The Role of RFID in Smart Reusable Packaging Solutions

With mounting environmental pressures, regulatory changes, and shifting consumer expectations, businesses are increasingly aware that the traditional linear economy model, “take-make-dispose”, is no longer sustainable.

RFID tags work to enable deposit return schemes, enabling businesses to increase their return rates.

In the UK alone, over 90 billion pieces of plastic packaging are thrown away annually. With less than a third of the packaging being recycled post-consumer use, it is estimated that over half is burned for energy generation. Meanwhile, material costs, extended producer responsibility regulations, and growing pressure continue to build for businesses as they look to demonstrate genuine environmental commitment.

The solution lies in transitioning from a linear economy to a circular economy, one where materials maintain their value and are used through multiple use cycles rather than being used once and turned into waste.

However, implementing a circular economy presents practical challenges:

• “How do you track thousands of reusable packaging systems across supply chains?”

• “How can I minimise losses and optimise return rates?”

• “What will help me track and manage my environmental savings and footprint?”

  
  

This is where Radio Frequency Identification (RFID) technology proves invaluable. Using RFID technology within reusable packaging systems transforms the logistical headache of managing reusable packaging into a smart, streamlined, data-driven system.

Key Takeaways:

• Traditional reusable packaging systems fail because of poor visibility and tracking.

• Unlike QR codes and barcodes, RFID can track packaging throughout its entire lifecycle.

• RFID enables a data-driven circular economy, generating valuable data about reuse rates, carbon savings, and operational efficiency.

What are RFIDs?

Radio Frequency Identification (RFID) is a wireless technology that automatically identifies and tracks objects using radio waves. Think of it as a more advanced version of a barcode system you see in retail stores, but one that doesn’t require a clear, visible direct path between the scanner and the code.

This allows the technology to quickly identify multiple items simultaneously, within boxes, and without having to physically handle and reposition them, thus saving time.

To read the data, an RFID scanner or an RFID reader (like above) is needed.

There are three components needed for RFIDs:

• RFID tags: A small microchip that is embedded into or attached to packaging, which stores unique identification data

• RFID reader: Often, handheld scanners, doorway readers, conveyor belts, or mobile devices which capture the data when an RFID tag comes within range

• Backend System: The software that processes, stores, and manages the data collected from RFID tags

RFIDs provide capabilities that other technologies cannot when it comes to smart packaging solutions.

RFIDs Vs. QR Codes Vs. Barcodes Vs. NFC

Each technology has its strengths and weaknesses, and knowing which technology is best to use is important.

Technology	How It Works	Range	Line-of-Sight Required?	Multiple Item Scanning?	Best Suited For
Barcodes	Visual patterns read by scanners	Very close	Yes	No (one at a time)	Simple inventory in controlled environments
QR Codes	Visual codes scanned via smartphones	Very close	Yes	No (one at a time)	Consumer applications and marketing
NFC	Short-range wireless communication	Ranges from 1cm and 10cm	No	Limited	Payments, access control, and user interaction
RFID	Radio waves identify tags within range	Up to several meters	No	Yes (bulk scanning)	Asset tracking, supply chain automation

For reusable packaging systems, RFID’s ability to automatically scan multiple containers simultaneously makes it a clear winner for operational efficiency and automation.

Why RFIDs Matter for Reusable Packaging Systems

The biggest barrier to adopting reusable packaging isn't the concept; it's the execution. RFID technology solves the operational challenges that have held businesses back, transforming reusable packaging from a logistical burden into a competitive advantage.

Accurate Tracking of Returns and Deliveries

Traditional reusable packaging systems lack visibility. Once you send reusable packaging out, they are not trackable until it returns. RFID provides complete visibility throughout the entire cycle:

• Real-time location tracking: Know exactly where your packaging assets are with RFID-enabled touchpoints

• Automated check-in/check-out: Containers are automatically logged when they leave and return to your facility

• Journey insights: View all the touchpoints your reusable packaging reaches throughout its life

Reducing Packaging Loss Through Tracking

One of the biggest operational challenges with reusable packaging is simply losing track of your assets. Without proper tracking, containers can disappear into supply chains, get misplaced at customer sites, or sit forgotten in storage areas.

• Complete visibility: Track every container throughout its entire journey, eliminating the guesswork

• Pattern identification: Recognise trends that lead to losses and address them systematically

• Operational efficiency: Eliminate time spent searching for or counting reusable packaging to keep operations running smoothly

Lifecycle Management and Operational Efficiency

RFID enables intelligent management that tracks your packaging throughout its entire lifecycle whilst maximising operational efficiency. This approach ensures you get the most value from your packaging:

• Usage cycle tracking: Monitor how many times each container has been used and track performance over multiple cycles

• Packaging analytics and optimisation: Understand which containers are used most frequently and how much you have in stock, circulation, and when you’re running low

• Maintenance scheduling: Track usage cycles to schedule cleaning and maintenance before issues arise

Financial Benefits

Although RFID may be a bit costly to begin with, the continued usage of RFID improves operations, which directly translates into cost savings for businesses:

• Reduced replacement costs: Lower loss rates mean fewer packaging items needing to be replaced

• Labour savings: Automated tracking reduces manual counting and reconciliation, with reusable packaging also saving costs on waste management

• Improved cash flow: Faster return cycles mean better asset utilisation

Smart Packaging and the Circular Economy

Smart packaging isn’t just about making reusable packaging and products trackable; it’s about enabling a more efficient circular economy. Equipping reusable packaging with RFID technology means that businesses can move beyond simple logistics and operations, but can build systems that are measurable, efficient, and sustainable.

Using technology on reusable packaging means that we cannot just track it, but also collect data at every stage of its lifecycle. Each scan tells a story:

• How many times has a piece of packaging been used?

• How much carbon and waste has it saved by being reused?

• How long has it been in circulation? And much more.

The use of technology supports the circular economy and allows us to live sustainably.

This data-driven approach allows businesses to design reuse systems that keep packaging in circulation longer, effectively minimising waste, and report their ESG metrics to provide clear evidence of environmental benefits.

The transparency this creates benefits everyone in the supply chain. Customers can see the environmental impact of choosing reusable options, suppliers can demonstrate their sustainability credentials, and businesses can actively monitor and optimise their systems to ensure materials stay in circulation as long as possible, maximising both environmental and economic value.

RFID technology isn’t just a technical upgrade, but a practical step towards building reuse systems that are both efficient for businesses and sustainable for the planet.

By providing real-time tracking, reducing losses, and enabling lifecycle management, RFID makes circular packaging systems genuinely more efficient and cost-effective than single-use alternatives.

For businesses ready to move beyond linear "take-make-dispose" models, RFID isn't just helpful, it's essential for making reusable packaging work at scale. The data, efficiency gains, and environmental benefits create a compelling case for implementation.