The Benefits of Deposit Return Systems: Enhancing Recycling through Bottle Bills

Deposit return systems (DRS), often referred to as bottle bills, have proven to be efficient recycling mechanisms. Recent findings, including research conducted by the British government, indicate that countries implementing deposits on bottles and cans experience a significant boost in collection rates, soaring between 80% and 95%. This not only augments recycling efforts but also circumvents the risk of trash accumulations. However, this has raised concerns among beverage companies about the potential detrimental effects on their sales figures. Who holds the truth in this debate?

Proponents of the beverage industry worry that DRS may inflate operational costs, which could be ultimately transferred to consumers via higher prices. These concerns have propelled a robust counter-campaign against DRS initiatives in several states. Yet, research suggests these apprehensions overlook important factors that diminish cost hikes and ignore potential savings resulting from the roll-out of DRS.

Nevertheless, some within the beverage packaging sector are rallying in support of DRS. For instance, the Can Manufacturers Institute and the Aluminum Association have collaborated with environmental organizations and consumer advocacy groups to advocate for nationwide bottle bills.

In the report titled “Reimagining the Bottle Bill,” released by Reloop, a consultancy that collaborates with governments and non-profits, it is highlighted that DRS can help decrease costs for businesses while delivering long-term benefits for all stakeholders. Despite curbside recycling being accessible to 73% of American households, the collection of beverage containers—a phosphate that should be among the easiest to recycle—remains frustratingly below 40% of the total bottles produced. According to the National Association of PET Container Resources (NAPCOR), 28.6% of PET (#1 plastic) beverage containers were recycled in 2021.

We can achieve much more.

Pennies for Your Empties

Here’s how DRS programs function: When purchasing a beverage in a plastic or metal container, an additional, typically 10-cent deposit is charged. After consumption, consumers can return the empty container to a designated store for a deposit refund. This mechanism encourages recycling and contributes to reduced waste.

The integration of DRS with extended producer responsibility (EPR) laws—which compel producers to contribute to recycling collection and infrastructure funding—offers further incentives. This combination often reduces municipal recycling expenses, a savings then passed to residents, as highlighted in Reloop’s report.

However, some industry voices raise alarms about the potential for increased consumer prices due to DRS, claiming that retailers and wholesalers may incur additional handling costs for empty containers. Yet Reloop’s findings indicate that, in efficiently managed DRS, revenue generated from recycling containers, combined with unclaimed deposits, offsets these added costs. Thus, container deposits are unlikely to inflate beverage prices.

In the accompanying video, experts from Reloop and the Container Recycling Institute discuss the influential positive impact of bottle return programs on beverage container litter, alongside the clear benefits associated with DRS.

States of Recovery & Collection

Currently, ten states have embraced DRS: California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont. Recent updates include:

• Connecticut: Effectively increased its deposit from 5¢ to 10¢ as of January 1, 2024, and broadened coverage to include non-carbonated beverages, hard cider, and malt-based beverages starting January 2023.
• California: As of January 1, 2024, has introduced wine and spirits bottles into its DRS, which is expected to add another half billion containers annually, alongside deposits for larger 100% fruit and vegetable juice containers, estimated to be 188 million additional containers.
• New York: Proposed a bill in 2024 to elevate bottle deposits from 5¢ to 10¢, although it did not pass.

Recent Performance Data: Mixed Results

The Container Recycling Institute (CRI) has indicated that reward redemption rates in states with bottle bills decreased in 2023, experiencing declines of 1% to 4%. Only Oregon recorded a minimal increase of 1%, while Vermont’s rose marginally as well.

Nonetheless, modernization efforts have begun to yield favorable results in 2024.

Connecticut experienced a remarkable boost in its beverage container redemption rate from 44% in 2023 to 65% in 2024, attributing this surge to significant improvements in the DRS, such as the increased deposit, additional return locations, and expanded acceptance of container types. The state’s Department of Energy and Environmental Protection reported a jump from 43.7% in Q1 2023 to 53.5% in Q1 2024.

California’s Expansion: CRI referenced CalRecycle insights, stating that 1.5 billion more deposit beverage containers were collected for recycling in 2024 compared to the previous year.

