McDonald's Corporation
The Complex Reality of Reusable Packaging in Europe Environmental, financial and operational impactsPublished October 2025
Introduction
The Complex Reality of Reusable Packaging Summary Approach Scope Environmental Impact Financial and Operational Impact Appendix 2
Table of Contents
3 Introduction
3 About McDonald's
About This Report
Executive Summary
McDonald's Approach to Packaging
Reducing Packaging Waste and Transitioning to More Sustainable Materials
Introduction of Reusable Packaging
Advancing Recycling of Guest Packaging
Recycling Case Studies
Scope of the Analysis
Measuring Impacts at Each Stage of the Process
Packaging Scenarios
Achieving a Sufficiently High Number of Uses
Recycling Rate Assumptions
20 Limitations
21 Environmental Impact
22 Plastic Waste and Fiber Waste
23 Greenhouse Gas Emissions
26 Water Consumption
29 Overall Environmental Impact Analysis
30 Financial and Operational Impact
31 Financial Impact
32 Operational Procedures
32 Technology
32 Washing Reusable Packaging
33 Customer Experience
33 Food Safety
34 Appendix
35 Boundary
End-of-Life
Data Sources and Supporting Assumptions
The Complex Reality of Reusable Packaging Introduction
IntroductionAbout McDonald's
McDonald's is a leading global foodservice retailer, with more than 43,000 restaurants in over 100 countries,1serving millions of customers every day. Behind our Golden Arches is a global community of crew, farmers, suppliers, Franchisees and countless others who make up who we are as a brand.
At the end of 2024, approximately 95% of McDonald's restaurants were franchised. Franchisees independently run local businesses backed by a global brand.
Summary Approach Scope Environmental Impact Financial and Operational Impact Appendix 3
About This Report
This report presents insights into the potential environmental, operational and financial impacts of introducing reusable packaging in McDonald's restaurants. The report highlights progress made toward McDonald's packaging ambition. It also discusses the potential implications of reusable packaging,
as well as McDonald's single-use guest packaging, which is designed for recycling.
The report is informed by McDonald's experience and insights from improving the sustainability and recycling of our single-use packaging, as well as implementing reusable packaging in certain restaurants in Europe as required by law. The findings are based on a combination of real data from McDonald's restaurants and supply chain, along with a set of assumptions about average conditions in Europe to allow comparability between the scenarios. The findings offer an impact of a scenario, rather than a reflection of actual results of a specific restaurant in a specific country. The applicable assumptions are explained in detail in the appendix.
McDonald's commissioned PwC UK to conduct an analysis of environmental and financial impacts of different packaging systems on four specific scenarios based on McDonald's experience in certain European countries. Where noted, charts from this data analysis have been used in this report. This analysis used proprietary data from McDonald's along with third-party data sources, as detailed in the appendix.
McDonald's in Europe
This report provides analysis using data from McDonald's supply chain and restaurants in Europe. McDonald's is a leading player in the European foodservice industry, serving communities for over 50 years. With a presence in 30 European countries, across more than 8,000 restaurants,2McDonald's and its Franchisees provide jobs for over 500,000 people aged 16 to 65. The brand serves 12 million customers daily in Europe, making it one of the most frequented foodservice restaurant companies.
Key Definitions:
McDonald's: Our global brand, unless specified otherwise.
43,000+McDonald's restaurants globally
95%restaurants franchised and operated independently
We/Our/The Company: McDonald's Corporation and its majority-owned subsidiaries worldwide.
The System: The Company, its Franchisees and suppliers are collectively referred to as the "System" - also known as McDonald's "three-legged stool."
2M+ 65MFranchisees: Collective group of independent individuals and entities owning and operating McDonald's restaurants under one of the following structures - conventional franchise, developmental license or affiliate. For
people work in McDonald's restaurants
customers served every day
more information on the Company's structure and scope see our latest
Annual Report.
McDonald's Restaurants/Restaurants: Includes restaurants owned by the Company and its Franchisees.
As of the end of 2024.
As of the end of 2024.
