TerraCycle initiative Loop was first introduced at the World Economic Forum in Davos in 2019. With a mission to eliminate waste, Loop is the “next evolution” of TerraCycle. While TerraCycle focuses on recycling hard-to-recycle packaging, Loop is focused on reuse. The goal is to prevent packaging from becoming waste in the first place by keeping it in circulation for as long as possible.
The concept of reusable packaging is not new and has been exemplified by the milkman profession dating back to the late 1700s. Milkmen would deliver milk in glass bottles, which households would return for reuse. This model relied on durable packaging that could be reused multiple times. Loop is modernizing this model by collaborating with brands and manufacturers to create refillable versions of their single-use products. This collaboration extends to retailers who offer these refillable options in their stores.
The incentive for brands and manufacturers to participate in Loop is similar to that of the milkman. They have the opportunity to make their packaging more durable and reusable, leading to innovation and better packaging. Consumers also benefit from a better product experience.
Loop works by partnering with well-known brands and retailers like Nestlé, Unilever, Danone, Carrefour, and Tesco. For example, Tesco conducted trials with Loop in the UK, where consumers could buy groceries and household goods in reusable packaging. At the point of sale, consumers pay a deposit, which is refunded when they return the empty container to a Loop Collection Point. Loop then collects and cleans the packaging before refilling it for sale.
The widespread adoption of Loop has not been a challenge because many companies are already committed to reducing plastic waste. Not only does reuse align with their goals, but it also allows them to decouple reduction targets from business growth. Legislative pressure in Europe is also contributing to the shift towards reuse.
While there is still work to be done to encourage a cultural shift among customers, consumer mindset is changing. The Tesco trial showed positive customer reception, with popular products including well-known brands like Coca-Cola. Awareness and accessibility are the main barriers, and the industry must make it as easy as possible for consumers to embrace circular consumption.
Loop is revolutionizing the concept of waste and driving the shift towards reuse in the food and beverage industry. By partnering with brands and retailers, Loop is making refillable packaging accessible to consumers, leading to a better product experience and reduced waste.
