Singapore's 10-Cent Drink Deposit Plan Raises Price Concerns as Importers Count Compliance Costs

A Refundable Deposit, With Other Costs Behind It

Singapore will introduce a 10-cent refundable deposit on most drinks sold in plastic bottles and metal cans from April 1, 2026, but beverage businesses warn that the price increases shoppers face could go beyond that amount. Importers and small retailers expect increases of 25 to 60 cents as they prepare for new registration, packaging and handling requirements.

The Beverage Container Return Scheme (BCRS) will cover most pre-packaged beverages in plastic and metal containers holding between 150 millilitres and 3 litres. Consumers will get their deposit back by returning eligible empty containers to designated collection points. The other costs businesses incur in meeting the rules may become part of the drink's selling price.

The National Environment Agency (NEA) announced a grant of up to S$2,500 per registered producer on January 20 to help with the transition. Smaller businesses say the assistance will cover only part of their expenses, while major producers have more scope to limit costs by changing packaging at the factory.

Beverage Container Return Scheme Limited (BCRS Ltd.), a nonprofit company formed by Coca-Cola, F&N Foods and Pokka, has been licensed by NEA to design and operate the nationwide system. The initiative is Singapore's most ambitious effort to increase recycling of beverage containers.

As of January 22, businesses are preparing for the April launch while awaiting further details on refunds and recycling arrangements. The central issue for shoppers is straightforward: the 10-cent deposit can be recovered, while any increase in the underlying drink price stays with the purchase.

How Shoppers Will Return Their Containers

Consumers buying drinks covered by the scheme will pay an additional 10 cents for each eligible container. After finishing the drink, they can return the empty bottle or can at a designated collection point to reclaim that money.

Reverse-vending machines, which accept containers instead of dispensing products, will scan the barcode and deposit mark before processing a refund. They will resemble machines piloted in Singapore in recent years, with updated interfaces.

Electronic payments such as PayNow are being considered for refunds, but the final method has yet to be announced. An official announcement on rollout details is expected by the end of January.

More than 1,000 return points are expected to be operating across Singapore by April. The initial rollout will focus on major supermarkets before expanding to HDB estates and hawker centres. Sheng Siong has confirmed that all 87 of its stores will serve as return points.

The machines will be deployed early for testing and familiarisation. Most beverage containers carrying the new barcodes are expected to appear on shelves from June 2026, during a transition period in which drinks with and without scheme labels can be sold.

The Fees Businesses Must Pay

Manufacturers, importers and distributors of beverages covered by BCRS must register with the operator and pay fees supporting collection, sorting and recycling infrastructure. The consumer's refundable deposit sits alongside those business expenses.

Each registered producer faces a mandatory registration fee of S$500, paid once, and an additional S$5 for every product registered. Producers must also pay approximately 3 cents for each aluminium can and 4 cents for each plastic container placed on the market.

BCRS producer fees take account of projected income from selling collected materials and from deposits that consumers leave unclaimed. Those revenue streams help fund the system alongside the fees charged to businesses.

Importers face additional packaging costs when they cannot persuade overseas manufacturers to change labels for Singapore. Special approved stickers carrying the deposit mark and a Singapore-specific barcode cost between 4 and 18 cents each, depending on volume, and must be bought from three accredited vendors. Applying them also requires labour.

Why Imported Drinks Face Extra Pressure

International barcodes cannot simply be used under the standard arrangements because the same code may appear on drinks sold outside Singapore, where no deposit has been paid. The scheme requires a Singapore-specific barcode or a separate security arrangement to guard against refunds being claimed on those containers.

Importers choosing to retain international barcodes instead of applying replacement stickers face a refundable security fee. For a shipment of 100,000 containers, that fee can reach S$28,000, described as approximately 30 cents per container. The stated total works out to 28 cents each.

The security fee is fully refundable and can be provided through a banker's guarantee. Smaller businesses nevertheless face pressure on cash flow when arranging security of that size.

Devang Bafna, director of Tian Ma Group Holdings, imports and sells beverages from across the region. His warehouse handles close to one million bottles and cans across about 200 products each month. He said the accumulated costs would reach shoppers.

I'll have no choice but to impose that cost onto the consumers and in the end, it's just going to increase the price overall," Bafna said. "We have no cards to play. It's a domino effect. If one does it, the other has to do it, and it falls all on the consumer.

For businesses selling imported drinks at low prices, paying for stickers, registration and handling can take away much of the advantage that attracted customers in the first place.

