Perfect packaging: how to maximise in-store recycling

This article examines the importance of recycling and how retailers and manufacturers can maximise the opportunity of offering shoppers in-store services to act more sustainably.

The context: recycling complexity

Recycling has the cost of collection and processing and the revenue of what the resulting recycled material can be sold for.  As a result, only those materials that provide a profit through recycling are likely to be actually recycled. Also, investment is required to fund the systems and add capacity. Pressure from shoppers and legislation are major levers to drive change.

Shoppers are becoming more interested in sustainability. While there is a say-do gap in shopper behaviour, and sustainability is moving slightly further down in importance for shoppers, due to cost-of-living pressures, shoppers still expect retailers and manufacturers to do the right thing.

For instance, only 53% of shoppers agree that food and retailer manufacturers in Britain can be trusted to limit their impact on the environment, and the figure is similar when it comes to limiting food waste . With the shopper of 2030 and beyond predicted to be even more invested in sustainability, now is the time for businesses to implement systems that ensure waste reduction, and increase recycling.

Over the years, cost reductions for packaging have been prominent, which has led to single-use packaging becoming increasingly less recyclable (as cost reduction will directly reduce the material value when it’s recycled).  Also, when it comes to packaging, consideration must be placed on what system and market the packaging will be going into. For instance, compostable packaging is appropriate for countries where littering is an issue, but in developed countries composters tend to not want compostable packaging in their supply chain.

TerraCycle is the world’s leading recycling company, and their mission is to give materials who do not otherwise have a recycling solution a second life. As part of conversations with Tom Szaky, TerraCycle and Loop, CEO and Founder, IGD had the opportunity to discuss  Loop's success in France and what is driving changes in recycling.

Szaky commented:

Consumer behaviour, company commitments and legislation are all driving change in the recycling industry. After years of conversations, consultations, and a certain number of delays, it feels like momentum around waste and packaging in the UK is finally building up, with Simpler Recycling rules planned from 2026, and - crucially - the incoming implementation of the UK’s long-awaited Extended Producer Responsibility for packaging (EPR).

While we fully welcome the incoming implementation of the UK’s EPR for packaging, we should enter the next few years with our eyes wide open. Of course, it will improve outcomes and should lead to higher recycling rates as EPR supports the sortation and recycling of more and more plastic bottles and trays. TerraCycle will continue to work on complimentary solutions to effectively recycle many of the types of packaging that we all use daily from blister packs to coffee pods or make-up packaging that traditional systems will still find more difficult to recycle even through EPR.

The solution: case studies from TerraCycle

Shoppers are not always given the necessary tools or have the knowledge to fulfil their eco-friendly ambitions. This is where the retail industry can provide solutions, which in turn benefit retailers and manufacturers. However, compliance can be an issue, and providing shoppers with clear instructions on what can be recycled and how to do it correctly is fundamental.

For example, ShopRite in the US partnered with TerraCycle to provide recycling for plastic bags, non-food flex packaging, and flexible food packaging, as there is legislation in 35 US states mandating a recycling point for shopping bags in retailers. Due to a lack of understanding, a high contamination rate of items not being placed in the correct bins is common with these initiatives. The simple addition of a handle pushes shoppers to interact with the bin, leading to a much higher (over 99%) compliance rate. Messaging to educate shoppers also features on the kiosk, further engaging them.

Recycling schemes can also be used to engage new shoppers.  For example, in the US, Walmart partnered with TerraCycle on a hugely successful campaign to take back and recycle used car seats. Many shoppers, who would not have otherwise visited the stores, were enticed by Walmart’s $30 gift card for their stores.

Another great example of hard-to-recycle products comes from Carrefour in France, which partnered with TerraCycle to provide recycling for items in categories that had not previously been recycled, such as razors, toothpaste, pens, tights, toys, and pans.

This was sponsored by leading brands in these categories and prominently highlighted on kiosks outside stores. Shoppers could receive up to €15 off the purchase of partner-brand products, providing them with value and environmentally-friendly benefits.

Why retailers and suppliers must invest in recycling

With pressure from shoppers mounting and legislation being introduced by governments globally, it is becoming more important than ever for retailers and brands to invest in sustainability. Providing in-store recycling is a great step towards a green ambition.

Retailers benefit from increasing footfall, a point of difference with competitors, and the opportunity to drive bigger basket spend by offering incentives. These can be tied into loyalty schemes, further driving usage.

Suppliers who engage with and sponsor these initiatives can achieve better brand recognition, resonating particularly with younger shoppers, and future cost savings.

Interested in further insights?

Read our latest report on global, best-in-class Sustainability Initiatives for more inspiration.