Reuse-refill: Can this model ever really work in the beverage industry? (2025)

Reuse-refill models are, at their simplest, what the name implies.

Instead of buying single-use packaging, consumers reuse and refill their pack with liquid over and over again (while reuse-refill can also encompass returnable packaging, let’s concentrate on the consumers’ end use reuse-refill occasion).

What makes this a great model is that – rather than looking at different materials or formats – it puts the focus on using less materials in the first place.

What makes it a lofty aspiration is that today’s beverage industry is highly focused around convenience and single-use packaging.

Drinks and pasta: Not the same

Reuse-refill has seen a certain level of success in stores with non-perishable dry goods such as pasta, grains and rice.

But that model has not caught on quite so successfully (although it does exist) with liquids: which come with a spill risk and are more messy in store.

Take your big beverage giants – whether in soft drinks or alcohol – and reuse-refill models are few and far between.

While environmental organizations maintain that reuse-refill models are the best option, it’s much, much easier for companies to focus on recycling goals, recyclability, or recycled content – all of which still work on the basis that each item of packaging will only be used (in its same form) once.

A case in point. In 2022, Coca-Cola championed a goal to use 25% reusable packaging by 2030. But having only reached 14% to date (and this figure includes both reuse-refill and returnable), it’s backed away from this target (it will instead shift its focus to recycled material: although will ‘continue to invest in refillable packaging where infrastructure already exists’).

SodaStream: A model used across 40 countries

One company that has, however, made a big bet in reuse-refill is PepsiCo with SodaStream.

PepsiCo bought SodaStream in 2018 for $3.2bn, taking on the brand that allows people to make their own sparkling drinks at home in a customized fashion, eliminating the need for individual single-use plastic bottles to package the drink (instead, reusable SodaStream bottles are provided with the system).

The brand estimates this system means one SodaStream bottle can replace over a thousand single-use plastic bottles (that’s based on a five year period).

SodaStream is now sold across 40 countries, with the US as the biggest market, although PepsiCo did not share any sales stats for the brand with us.

The key for a good reuse-refill system, says Marek Tomalak, Global CMO of SodaStream, is to make it easy.

“The key to creating a successful refill and reuse model is to ensure a seamless, convenient process for consumers,” he told us. “Our goal is to empower the world to drink better, with sustainability and ease as top priorities.

“Our CO2 carbonating cylinder exchange program is a perfect example of this. Consumers can simply order an exchange cylinder, receive it with a USPS shipping label, and then ship back their empty cylinder. The returned cylinders are sterilized, inspected, and refilled with food-grade CO2. Additionally, we’ve partnered with TerraCycle to offer a free recycling program for old SodaStream sparkling water makers, making it simple for consumers to recycle.”

But what SodaStream has done well is that it’s gone beyond being a simple reuse-refill model and thought how that can bring something more to consumers – via the ‘endless’ customization opportunities (far, far more than buying a single product off the shelves in stores).

Consumers have scores of flavors to choose from, different beverage styles to try, and the chance to create top brands such as Pepsi, 7UP, Lipton Ice Tea and many more (for Dry January, the brand effortlessly switched its focus to creating mocktails on the system).

Essentially, says Tomalak, the secret to success for SodaStream is that it’s ticked all the boxes of what actually matters to consumers: convenience, value and customization.

“Key selling points for consumers include the convenience of enjoying sparkling water at home and on the go, the environmental benefits of replacing single use plastic bottles, and better value compared to ready-to-drink beverages – all without compromising on quality or taste. It’s a system designed to fit perfectly into consumers’ lives while contributing to a more sustainable future.”

Beverages on tap

While SodaStream was one of the earlier models to take off, it is far from alone in launching a home dispenser system.

And other models exist to target different environments, such as offices and hospitality.

In November, Britvic (now Carlsberg Britvic) launched the Aqua Libra Flavour Tap Nano: ‘the world’s first full-service integrated tap’.

Designed for office micro kitchens, the Flavor Tap Nano offers Aqua Libra still and sparkling naturally flavored sugar-free drinks (including watermelon, mango, raspberry & peach, cucumber mint & lime, and more), as well as chilled sparkling and boiling water. It also serves functional water, with electrolytes, including zinc which helps support immunity.

It’s designed as an ‘all in one’ option for offices with smaller kitchens, replacing not only multiple taps, but also soft-drinks, fridges, and kettles. With sparkling soft drinks available on tap, Britvic says the Flavour Tap Nano also cuts down on cost and waste, delivering 10,000 serves through its cartridge system before restocking.

Then there’s Belu: a drinks and filtration business that launched a filtration tap for hospitality settings in 2015 and has just expanded with The Belu Curve for the workplace. This, too, delivers chilled, still, sparkling and hot water – with a social mission (‘investing 100% profit in our purpose, changing the way the world sees water’) as well.

These systems are perfectly suited to environments where consumers realize they don’t need single use packaging, said Natalie Campbell, co-CEO of Belu Water. But it isn’t just about consumers: it’s about businesses too.