The Complex Reality of Reusable Packaging
Introduction
Summary
Approach Scope Environmental Impact Financial and Operational Impact Appendix 4
Executive SummaryAt McDonald's, we use a wide range of guest packaging and believe that hygiene, food safety, quality, functionality and sustainability are critical aspects to packaging design. We strive to accelerate solutions that reduce packaging waste, transition to more sustainable packaging materials, move away from virgin fossil fuel-based plastics and promote circularity. As of year-end 2024, 90.93% of our global primary guest packaging3(95.2% in Europe) was sourced from renewable, recycled or certified materials.
Recognizing that reducing the use of plastic and substituting plastic with certified or recycled paper are two of the key interventions to address plastic pollution,4we are removing or reducing plastic use by redesigning packaging items. For example, we have partnered with our suppliers
to advance technologies to replace plastic lids and sundae ice cream cups5with innovative fiber solutions. Most of McDonald's primary guest packaging is fiber-based (82% globally and 96% in Europe as of year-end 2024), meaning it is primarily made from materials such as paper, pulp, cardboard or wood.
In addition to designing our packaging for recyclability, we are working to help advance the recycling of guest packaging globally. In 2024, 89.6% of restaurants in markets with advanced infrastructure6offered guests the opportunity to recycle and/or compost packaging items, with customer-facing bins for back-of-house or off-site sorting. We are also working with external partners to establish and improve recycling. For example, in Poland we work with a paper recycler on proprietary technology to
90.93% 95.2%of our primary guest packaging was sourced from renewable, recycled or certified materials
Globally
In Europe
82%Globally
In Europe
96%of McDonald's primary guest packaging is fiber-based,
meaning it is made from materials such as paper, pulp, cardboard or wood
be able to fully recycle food-contaminated paper packaging along with polyethylene-lined paper cups. McDonald's fiber-based packaging waste is collected from our restaurants in Poland for recycling, and the recycled paper is then sold back to our restaurants as toilet paper, paper towels and cup carriers. As of June 2025, 95% of the packaging collected from restaurant customers is recycled.
We believe there is not one solution to advancing circularity; it requires fact-based dialogue and evidence among stakeholders - including leveraging business expertise. Solutions need to consider implications at each stage of the value chain, be tailored to sector and local conditions, be rooted in customer safety and hygiene, and balance economic, environmental and consumer outcomes.
Primary guest packaging: Single-use fiber and plastic packaging used to package guest food and drinks on premises at McDonald's restaurants that is given to customers in all order channels, including cups, lids, bags, cartons and clamshells, napkins, wraps, cup carriers, cup sleeves, salad and dessert and breakfast packaging, bowls and containers, straws, cutlery, stirrers and associated wrappers. This also includes Happy Meal toy and book packaging, all coatings on fiber-based packaging and items made of 100% non-wood Alternative Natural Fibers.
Breaking the Plastic Wave, a report from The Pew Charitable Trusts.
These solutions are being deployed across Europe and in other markets around the world.
Markets with advanced infrastructure: Mature waste and recycling infrastructure at a national level that has (1) a recycling infrastructure network across the entire market, (2) multiple materials being recycled within this national infrastructure network, (3) existing legislation on recycling and (4) high customer awareness of waste and recycling. At the end of 2024, that included 21 markets where McDonald's operates.
The Complex Reality of Reusable Packaging
Introducing Reusable Packaging
Introduction Approach Scope Environmental Impact Financial and Operational Impact Appendix 5
Summary
Assessing the Impact of Reusable Packaging
Reusable packaging is packaging for food and beverages that customers can use and then return to a business, such as a restaurant, where it is washed and then reused for another customer.
Reusable packaging is viewed by some policymakers as a solution to reduce packaging and plastic waste, which has led to regulatory requirements that limit the use of single-use packaging materials or mandate reusable packaging. These regulations apply to the foodservice industry, encompassing businesses that prepare and
serve food and beverages outside of the home, including restaurants, cafés, hotels and catering services. Around 1.96 million enterprises operate in the EU's accommodation and food services sector (Eurostat 2022).
In 2025, the European Union's (EU) new Packaging and Packaging Waste Regulation (PPWR) takes effect, with measures including offering customers the option of bringing their own packaging for takeout from 2027, offering customers the option of reusable packaging for takeout from 2028 and a ban on single-use plastic packaging for dine-in from 2030. Final distributors should also endeavor to offer 10% of products in a reusable packaging format from 2030.
