Dive Brief:

• Redemption rates in most states with bottle bills decreased in 2023 compared with the previous year, according to data from the Container Recycling Institute. The numbers reflect a downward redemption rate trend since 2017.
• Beverage container redemption rates dropped by between 1% and 4% in most states, while Oregon’s rate increased by 1% and Vermont’s went up by less than 1%, CRI said.
• CRI anticipates recent changes in California and Connecticut’s programs should start showing improvements in coming years, but the group also said widespread bottle bill modernizations could further increase return rates.

Dive Insight:

Proponents of deposit return systems see the programs as powerful ways to raise recycling rates and collect cleaner materials, but even ardent bottle bill advocates point out that older programs haven’t been updated in decades, making them less able to meet demand from new recycled content laws and respond to changing recycling streams and plastics reduction commitments from major brands.

CRI’s annual deposit return data shows small dips in collection rates compared to 2022, but the general decline in return rates over the last seven years shows that states need to improve systems quickly, said CRI President Susan Collins in the report. 

In that seven-year span, the state with the most dramatic decrease in returns was Massachusetts, which saw returns drop 21%. Massachusetts, which has the lowest return rate in the country, went from a 57% return rate in 2017 to a 36% return rate in 2023. 

The other state with the biggest drop in returns is Michigan, which reported an 18% decrease in that same seven-year span. However, Michigan still has one of the highest return rates in the country, reporting a 91% rate in 2017 compared with a 73% rate in 2023.

That news comes after CRI’s 2022 report, which showed flat return rates for most states. Data for Iowa was not available for last year’s report and was not included for CRI’s 2023 redemption rate assessment, though CRI said it conducted a separate study to determine the state’s 2022 rate was about 49%.

Yet deposit return systems have their share of opposition, including from some lawmakers and certain recycling industry players like the National Waste & Recycling Association, which has said certain bottle bills hurt MRF revenue and divert funding and attention away from needed curbside recycling improvements. 

At the same time, support for container deposit systems continues to progress. This year, the Solid Waste Association of North America updated its policy position to support deposit return systems, saying the systems are a key to increasing collection rates and reducing litter as long as the programs meet certain characteristics.

Other major trade groups support bottle bill efforts: the National Association of PET Container Resources, the Can Manufacturers Institute, the Aluminum Association and the Glass Packaging Institute all support “well designed” bottle bills, saying the programs are the key to getting back materials necessary for making new beverage containers.

CRI advocates for widespread state bottle bill improvements such as higher deposit amounts, more convenient return systems and programs that accept a wider range of containers.

“We’ve seen some progress on this front in recent years — particularly with several program upgrades in Oregon and Connecticut’s 2021 passage of major expansion legislation — but not enough,” she said in a statement. 

Collins noted how Oregon — the state with the highest return rate at 87% compared with a 73% in 2017 —  has improved its program over the last 15 years. The state has a 10-cent deposit value and covers nearly all beverage types while also offering “extremely robust bottle and can return infrastructure,” she said.

Successfully passed legislation from the last several years is expected to help make gains in other states. 

Modernization laws passed over the last few years should help increase return rates, but such bills can take years to implement or see notable effects from policy changes, CRI has said. 

Connecticut added noncarbonated beverages, hard cider and malt-based hard cider to its program on Jan. 1, 2023. Though that change didn’t immediately impact return rates for 2023 — the rate went from 44% to 43% compared to 2022 — CRI notes incremental growth for 2024. Citing the state’s Department of Energy and Environmental Protection, CRI says Connecticut's redemption rate was up to 53.5% in the first quarter of 2024. 

In January 2024, Connecticut raised its deposit amount on some containers from 5 to 10 cents, which CRI expects will also make a positive impact on return rates in coming years. 

In California, the state added wine and spirits bottles to its program as of Jan. 1, which CRI expects could add half a billion additional containers each year “once consumers fully adopt the practice of returning these new containers.” The state also added deposits for larger sized 100% fruit and vegetable juice containers, which CRI estimates could add another 188 million new containers. The state also approved millions in bottle bill-related infrastructure and program improvements, effective January 2023.

In 2024, states have continued to work toward modernizing their bottle bill programs, but bottle bills are notoriously difficult to pass.

Earlier this summer, Massachusetts lawmakers included a proposal to update the state bottle bill as part of a broader climate bill, which intended to increase deposit values to 10 cents, increase handling fees for retailers and redemption centers, and include more types of beverages in the program. That provision failed to pass before the legislative session adjourned on July 31.

In New York, lawmakers did not pass a proposed 2024 bottle bill update meant to increase the state deposit value from 5 to 10 cents and raise handling fees from 3.5 cents to 6 cents. It also aimed to expand covered containers to include beverages like coffee, tea, wine and liquor products. 

Washington, Illinois and Minnesota are some of the other states that introduced deposit return system legislation this year. 

“It is encouraging to see greater interest in new and upgraded DRS programs across the nation,” Collins said.