Incentivized recycling: QR codes set to boost UK milk bottle circularity and digital DRS

18 Jul 2023 --- UK-based recycling technology company Polytag and Sweden-based recycling app Bower have teamed up with the online supermarket Ocado Retail to offer a financial reward to consumers for recycling milk bottles through a QR code initiative that is compatible with Digital DRS (DDRS).

Consumers in the UK can be rewarded 20 p (US$0.23) for recycling milk bottles as part of a “world first” recycling initiative run by the partners. Increased milk carton recycling could boost waste management as milk is among consumers’ most commonly bought grocery items. 

Over eight million Ocado milk bottles will feature Polytag’s QR codes on their labels. Ocado Retail’s customers can scan the QR codes on Ocado own-brand two and four-pint plastic milk bottles to receive a reward for putting their packaging in a recycling bin.

“Consumer behavior can be influenced by incentives. Milk cartons are among the most common items in households across the UK. High-density PE milk plastic is already well understood by households as a packaging format that can be recycled,” Alice Rackley, Polytag’s CEO, tells Packaging Insights.

“However, the UK has seen 12 years of stagnant recycling rates, and to achieve a step-change, we must harness the power of mobile technology to make rewards for recycling convenient and simple for households. Recovering as much single-use plastic from our homes and funneling it into recycling streams is critical to avoid landfill or incineration of this increasingly valuable resource.”

Polytag says QR codes will replace the average barcode.Consumer recycling
The first 20,000 codes scanned will see customers receive 20 p in their digital wallet through the Bower app, which can be put into their bank accounts. 

“By 2027, GS1 (the barcode standard agency) predicts that more barcodes will be 2D or in a QR code format than the current stripy barcode format. This means that brands will have infinitely more opportunity to engage consumers through the on-pack QR code offering rich product information, marketing opportunities, videos, links to relevant pages and recycling information,” says Rackley.

“Using the Polytag solution, brands can offer all these things at barcode levels to brands that sign-up for their brand account dashboard. In addition, brands can select to apply ‘unique-every-time’ QR codes, which will enable them to offer generous incentives, rewards, loyalty points and deposits for consumers with no risk of fraud.”

After the first 20,000 QR codes are scanned, other perks will be offered, including cash, coupons and charity donations via the Bower app. Consumers can claim their reward by downloading the Bower app, setting up their account and adding their regular recycling bins and bank account. 

Once the QR code on the milk bottle has been scanned through the app and disposed of the packaging in their registered recycling bin, consumers can receive the money and deposit it into their bank accounts.

“Over 500,000 users are already using the app and get rewarded not only for their bottles and cans but for all packaging with a barcode. We can elevate recycling rates and put speed and scale behind the transition toward a circular packaging economy,” says Suwar Mert, founder and CEO at Bower. Consumers report they are more likely to participate in DDRS than typical DRS.

Rise of the QR code
The system is designed to replicate the deposit consumers can redeem when a UK DRS is likely introduced in 2025. This initiative will demonstrate the viability and convenience of a digital DDRS in England, Scotland, Wales and Northern Ireland. 

“To launch a workable DDRS that pays consumers back for recycling is a game-changing move for recycling and the circular economy in the UK. When we surveyed consumers last year, 80% were likely or very likely to scan a QR code for a deposit return, while 58% said they were unlikely or unsure about bothering to take plastic bottles to reverse vending machines,” says Laura Fernandez, senior packaging and sustainability manager at Ocado Retail.

Enabling consumers to receive a cash incentive for recycling using their smartphones rather than returning the bottles to reverse vending machines, a DDRS makes use of existing curbside recycling systems to deliver maximum convenience, says Polytag.

“Everyone in the supply chain has a role to play in making this happen, including households who can be rewarded for recycling with this intuitive and engaging initiative led by Ocado, Polytag and Bower,” concludes Rackley. 

Innova Market Insights flagged “Meaningful connections” as a top packaging trend for 2023, noting that although connected technologies have mainly been implemented to boost consumer-brand engagement, they are increasingly being employed as tools to support circularity and inclusivity.

By Sabine Waldeck