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Amsterdam Business School Amsterdam Business School

Bottle Bills: More Than Just Recycling

How Bottle Deposit Return Schemes Affect Retail Prices and Lead Consumers to Larger Package Sizes

Amsterdam Business School (ABS) researcher Jonne Guyt and Kristopher Keller from the University of North Carolina explored the impact of bottle deposit return schemes on consumer and retailer behavior. Their study, published in the Journal of Marketing, focuses on the 2009 introduction of a deposit on small bottled water in New York.
Jonne Guyt

What Did You Want to Know?

Guyt and Keller aimed to understand how bottle deposit return schemes influence retail prices and consumer purchasing habits. With the EU mandating deposit return systems by 2029, the researchers were curious about the broader effects of these environmental policies.

What Did You Find Out?

The study revealed that retailers increased the prices of deposit-covered bottles by an average of 4%, with smaller bottles seeing price hikes up to 13%. Consequently, sales of these smaller bottles dropped by 6%, while sales of larger bottles (1 liter) rose by 10%. Retailers facing higher operational costs for processing returns were more likely to raise prices. Additionally, consumers skeptical of government regulations tended to avoid deposit-covered bottles, opting for larger formats instead.

What Does This Mean?

Bottle deposit schemes do more than boost recycling; they reshape consumer buying habits and retailer pricing strategies. While these schemes help reduce plastic waste, they also lead to unintended effects, such as increased prices and shifts towards larger package sizes. For policymakers and marketers, this study highlights the importance of considering convenience, costs, and consumer values when implementing regulatory changes.

Where can I read more?

Guyt, J. and Keller, K. (2025). Consequences of Bottle Bills: How Bottle Deposit Return Schemes Affect Retail Prices and Lead Consumers to Larger Package Sizes. Journal of Marketing.