The market for bottled beverages in the UK

Figure 1: Trend in the purchase of single-use plastic water bottles (in millions), UK, 2016 to 2023

Extract A: 20p deposit return scheme curbs sales of single-use plastic bottles

In 2022, a trial 20p deposit on single-use plastic beverage bottles was introduced across major urban retail hubs. The scheme requires consumers to pay an upfront 20p deposit, which is fully refunded when the empty container is returned to a reverse vending machine.

The UK Environment Minister stated that the bottle deposit scheme has successfully disrupted the irrational purchase of billions of single-use bottles. This measure protects our marine habitats and ensures valuable PET plastic is cycled back into the manufacturing chain. This regulatory intervention was deemed necessary because, without a price incentive, the market mechanism fails to account for disposal externalities. Many consumers are now in the habit of carrying reusable stainless-steel flasks.

To support this transition, major city councils have installed free, chilled public water-refill fountains. However, retail analysts suggest that some consumer segments remain highly resistant. For busy commuters and travellers, convenience is paramount. Even with falling real household incomes, sales of premium brand bottled spring water at train stations only declined by 5% over the same period, suggesting that a significant portion of the public still chooses the convenience of single-use options.