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You are at:Home»Markets»We’re drowning in reusable bags. Are bag profits preventing big grocers
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We’re drowning in reusable bags. Are bag profits preventing big grocers

October 4, 20243 Mins Read
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You know the feeling. You’re in line to buy groceries and suddenly realize, with regret, that you forgot to bring reusable bags. So you begrudgingly buy more.

The feeling is so widespread, a catchy song about it is going viral on TikTok. 

Megan Bishop, a college student in Sault Ste. Marie, Ont., felt compelled to post her version of the song. She says she and two roommates recently tossed 175 reusable bags that were piling up. Now, they’re stockpiling more.

“We’re human. We make mistakes. We forget our bags at home, and we have to buy them every time, because there’s no other option,” said Bishop.

She wants retailers to offer alternatives, but suspects profits from reusable bags sales are preventing them from doing so. 

“To the retailers, I just honestly, I would like to say you need to focus more on the environment,” said Bishop. “Not everything is about profit.”

In late 2022, the federal government rolled out a ban on certain single-use plastics, including checkout bags. The regulations are being contested in court, but still remain in effect.

The plastic bag ban has had an unintended consequence: a proliferation of reusable bags. 

Studies suggest reusable bags must be used many times for them to have less environmental impact than flimsy, single-use plastic ones. However, many resusable bags don’t get reused, and wind up in landfills — as they’re difficult to recycle. 

Part of the onus is on shoppers to remember their bags. But environmentalists say retailers must do their part by offering circular, in-store solutions, like programs where customers can return unwanted bags or pick up used but cleaned, reusable ones. 

So far, major retailers haven’t bought in, raising concerns that profits from reusable bag sales are getting in the way. 

“Reusable bags are a huge, easy profit revenue generator,” said Renee Lundahl, co-founder of U.S. based, GOATOTE, a company that offers reuse programs. 

Two Walmart employees stand next to a kiosk here customers could, for a fee, get a resuable bag.
in 2022, Walmart launched a pilot project in Guelph, Ont., where for a fee, customers could check out reusable bags from an in-store kiosk. They could then return the bags to be cleaned and reused. (Walmart Canada)

In 2022, retail giants Walmart in Canada and Target and CVS Pharmacy in the U.S. did launch — to much fanfare — GOATOTE-run circular reusable bag pilot projects in selected stores.

However, none of the projects materialized into permanent programs.

“Retailers want to engage and they want to pilot, but when it comes to scale, no one actually commits for a full-scale model,” said Lundahl.  

“I have been told directly that reuse programs for this particular product disrupt the profitability that they receive from [bag sales], and they are just not interested in disrupting that,” she said, without naming specific retailers. 

Booming reusable bag market

The reusable shopping bag business is booming. Market research company Zion estimated the global market was worth around $11 billion US in 2023 and projected it will rise to $15 billion US by…



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