In response to local requirements, McDonald's has developed a reusable packaging portfolio, made of durable plastic, and continues to test, learn and implement solutions required for washing reusables, educating customers and driving returns, and adapting restaurant design and operations to maintain food safety and customer experience.
Based on McDonald's experience from implementing reusable packaging in three European countries, this report analyzes the potential environmental, financial and operational impact of reusable packaging in comparison
to McDonald's single-use guest packaging. McDonald's commissioned PwC UK to conduct an analysis of environmental and financial impacts of different packaging systems in four specific scenarios, based on
McDonald's experience in certain European countries. Where noted, charts from this data analysis have been reproduced in this report. This analysis used proprietary data from McDonald's, along with third-party data sources, as detailed in the appendix.
The report analyzed four reusable packaging scenarios, based on existing legal requirements, and compared them to a single-use packaging scenario. The average number of uses detailed below represent data captured between January 2024 and end of June 2024.
Single-use scenario: All packaging items are single-use and primarily fiber-based - based on McDonald's existing single-use packaging portfolio in Europe.
Scenario A (France): Reusable packaging is mandatory for dine-in only. Fiber wraps are permitted for all sandwiches and burgers. The observed average number of uses for reusable packaging items is 33.9.
Scenario B (the Netherlands): All dine-in drinks and the McFlurry® are served in reusable cups. For takeout, customers can choose a reusable cup (with a deposit return scheme, which can be returned to
any McDonald's restaurant in the Netherlands) or a single-use cup. The observed average number of uses is 3.4 for dine-in and 1.5 for takeout.
Scenario C (Germany): For both dine-in and takeout, customers can choose single-use cups or reusable cups for drinks, the McFlurry and the sundae (with a deposit return scheme). The observed average number of uses is 2.6 for dine-in and takeout.
Scenario 2030: To estimate the potential impact of the EU PPWR requirement to offer reusable packaging for takeout, the analysis models the effects of using reusable packaging for 10% of menu items sold for takeout. The average number of uses modeled (2.6) is based on the observed number of uses in Scenario C (Germany), where reusables have been offered since 2022.
The impact of reusable versus single-use packaging is highly dependent on a range of factors, including the average number of uses, materials used, type of packaging items, size and weight of packaging items, the recycling rate of single-use packaging and on-site versus off-site processes for washing reusable packaging.
Where reusables were optional for the
customer, most customers still chose single-use packaging.
Scenario B
Scenario C
4%
(takeout)
(dine-in and takeout)
of customers chose reusable packaging,
based on menu items sold7
<1%
Percentage of menu items sold for takeout in reusable packaging between January and June 2024.
The Complex Reality of Reusable Packaging
Introduction
Summary
Approach Scope Environmental Impact Financial and Operational Impact Appendix 6
For reusables to reach the breakeven8point or have comparable or lower environmental impacts compared to single-use packaging, an optimal number of uses must be achieved. The number of uses achieved is impacted by items that are not returned by customers, as well as items that may be returned but not reused due to damage.
For takeout, the average number of reuses observed is very low, due to a low number of customers returning the reusables. For dine-in, where reusable packaging items are not intended to leave the restaurant, a higher number of reuses has been observed relative to takeout.
Environmental Impact - Key Findings
When 10% of menu items sold for takeout are
in reusable packaging (Scenario 2030)
61%increase in GHG
emissions per restaurant per year
626%increase in plastic
packaging waste per restaurant per year
Overall, the analysis highlights that introducing reusable packaging in McDonald's restaurants does not achieve an overall positive impact compared to single-use packaging across the impact areas measured and the scenarios modeled.
The analysis shows an overall negative environmental impact of reusable packaging compared to single-use packaging when implemented against the EU PPWR requirements in 2030, which impact over 6,900 McDonald's restaurants in the EU. Across the scenarios, there are varying results dependent on the environmental indicator, which means there are environmental trade-offs.
The breakeven point is calculated by adjusting the number of reuses in each scenario until the environmental impact is equal to the Single-use scenario.
