Wales approves deposit return scheme for drinks containers ahead of 2027 launch
Why does this matter?
Wales' deposit return scheme includes digital QR code technology (Polytag) for container recycling, creating both operational challenges and potential tech opportunities for beverage startups navigating cross-border compliance.
Highlights
The Welsh Parliament has voted to approve legislation establishing a national deposit return scheme for drinks containers. The decision places Wales on a different regulatory path from the rest of the UK, prompting both cautious industry support and strong criticism from several trade bodies. The Welsh Parliament has approved the Deposit Scheme for Drinks Containers (Wales) Regulations 2026, providing the legislative framework for the Welsh Deposit Return Scheme. Under the regulations, a deposit system will apply to in-scope drinks containers supplied in Wales. The scheme covers single-use closed bottles and cans made from plastic, steel, glass or aluminium containing between 150ml and three litres of liquid supplied for consumption in Wales. From 1 October 2027, anyone supplied with drinks in these containers must pay a refundable deposit to the supplier. The deposit will be returned when the empty container is taken back to a designated return point. Speaking after the vote in the Senedd, Deputy First Minister responsible for climate change policy huw irranca davies described the approval as “a significant moment for Wales”. “International evidence shows a deposit return scheme can tackle litter, improve on-the-go recycling and further reduce waste,” he said. “This will keep valuable materials in circulation for longer, building on the world-leading recycling system Wales has already developed. “I look forward to working closely with businesses, local authorities and communities as we move towards implementation in 2027.” The Welsh Government said it will appoint a deposit management organisation to operate the system before the planned launch date in October 2027. It also intends to consider how reusable drinks containers could eventually be incorporated alongside single-use items as part of what it describes as a circular economy approach. Questions over interoperability For businesses working across borders within the UK, the structure of the Welsh scheme has already raised practical questions. Wales is currently the only UK nation planning to include glass containers within its deposit system. Travis Way, managing director at EcoVend, part of circular economy specialist Reconomy, said the vote offers clarity but also leaves several operational matters unresolved. “The Senedd’s approval of these regulations offers some welcome clarity ahead of the Welsh Deposit Return Scheme. As the only UK nation to include glass, ensuring interoperability with the scheme across the rest of the UK will be essential to minimise complexity for producers and retailers operating across borders,” he said. “Alignment on labelling logistics and system design will be key to making the scheme work effectively in practice, helping businesses avoid unnecessary cost and operational friction while delivering a consistent and convenient experience for consumers. “We now look forward to the appointment of the deposit management organisation and further detail on how the Welsh scheme will integrate with the wider UK framework, giving businesses the certainty they need to prepare ahead of the 2027 launch.” Industry bodies have repeatedly argued that consistent rules across the UK would reduce complexity for producers, retailers and distributors supplying multiple markets. Industry groups warn of market disruption Several drinks industry organisations have criticised the decision to include glass containers in the Welsh scheme. Miles Beale, chief executive of the Wine and Spirit Trade Association, said the measure could restrict product availability in Wales. “While our industry is fully committed to producers paying for the waste they place on the market, including a UK-wide DRS for metal and plastic drinks containers by 2027, the Welsh Government’s insistence on including glass is a recipe for disaster. It will lead to a wide range of wine and spirit products disappearing from Welsh shops and supermarkets and create a barrier to trade that simply does not need to exist,” he said. “It should be blindingly obvious that the only way to ensure unhindered market access and a successful DRS is to align the scope of materials across all of the UK.” Beale added that producers already face rising costs across the sector. Concerns about alignment were echoed by other trade groups. Andy Slee, chief executive of the Society of Independent Brewers and Associates, said brewers support the principle of a deposit system but questioned the current design. “SIBA is fully committed to supporting the principle of a Deposit Return Scheme, providing it is effective in improving recycling and reducing waste. However, in its current form, the proposed system in Wales simply will not achieve this,” he said. “These plans will sadly inevitably lead to higher costs and a poorer choice for consumers with small producers on either side of the border avoiding supplying the Welsh market for economic reasons.” Concerns from glass and hospitality sectors Other groups have also questioned the environmental case for including glass. Nick Kirk, federation director at British Glass, said current recycling systems already perform well. “The evidence is clear: kerbside systems already deliver exceptional results for glass in Wales. The decision prioritises complexity over common sense.” Fenella Tyler, chief executive of the National Association of Cider Makers, said producers support the wider ambition of a circular economy but believe consistency across the UK remains essential. “As an industry, we fully support the need for a circular economy, and as a part of that, we recognise the role that DRS plays. However, the scheme will only achieve its objectives if the approach is aligned across all four nations,” she said. “A separate approach to glass in Wales can only result in higher costs and poorer choice for the Welsh consumer.” Alongside the legislative framework, Wales has also pursued a digital dimension to its deposit system. As previously reported by the drinks business, the Welsh Government confirmed in July 2025 that the scheme will include a digital deposit return option supported by technology from the Welsh firm Polytag. Under the model, consumers scan QR codes on containers through a mobile application and recycle them through existing kerbside systems rather than returning containers to retail locations. The Welsh Government believes the approach may increase convenience and participation while reducing the need for extensive physical return infrastructure.
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