Craft Beer and Kombucha Businesses Count the Cost

Craft beer importers face a further complication: seasonal releases from countries including Australia and the United Kingdom often arrive with a new design for each batch. Every new design must be registered separately under BCRS, and importers must wait for approval before selling it.

Corrine Chia, co-founder of craft beer distributor The Drinking Partners, said registration and approval take 12 to 16 weeks. For products with a typical shelf life of around 12 months, that uses roughly three to four months of the time available to sell them. Manually putting labels on bottles and cans adds manpower costs.

Chia also described uncertainty about the preparations and the information available to businesses.

I think trying to get information has been a struggle. We don't know what's happening," Chia added. "There's a lot of fear that we are undergoing, but what we know for sure is that there's going to be higher costs coming in.

A wholesale kombucha distributor estimated that adding stickers to 800,000 imported cans a year would cost around S$24,000 annually, before the labour needed to apply them. The business said it might need to raise prices by 70 cents.

That estimate amounts to 3 cents per can for stickers, below the quoted approved sticker range of 4 to 18 cents. The distributor's calculation and the stated vendor prices were not reconciled.

Andrei Ng of Itrade Beverage said the government's S$2,500 grant would cover only one-third of the cost of printing compliant barcodes. Continuing administrative expenses would place further pressure on the distributor's margins.

What the S$2,500 Grant Will Cover

NEA's BCRS Producer Transition Grant provides up to S$2,500 for each registered producer to help meet initial compliance costs. Announced on January 20, 2026, the grant can offset product registration fees, producer fees and scheme stickers.

BCRS Ltd. will administer the assistance automatically, without requiring an application. Registration and producer fees will be offset when bills are issued, leaving businesses to pay the remaining balance. The grant remains valid until September 30, 2027.

In a circular to beverage producers, NEA acknowledged that the effect would vary between businesses. Some are better placed to make the transition while keeping cost increases down; others face logistical difficulties.

Lim Jialiang, founder of beer distribution company Watering Hole, described the grant as a "temporary band-aid" that would cover only a few months of sticker expenses. He said the continuing costs could affect the viability of businesses importing products through channels separate from the brand's appointed local distributor.

"Ultimately, this scheme will pass costs on to consumers, and this will mean that some parallel import business models no longer make sense," Lim said.

Major producers have generally accepted the scheme's sustainability goals. Smaller companies argue that a grant paid once provides temporary relief against expenses that continue as more drinks are imported and sold.

How Much Could Drink Prices Rise?

Importers and small retailers have warned of price increases of 25 to 60 cents when the scheme starts. For a canned drink currently selling for between 70 cents and S$1.20, an increase of that size would be substantial.

Some heartland provision shops sell canned beverages imported from Thailand or Indonesia for as little as S$0.70, compared with closer to S$1 for locally produced alternatives. The current difference is about 30 cents. New compliance expenses, particularly replacing barcodes on imported drinks, could absorb that advantage.

BCRS Ltd. has challenged the steepest price predictions, drawing on international experience. The operator says producers of most beverages sold locally can make the transition while keeping the cost impact nearer to producer fees, which are less than 5 cents per container.

That estimate mainly applies to large producers able to print compliant barcodes directly onto packaging. They can avoid the separate sticker purchases and manual application faced by importers unable to change a product's original packaging.

Coca-Cola's manufacturing plant in Negeri Sembilan, Malaysia, supplies both Singapore and Malaysia and can produce up to 1,000 bottles a minute. Tolga Cebe, chief executive officer for Singapore, Malaysia and Brunei at Bottling Investments Group, The Coca-Cola Company, said compliance required changes across the business.

We will have to update and revise each and every packaging artwork in Singapore to be BCRS compliant," Cebe said. "This will entail some one-off transition costs, some changes in our production line and adjustments to manage the complexity.

Jens Ruebbert, president of the European Chamber of Commerce in Singapore, which represents brewers including Carlsberg and Heineken, said its members generally accept the sustainability goals despite additional manpower requirements and adjustments.

"But I guess the greater good and the sustainability part of it is well accepted. I think public engagement is something which is very needed, and companies are aware, and we have gone through the same processes in other parts of the world," Ruebbert said.

The Recycling Problem Behind the Scheme

Singapore's household recycling rate fell to a record low of 11 per cent in 2024, while its plastic recycling rate stands at approximately 5 per cent. Beverage containers form a substantial share of household recyclables, but contamination and incorrect disposal reduce the amount that can be recycled effectively.

