Innovation special feature
Heading: Rethinking Packaging
Intro: UK businesses are turning to reusable packaging systems as new fees make single-use plastic containers more expensive. Focus finds out more.
Body: In the basement of Ocado's warehouses, thousands of plastic containers are getting their second, third, or even twentieth use. These aren't the familiar cardboard boxes that typically carry groceries to doorsteps. They're durable plastic vessels designed for pasta, rice, laundry liquid, and fabric conditioner – containers that customers return for cleaning and refilling.
Unfortunately, this exemplary use of reusable packaging isn’t uniform across industry. Globally, brands and retailers place billions of units of single-use plastic packaging on the market annually. While packaging protects and transports goods, the current system creates significant waste and pollution problems that traditional recycling can't solve.
Reusable packaging offers an alternative. Rather than containers designed for single use, these systems involve packaging that achieves multiple rotations for the same purpose – whether that's consumer-owned refillable containers or brand-owned packaging that gets returned, cleaned, and refilled. The concept sits within the circular economy framework, following waste hierarchy principles that prioritise prevention and reuse over recycling or disposal.
For Rob Spencer, Director at GoUnpackaged, companies like Ocado’s embracing of the concept is proof that reusable packaging can work at commercial scale in the UK.
"Reuse isn't just about a different container," Rob explains. "It's a system change. Logistics has been set up for a one-way process where things are produced, sent out to the public, and then disposed of."
GoUnpackaged is a UK-based Consultancy helping companies transition to reusable packaging systems, working from strategic planning through to implementation and execution.
The EPR Effect
The shift toward reusable packaging has gained momentum in 2025 with the introduction of Extended Producer Responsibility (EPR) fees in the UK. These charges mean businesses now pay directly for the environmental cost of plastic packaging they put into the market.
"There is now a greater cost to businesses who use plastic packaging, and that has created real motivation for businesses to start looking into how they manage packaging," Rob says. "It's a welcome challenge, that's what EPR is designed to do."
The economic logic of reuse is straightforward: if you can get 10, 20, or 100 uses out of something that was previously used once and thrown away, there's an obvious benefit. Even accounting for more durable materials, the per-use cost drops dramatically.
The challenge lies in reverse logistics – getting packaging cleaned and back to where it needs to be for refilling.
Beyond Pilot Projects
Rob has observed a familiar pattern in how businesses approach reusable packaging. Companies often launch small-scale trials in limited locations, often without thinking through the full operational implications.
"It's often not well integrated into the rest of their operation," he says. "The public likes it, but these trials aren't taken forward because everyone suddenly realises it's actually really hard to scale up. You need to know what you’re aiming for and ascertain the bigger picture.”
GoUnpackaged's approach focuses on painting a detailed picture of what large-scale implementation looks like before companies commit significant resources. This includes understanding washing costs, transport optimisation, and material requirements.
In the Ocado project, GoUnpackaged designed two types of three-litre vessels with square bases and profiles optimised for logistics. The containers have different aperture sizes, with bigger openings for dry foods and smaller ones for liquids, which segregates food and non-food products for hygiene compliance.
"Even for a small-scale trial, you've got to be building for the future," Rob emphasises. "If you don't think about things like stackable packaging that fits pallets properly, you get to the end and realise the logistics alone will cost a fortune."
The Ocado system has already saved thousands of items of single-use packaging and serves about 60% of their customer base from specific sites. More importantly, it's established proven processes for cleaning containers to high hygiene standards, complete with allergen removal and microbial testing.
"We very successfully established a process for reliably washing to very high hygiene standards," Rob says. "That's itself a big step for the industry as a whole."
Building the Business Case
GoUnpackaged recently led research for a consortium including Tesco, Ocado, and government departments, mapping out what a 30% reuse future would mean for UK supply chain infrastructure. The study, part-funded by Innovate UK, provides concrete data on requirements and costs.
"The evidence is building that reuse really does work at scale," he says.
The research addresses a key industry problem: lack of reliable data makes it difficult to build convincing business cases.
"In the past, it's been hard to get the right data. There were just too many uncertainties," Rob explains. "We can now help people put together really compelling pictures of the future."
Overcoming the Pioneer Problem
The reuse sector faces classic early-stage challenges. While small-scale operations are more expensive per unit, the economies of scale are straightforward once penetration increases. The question is who goes first.
Some organisations have been willing to lead, but other retailers remain cautious.
"There is a knowledge base now. Organisations are very keen for other partners to join them on the exact same system they're running. It's not proprietary, that's always been the vision."
Practical Steps Forward
For logistics professionals considering reusable packaging, Rob’s advice is direct: engage early with the planning process rather than simply responding to what's presented.
"When your company is looking into these things, bring the logistics expertise and say, right, let's solve the logistics issues," he suggests. "Create demand for what the new logistics map looks like."
Rob believes the sector has moved beyond theoretical discussions. Independent lifecycle assessments confirm environmental benefits, proven washing processes exist, and economic models are available.
"The data is building. Use it, lean on that data, and take the first steps," he says.
As EPR fees continue to make single-use packaging more expensive, the business case for reuse strengthens. The question is no longer whether reusable packaging can work, but how quickly companies will adapt their supply chains to make it happen.