You may not remember when people left empty milk bottles outside their doorsteps to be exchanged for fresh milk, but today the concept is being utilized by TerraCycle's Loop platform — this time, with more consumer goods, such as shampoo.
According to FastCompany, TerraCycle previously worked with hard-to-recycle materials, but many environmental groups were pushing for reusable packaging, and it wanted to move into that space.
Many of the companies TerraCycle had worked with before were interested, so it piloted the Loop platform in many countries, including the U.S., Canada, and France.
Brands would create reusable packaging that consumers could purchase and then return to the store to be rinsed, cleaned, and reused. While there was interest, France was the only place where it took off.
The key difference was that France enacted a law in 2020 requiring stores to allocate 10% of their store space to reusable packaging by 2027. Many companies in other countries also stated that regulation would be around the corner for them to scale reusable packaging.
At a small scale, it wasn't worth it for TerraCycle, but now it's profitable. Forbes noted that Pitchbook reported that the company "has raised at least $69 million to date."
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Part of the reason the packaging is hard to recycle is that it's cheaply made. When it became common, brands just didn't spend as much money on it, so there wasn't much value to recycling it.
TerraCycle CEO and Founder Tom Szaky said, "Back in the day, packaging was an asset."
He added, "It was the property of the manufacturer, secured by deposit with the consumer. And as a result, the manufacturer was motivated to make this long-lasting and durable."
Better quality packaging can also save the brand and the consumer money. The brand doesn't have to create new packaging; it only needs to pay for collection and cleaning.
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Szaky shared that a reusable whiskey bottle in France was slightly less than a standard one, and when the deposit is collected, the consumer saves about 69 cents.
Reuse could be the better path forward compared to recycling. Unfortunately, in 2021, the U.S. had 51 million tons of plastic, and only 2.4 million of it was recycled.
Additionally, a University of Strathclyde in Glasgow study showed that plastic waste creates more microplastics than previously thought. The plant that was examined produced 3,233 tons. That was 13% of all the plastic it processed.
These are just some reasons why you should support eco-friendly initiatives by mainstream brands. Just think of all the waste you'll be reducing.
While there is no timeline for the Loop platform to return to the U.S., Szaky believes the success France has had with reuse will convince other lawmakers.
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