The results highlight that when reusables are offered for dine-in and takeout in McDonald's restaurants, plastic waste from guest packaging increases.
This is due to the shift from McDonald's fiber-based single-use packaging to reusable packaging made entirely from plastic.
The progress made by McDonald's to
minimize the amount of plastic used in our single-use packaging means:
100+uses of a reusable packaging item are needed to achieve
a breakeven (a comparable or lower impact) on plastic waste under Scenario 2030
Plastic Waste and Fiber Waste
The analysis finds that when reusables are offered for dine-in or takeout, plastic waste increases and fiber waste decreases (compared to using fiber-based single-use packaging). The change in plastic waste and fiber waste volumes is dependent on the number of customers using reusables and
the average number of reuses achieved. In the 2030 scenario, when 10% of menu items sold for takeout are in reusable packaging, plastic packaging waste increases more than six times (626% per restaurant per year), while fiber waste reduces by 12%.
Greenhouse Gas (GHG) Emissions
The analysis indicates that GHG emissions associated with guest packaging (linked to production, transport, energy use for washing reusables and end-of-life) typically increase where reusables are offered for takeout and dine-in (compared to fiber-based single-use packaging). Under Scenario 2030, with 10% of menu items served in reusables for takeout, GHG emissions increase by 61% per restaurant per year.
The Complex Reality of Reusable Packaging
Introduction
Summary
Approach Scope Environmental Impact Financial and Operational Impact Appendix 7
The analysis shows that, per item, GHG emissions associated with packaging production are higher for reusable plastic items compared to fiber-based single-use items, and the process of washing the reusable items also generates emissions, which means a sufficiently high number of reuses needs to be achieved to offset the emissions from production and washing.
The analysis also shows that the scale of impact can vary, dependent on which single-use packaging items are replaced with reusables. In Scenario A, if paper wraps (used for sandwiches and burgers) were replaced with reusable containers, GHG emissions would increase by 30% per restaurant per year.
The assumed recycling rates used in the analysis also influence the impact on GHG emissions. The Single-use scenario has an assumed and cautious recycling rate for fiber-based packaging of 46% for dine-in and 3% for takeout. However, a higher recycling rate would reduce the GHG emissions associated with single-use fiber-based packaging (such as the 92% fiber recycling rate for dine-in packaging in McDonald's Germany).
If the fiber recycling rate modeled increased to 80% for dine-in and 30% for takeout, this would lead to an 11% reduction in GHG emissions for dine-in and an 8% reduction for takeout (per restaurant per year) in the Single-use scenario. This underpins the importance of further advancing recycling infrastructure and collection processes available in Europe.
Water Consumption
Under Scenario 2030, with 10% of menu items served in reusables for takeout, water consumption increases by 15% compared to the Single-use scenario, but the results show varying reductions for Scenarios A, B and C.
The analysis shows that water consumption associated with guest packaging production can decrease when introducing plastic reusables, principally due to renewable fiber packaging production consuming more water than plastic packaging production. However, additional water
consumption is required for the washing process for reusables - with water consumed in the generation of energy to power the dishwashers.
The analysis does not include water used directly to rinse and wash reusable packaging, as it assumes most of that water is returned to the local water source after being processed at local water treatment plants. Additional water will be consumed during the production of detergents used for washing and during the wastewater treatment process, but those impacts are not included in this analysis.
While the modeling measures water consumption, water use and location are also important considerations. Implementation of reusable packaging relocates water consumption and use from a small number of fiber packaging production sites (mainly in Scandinavia) to restaurant locations and energy generation facilities, including in more water-scarce areas. Just under a third of McDonald's EU restaurants are in extremely high or high water stress regions.9
30%increase in GHG emissions per restaurant if paper wraps for sandwiches were replaced with reusable containers (Scenario A)
8%reduction in GHG emissions per restaurant can be achieved in the Single-use scenario, if the assumed recycling rate for fiber-based packaging waste from takeout increased from 3% to 30%
11%reduction in GHG emissions per restaurant can be achieved in the Single-use scenario, if the assumed recycling rate for fiber-based packaging waste from dine-in increased from 46% to 80%
15%increase in water consumption per restaurant under Scenario 2030
According to a McDonald's assessment, utilizing information from World Resources Institute Aqueduct 4.0. Water stress measures the ratio of total water demand to available renewable surface and groundwater supplies. Extremely high or high indicates substantial competition for water resources.
