In the Loop: TerraCycle's returnable packaging program extends to five major markets

01 May 2020 --- Waste management specialist TerraCycle’s reusable packaging initiative Loop is set to expand into the UK, Canada, Australia, Japan and Germany after promising trials in France and the US, which were met with “an overwhelming global appetite for sustainable and circular solutions.” Despite the increased COVID-19-induced demand for at-home delivery services, Loop states that the international expansion was planned before the pandemic outbreak. Loop also announced that Phase Two is on the horizon, which will see the integration of the platform into retailers’ websites, starting with Carrefour in France in June 2020.

“We had always planned to launch Loop in 2020 in a number of new markets, so the current global pandemic didn’t play a part in Loop’s upcoming launches. However, the growth is probably in some part linked to the general growth e-commerce is having right now due to COVID – for sure. March and April have been Loop’s best performing months to date,” Stephen Clarke, Head of Communications for TerraCycle and Loop Europe tells PackagingInsights.

The French Connection
Loop’s goal was to test its services in both North America and Europe, more specifically in Paris, France, as well as New York, New Jersey, Maryland, Washington DC and Pennsylvania in the US. The TerraCycle-led initiative is now expanding internationally to the UK, Canada, Australia, Japan and Germany. This move was motivated by two main drivers, as outlined by Clarke.Loop is now expanding to the UK, Canada, Australia, Japan and Germany.

“Firstly, like our initial markets, these are densely populated regions where delivery can occur within 24 hours. Secondly, Loop has partnering retailers in each of the expansion areas, which are integrating the Loop engine into their e-commerce environments and later physical retail environments,” says Clarke.

“Loop will be expanding globally to cities identified as opportunities based on a range of factors, including the places that our retailer and brand partners identify as growth targets. [We are] planning to scale by adding more consumers to each active market as well as expanding to new markets between 2020 and 2021,” he maintains.

This international launch taps into Innova Market Insights’ number three Top Packaging Trend for 2020, “Packing an e-Punch.” Notably, the Loop delivery system has made all forms of throw-away packaging – recyclable or not – obsolete with its vast array of refillable packaging.

A zero-waste delivery system
The Loop website offers consumers a shopping platform for groceries and household items just like conventional e-commerce platforms. The difference is that consumers pay a refundable one-time deposit to borrow the Loop Tote – dubbed a “breakthrough zero-waste delivery system” that eliminates disposable, single-use shipping materials, such as cardboard boxes, bubble-wrap and ice packs.

Consumers can use the contents of the products, but the packaging is sent back for reuse.Once consumers have used up their purchases, available for anything from dry beans to hair shampoo to hand wipes, they can place the refillable packaging back into the Loop Tote and schedule a free at-home pickup. Loop’s state-of-the-art cleaning technology hygienically cleans the empty returned packages to prepare them for reuse. Consumers can also opt for their favorite products to “auto-refill when returned” for heightened shopping convenience.

Phase Two: Retailer integration
This is what Clarke delineates as “Phase One” of the Loop process. “Phase Two will see the integration into the retailers’ own e-commerce site – which is scheduled for launch with Carrefour in France in June 2020 – or dedicated in-store aisles where full products can be picked up and empty products returned,” he explains.

“Loop’s brand and retail partners all see the significant benefits of reuse, as do consumers. For all three groups, the desire for reuse and refill to echo the convenience of disposable models is very, very high.”

While Loop’s services may cost some a pretty penny, Clarke maintains that neither the cost of Loop products nor the refundable deposit have been a deterrent to consumer purchases. However, the company expects its fees to reduce further as it continues to scale.

By Anni Schleicher