Revolutionizing how we consume

When we discuss the new reuse economy, we’re primarily talking about consumable products and their packaging. Take a look in your garbage, recycling (and even composting bins) and check out all the packaging there. Those are the targets for disruption. 

Over time, we want to shift more of this packaging from garbage, recycling or composting streams to reusable packaging and service streams – because of the significantly greater environmental benefits and economic opportunities.

This may seem like a complicated proposal, but the design of the reuse services and systems have similarities across business sectors. At the end of the day, these services require collection from the consumer, reverse logistics, washing and sanitizing, refilling and/or restocking. Because of the challenges and costs associated for individual companies going it alone, it’s important for businesses to be able to operate on platforms that can serve many companies at the same time.

Achieving scale through infrastructure

To achieve scale will require the utilization of existing infrastructure (like incorporating reusable packaging into curbside recycling or bottle deposit collection), and the development and deployment of new infrastructure (like “milkman” bins on your front porch or in the apartment complex to collect reusable packaging when deliveries come). 

In order to think critically about the potential, it’s helpful to consider and build on frameworks like the Ellen MacArthur Foundation’s four reuse models:

1. Refill at home. Users refill their reusable container at home (e.g. with refills delivered through a subscription service). Brands can sell the primary packaging once – like a hand soap dispenser or a home soda fountain – and then sell the refill products. This is a good option for products where water, which can easily be added at home, is the main ingredient. It doesn’t require any new infrastructure, and several brands have been able to scale this model for product delivery.

2. Refill on the go. Users refill their reusable container away from home (e.g. at an in-store dispensing system). In some models, the consumer either brings their own container or rents or borrows a container from the vendor. These types of reuse models don’t necessarily need new infrastructure, as the reuse “loop” is driven by the consumer returning to the same refilling station. Only if they’re bringing the packaging back for the brand-owner or retailer to clean will some new cleaning and reverse-logistics infrastructure likely be needed.  

3. Return from home. Reusable packaging is picked up from home by a service (e.g. a logistics company or through a curbside collection provider). This works especially well for “pre-filled” products in reusable packaging (beverages, personal care, cleaning products, etc) and take-out food service packaging. For this model, modifying existing infrastructure will be important – either through incorporating reusable packaging into curbside collection for re-cycling, or by adding “milk-man-type” bins outside homes and apartments, where logistics companies can pick up the reusable packaging as they drop off new packages. 

4. Return on the go. Users return packaging at a store or drop-off point (e.g. in a deposit-return machine or kiosk). This approach will require modifying existing infrastructure – like incorporating reusable containers into existing return-to-store deposit-return systems for beverages. New infrastructure – like kiosks that can accept reusable take-out containers and cups, located in parks, office buildings and street corners – will also be needed. 

Closing the loop after package return

Once the consumer has returned their packaging, the next phase is similar across product categories and requires:

1. Collection and reverse logistics. Trucks pick up reusable packaging from bins or kiosks at home, at stores or on-the go. They are then brought to a washing and sanitizing hub. Curbside recycling or deposit-return materials recovery facilities (MRFs) can also be retooled to separate reusable packaging for shipping to the wash hub.

2. Washing and sanitizing. The wash hub receives reusable packaging to be cleaned, sanitized and dried.

3. Refilling and/or restocking. The wash hub can ship containers that don’t contain product (like to-go containers and cups) directly out for restocking. Packaging that needs to be refilled can either be refilled on-site or shipped out for refilling and restocking.

At scale, these systems need to be able to serve many companies and accommodate many types of reusable packaging. Wash and refill hubs could be built next to MRFs (material recovery/recycling facilities) in the industrial parks outside of major metropolitan areas – serving the region. 

Going local in the New Reuse Economy

Supply chains for consumable products would need to be re-organized around local and regional supply and reverse logistics loops. For example, instead of cleaning products delivered in one-way packaging from a centralized shipping hub, distilled cleaning solutions can be transported in bulk to refill hubs – where water can be added to the reusable packaging with the solution already in it. The brand-owners in this case could lease the packaging from a reuse service provider and deliver concentrated cleaning solutions in bulk.

The core concept is remaking packaging as a service and  not a product. And shrinking massive single-use supply chains into local and regional reuse services.

Scaling will require aligning vision, pre-competitive collaboration, investment and likely policy support. But the payoff in remaking consumption patterns to reduce unnecessary natural resource extraction, waste and pollution – while creating resilient regional supply chains and jobs – will be worth it.

For more, see Upstream’s publication The New Reuse Economy.