Summary
The Complex Reality of Reusable Packaging Introduction Approach Scope Environmental Impact Financial and Operational Impact Appendix 8
Overall, for reusable packaging to have a positive impact compared to single-use packaging, it depends on a high volume of customer returns and achieving the optimal number of reuses. Compared to fiber-based single-use packaging, widespread implementation of reusables will typically increase plastic waste and GHG emissions. Positive environmental impacts require reuse rates that far exceed those currently observed - which would require significant changes in customer behavior. Even then, there are significantly increased operational costs and complexity and low customer demand
for reusables.
McDonald's believes, based on evidence presented in this report and others, that legislation mandating or incentivizing reusable packaging could lead to negative environmental and economic consequences. Before foodservice restaurant operators are compelled by law to make investments to implement reusable packaging (and associated washing and return systems), evidence-based information about the impact of reusable packaging in the sector - including customer behavior on returning reusables and the associated environmental and economic impacts of more widespread use - should be taken into account.
McDonald's believes that renewable, recyclable and certified fiber-based packaging, as well as advancing recycling, recovery and reduction strategies, must continue to be part of the solution to waste management. By continuing to reduce and optimize our existing packaging and partner to expand recycling, we have a greater opportunity to drive positive environmental outcomes.
McDonald's Learnings
Financial and Operational Impact - Key Findings
Financial Impact
CAPEX impacts arise primarily from remodeling restaurants for storage, sorting and introducing washing systems. OPEX impacts stem from changes in the quantities of packaging purchased, washing costs and end-of-life fees.
The decision to use on-site or off-site washing will depend on several factors. On-site washing could have a lower cost per item, but requires investment in remodeling restaurants to install washing facilities.
Washing may need to be done off-site, as some restaurants will have physical constraints. However, off-site washing facilities and
distribution to and from the restaurant may not be practical or available.
Operational Impact
Serving safe and quality food in every single restaurant, each and every day, is a top priority and long-standing commitment of
McDonald's. Introducing reusable packaging significantly impacts restaurant operations and requires new processes to manage food safety. Restaurants require larger spaces for storage (of sturdy plastic reusables in comparison to compact fiber packaging) and washing and drying facilities. Effectively and safely washing reusables is crucial for hygiene and food safety. On-site and off-site washing options
have been tested to meet washing standards, with the best choice depending on projected volumes, available space, external provider availability, distance to washing sites and costs. A unidirectional process is required to manage receipt of both clean and used reusables to prevent cross-contamination and ensure food safety.
Customer Experience
A major consideration when implementing reusable packaging is customer convenience. Reusable packaging adds steps and complexity to the customer experience.
Additional collection points and processes are required to enable customers to return used packaging without disrupting the customer journey and speed of service. Ensuring customers do not leave with or dispose of reusable packaging in dine-in settings is essential. This
means that customers can no longer leave the restaurant with food and drinks that they wish to finish on-the-go. For takeout, setting deposit rates correctly for reusables is crucial to avoid deterring customers from choosing reusables due to increased costs but also ensuring the deposit incentivizes a return.
Incentives, such as deposits, may not drive adequate returns. In Scenario B and C, where customers can choose reusable or single-use packaging, deposit systems are in place and we are experiencing a low number of returns among customers who choose reusables.
Approach
The Complex Reality of Reusable Packaging Introduction Summary Scope Environmental Impact Financial and Operational Impact Appendix 9
McDonald's Approach to PackagingMcDonald's uses a wide range of packaging to meet the needs of our menu items and our customers. We believe that hygiene, food safety, quality, functionality and sustainability are critical aspects to packaging design. Packaging is a central component to delivering hot food safely - for both restaurant crew and customers - and to
delivering the memorable experience McDonald's customers expect.
Our aim is for our packaging to be suitable for all service channels, including dine-in, drive-thru and delivery. For example, it should be designed to be convenient for eating on-the-go, to help avoid spills, and to maintain the integrity and shape of food during delivery.
