Why Labels Are an Unsung Factor in Scaling Reusable and Refillable Formats in Sustainable Packaging

Pascale Wautelet, Vice President, Global R&D and Sustainability, Avery Dennison Materials Group

The consumer packaged goods (CPG) industry is actively pursuing sustainability, including focusing on packaging designs that champion reuse and refill models. This shift is vital for reducing the industry’s reliance on virgin materials and minimizing waste. For context, global plastic consumption has quadrupled in the past 30 years, accounting for 3.4% of total greenhouse gas emissions; packaging alone drives roughly 40% of that footprint.

Europe’s pending Packaging and Packaging Waste Regulation (PPWR) calls for at least 10% of beverage containers sold in the region to be reusable by 2030, edging toward an “inspirational” 40% by 2040. Similar mandates are emerging worldwide — and consumers are on board. Recent data shows that almost one-third of consumers believe that “brands investing in sustainable packaging” is a top-three solution for companies to address environmental issues, and refillability ranks as the second most important sustainability criterion for beverage and other non-food goods.

Yet progress has lagged. Despite nearly every global CPG company having pledged to make all packaging recyclable, reusable or compostable by 2030, over 80% admit they are still off-track on waste and recycling targets. It’s clear that CPGs must center research and innovation on boosting packaging sustainability, including normalizing refill and reuse formats. But what are the most promising avenues for achieving this?

The promise and persistent challenges of reuse and refill

Packaging can be refilled and reused in different ways, including consumers refilling at home and the industrial collection and cleaning of beverage bottles by distributors. While the benefits of reuse are substantial — reusable glass, for example, has approximately 63% lower emissions than single-use glass due to reduced virgin material use, and reusable PET bottles require about 70% less water than their single-use counterparts — several persistent barriers are impeding widespread adoption.

• Low consumer adoption. Deposit return schemes often lack enough financial or behavioral “nudge” to get consumers to change habits.
• Quality concerns. Shoppers worry about hygiene and may assume reused packaging is less premium, which affects their willingness to pay more for the format.
• Reverse logistics complexity. Bottles must be sorted and routed to the right filling line. This is especially tricky when shapes or stock keeping units (SKUs) differ.
• Traceability limits. Most containers can endure only 20 – 30 reuse cycles for quality control; brands need to know where each bottle is in that journey and when they need to be retired from the system.
• Cleaning and refilling costs. Cleaning and refilling costs are a challenge for reusable bottles. Brands must choose between durable labels that withstand washing or labels that detach cleanly for efficient removal and reapplication.

The unsung hero: Pressure-sensitive labels

One enabling technology for the scaling of reuse and refill models is hiding in plain sight: The pressure-sensitive label (PSL). PSLs adhere to surfaces with pressure, eliminating the need for additional glue, water or heat. Adhesives can be designed to release cleanly during recycling processes and allow the label to wash off between cycles. When integrated with digital triggers — QR codes, RFID inlays, or both — PSLs become smart, data-rich nodes in a circular supply chain. RFID tags should withstand multiple cycles and remain attached throughout a package’s lifecycle.

Here's how PSLs can  advance reusable and refillable packaging formats:

• Increase consumer adoption. Clear, on-label prompts explain how (and why) to bring containers back, while QR codes can link directly to deposit refunds or loyalty points. Early pilots show meaningful upticks in redemption when the “call to action” sits in the customer’s hand.
• Reduce quality concerns. PSLs can deliver vivid graphics and tactile finishes that survive multiple wash cycles, preserving shelf appeal and brand differentiation. This premium aesthetic can counteract consumer misperceptions of lower quality associated with reusable packaging.
• Simplify collection and sorting. Permanent PSLs embedded with RFID chips give each bottle a digital passport. Automated readers at collection centers instantly identify the containers and bottles to be sent back to the correct bottler. No guess work is required.
• Cost savings through traceability and visibility. RFID-enabled labels allow brands to track and trace reusable packaging throughout its lifecycle. Data-driven insights reveal where bottles dwell, aiding in recovery and optimizing bottle fleet size, leading to significant cost savings. Data shows that RFID-enabled traceability can trim the total bottle fleet by up to 10%, freeing working capital and cutting transport emissions.
• Reduce cleaning and refilling costs. Unlike some wet glue decorative labels that are difficult to remove and leave residue, wash-off PSLs detach cleanly during the reuse wash process. This reduces process time, lowers the energy and chemicals required for removal, leaves behind cleaner wash water and helps maintain the product’s quality and appearance.

A blueprint for CPG leadership

Smart labels are not a silver bullet for packaging circularity, but they illustrate how incremental component-level innovation can unlock systemic change. To capitalize on this opportunity, CPG executives and R&D teams should consider five practical steps:

1. Make packaging-centric R&D a strategic priority. Treat circularity features — wash-off adhesives, RFID, digital watermarks — with the same urgency as product reformulation or marketing campaigns.
2. Audit every component. Cap liners, sleeves, glues and inks can each derail recyclability or reuse. Cross-functional teams should map hotspots and set design-for-circularity specifications.
3. Pilot and scale smart-label solutions. Start with high-volume, standardized SKUs (e.g., carbonated soft-drink PET) where route density and container homogeneity favor reuse economics.
4. Strengthen collaborative ecosystems. No single actor can build reverse logistics infrastructure alone. Partner with recyclers, material-science firms, data-platform providers and retailers to share cost and risk.
5. Communicate benefits transparently. Consumers value refillability second only to recyclability as a sustainability signal. Clear labeling and digital storytelling can translate behind-the-scenes innovation into visible brand equity — without drifting into greenwashing.

By elevating under-appreciated enablers such as PSLs — and by treating every square inch of packaging real estate as an opportunity for smarter design — CPG leaders can move from incremental pilots to scalable circular systems. For example, brands can employ PSLs embedded with RFID or QR codes to boost reverse-logistics efficiency in reuse and refill models. High-efficiency reuse and refill makes scalable circularity possible for multiple types of packaging.

The task is urgent, but the roadmap is clearer than ever. The question is no longer whether circular packaging will become the norm, but which companies will master the details — and win the loyalty of the next sustainability-minded generation of consumers.

Pascale Wautelet is the vice president, global R&D and sustainability for Avery Dennison Materials Group. She oversees the 13 corporate and regional R&D centers and teams worldwide. Pascale also provides strategic vision and innovation direction to over 400 scientists and drives an innovative pipeline of sustainable products and solutions.