaging is designed with PCR (post-consumer resin), but in order to have sufficient PCR, “we need everyone contributing to the circular economy, which means ensuring everyone is recycling. The more we can get consumers to recycle, the greater the supply of PCR for packaging so we can use less virgin plastic.”

At the Store Level

Retailers also play a big part in reducing the amount of plastic packaging waste by taking a stance. Monrovia, Calif.-based Trader Joe’s announced it had removed nearly 4 million pounds of plastic from its stores last year. This included the introduction of biodegradable bags for flowers and greetings cards, removing excess packaging and switching to recyclable trays for fresh meat. Walmart has committed to incorporate at least 20% PCR content in the packaging of its private label line by 2025. This, the retailer says, will also be 100% recyclable, reusable or industrially compostable. The Bentonville, Ark.-based chain is also encouraging suppliers to eschew all PVC (polyvinyl chloride) by 2020. Minneapolis-based Target will eliminate expanded polystyrene foam packaging from private label products by 2022, and Issaquah, Wash.-based Costco ditched PVC clamshell packaging, which not only can’t be recycled but also releases toxic chemicals into the environment as it degrades. So it’s no surprise that Whole Foods Market is making a difference too. Its changes include switching to smaller bags for produce; replacing hard-plastic rotisserie chicken containers with bags that use about 70% less plastic; eliminating polystyrene/Styrofoam meat trays; and using salad boxes made of 100% commercially compostable material in its prepared foods department.

Away From Home

More is happening abroad. South Africa’s Pick n Pay grocery chain is experimenting with “nude zones,” where consumers fill their own containers with produce laser-etched with codes. Metro in Quebec started allowing customers last spring to fill their own reusable containers with meat, seafood, pastries and ready-to-eat meals, and Ekoplaza in Amsterdam now carries more than 700 products in plastic-free packaging, which looks like plastic but is actually made from all-natural, biodegradable materials. In the U.K., Waitrose has introduced packaging-free aisles; Tesco has asked its suppliers to look into packaging solutions and vows to have only recyclable or compostable packaging by 2025; Iceland is getting rid of plastic packaging for its entire private label line and has also committed, over the next five years, to using recyclable paper versions of food trays to enable it to become plastic-free by 2023; Sainsbury’s is halving its packaging by 2020; and the Co-op says a whopping 80% of its products will be “easy to recycle” by 2020. In Europe, there have been many moves to reduce plastic. Americans are simply less concerned than Europeans, says Neil Saunders, managing director and retail analyst for GlobalData Retail in New York. “Americans have more of an ambivalent attitude toward environmental issues and this results in less pressure on the industry to institute change,” he said. “Regulation is likely more lax in the U.S. than in some parts of Europe, where recycling is now mandatory for householders.”

Bulk Foods Bulk Up

What can make an enormous difference in the amount of packaging waste a store produces is having a bulk department. At Phoenix-based Sprouts Farmers Market, bulk food sections are large and even larger in new and remodeled stores. In some locations, bulk accounts for a massive 30% of a store’s selections. However, as anyone who’s ever used them can attest, refilling containers—particularly liquids—can be time-consuming and messy. Neil Stern, senior partner with McMillanDoolittle, Chicago, thinks bulk sections have their place in stores “where the customer is sufficiently committed, such as stores offering a broad selection of natural/organic products.” However, he says, conventional stores may need to offer more convenience and experience, such as “some sort of concierge service,” where customers would drop off their containers to be refilled and pick them up at the end of their shopping trip. Around the world, packaging-free stores are opening up, aimed at reducing the swathes of plastic and heightening consumers’ awareness of this problem. The trouble is, are these stores catching on yet, or are they just attracting the ultra-eco-conscious? In New York’s Brooklyn, there’s Precycle and in Vancouver, British Columbia, there’s Nada, where customers can use their own containers or buy them. There’s also The Refill Shoppe in Ventura, Calif.; the Filling Station in New York; and Zero Market in Denver, which sells personal care and home products. Lyndsey Manderson, co-founder of Zero Market, is planning to open a second, larger location to sell food.

 The Supply Chain Situation

The picture painted of plastic packaging is not a complimentary one, but plastic does have its place and is used for a reason. It helps preserve food and protect food during its journey to store shelves. The supply chain is responsible for a lot of packaging, says Gundelach of Kantar. “The brands aren’t adding packaging just for fun, but more times than not the packaging is designed for the end shopper [and] how is that product making it through the supply chain.” However, because of geography and distance, U.S. supply chains, especially for perishable products, can be more complex and demanding than those in Europe. “This pushes a lot of companies into using plastic to protect products,” says Saunders of Global Data. “Plastic is also a relatively cheap and lightweight solution, which helps keep distribution costs down, something that’s vital in a low-margin sector where the consumer demands low prices and value for money,” he says. “In Europe, this remains an issue but the more compressed supply chain makes it easier for many operators to look to alternatives.” Susan Selke, director and professor for the School of Packaging at Michigan State University in East Lansing, says there could be problems if packaging is reduced because it could lead to more product waste if the interior goods are damaged. “There are generally more environmental costs associated with that product waste than benefits associated with less packaging,” she says.