Will the DRS Improve Recycling Rates In the UK? Only If We Fix The Missing Middle

Spokesperson: Nick Yeatman, CEO at Trovr

For years, the UK has talked about a circular economy as an aspiration rather than a reality. Now, with the Deposit Return Scheme (DRS) for England, Wales and Northern Ireland scheduled for October 2027, that ambition has taken a more concrete form.

DRS is designed to increase recycling rates for plastic and metal drinks containers, collect higher-quality material, and reduce litter by placing a refundable deposit on containers at the point of purchase. Consumers get that deposit back when they return the empty container to a return point. The scheme will apply to single-use drinks containers between 150ml and 3 litres made from PET plastic, aluminium, and steel.

Under the scheme, the Deposit Management Organisation (DMO) will be required to reach a 90% collection target for all in-scope materials once the scheme is fully operational by its third year, in 2030. The question is no longer whether DRS is the right policy, but whether we are prepared to make it work in practice.

The backdrop is stark. Globally only around 9% of all plastic ever produced has been recycled. Every year the world produces more than 460m tonnes of plastic, and single-use packaging remains one of the biggest contributors for ocean waste. The UK’s household recycling rates have plateaued, and “on-the-go” consumption continues to leak valuable materials out of the system. Minor improvements to kerbside collection alone were never going to fix this, which is why the new DRS matters.

A policy with a proven track record

Deposit return schemes are one of the most consistently successful recycling interventions that can be deployed. Countries that have implemented them successfully see a dramatic shift in consumer behaviour, almost overnight.

In Scandinavia, DRS systems have been running for more than 30 years. Sweden and Denmark consistently achieve return rates above 85%, with Germany’s scheme delivering rates closer to 98%. Lithuania moved from 34% recycling of drinks containers to over 90% within just two years of introducing DRS.

The reason is simple, in that DRS aligns incentives. Consumers are rewarded directly for returning containers. Brands and retailers operate within a clear, standardised system. Governments get measurable outcomes instead of good intentions. The UK is right to follow this path, but policy design is only half the story.

The importance of the independent retailer

Much of the current DRS conversation focuses on supermarkets, which makes sense given larger retailers like the Sainsburys and Tesco’s of our world will process huge volumes of returns, and will be highly visible collection points. But there is a risk in assuming they can carry the system alone.

The UK has more than 50,000 independent convenience stores and small retailers that collectively sell a significant proportion of drinks consumed on the go. They are embedded in neighbourhoods, transport hubs, rural villages, and urban estates, and often the closest and most convenient place to return containers for local people. 

Yet many of these businesses remain unclear about what DRS will require of them, or how they are expected to comply. A recent study by the Association of Convenience Stores shows that just one in five independent retailers have a plan for the DRS launch in 2027.  

Without appropriate support, small retailers face a bleak choice to either invest in large, expensive reverse vending machines designed for supermarkets, or revert to manual handling. That means storing sticky bags of bottles and cans behind the counter, dealing with hygiene risks, security concerns, and operational disruption, all while working with limited space and tight margins. This is why we developed the TrovrQUBE to offer small retailers a practical, affordable alternative to machines built for supermarkets and the burden of manual handling. 

If returning containers becomes inconvenient in local areas, consumers will disengage, and the system will develop blind spots if independents are struggling. Recycling rates suffer as a result, not because the policy is wrong, but because the infrastructure is incomplete.

The DMO has been clear that engaging the independent retail sector is critical. Small retailers play a vital role as return points, and their participation is essential if the scheme is to reach its long-term collection targets. 

Awareness is key

Handled well, DRS can be an opportunity rather than a burden, but that outcome depends on awareness. For smaller operators, the challenge is not opposition but uncertainty. Many retailers are still unaware of what compliance looks like in practice, or how participation could work within limited space and budgets. 

Where awareness is high, the picture changes. Collection points can drive footfall, increase visit frequency, and give consumers a reason to choose one location over another, much like ATMs or parcel lockers. Handling fees, while modest per unit, can become meaningful at scale, particularly when paired with increased customer visits.

This opportunity also extends well beyond retail. DRS must work wherever drinks are sold and consumed, including gyms, leisure centres, workplaces, universities, and hospitality venues. These high-volume, on-the-go environments are currently some of the weakest points in the recycling system.

The DMO is encouraging open conversation to boost awareness around the DRS, which is exactly what is needed to avoid blind spots in the system that undermine national performance. With the right understanding and fit-for-purpose solutions, independent retailers could become some of the most effective collection points in the country.

The UK still has time, but things are moving quickly. Between now and 2027, the success of DRS will depend on education, awareness, and practical infrastructure rollout across the full business ecosystem, not just the largest retailers. 

Sustainable Business Magazine