2027 and Beyond: How DRS Opens the Door to a Circular Future

In 2027, the UK’s Deposit Return Scheme (DRS) arrives. Businesses are already thinking about how this will affect their business as they await further information to remain compliant. But here’s what hasn’t been discussed: DRS isn’t the finish line for sustainability, it’s just the beginning.

Other countries have known this for decades. Countries such as Sweden, Germany, Estonia, the Netherlands, Lithuania, and many more have been implementing these schemes for many years, even looking into further methods to boost environmental impact.

The UK has the same opportunity. Whilst the 2027 DRS focuses on recycling single-use beverage containers, the infrastructure and consumer behaviour it establishes create the foundation for broader reuse models. These models can be used to support items such as packaging, textiles, and more.

Why Deposit Return Schemes (DRS) Matter

The UK's DRS is coming for good reasons. Recycling rates have stalled. Plastic pollution is a persistent problem. And deposits work: they create accountability, incentivise return, and build the infrastructure for reverse logistics at scale.

But it also opens a door. Once the infrastructure is in place and consumers understand the concept of deposits and returns, the same principles can apply to reusable products. That's where the real opportunity lies.

For UK businesses, DRS means operational change. New collection networks, sorting facilities, tracking systems, and return incentives. It's a significant shift from linear supply chains.

But it's a shift that works. Germany's scheme has achieved over 98% return rates on single-use drink containers. Since 1984, Sweden's system has transformed its recycling landscape with new products being added to the scheme. The evidence from decades of international implementation is clear: DRS delivers results.

What Other Countries Have Already Learned

Germany’s experience with DRS is instructive. With world-leading return rates of 98% since its introduction in 2003, Germany is the biggest market for single-use and refillable containers. Germany is now looking to further increase refillable and reusable packaging due to the success of its DRS.

They have the existing infrastructure to do so. Collection points are already widespread and exist. Consumers understand the concept and system. Businesses have the expertise. What started as a scheme for a bottle has become the foundation for a circular packaging economy.  

Sweden and Lithuania show similar patterns. Their DRS schemes, implemented over decades, have created the conditions for broader reuse adoption. Businesses that invested early in understanding and optimising these systems gained significant competitive advantages. 

The lesson is clear: countries that treat DRS as a gateway rather than a destination move faster into reuse markets. And they do so with infrastructure already paid for.

Now the UK is about to do the same. Creating infrastructure that opens the barrier for reuse operations to flourish.

The 2027 UK Deposit Return Scheme

So what happens in 2027 for the UK? The UK’s DRS will establish collection points, reverse logistics systems, and return infrastructure around the UK at retailers and other organisations. Consumers will return selected single-use bottles to reclaim their deposit.

This year (2025) saw the set-up of the UK’s DMO (Deposit Management Organisation), which is rolling out updates on the requirements from retailers and organisations. With two years until the rollout of the scheme, we can expect to see a lot more updates on what is going to happen, requirements for collection points and how it will run.

For more information on what the Deposit Return Scheme means, read more here.

The Reuse Opportunities Beyond Bottles

Once the Deposit Return Scheme is embedded in consumer behaviour and operations, the infrastructure and mindset can be translated for reuse and other items. Customers will understand deposits and returns as a normal part of life. Retailers will have return infrastructure in place. Businesses will have expertise in managing returned products at scale.

The foundation will be set; the door will be open to reuse across multiple categories, and not just bottles.

Packaging and Food Service

Deposits for bottles are just the beginning. Imagine being able to offer takeaway meals in reusable packaging with a deposit return system. Customers pay a deposit alongside their meal. When they’re ready, they return the container and reclaim their deposit or use it towards their next order. The same opportunity exists for fast-moving consumer goods: laundry detergent, shampoo, and cleaning products. 

For retailers and brands, this creates multiple opportunities. Reusable packaging reduces waste and material costs over time. Direct customer returns build loyalty and repeat purchases. 

Fashion and Textiles

Fashion and textiles could operate through similar return mechanisms. Picture this: a customer purchases a garment and receives loyalty points or a credit as part of the transaction. When they no longer wear the item, whether it's worn out, no longer their style, or they want something new, they return it to the brand or retailer. 

The returned garment is then assessed: some are refurbished and resold at a lower price point, others are repaired for a second life, and the rest are responsibly recycled or upcycled into new materials.

The operational principles mirror DRS. Once consumers normalise returning products for value, and businesses develop expertise in reverse logistics and sorting at scale, these capabilities transfer across categories. The EU's new extended producer responsibility (EPR) law is accelerating this need, requiring fashion brands to take accountability for their products' entire lifecycle. 

Building the Foundations for Circular Growth

The 2027 DRS creates infrastructure that transfers directly to reuse. Collection networks, tracking systems, and consumer behaviour change all become the foundation for broader circular models. 

Once consumers normalise returning products for deposits, the psychological and logistical barriers to reuse disappear. They're primed to return packaging, fashion items, or anything else. For businesses, the window to move is now. Most competitors are focused on compliance. Forward-thinking leaders are asking: how will we build on this infrastructure?

This is where Tap & Return comes in. Our digital deposit technology extends beyond beverages, enabling reusable packaging systems, fashion take-back schemes, food service returns, and more. It makes reuse seamless: customers locate the nearest return point, scan their reusable package, and tap their payment card for an instant refund. No queues, no hassle. Simple for customers to get involved.

Meanwhile, you're gathering real-time data: which locations drive the most returns, when peak times hit, how your reusables are actually being used. You can reward loyalty at every touchpoint. The result? DRS compliance that doubles as a competitive advantage.

Turning Regulation into Opportunity

The UK's DRS is often framed as a compliance challenge. Meet the deadline, tick the box, move on. But that's thinking too small.

Other countries have shown us what's possible. DRS isn't an endpoint: it's a foundation. The infrastructure, expertise, and cultural shifts it creates enable reuse across packaging, fashion, food service, and beyond. The businesses that recognised this early became leaders in their markets.

The UK is now on the same journey. In 2027, DRS becomes mandatory. But the real competitive advantage goes to businesses that start preparing now, not just for compliance, but for the reuse economy that follows.

If you're serious about positioning your business in a circular economy, the time to start isn't in 2027. It's now. Contact us to find out more about how we can help you.