“Since launching Belu Filter in Action in 2016, our innovative filtered water service, we’ve witnessed a steady shift in business attitudes away from single-use, and the appetite is growing," she said.

“Luxury hotels have embraced refillable bottles for in-room service, while casual dining establishments increasingly seek waste-free water solutions that make commercial sense. These aren’t merely token gestures, these businesses are delivering measurable impact against their ESG commitments while maintaining operational efficiency.

“The workplace sector shows similar momentum. Corporate partners have significantly increased in recent years, driven by ambitious waste reduction targets and carbon emission goals. The transition away from single-use plastic bottles isn’t just environmentally sound. It’s becoming a business imperative as organisations recognize the long-term commercial and reputational benefits of sustainable water solutions.”

Tricky challenge: Out-of-home

Refill on-the-go is much harder, because this occasion is all about convenience. But there are two beverage categories which have been under intense scrutiny from the public and media – plastic bottles and coffee cups – and that’s help drive change.

Water fountains have become much more common in schools and airports, helping reduce the number of plastic water bottles purchased. And they’re also being increasingly installed as environmental initiatives in cities.

Reusable coffee cups have become more common: where people take their own coffee cup into coffee shops rather than using a disposable cup – and treating it nearly akin to a fashion accessory at the same time.

And yet, of course, convenience has largely won-out in both these areas. While the pre-pandemic years saw huge momentum towards reusable coffee cups (in the UK, Argos reported a 537% increase in portable cup sales), by 2022 only 4.6% of consumers in a Hubbub survey said they exclusively use reusable cups. By 2023, TimeOut declared we’d ‘given up on the reusable coffee cup’.

The pandemic was a key factor in this shift: consumers suddenly decided they valued hygiene above all, and went back to old habits. And old habits die hard.

Case study: Craft beer and growlers

One sector that has made a success of reuse-refill is craft beer.

Growlers – refillable containers – are beloved by aficionados, often with branding from their favorite brewer. And craft beer fans are willing to make the trip to their favorite breweries to refill.

This model has been used successfully for decades. But, as with coffee cups, it appears the trend may be heading in the wrong direction.

While the Brewers Association (which represents craft brewers in the US) does not track growler use, this format appears to be losing steam, Chuck Skypeck, technical brewing projects director for the association, told us.

“Anecdotally, the use of growlers in craft brewing seems to be in decline,” he said. “The reasons for this could be a general decline in on-premise beer sales since the pandemic, but also the decrease in the use of growlers during the pandemic - when many establishments discontinued handling refillable containers - and the rise in consumer popularity of aluminum containers.”

And growlers highlight the biggest challenges of reuse and refill. There’s the time and effort required to clean growlers, and there’s also a potential impact on quality (filling beer into a growler from a draft tap has many quality challenges, including oxidation and losing carbonation).

And the reason growlers have been successful in craft beer is because it appeals to a passionate demographic who are willing to go the extra mile – often quite literally, visiting a brewer instead of a supermarket. That’s also the reason why scaling the model into a mass one is problematic.

Growlers are much more associated with smaller brewpub and taproom business models, rather than larger craft production - let alone large mass production models.

“Many breweries use unique bottle designs (think New Belgium bottle or Sierra Nevada’s stubby”) as part of their branding,” explained Skypeck. “Bottling lines are set to fill a consistent size, so unique bottles must be returned to the original brewery. That means shipping bottles for long distances, a less than sustainable activity,” he said. That’s on top of the energy and water required for cleaning.

And where the model really falls down is at retail.

“Liquor stores and groceries where beer is sold would need to donate time, space, labor, and money to collecting and storing bottles,” said Skypeck. “The same for wholesalers. I think the biggest hang up would be space, which always comes with a price. And then there is the smell. A pallet of dirty beer bottles waiting to get cleaned smells horrible, and I can’t imagine a retailer will want that in their store.”

Business advantages

The Ellen MacArthur Foundation – a UK charity that promotes a circular economy – puts reuse and refill at the center of its recommendations.

But it says that reuse and refill isn’t just about helping the environment – it comes with advantages to businesses as well.

“Reuse presents an innovation opportunity to change the way we think about packaging from something that’s simply as inexpensive and light as possible to viewing it as a high-value asset that can deliver significant benefits to users and businesses,” says the organization.

How so?

In a world of digital innovation, there’s plenty of potential. Reusable packaging can be used to gather user insights, through technology such as RFID tags, sensors and GPS tracking. It can also build brand loyalty – for example, branded reusable coffee cups which give a discount for drinks in store - or provide a superior user experience to flimsy single use packaging.

And the bottom line is that it can save money.

Packaging and transportation costs can be reduced by supplying refills for reusable containers in compact form, such as concentrates or solids (That sounds like it’s not going to apply to the beverage industry: but think of brands such as waterdrop that have found tremendous success with its concentrated, solid cube).

Focusing on the advantages could help convince brands and businesses that reuse-refill models have a solid place in the beverage industry of the future.

It’s about switching the narrative to one that focuses on problems to one that offers potential: not just when it comes to sustainability but the brand and business advantages as well.

Clearly, there’s still a long way to go to make these models the norm, but the potential is there.