On July 19, 2023, the Container Recycling Institute (CRI) and civil society organization Reloop co-published a report on the impact of deposit return systems on beverage sales. The report aims to assess the validity of claims that the implementation of deposit return systems may lead to a decrease in beverage sales. The study is based on real-world data from eight different use cases where such systems were introduced across the following regions and countries: the Baltics, Scandinavia, Australia, Croatia, Germany, The US states of California and Oregon, and the Canadian province of Alberta. The report examined per capita packaged beverage sales before and after a deposit return system was introduced or expanded, or the deposit amount was increased. What sets this report apart from others, claim the authors, is that it looks at real-world empirical data, instead of using predictive modeling.
“The research we conducted in this study is as complete, thorough and transparent as possible, and represents experiences from all over the world over a two-decade timeframe,” said CRI president Susan Collins in the accompanying press release.
The study was prompted by ongoing discussions on the economic viability of deposit return systems (FPF reported and here). According to the report, opponents of deposit return systems fear that they present too many costs to retailers and consumers alike. Retailers would be required to invest in additional infrastructure and labor time for the handling of empty returned bottles. These costs would have to be absorbed by someone, either through lower profits, lower wages, or higher prices.
“While producers often battle the introduction of deposit return systems because they wrongly believe they have a negative effect on sales, their impact assessments ignore the huge financial and compliance benefits of getting back up to 90% of their containers for closed-loop recycling.” Notes Clarissa Morawski, CEO of Reloop.
Key findings of the study include that there is no definitive correlation between the implementation of deposit return systems and declines in sales, say the authors. Furthermore, the document states that “[t]he fluctuations in sales observed across the case studies were well within the scope of normal variation and appear to align with regional trends.”
Additionally, the authors call for scrutiny when assessing the viability of studies asserting a causal relationship between implementations of deposit return systems and a decline in beverage sales. Many factors might influence the price, and thus the sale of beverages, such as seasonal temperatures, local economic conditions, or supply chain disruptions.
The upcoming EU Packaging and Packaging Waste Regulation (PPWR) revision aims to prevent the generation of packaging waste. The inclusion of reuse targets in the revision is a highly contested topic (FPF reported). The Food Packaging Forum submitted comments on the PPWR draft regulation (FPF reported).
References
Container Recycling Institute (July 19, 2023). “The impact of deposit return systems on beverage sales.” (pdf).
Container Recycling Institute (July 19, 2023). “Evidence from new study debunks myth that deposit return systems (DRS) cause declines in beverage sales.” (pdf)
Read more
Megan Quinn (July 20, 2023). “Bottle bill report aims to debunk claims that program costs hurt beverage sales.” Waste Dive