Deposit systems give consumers a financial reason to return containers through a dedicated collection route. The environmental case includes reducing waste sent for incineration, cutting greenhouse gas emissions and lowering demand for virgin resources, meaning new raw materials rather than recovered material.

Taiwan has achieved PET bottle recycling rates of around 95 per cent through its incentive system. PET is a plastic commonly used for beverage bottles. Germany and Norway have recorded rates above 90 per cent under their deposit systems.

Those figures illustrate the high recovery levels possible when consumers have an incentive to return containers. Singapore's challenge will include making returns convenient enough for residents to participate regularly.

Convenience and Public Understanding Matter

Lionel Dorai, executive director of Zero Waste Singapore, said accessibility would be essential, particularly for households with lower incomes. He identified both higher costs and gaps in public education as concerns.

First, there's an increase in cost, and a lot of times, the education may not reach them as well," Dorai said. "I think what's important is that we ensure the education comes from a whole-of-society approach.

Zero Waste Singapore has been working with NEA to install reverse-vending machines at recycling hubs in areas including Pioneer and Queenstown. The organisation found that bringing several recycling options together in one location increased participation and produced contamination rates below the national average.

Associate Professor Chua Yeow Hwee of Nanyang Technological University's School of Social Sciences, who specialises in consumer behaviour, highlighted the need to involve everyone in the system. Getting participants working towards the same goal could help deliver lasting results through community effort, rather than depending on one participant or temporary financial incentives.

Many consumers remain unfamiliar with the scheme months before its launch. Residents have nevertheless indicated that the deposit could encourage better recycling habits if return machines are conveniently located.

The Dates Businesses and Shoppers Need

Singapore will allow six months for the changeover after the scheme launches. During that period, shops can sell both existing stock without BCRS labels and containers carrying the new deposit mark.

Containers without the deposit mark will carry no 10-cent charge. Containers bearing the new label will include the refundable deposit, so shoppers may encounter both arrangements during the transition.

• January 20, 2026: NEA announced the Producer Transition Grant of up to S$2,500 per registered producer.
• By the end of January 2026: An official announcement on rollout details is expected.
• February 2026: BCRS Ltd. has scheduled three more online workshops for producers.
• April 1, 2026: The scheme launches, with more than 1,000 return points expected to be operating by April.
• June 2026: Most containers bearing the new barcodes are expected to begin appearing on shelves.
• September 30, 2026: The six-month transition period ends.
• October 1, 2026: NEA will take enforcement action against sales of cans and bottles that fail to comply with BCRS requirements.
• September 30, 2027: The transition grant's validity ends.

NEA has clarified that BCRS covers beverages supplied to the Singapore market for local consumption. Exemptions include products made locally for export, goods imported for re-export and supplies for outbound travel channels.

Preparations Continue Before April

BCRS Ltd. has held online workshops to explain the requirements to producers. Each of the first three sessions, held between October and January, drew an average of about 70 participants. Three further sessions are planned for February.

The operator says it is continuing discussions with affected producers to explore more practical and flexible ways of meeting the requirements. Importers' concerns include packaging approvals, labour, administrative work and the money tied up in security arrangements.

NEA has said BCRS Ltd. will share more information about where collected containers will be recycled when it is ready. The destination of those materials and the final refund arrangements remain outstanding details ahead of the launch.

For consumers, the practical change will be paying a deposit on marked containers and finding a convenient place to return them. For businesses, the remaining preparation involves fitting registration, packaging and collection requirements into operations with very different sales volumes and profit margins.

Key Points

• BCRS launches on April 1, 2026, with a refundable 10-cent deposit on most plastic and metal drink containers from 150 millilitres to 3 litres.
• More than 1,000 return points are expected by April, including all 87 Sheng Siong stores. Final refund arrangements are awaiting announcement.
• Business fees include S$500 for producer registration, S$5 per product and approximately 3 cents per aluminium can or 4 cents per plastic container.
• Approved stickers cost 4 to 18 cents each. Retaining international barcodes requires a refundable security arrangement that can reach S$28,000 for 100,000 containers.
• Importers and small retailers warn of price increases of 25 to 60 cents. BCRS Ltd. says most producers can keep the cost impact nearer to producer fees of less than 5 cents each.
• NEA's grant provides up to S$2,500 per registered producer and remains valid until September 30, 2027.
• Singapore's household recycling rate was 11 per cent in 2024, while plastic recycling stands at approximately 5 per cent.
• Shops can sell marked and unmarked stock through September 30, 2026. Enforcement against sales of containers failing to comply begins October 1.