How to find the most sustainable packaging for your product

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PRINCIPLE IN PRACTICE

Reusable packaging:
making it work for your business

With peak season fast approaching, see how you could implement reusable packaging into your operations.


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Average reading time: 6 minutes





Executive summary

Regulatory and consumer pressures are encouraging businesses to look for more sustainable packaging options.


Reusable packaging and packaging that can be repurposed can have extended life cycles that cater to sustainability needs.


Think strategically about implementing reusable packing in your business, with shipping packaging a core part of the considerations.


Engaging consumers is likely to be key to success – incentives and ease are two broad approaches you could follow.






Packaging is an essential part of commerce, but it also makes a significant contribution to environmental pollution. For those businesses aiming to reduce their usage, the fast-approaching peak season – and therefore, peak packaging requirements for many – can be a timely reminder to consider where any changes could be made.

There are several reasons why it could be important to do so. The latest data, which details figures from 2021, shows that each EU resident generated an average of 189kg of packaging waste for the year, with the EU as a whole generating a total of 84.3 million tonnes of it.1

These big figures are ultimately having an impact on small businesses – including in the shape of tighter regulations. New EU rules, provisionally agreed in April 2024, will mean that all packaging needs to be recyclable, there should be a maximum empty space ratio of 50% in grouped, transport and e-commerce packaging, and certain single-use plastic packaging types will be banned from 2030.2

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But the pressure on businesses to act is not just coming from the authorities. Consumers are having their say too. One global survey reveals that 82% of consumers would be willing to pay more for sustainable packaging, while 59% look for information on the recyclability or sustainability of the packaging on the products they buy.3

One option for businesses is to use more reusable packaging. It’s a growing market, one that’s expected to increase globally from $119.8 billion in 2023 to $175.6 billion in 2032, fuelled by the increasing focus on sustainability and need for more environmentally friendly packaging.4 And while reusable packaging is defined as packaging that allows the consumer or business to put the same type of product back into it a minimum number of times5, repurposing – where packaging is used again but for a different purpose – can also be a valuable outcome.

So, if you’re looking for ways to extend the life of your packaging, here are three ideas on how you could make it work for your business.




1


Make it part of your strategy

If you want to embed reusable packaging into your business, it’s important to make it part of your overall strategy. This will help to ensure that the business case is fully thought through, that any financial implications have been properly considered, and raise the likelihood of it being embedded in the company culture.

Make it part of your strategy
Make it part of your strategy
Make it part of your strategy

Action plan:

The way you implement reusable packaging into your strategy will depend on your overall goals – changing to a model where consumers return packaging to be reused may involve a very different approach to one where you encourage customers to reuse the packaging themselves, for example.

A good place to start could be following key steps to formulating your strategy, such as those outlined by the British Business Bank:

  • Assess your use of packaging
  • Set realistic targets
  • Develop your plans (gaining internal and supply chain buy-in where necessary)
  • Implement your strategy and measure your success

If you’re committed to a reusable packaging model, it could be a good idea to examine the four key business models outlined by the Ellen Macarthur Foundation in detail: refill at home; return from home; refill on the go; and return on the go.

And of course, it’s important to make sure the finances work. Reusable packaging is not necessarily more expensive when considering the number of times it is used6, even if the initial outlay is higher. But the overall costs should be considered carefully, and pricing adjustments made if necessary.




2


Consider the shipping and packing materials

It’s not only the packaging your goods come in that should be considered as part of the overall strategy. Packaging used for shipping is also a key element to target, and one that could help you to reduce the overall footprint associated with your products.

Consider the shipping and packing materials
Consider the shipping and packing materials
Make it part of your strategy

Action plan:

Two important elements to consider as part of the strategy are the box or package, and what goes into that package in addition to your product. Both contribute to the overall packaging footprint, and both can be given a second life in the right circumstances.

Starting with the box itself, it worth considering whether your carrier provides reusable packaging. This could enable the recipient to use the packaging for any returns, or to send an item to a different recipient in the future. The first of these enables you to save on providing separate packaging, while the second is an additional benefit you provide for your customer. Both improve the user experience and could result in greater loyalty.

There are also other companies that can provide reusable packaging for you to use. One example is Finnish business RePack, which supplies reusable packaging that consumers can then return to it by posting in any post box in the world – for free. The packages are then cleaned and made ready for another delivery cycle with one of its retail partners. Loop is similar, although it provides reusable packaging for individual items which can then be returned to Loop to be cleaned and used again.

Other companies design packaging that is easy for consumers to return to the ecommerce retailers themselves. RepeatPack is just one example, with the business providing packaging that flattens easily for a low-cost postage fee, and which can then be used for another delivery.

You could also think about anything else you put into the package, for example as protection, and how that could be re-used. It’s perhaps unlikely that your customers would do so for the same purpose but encouraging them to make use of compostable void-fill in their gardens or reusable chiller packs in their picnics is a great way of extending the life of this type of packaging.




3


Engage your customers

Any attempts at driving packaging re-use in your business are likely to involve getting customers on side. Finding ways to do this effectively will be key to your overall success.

Engage your customers
Engage your customers
Make it part of your strategy

Action plan:

If you’re looking to encourage consumers to return packaging to you, there are several approaches you could take. One is to communicate your overall sustainability message clearly, which could help gain crucial buy-in from consumers who clearly understand their role in the process.

Another is to use financial incentives. Rewarding customers or providing discounts can encourage them to return packaging7, while deposit schemes have also proved highly effective in elevating return rates.8

It’s also important to make things easy for consumers. Shipping packaging that also works as returns packaging is a great example of this but there are other aspects to consider too. Optimising the design of the packaging – such as being able to open it without damaging it – is one area to consider, but so is clearly explaining to customers how to return it and giving them plenty of easy options for doing so.

Making it simple for consumers is also a factor if you are hoping they will give the packaging a new lease of life themselves. Again, this can involve clear explanation – informing customers how to compost materials, for example, or explaining how to use bubble wrap as insulation for plants9 – but could also mean making sure labels are quick to remove and the packaging is easy to clean.10





Wrap up

The move towards reusable packaging is just one part of the overall drive to improve sustainability in e-commerce. If you’re looking for more ideas on sustainable packaging, see our article on how to find the most suitable kind for your product, while you can also evaluate and monitor your carbon footprint by using our FedEx® Sustainability Insights calculator.



Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.

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