The more packaging, the more potential!

One of the arguments we hear about reusable packaging is that it's just too hard. Quickly followed, it's too expensive, and customers don't want it. We would argue that reusable packaging is not at all hard. In fact, we all used to use it not that long ago. It will take some planning and some getting used to, but one thing it's certainly not is more expensive.

Work package 4 of Buddie Pack is about assessing reusables' economics. The group is progressing fast, with two out of four tasks in full swing. Task 4.1. will offer valuable insights into the financial sustainability of the different reuse cases, while a cost-benefit analysis will be performed comparing their current packaging formats with the future reusables. We are also looking into the needs and gains of various digital tracking technologies. How much information is required, and does it add value? Furthermore, we are investigating the overall profitability drivers for all stakeholders along the value chain. What does and doesn't make it attractive to switch to reuse? This is especially relevant because several indirect profitability drivers should be considered when challenging a new business model. Logistics are always a concern, and the challenges of reverse logistics are being discussed in WP4. Next to the costs, what other elements need to be considered? We also have to weigh up the suitability of logistic models, such as considering shared logistics versus in-house logistics.

A much-encountered issue is that economies of scale are needed to counterbalance the higher cost (and environmental impact) of producing, cleaning and transporting durable packaging. But, there is a point when users will see a return on the investment, and the wider the scale, the higher the volumes, the faster this will be reached.

This inspired Searious Business to look at one of the world's most hectic and complex foodservice sectors – Indian Street Food. Indian street vendors serve 600 million meals per day, and almost everything is served in single-use plastic. Imagine the piles of trash! The street food sector in Indian cities is characterised by vast numbers of vendors densely packed, meaning exploring a shared packaging-as-a-service system is particularly interesting. Short distances, high volumes, quick turnaround times and regular customers mean the economics of a reusable packaging system work especially well in this situation.

Our study showed that introducing a reusable packaging system among Calcutta's street vendors would:

·        Save 2,19 billion items of packaging per year, that's 30,660 tonnes of plastic.

·        Save the vendors 40% on their packaging costs.

·        Cost the end-customer no extra. They even receive discounts for returning packaging on time.

·        Creates green jobs by building a PaaS industry, including dishwashing services with a break-even point in 2.3 years with an ROI of 21%

"The numbers in India are so astronomical it's hard to visualise. So many vendors, so many people, so much packaging. If there is a compelling business case for reusable packaging in such a complex scenario, it can work anywhere. It's simple, #ReuseAddsUp." - Willemijn Peeters, CEO of Searious Business.