Dropping Beverage Container Redemption Rates Signal Need for Revamp

Aug 02, 2023

Container Recycling Institute | Aug 31, 2023

Beverage container redemption rates for 2022 in seven of the eight U.S. bottle bill states with available data either dropped or remained within +/-1% compared to 2021. Oregon is the only state that saw a noticeable increase from 2021 to 2022.Of the 10 deposit states, all but Maine and Iowa have currently available data. Overall findings from CRI’s data compilation include the following (see the chart at the end of this document for complete details)

“Stagnant or dropping redemption rates point to the need for program modernizations – such as higher container deposit amounts, coverage of more beverage types, and additional convenient options for consumers to return bottles and cans. Several bottle bill states still do not include deposits on noncarbonated drinks, including bottled water – sales of which have skyrocketed since the deposit return systems were implemented in the 1970s and ’80s," said CRI President Susan Collins.

She also noted that program modernizations passed in California and Connecticut should lead to increases in the volume of bottles and cans redeemed as the new provisions take effect. However, changes in the actual redemption rates – number of containers redeemed as a percentage of number on deposit sold – can lag given the time needed for more consumers to learn about these changes and adjust their behavior to return newly eligible bottles and cans for the deposit refund.California:

Connecticut (SB 1037 for all items):

Significant bottle bill reforms also are occurring in Maine. The 2023 passage of LD 134 increased the handling fee for redemption centers to keep them financially viable. Another new law, LD 1909, will streamline the container sorting process for redemption centers; establish a “commingling cooperative” of beverage manufacturers to coordinate the pickup of and payment for redeemed bottles and cans; and redirect unredeemed deposits from beverage companies to a fund used for program improvements.

In addition, in two other bottle bill states – Vermont and Massachusetts – passage of deposit return program modernization legislation remains a possibility.

In Vermont – where the redemption rate dropped 6% from 2021 to 2022 – both the State House of Representatives and State Senate passed legislation (H.158) earlier this year that would expand deposit coverage to most beverage types (at 5 cents), as well as wine at 15 cents. It also would require more redemption centers to serve consumers. Although Gov. Phil Scott vetoed the bill, the General Assembly has the opportunity to override the veto when it reconvenes in January.Massachusetts continues to sit last among bottle bill states with an extremely low redemption rate of 38%, with one reason being that only 40% of beverage types currently are on deposit. A bill (H.3690) introduced for the 2023-2024 legislative cycle would expand the bottle bill to include more types of beverage containers and increase the deposit from 5 cents to 10 cents. CRI estimates that these upgrades would result in the recycling of more than 3 billion additional bottles and cans annually over and above what is now recycled.Collins noted it’s important to remember that Massachusetts’ current disappointing redemption rate is still higher than the U.S. nominal recycling rate of 24% for beverage containers not on deposit, adding that even outdated deposit return systems perform better than non-deposit ones.

Outside of the U.S., the adoption of beverage container deposit return systems (DRS) continues to grow at a skyrocketing pace, as more and more governments recognize these programs’ value in dramatically increasing recycling rates, thus helping to address the global plastic pollution and climate crises.

At the end of 2022, approximately 444 million people in 44 jurisdictions across the globe were covered by a DRS. With the expected implementation of already-announced laws, and the potential approval of a packaging regulation covering the entire EU, that number could increase to just over 1 billion by decade’s end.

Collins said that most non-U.S. jurisdictions operate programs with higher deposit amounts and more beverage container coverage than U.S. states, adding that these governments do not wait for redemption rates to drop below 60% before upgrading their programs. In the U.S., of the bottle bill states with available data, four have rates at or below the 60% threshold.By comparison, a look at a handful of international programs shows the following:*

Collins said, “Given the success of beverage container deposit return systems worldwide, all signs now point to a national bottle bill in the U.S. becoming a reality. But in the meantime, it’s critical to work on the passage, implementation and expansion of state bottle bills to improve recycling rates and further contribute to increases in circularity.”*(For more detailed data on U.S. and international DRS programs, visit www.bottlebill.org and click on “Existing Programs.”)The nonprofit Container Recycling Institute (www.container-recycling.org) is a leading authority on the economic and environmental impacts of used beverage containers and other consumer product packaging. Its mission is to make North America a global model for the collection and quality recycling of packaging materials.

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