The Complex Reality of Reusable Packaging
Introduction Summary
Approach
Scope Environmental Impact Financial and Operational Impact Appendix 10
Reducing Packaging Waste and Transitioning to More Sustainable Materials
McDonald's strives to accelerate solutions that help reduce packaging waste, transition to more sustainable packaging materials and promote circularity.
The Company's strategy focuses on:
Eliminating unnecessary packaging or materials and streamlining materials for easier recovery.
Transitioning away from virgin fossil fuel-based plastics.
Sourcing materials responsibly and increasing the use of recycled materials.
Increasing the scale of circular solutions - including improving recycling rates for guest packaging and making it easier for customers
Single-Use Guest Packaging Innovation
As of the end of 2024, 90.93% of our global primary guest packaging11(95.2% in Europe) was sourced from renewable, recycled or certified materials. Approximately 98.99% of our global fiber-based primary guest packaging was sourced from recycled or certified sources in 2024.
To identify opportunities for transitioning our existing materials to new and more sustainable alternatives, McDonald's has worked to drive locally relevant packaging innovations across the globe. We are removing or reducing plastic use by redesigning items such as switching to paper-based straws, deploying new McFlurry cups without plastic lids and introducing salad boxes and cutlery made from renewable fiber. We
have also worked with our suppliers to advance innovative molded fiber technologies to replace plastic lids and sundae ice cream cups. We are
When it comes to developing alternatives for packaging liners, we are investing in technology and supply chain capabilities and collaborating with our suppliers to do so. To replace virgin fossil fuel-based plastics, we are gaining insight into innovative technologies, such as mineral coatings for cups, and the potential for such technologies to be applied at scale.
It's critical that we continue to offer customers the great value and quality experience they expect, which is why new packaging solutions must meet food safety requirements and customer expectations while supporting our packaging goals.
90.93% 82%to recycle, where infrastructure exists.
Packaging as Part of McDonald's Net Zero Ambition
In 2023, the Science Based Targets initiative (SBTi) validated the Company's global 2050 net zero emissions reduction target and adjusted 2030 global emissions targets, aligned with the latest guidance to help keep global temperature rises below 1.5°C.10
The Company is committed to identifying and investing in strategies that can help drive the greatest emissions reductions - including packaging and waste, our supply chain and restaurant energy.
deploying these renewable molded fiber solutions across Europe and in some other markets around the world.
As noted in "Breaking the Plastic Wave," a report from The Pew Charitable Trusts, substituting plastic with paper and compostable materials is one of the key interventions to address plastic pollution. Most of McDonald's primary guest packaging is fiber-based (82% globally and 96% in Europe as of year-end 2024), meaning it is primarily made from fiber materials such as paper, pulp, cardboard or wood. The majority of fiber-based items do not include plastic, but some are composites, meaning they have plastic-based components that are added for reasons such as food safety or functionality. For example, a fiber-based hot beverage cup may have
of McDonald's global primary guest packaging (95.2% in Europe)
was sourced from renewable, recycled or certified materials
of McDonald's primary guest packaging is fiber-based (96% in Europe), meaning it is made from materials such as paper, pulp, cardboard or wood
While we estimate that packaging makes up less than 3% of McDonald's
global GHG emissions footprint, the introduction of reusable packaging and the associated energy used for washing would typically increase the GHG emissions footprint of a McDonald's restaurant, based on evidence presented in this report - which is important to understand when evaluating the impact of reusable packaging.
a polyethylene liner on the interior to ensure the integrity of the cup and prevent leaks.
For more details on McDonald's climate commitments, please visit our Climate Action
web page.
Primary guest packaging: Single-use fiber and plastic packaging used to package guest food and drinks on premises at McDonald's restaurants that is given to customers in all order channels, including cups, lids, bags, cartons and clamshells, napkins, wraps, cup carriers, cup sleeves, salad and dessert and breakfast packaging, bowls and containers, straws, cutlery, stirrers and associated wrappers. This also includes Happy Meal toy and book packaging, all coatings on
fiber-based packaging and items made of 100% non-wood Alternative Natural Fibers.
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McDonald's Corporation published this content on October 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 15, 2025 at 13:08 UTC.