Massachusetts Potential: Projections show that modernizing Massachusetts’ bottle bill will facilitate the recycling of an estimated 3.1 billion additional containers annually, cutting emissions by 182,000 metric tons and collectively saving municipalities $36.5 million every year.

Oregon Momentum: Following the state’s decision to escalate the deposit from 5 cents to 10 cents, the redemption rates surged by 22% over the following three years.

Examining the Benefits

Since implementing a bottle bill in 2005, Hawaii has reported a 60% decline in beverage bottles found as litter by 2008. Reloop states that modernizing the DRS framework in the Northeast could lift recycling rates between 65% and 92%, collecting 1.2 billion beverage containers that are currently relegated to landfills. Notably, this revamp would entail an average additional cost of just one cent per container for the entire system. Maine, which boasts one of the most comprehensive DRS programs in the U.S., achieves recycling levels of 84%.

Beyond environmental advantages, DRS programs generate substantial economic activity and job creation. A 2019 study led by Eunomia found that New York’s deposit return system sustains 5,726 jobs, generating $272 million in economic returns and $14 million in tax revenue. Other research indicates deposit systems can produce 11 to 38 times more job opportunities than alternative waste management methodologies, supporting roles in reverse vending machine production, recycling facilities, and logistics operations. Should New York extend its program to cover additional beverage categories and amend deposits to 10 cents, it would likely create approximately 2,000 further jobs.

The Challenge: Outdated Programs Need Modernization

The declining redemption rates since 2017 underscore that many long-established programs, often initiated in the ’70s and ’80s, have inadequately evolved to maintain efficacy. According to CRI President Susan Collins, “with a few exceptions, they have not been maintained and improved enough since then to continue working as effectively as they should.”

The most effective approach to system modernization would be a national movement. In October 2023, U.S. Senator Jeff Merkley (OR) and Representative Jeff Huffman (CA) proposed the Break Free From Plastic Pollution Act. This bill endorses a national bottle bill with a 10¢ deposit on a broad spectrum of containers. However, it has remained stalled in committee and, in the prevailing political climate, is unlikely to progress without considerable public support. Citizens are encouraged to express their opinions by reaching out to their Congressional representatives.

Deposit Programs Are Good for Business

Concerns voiced by the industry regarding slumping beverage sales appear unfounded. Consumers are more inclined to make purchases when they know their beverage packaging will be effectively recycled. A Nielsen survey revealed that 81% of global customers strongly believe companies should contribute to environmental improvement efforts.

Notably, after DRS was adopted in Norway in 1999, beverage sales surged. Similar outcomes were documented in Germany with the implementation of DRS, whereas neighboring countries without DRS faced declines in beverage sales. Comparable trends were also observed in Oregon.

Should retail establishments express hesitancy about supporting a bottle bill due to fears of rising prices, inform them that nearly eight out of ten customers are more likely to return if they offer deposit-return services.

Industry trade associations have also voiced their support for DRS programs. They acknowledge, “Material from beverage container deposit systems generally constitutes 20-60% of the inputs our industries use to produce essential packaging. The high-quality recyclables collected and procured from these programs require minimal sorting and can be swiftly reintegrated into our manufacturing processes.”

Upon further investigation, it is evident that DRS is not the sole culprit for sales declines. A multitude of factors contribute to such trends. Deposit return systems serve as a pragmatic strategy to enhance recycling efforts, minimize waste, and deter plastic pollution in public spaces and oceans. Even the least effective system (e.g., Massachusetts, with a 2023 redemption rate of 36%) still surpasses the national recycling rate of 26% for non-deposit containers.

Steps You Can Take

If you reside outside one of the ten states currently operating DRS programs, engage with your state legislators to advocate for the introduction and support of bottle bill initiatives. Resources such as BottleBill.org offer guidelines on initiating bottle bill campaigns in your state.

Kickstart your local campaign by visiting grocery stores and requesting to speak with the managers. Communicate your intentions regarding where you plan to shop and express your wish for a bottle bill initiative. Encourage them to be vocal supporters of modern DRS programs and inquire if they could facilitate initial steps by providing drop-off bins for bottles and cans. Achieving success in this endeavor? Let Earth911 know so we can feature the store on our Recycling Locator.

Editor’s Note: This article was initially published on August 10, 2023, and was extensively updated in September 2025.