Costco and Unilever Launch Refillable Packaging Trial to Drive Sustainable FMCG Innovation
Unilever and retail giant Costco have partnered to pilot a refillable packaging system in select U.S. stores, signaling a significant move toward scalable circular economy solutions in the FMCG sector. The initiative, which began in six Costco locations across California, focuses on Unilever’s Dove and Degree brands—two top-selling personal care lines in North America.
The pilot utilizes “Return@Store” refill kiosks, enabling customers to purchase products in reusable stainless-steel containers and return empty bottles for professional cleaning and reuse. Once returned, the system issues a $1 credit back to the customer, incentivizing repeat participation while reducing single-use plastic waste. Cleaned containers are distributed back to Costco warehouses for refill and resale, creating a closed-loop system that leverages existing supply chains to minimize logistical complexity.
Developed in partnership with circular delivery platform Algramo, the zero-waste solution has been purpose-built for retail scalability. Containers are designed for up to 100 reuse cycles, a key factor in achieving meaningful environmental impact and aligning with consumers’ growing demand for sustainable packaging alternatives. This trial marks Algramo’s largest implementation of in-store reuse systems in the U.S. to date.
Early results indicate high consumer engagement, with Costco shoppers demonstrating repeat purchases and strong interest in packaging reuse. Unilever has stated the initial pilot provides a “strong foundation” to explore expansion into additional markets and product formats. If successful, the initiative could inform long-term strategies for refill adoption across Unilever’s global product portfolio, potentially redefining packaging in mass retail environments.
The move aligns with Unilever’s broader environmental commitments, which include halving its use of virgin plastic and achieving net zero emissions across its value chain by 2039. For Costco, this pilot reflects ongoing efforts to meet shifting consumer expectations and enhance ESG performance across its supply ecosystem.
This collaboration underscores the increasing role of retailer-brand partnerships in accelerating sustainable packaging innovation. As regulatory pressure mounts and consumer preferences evolve, scalable reuse models like the Unilever-Costco-Algramo initiative offer a viable path forward for FMCG companies seeking to reduce environmental impact while maintaining convenience and value.