Sustainable Packaging Solutions
The market for sustainable packaging holds potential to expand at a promising growth rate in the foreseeable future. Major changes in consumer packaging are being driven by sustainability, particularly legislative and public concerns over single-use packaging waste, in combination with other strong trends. Fast-moving consumer goods (FMCG) businesses and retailers are proactively making significant commitments to enhance the sustainability of their packaging and to rethink their packaging systems fundamentally. Regulators are taking action on the issue.
The Expert Point has empanelled subject matter experts who are leaders in the packaging industry from having worked with some of the impactful players including Amcor, Ball Corporation, Crown Holdings, Coca Cola, Tetrapak etc. These handpicked experts advise our clients to gain a competitive edge in the industry by providing insights that are exclusive and actionable. Below is a summary of trends where they can do a deepdive, customized to your requirement.
Change is being driven by consumer awareness of packaging waste in landfills and oceans
Our daily lives are surrounded by packaging, which reduces food waste and overall product breakage at low cost with cutting-edge convenience features2. The worldwide packaging market has grown rapidly over the last ten years as a result of changes in substrate preferences and the rise of new end markets. In addition to the economic expansion in China and other rising regions, headline changes include the increased usage of plastics to replace other substrates and satisfy consumers’ need for convenience.
However, the increased use of single-use packing containers has had a negative impact on the environment, and there is a crisis in packaging waste management as a result of two open issues:
Recycling of packaging: In the current recycling mechanisms, a sizable portion of the packaging generated cannot be recycled. This is especially true for packaging made of many materials, which now presents a serious and unsolved obstacle to recycling.
Leakage and packaging recycling: Plastic packaging recycles at a relatively low rate.
The need for packaging is growing faster than the rate of global economic expansion, and waste-collection systems—let alone recycling—are not set up at the necessary scale, placing the biggest pressure on emerging nations, particularly in Asia. Only 16 percent of all plastic trash is processed to create new plastics, with an estimated 19 percent of all plastic material flows (durable and non-durable) ending up in leaks or mismanaged dumps worldwide. Despite the fact that plastics have the potential to be reused and recycled, the majority of the world’s plastic trash is actually disposed of in landfills and incinerators (25 and 40%, respectively).
Important Market Trends:
Sustainable Plastic Packaging to Hold Major Market Share
Due to their capacity to preserve the freshness of food products and increase product shelf life, plastic pouches and bags are anticipated to continue being a common form of packaging over the course of the forecast period. Additionally, petroleum-based plastic pouches and bags have a fantastic visible appearance, are sustainable, and improve product marketing. Due to consumers’ rising preference for eco-friendly packaging, industries are concentrating on developing bio-based PVCs.
Expected to Experience Significant Growth Is Asia Pacific
The largest Chinese e-commerce sites and rapid delivery providers have been actively reducing the use of plastic in packaging materials. For instance, SF Express was using recyclable cartons for packaging that could be recycled ten or so times on average. In first-tier and several second-tier domestic cities, the corporation has adopted more than 100,000 such boxes, mostly to replace paper boxes and plastic bags and cut down on the use of foam blocks and tape. The business added that its initiatives are in response to the nation’s need for the sustainable growth of the logistics sector.
Although converters are making progress in this area, are they going far enough?
Packaging converters will need to make additional investments and significantly scale up their innovation capability in order to meet the growing pressures to reduce the environmental impact of packaging, comply with legislation, and fulfill customer preferences.
This change in innovation will be significant. In addition to lightweight and downgauging, many packaging companies are currently concentrating their internal sustainability efforts on increasing energy efficiency and reducing waste, with some limited work beginning on application innovation for sustainable packaging solutions across substrates. This obviously suggests a discrepancy between the requirement to support the objectives of FMCG firms and retailers for sustainable packaging and the variety of development projects being carried out by the packaging converters.
A strategy for identifying opportunities in sustainable packaging
By realizing the following, converters can position themselves to serve retailers and FMCG firms with sustainable packaging:
FMCG producers will still need to balance a high level of customer comfort with cost-effective packaging options, such as items with easy-opening lids and containers made for consumption on the go.
High-barrier packaging material or multilayer film can significantly increase shelf life and reduce the amount of food waste along the chain, but the packaging itself may be less recyclable. These examples show how different types of actions may not have the same impact on the various aspects of the sustainability footprint.
The degree to which various end-product groups are sensitive to sustainability will vary.
Cost concerns go beyond merely packaging material costs and conversion expenses, and technical and economic viability differs by application and regionally.
Any modification to the packaging’s composition or appearance has an impact on the overall branding plan.
Three essential components must be in place before embarking on the change path.
Moving forward, in order to assist clients with innovation and seize opportunities to fill current sustainability gaps, packaging converters must have the following three items in place:
A detailed process for benchmarking the sustainability, affordability, and convenience of your packaging items
Clarity and innovation in your packaging and technology road map, having the right partnerships in place to address the future.
Consumer and customer packaging demands and an understanding of the full opportunity and value at stake across your product portfolio as a result of increasing sustainability requirements.
The survival of many in the sector may be in danger due to the major impact on packaging converters and their value chain. However, the new environment could present considerable growth and new collaboration opportunities for packaging converters with the correct focus and innovation capabilities to assist clients in updating their packaging portfolios. Converters will need to address sustainability challenges actively as consumer demands and regulatory obligations increase in the future.