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Why retailers are betting on refill

Refill shopping has been largely associated with independent zero-waste stores and environmentally conscious consumers willing to go out of their way to reduce packaging. Today, that picture is changing.
Why retailers are betting on refill

Across much of the developing world, refill is quietly moving into mainstream retail, not because consumers are actively seeking more sustainable shopping options, but because they are looking for smarter ways to stretch their household budgets. Supermarkets, FMCG brands and technology providers are making refill as convenient as buying products off the shelf, allowing consumers to purchase exactly what they need while paying only for what they can afford.

Retailers are increasingly recognising that refill is one of the few retail models capable of delivering three outcomes at the same time: lowering costs for consumers, reducing packaging waste and creating new opportunities for commercial growth. In emerging markets, where affordability remains one of the biggest drivers of purchasing behaviour, that combination is accelerating refill's move into mainstream FMCG retail.

Against a backdrop of rising household costs, affordability has become an increasingly important driver of purchasing decisions in South Africa. Smartfill has seen this trend play out first-hand through projects in South Africa, Zambia, Bangladesh and Kenya. While each market has its own unique dynamics, the underlying consumer behaviour is remarkably consistent: when refill delivers genuine value without compromising convenience, adoption follows.This reflects a broader trend identified by the Ellen MacArthur Foundation, which notes that many Global South markets are particularly well positioned to scale refill and reuse models.

Since launching its first refill solutions in 2021, Smartfill has worked with retailers and FMCG brands across multiple markets, giving the company a unique perspective on how consumer attitudes towards refill have evolved from being sustainability-led to value-driven.

Nevo Hadas, CEO at Smarfill
Nevo Hadas, CEO at Smarfill

Nevo Hadas, CEO at Smarfill, says: "Across developing markets we've seen refill evolve from a niche concept into an increasingly important part of the retail conversation. Consumers are looking for convenience and value, and refill delivers both. For many shoppers affordability is the primary motivation, while for retailers refill is one of the few models that can simultaneously lower costs for consumers, reduce packaging waste and create new opportunities for growth."

The Ellen MacArthur Foundation, one of the world's leading authorities on the circular economy, identifies refill and reuse systems as one of the most effective ways of reducing single-use packaging while creating long-term commercial opportunities for retailers and brands. Importantly, it notes that reuse systems succeed when they are integrated into existing shopping habits and deliver value for both consumers and retailers.

Internationally, major supermarket groups including Tesco (UK), Carrefour (France) and Aldi have all introduced or expanded refill and reuse initiatives in recent years, signalling that refill is becoming an accepted part of mainstream grocery retail rather than a niche sustainability experiment.

That same shift is becoming increasingly visible in South Africa with Smartfill refill stations are currently being piloted in two of South Africa’s largest and most established grocery retail groups. The rollout reflects a broader shift as retailers integrate refill into the core shopping experience to attract value-conscious consumers, strengthen customer loyalty and create new growth opportunities.

The opportunity is not limited to formal retail. As refill has expanded into supermarkets, Smartfill has also seen strong demand within the informal retail sector. The company recently expanded its offering with Ultra-Clean, a house brand from Ultra-Chem developed specifically for the township market, demonstrating how refill can make trusted household products more accessible to price-sensitive consumers.

Why retailers are betting on refill

More than 70,000 Smartfill transactions across multiple markets have provided valuable insight into consumer purchasing behaviour. The data consistently shows that affordability, rather than environmental concern, is the primary driver of refill adoption.

Hadas says: "The conversation has changed, initially refill was driven almost entirely by sustainability. Today we're seeing affordability become the catalyst for adoption. Consumers quickly recognise that bringing their own packaging allows them to spend less while continuing to buy trusted brands. Sustainability becomes an additional benefit rather than the primary motivation.

"One of our most compelling findings is the impact refill has on brand growth," Hadas explains. "B-Well captured and maintained a 20% market share in spaza stores where it was available only through Smartfill. Unilever achieved a 40% market share for washing powder by converting consumers from competing products in stores where refill was introduced. These results demonstrate that refill is not simply reducing packaging waste, it's creating measurable commercial value for brands and retailers."

International research suggests household cleaning products are among the categories best suited to refill because they are purchased frequently and can be dispensed in reusable containers, allowing consumers to buy only what they need while reducing household costs and packaging waste.

This evolution reflects broader changes taking place across global retail. Retailers are under increasing pressure to deliver greater value to consumers while simultaneously improving margins, strengthening customer loyalty and meeting increasingly ambitious sustainability commitments. Refill is emerging as one of the few retail models capable of addressing all of these priorities at the same time.

"Sustainability only succeeds at scale when it's convenient and affordable," Hadas explains. "Consumers don't want shopping to become more complicated. If refill is available where they already shop, offers trusted brands and delivers genuine value, adoption follows naturally."

Looking ahead, Hadas expects refill to continue expanding into additional FMCG categories as retailers become more comfortable integrating refill into everyday store operations. "We don't see refill replacing packaged products entirely - consumers will always want choice. What we're seeing instead is the emergence of refill as another permanent shopping option alongside traditional retail. As more brands participate and more retailers invest, refill becomes less of an experiment and more of an expected part of the FMCG landscape."

If the first generation of refill focused on reducing plastic waste, the next generation will be driven by affordability. The real opportunity lies in creating retail models where consumers save money, retailers grow market share and sustainability becomes the natural outcome rather than the selling point.

Smartfill has been recognised by the Ellen MacArthur Foundation, Transform and WWF as a case study for refill and reuse success in the Global South. For more information on Smartfill, please visit www.smartfill.store.

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