Welsh drinks producers and retailers will have to prepare for new packaging and deposit requirements ahead of the introduction of Wales' Deposit Return Scheme in October 2027.
What the Deposit Return Scheme will cover
The scheme was approved by the Senedd in March 2026 and is due to begin on October 1, 2027. It will cover PET plastic bottles, aluminium and steel cans and glass bottles with capacities between 150ml and three litres.
The Welsh scheme is designed to increase the number of drinks containers that are collected for recycling and support a more circular approach to packaging.
For food and drink businesses, however, the scheme will also introduce new responsibilities around the products they place on the market.
The regulations establish the framework for the scheme and provide for a Deposit Management Organisation to oversee its operation. Producers will need to comply with requirements relating to the containers they place on the market, while retailers and other businesses involved in selling drinks will have responsibilities linked to the return system.
How glass will be treated
One distinctive feature of the Welsh scheme is its treatment of glass.
Glass drinks containers will initially be included within the scheme, but there will be a four-year transition period running from October 1, 2027 to September 30, 2031. During that period, glass containers will carry a zero-pence deposit and will be exempt from the scheme's labelling requirements. They can nevertheless be collected through return points.
The transition is intended to give producers and retailers additional time to adapt to the requirements associated with glass packaging.
Plastic and metal drinks containers will operate under the deposit-and-return model from the scheme's launch. Consumers will pay a deposit when purchasing an in-scope product and will be able to receive the deposit back when the container is returned through an approved route. The Welsh Government has also confirmed that an option to donate returned deposits will be available from the beginning of the scheme.
The scheme forms part of wider efforts to reduce litter and increase recycling rates.
The Senedd Research Service noted that the regulations establish the overall framework for the Welsh scheme, including its scope and the role of the Deposit Management Organisation.
What Welsh drinks businesses will need to consider
For smaller Welsh producers, one of the practical considerations will be understanding which products and packaging fall within the scheme and what information must be provided.
Businesses will also need to understand how their packaging, labelling, distribution and relationships with retailers will be affected.
In August 2026, the Welsh Government appointed Exchange for Change as the Deposit Management Organisation responsible for delivering the scheme in Wales. The organisation will work with producers, retailers and other partners to develop the return network, producer registration arrangements and operational systems ahead of the October 2027 launch.
The scheme is not unique to Wales. Deposit return systems are being introduced elsewhere in the UK, with the UK Government's timetable also pointing towards October 2027 for the UK schemes.
However, the precise arrangements differ between jurisdictions, making it important for Welsh businesses to follow the Welsh regulations rather than assume that requirements elsewhere will automatically apply.
Preparing for October 2027
For Welsh drinks producers, the October 2027 launch may still appear some way off, but the changes affect the packaging decisions businesses make now. Producers developing new products, changing containers or expanding distribution will need to factor the forthcoming scheme into those decisions.
The Welsh Government's regulations provide the framework, but businesses will also need to follow the detailed guidance that emerges as implementation approaches.
Sources
Welsh Government - Deposit Return Scheme regulations
Welsh Government - Deposit Return Scheme approved
Senedd Research - Deposit Return Scheme regulations explained
Welsh Government - Appointment of Exchange for Change as Deposit Management Organisation
Welsh Council for Voluntary Action - joint statement on the scheme
House of Commons Library - Deposit return schemes
