Seven years after launching a reusable packaging initiative backed by major global brands, Loop has seen sharply different outcomes across markets. While pilot programs in Canada, the United States, Japan and the United Kingdom were discontinued, the company has expanded across France, where reusable packaging policies have supported adoption.
Founded by Tom Szaky, Loop introduced a system that allowed consumers to purchase products in reusable containers and receive deposits back when the packaging was returned. More than 100 brands participated in the initiative, including Canadian partners such as Loblaw, as companies sought ways to address concerns about plastic waste.
Early Support Did Not Lead to Long-Term Growth
Loop launched during a period of increased attention on plastic waste and corporate environmental responsibility. Industry observers said consumers expressed interest in more sustainable packaging options, and the company attracted significant investment from major consumer brands.
However, consumer interest did not consistently translate into purchasing behavior. Ravi Dhar, a professor at the Yale School of Management who studies consumer behaviour and branding, pointed to what he described as a 'knowing-doing gap,' where people support sustainable choices in principle but prioritize factors such as price, convenience and product performance when making purchasing decisions.
According to Szaky, partner companies ultimately found that participation in the reusable packaging system did not generate additional product sales. Without a clear path to increased profitability, brands were unwilling to expand their involvement.
Regulation Helped Support Adoption in France
France has become Loop's strongest market. The company now works with more than 400 products available in 500 grocery stores across the country. Szaky attributed much of that growth to regulations aimed at reducing single-use plastics.
Under France's Anti-Waste and Circular Economy Law, medium and large retailers must dedicate a portion of store space to bulk products or reusable packaging options by 2030. Government subsidies have also been introduced to support the transition.
Loop found that consumer participation improved as more products became available through the program. Szaky said sales and container return rates increased significantly after stores expanded beyond a limited product selection, highlighting the importance of convenience and variety for customers.
Challenges Remain for a Canadian Return
A similar regulatory framework has not been proposed in Canada. Environment and Climate Change Canada pointed to broader efforts supporting reuse and circular economy initiatives but did not indicate plans for legislation comparable to France's requirements.
