D4.1: Optimised return systems

Aim of the report This report examines how digitalisation, automation, and improved return logistics can accelerate the transition from single use to reusable food packaging systems. The report combines insights from literature, market analysis, stakeholder research, and technology reviews to identify strategies that reduce plastic packaging waste and align with the EU’s Packaging and Packaging Waste Regulation (PPWR). The study aims to understand the current landscape of reusable packaging schemes, evaluate the role of digital technologies in improving convenience and efficiency, and design pilot projects to test innovative solutions. It also explores how stakeholder perspectives influence adoption and what systemic changes are needed to make reuse mainstream. Potential of digitalisation for reuseable packaging Digitalisation emerges as a powerful enabler for circular economy models. Technologies such as QR codes, smart tags, sensors, and Internet of Things (IoT) platforms can significantly improve traceability, allowing operators of packaging schemes to monitor lifecycle data and verify environmental breakeven points. They also enhance logistics by enabling real-time inventory management and predictive flows, and they create opportunities for consumer engagement through gamification and loyalty programs. However, these benefits come with challenges: high implementation costs, data privacy concerns, recyclability issues, and the environmental footprint (e.g., resource consumption) of digital systems themselves. Smart tags and sensors have the potential to monitor the food and packaging safety with predefined criteria to help making better decisions to extend product life cycle. As digital product passports will become mandatory under PPWR by 2029, all reusable packaging will have to be equipped with data carriers that provide material and lifecycle information. This regulatory shift creates an opportunity to create added value for reusable packaging that serves consumers and businesses, e.g. through leveraging digital platforms. Swiss partner funded by Funded by the European Union. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or REA. Neither the European Union nor REA can be held responsible for them. Market analysis Three dominant approaches to reusable packaging were identified. The analogue deposit-return scheme (DRS) remains the simplest and most familiar model, requiring minimal infrastructure and offering broad accessibility. Its main drawback is limited traceability and vulnerability to fraud. In contrast, app-based library models eliminate deposits and provide rich data for impact measurement, but they introduce complexity for restaurants, who must adapt their processes and implement additional steps, and consumers, who must download and use an app for their food packaging. These models also raise privacy concerns and demand significant investment in backend systems, making them the most expensive option. The credit cardbased library model, also called “Tap & Reuse™”, removes the app barrier by linking packaging to a payment card. This approach offers high traceability and convenience but requires POS adaptation and RFID tagging, placing it in the medium to high-cost range. Aside these three established approaches, a fourth strategy was identified that bares potential: deposit-free, trackingfree schemes, as shown in the Petaluma Project, maximize accessibility and visibility by removing financial and technical barriers. While these models are highly inclusive and effective for rapid behaviour change, they might suffer from low efficiency (i.e., return rates) and incorrect disposal, and they depend on extensive public infrastructure. Their cost is moderate, driven mainly by physical return systems rather than technology. A critical insight from the comparison of the existing strategies is the trade-off between efficiency and accessibility. Digital solutions excel in operational efficiency through data collection, but they often add new levels of complexity to the existing processes, reducing convenience for consumers and restaurants. Conversely, deposit-free models prioritize simplicity and visibility, which are essential for early adoption, but they lack the mechanisms to ensure high return rates. This suggests that early-stage strategies should focus on making reusable packaging solutions visible and easily accessible, while gradually improving their efficiency by introducing control mechanisms and technological solutions where needed as adoption grows. Swiss partner funded by Funded by the European Union. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or REA. Neither the European Union nor REA can be held responsible for them. Stakeholder Perspectives Consumers value convenience above all else. Any additional steps — such as downloading an app, or complex return management — can significantly reduce their willingness to participate. Restaurants prioritise operational simplicity and customer satisfaction; financial incentives (e.g. saving money through lower need in single use packaging, or financial support from authorities) alone are seemingly not sufficient to justify the effort required to implement new systems. Operators seek efficiency and scalability, and while digitalisation supports these goals, it also increases complexity and cost, making sales and network scaling more difficult. These insights underline the need for solutions that balance stakeholder priorities and systemic objectives. Key Insights and Learnings Digitalisation can make reuse systems more efficient and transparent, but it is not a standalone solution. Success depends on systemic measures such as regulatory enforcement, economic levers like taxes on single use packaging, and integration with public infrastructure. Cultural and behavioural shifts are equally critical. Deposit-free models, despite their inefficiencies in return rates, may play a pivotal role in the early stages by driving visibility and habit formation, paving the way for more sophisticated digital solutions. The report recommends leveraging existing infrastructure, such as payment systems and postal networks, to reduce complexity; prioritising convenience and visibility for consumers and restaurants; preparing early for regulatory compliance; and balancing efficiency with sustainability. Ultimately, reusable packaging should be treated as a public service, funded and managed at a systemic level, similar to waste collection, to achieve scale and impact. Pilot Design Two reuse pilots will be launched in Belgium in 2026. The first pilot will compare an analogue deposit-return scheme with a credit card-based delayed payment model to assess convenience, adoption, and ecological footprint of both schemes and create common grounds for comprehensive comparison between the two approaches. The second pilot will trial digital twins as means to create additional value through loyalty programs, personalized engagement, and real-time impact tracking. The Swiss partner funded by Funded by the European Union. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or REA. Neither the European Union nor REA can be held responsible for them. implementation and results of both pilots will be reported in deliverable, D4.5 – STOPP Reuse Cases.