Reusable and refillable packaging is one of the most dynamic sectors of the packaging market in 2022. According to a study by Smithers, the adoption of more eco-friendly business models is among the main drivers behind the sector’s growth.
The research projects that the market will grow to more than USD 42 billion in 2022. For comparison, its size was USD 35.1 billion in 2017. Smithers forecast is that the market for reusable and refillable packaging will reach more than USD 53 billion by 2027.
Smithers’ study identifies four major business models related to this market:
- refill-at-home when users refill a container at home,
- return-from-home when packaging is recovered for reuse from a consumer’s home by the scheme operator, or a logistics company working under contract,
- refill-in-store when consumers take reusable containers on their shopping trips to refill via an in-store dispensing point, and
- return-in-store when users return the reusable packaging at a store or designated drop-off point.
Reuse and refill is a business model mainly used in beverage retailing, especially for glass bottles. Actually, glass packaging represents 75% of whole reuse and refill market, while other sectors (e.g. food, cosmetics, home care, etc.) are still in a nascent phase. However, Smithers forecasts that each of these new segments will experience growth in excess of 30% year-on-year across the next five years.
Rethinking packaging is a huge step for brands and retailers. A huge step that can make a visible environmental change by minimize the use of single-use plastics.
