In October 2027, the UK will launch a nationwide Deposit Return Scheme (DRS), transforming how we recycle single-use drink containers. It’s a major step towards building a more sustainable retail landscape—one where businesses play a leading role in shaping responsible consumer habits.
Looking Back: The Origins of Deposit Return
Deposit return schemes aren’t new. In the 1970s, many shoppers regularly returned glass bottles to local stores in exchange for a small refund. It was simple, effective, and encouraged reuse long before sustainability became a strategic priority.
As disposable packaging took over, that model disappeared—but the principle behind it has returned, this time powered by modern technology and large-scale infrastructure.
The Current Landscape: Billions of Containers in Circulation
Every year, UK consumers purchase around 31 billion single-use drink containers—12 billion plastic bottles, 14 billion aluminium cans, and 5 billion glass bottles. Despite improved awareness, only around 70–75% are recycled. That leaves more than 5 billion items becoming waste or litter.
The new DRS aims to lift recycling rates to at least 90%, mirroring the success seen in countries such as Germany and Sweden.
How the 2027 DRS Will Work
When buying a drink in a plastic, aluminium, or steel container between 150ml and 3 litres, customers will pay a small deposit—expected to be between 10p and 20p.
They’ll then be able to reclaim that deposit by returning the empty container to a collection point, such as a Reverse Vending Machine (RVM). These machines will recognise and sort containers using barcode and weight technology, refunding deposits through cash, vouchers, or digital payments.
Glass bottles will not be included in the English or Northern Irish schemes, though they will form part of programmes in Scotland and Wales. This variation has prompted discussion among retailers and producers about logistics and consumer expectations across regions.
Implementation Timeline
The DRS rollout will be phased over several years:
- Spring 2025: Legislation finalised; Deposit Management Organisation (DMO) appointed.
- Spring 2025 – Spring 2026: DMO defines deposit levels, labelling standards, and RVM requirements.
- Spring 2026 – Autumn 2027: Retailers begin installing RVMs and adapting packaging; public awareness campaigns launch.
- 1 October 2027: Scheme goes live across the UK.
The DMO—a not-for-profit body led by industry stakeholders—will manage logistics, compliance, and financial flows.
What It Means for Retailers
For retailers, the Deposit Return Scheme represents both a challenge and an opportunity.
Larger supermarkets will be expected to host Reverse Vending Machines, providing easy return points for customers. For smaller stores, collection methods may vary, but participation will still be key to ensuring accessibility and public engagement.
Beyond compliance, the scheme offers retailers a chance to strengthen their sustainability credentials and enhance customer loyalty. Hosting a DRS return point can drive footfall, improve brand perception, and align with the growing consumer expectation that brands take visible action on environmental issues.
It may also open new commercial possibilities—such as integrating deposit refunds with loyalty schemes, digital wallets, or in-store rewards. These innovations can turn a regulatory requirement into a customer experience advantage.
Forward-thinking retailers can use this shift to demonstrate leadership: adopting sustainable systems early, communicating transparently, and positioning themselves as part of a circular economy that benefits both business and community.
Why It Matters
The Deposit Return Scheme isn’t just about recycling—it’s about reshaping the relationship between consumers, brands, and the environment. Retailers will sit at the centre of this change, connecting sustainability goals with everyday shopping experiences.
It’s expected to create thousands of jobs, boost the recycling industry, and generate more consistent, high-quality materials for reuse. For retailers, engaging early will make the transition smoother—and unlock opportunities to innovate along the way.
Final Thoughts
The 2027 DRS is one of the most significant sustainability initiatives in recent years. By combining the simplicity of the 1970s bottle-return model with today’s technology, it invites retailers to lead the next wave of responsible consumption.
Adapting now isn’t just good preparation—it’s good business. The retailers that embrace the scheme’s potential will help drive meaningful change while strengthening trust, loyalty, and long-term brand value
