How 2025 can become a tipping point for reusable packaging systems

The development of reusable packaging infrastructure will be critical in bringing down the unit cost of reuse models relative to single-use. Image: Getty Images
Llorenç Milà i Canals
Head of the Secretariat of the Life Cycle Initiative, United Nations Environment Programme (UNEP)- Just 9% of plastics are recycled worldwide, meaning recycling alone will not solve the plastic waste issue and innovative solutions are needed.
- Reuse is the most powerful market shift that must occur in a transition to end plastic pollution and is a $10 billion economic opportunity.
- The development of reusable packaging infrastructure will be critical in bringing down the unit cost of reuse models relative to single-use.
Delegates from around the world gathered in Busan, South Korea at the end of 2024 for the fifth round of negotiations to develop an international legally binding instrument on plastic pollution. Meaningful progress was made on critical components and we are one step closer to a treaty. Member states agreed to use the “Chair’s text” of 1 December as the starting point to conclude negotiations at a resumed session in a few months’ time.
Initially, provisions on reusable packaging systems were included in the treaty text, but these elements were ultimately either minimized or eliminated in the run-up to the recent negotiations as a way of ensuring convergence among negotiators on other foundational sections of the agreement. While this development is a setback for near-term, wide-scale adoption of reuse models, it can also be regarded as a renewed opportunity this year to consider the key enablers that will accelerate a shift towards reuse, perhaps as the next enhancements of the treaty.
Why reusable packaging is important
Before outlining how 2025 can become the tipping point year for scaled reuse systems, it is important to highlight the environmental and economic benefits of reuse. Reusable packaging that is designed to be used multiple times has emerged as a promising solution to the plastic pollution crisis.
Currently, half of global plastic production is for single-use applications and only 9% of plastics is recycled worldwide. Recycling alone will not solve the plastic waste issue and innovative solutions and new business models are much needed.
According to the United Nations Environment Programme, reuse is the most powerful market shift that must occur in a transition to end plastic pollution. Reusable packaging models can provide an over 20% reduction in total annual plastic leakage into the environment by 2040. Moreover, the conversion of 20% of single-use packaging to reuse models globally is estimated to be a $10 billion economic opportunity.
Momentum for reuse models
Recent years have seen growing momentum for reuse models across the public and private sectors. The new European Union Packaging and Packaging Waste Regulation (PPWR) includes provisions on reuse, which companies operating in the region will need to adhere to by the end of the decade. At a national level, countries like France and Chile have designed legislation that is aimed at accelerating a shift towards reuse and away from single-use packaging.
Furthermore, industry action on reuse models has also increased. Leading consumer companies have set commitments to shift towards reuse and circular packaging models more broadly. The innovation ecosystem has also been flourishing, with startups building and expanding partnerships with retailers.
Risks to progress on the horizon
However, we see a number of systemic risks materializing on the horizon which could end up impeding progress on reuse. First of all, there is a chance that corporate action on reuse remains focused on small-scale pilot programmes and does not move towards implementation at scale. Second, company targets on reuse and circular packaging may end up being diluted or abandoned altogether. Many businesses will not meet their 2025 circular packaging goals and some companies are moving away from their original targets, which could cause an undesirable industry-wide domino effect.
Finally, a slowdown in public sector momentum towards reuse models may occur in the coming years without concerted action from governments. Minimal inclusion of provisions on reusable packaging in key international agreements will not offer the ballast needed for action from national policy-makers.
Barriers to achieving scale
The potential deceleration of progress towards reusable packaging models cannot be attributed just to the actions of individual companies or national governments. The challenges we are witnessing in the transition towards reuse are a symptom of systemic issues and need to be addressed accordingly.
Businesses need a level playing field of common rules that are applicable to all industry actors in order to move towards scaled reuse systems. Moreover, reuse must become more attractive environmentally and economically (or at least at parity) compared to single-use models to achieve widescale adoption.
What needs to happen now
To address these barriers to scale and build on the current momentum for reusable packaging models, achieving progress across a dual combination of systems interventions will be crucial: regulation and creation of the necessary infrastructure for reuse systems. Importantly, experience has shown that government policies are necessary to create an operating environment that favours industry-wide action on reuse. Such policies are justified by the significantly reduced indirect costs of reuse systems, linked to reduced waste generation and pollution.
Regulatory pressures in the European Union are poised to play an instrumental role in accelerating the transition towards reuse. With the EU PPWR being introduced this year, with reuse targets for 2030, all businesses in the region will be preparing by redesigning packaging and investing in circular systems.
What is the World Economic Forum doing about plastic pollution?
As the EU’s ambitious policies often shape global regulatory developments, the ripple effects could inspire similar shifts towards reuse in other countries. Companies would stand to benefit, as all industry actors would need to ensure compliance and this would prevent a patchwork of fragmented systems across different national jurisdictions.
What’s more, the development of reusable packaging infrastructure will be critical in bringing down the unit economics of reuse models relative to single-use packaging. The infrastructure includes the physical systems for the collection, cleaning and redistribution of reusable packaging, as well as the digital tools for tracking, monitoring and optimizing these systems.
The combination of common ground rules established through harmonized government policies and the development of infrastructure to create market-based incentives for businesses is crucial to achieving a durable transition towards reusable packaging systems. The World Economic Forum will ensure a dedicated focus on these areas of systems change to position 2025 as the tipping point year for reuse.
Disclaimer: The views expressed in this article are those of the authors alone and not of their respective institutions.
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