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24 NOVEMBER 2021 | CONSUMER & RETAIL, INDUSTRIALS


RETHINKING SUSTAINABLE PACKAGING IN FMCG

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It’s a watershed moment for FMCG companies, and the global $900 billion-a-year
packaging industry, further fueled by the rising popularity of e-commerce in our
post-COVID world. With growing public awareness around sustainable packaging and
images of plastic pollution floating up to the top of our social and news feeds,
the pressure is at an all-time high for the sector to rethink sustainability.
Many leading manufacturing companies have made bold commitments in the past few
years—about reforming their current sustainability practices—and regulatory
bodies, local governments, and social activists are keeping a close-watch on
their promises to deliver real sustainable solutions in the years to come.

Present Challenges in Sustainable Packaging

For the past decade or so, sustainable packaging meant going ‘lightweight’—less
volume, affordable and convenient, but this make-do approach has run its course.
Lightweight packaging is neither recyclable, nor reusable, and is unfortunately
destined for more landfills and incineration, wrecking the global ecosystem in
the process. So, if not lightweight, then what is the next best solution for
organizations to adopt? What other challenges do they face in making their
sustainable packaging intentions a reality?

 1. Complex nature of sustainability and long-term planning: While regulatory
    practices across domains continue to become stricter by the day, these
    approaches also differ across regions, making it hard for FMCG corporations
    to find a one-size-fits-all approach to sustainability. Plastic bans have
    already been imposed in several parts of the world, heavy tax burdens on the
    use of single-use plastic in others, and for those that currently maintain
    status-quo can be expected to adapt and follow-suit. As a consequence,
    multinational FMCG companies are finding it harder than ever to plan
    efficiently for the long-term.
 2. Widening Gaps in Packaging Value Chain: From developing packaging material,
    managing waste collection to recycling systems infrastructure, gaps across
    the packaging value chain are seen to be increasing. To start with, present
    packaging materials cannot be recycled with today’s recycling systems,
    especially for multi-layer packaging; packaging leakages are leading to
    large-scale dumps and the subsequent emission of greenhouse gases, thereby
    increasing manufacturers’ carbon footprint; and together, organizations face
    the daunting challenge of managing a trade-off between recyclable solutions
    and carbon footprint.
 3. Slow Market Adoption: While many FMCG companies have committed to expand
    their sustainable packaging solutions, executing changes in packaging
    material has innumerable implications – changes to branding regulations and
    product portfolios, use of different types of plastics for different product
    segments, and applications based on the areas of operations. These changes
    also pose imminent threats to many segments within the packaging
    value-chain, and the need to form close partnerships over third-party
    subscriptions with packaging converters, recycling companies, and other
    relevant stakeholders brings a dimensional shift to the way FMCG has done
    business in the past.

Clearly, FMCG has entered a new era of business, an unfamiliar territory, with
many complexities and nuances, that are making it undeniably hard for
corporations to execute the sustainability promise with ease. However, there are
some trends and packaging models emerging that throws light towards new
possibilities and the overall trajectory of the sustainable packaging story.

Emerging Trends in Sustainable Packaging

A clear insight the industry has gained in the ways their past solutions have
faltered is that the future of recycling needs to actively reduce carbon
footprint. On one hand, we have to look at materials that can be perfectly
recycled or reused through a customer return process; the other must find a way
to efficiently dispose off the existing recycling infrastructure and manage the
collateral damage that minimally affects our environment. The below trends can
inspire the next wave of sustainable efforts across the global FMCG network, and
beyond.

 1. Alternative Packaging Solutions: There has been a steady influx of new
    packaging materials and technologies in recent years. Some of these include:
    1. Plant-based Packaging: Bio-based lids and scoops made from sugarcane were
       introduced by Nestlé that are “made from renewable plant material that
       can be continually replenished and that absorbs carbon dioxide from the
       atmosphere. In addition, this packaging helps Nestlé reduce its use of
       fossil-based plastics” as well, reducing their total packaging tonnage by
       approximately 3% from 2019 to 2020.
    2. Paper-based Packaging: Virgin fiber, used for paper and board production
       from timber, is now directly being used as packaging material that can be
       recycled 5-7 times on average—and is a core component of P&G’s
       sustainable packaging initiatives. The company recently launched a paper
       bottle pilot in Europe—to eventually create a fully bio-based bottle
       along with a group of innovators—that reduces the use of plastic in all
       its packaging operations and subsequently lower carbon footprint.
 2. Reusable Packaging Solutions: Bioplastics and returnable solutions have also
    been in the fray and are being piloted across the world. Some of these
    include:
    1. Bioplastics and rPET: Market leaders like Coca-Cola have taken cognizance
       of the impact of their plastic bottle products on a global scale, and
       introduced bio-based bottles, and recycled bottles—rPET—and has begun
       transitioning a selection of plastic bottles across its U.S. beverage
       portfolio to 100% recycled PET (or rPET)
    2. Returnable Packaging: Unilever launched a ‘refill on the go’ pilot that
       allows consumers to “pick up a pre-filled stainless steel bottle from the
       shelf and return it in-store once used, where they are collected to be
       cleaned and refilled.” The pilot has seen encouraging insights – 94% of
       consumers in the UK are more likely to invest in refills versus buying
       new products in-store if they are available, 89% are likely to buy a
       product because its packaging can be reused, and over 33% are likely to
       use refill stations in the future due to their value for money.
 3. Fight Against Packaging Waste: Waste reduction from existing packaging
    infrastructure needs a holistic makeover and Kraft Heinz has been leading
    the way, from sourcing, production, material flows and end-of-life packaging
    considerations. By December 2020, nearly 10 percent of Kraft Heinz’s  global
    manufacturing facilities achieved zero-waste-to-landfill status and are
    working towards replicating this model among all its partners and
    third-party service providers.

How Startup Innovations Have Re-energized Sustainable Packaging

The climate change crisis has inspired a range of creators, engineers,
scientists, startup founders, and even investors to take action and find niche
ways of addressing the sustainable packaging issue. Below are a few examples
that demonstrate the power of innovation to engage collectively in our global
fight against plastic-caused collapse of our ecosystem.

 1. From Fossil Fuels to Plant Sugars: Avantium, a biochemicals company in the
    Netherlands, has a pioneering project in place that aims to make plastics
    from plant sugars rather than fossil fuels—extracted from sustainably grown
    crops, such as corn, wheat or beets—to create “all-plant” bottles that will
    hit the supermarkets soon. Initial supporters of this line of sustainable
    packaging products include Carlsberg and Coca-Cola.
 2. Reducing Marine Pollution from Plastic Waste: Aggarwal Biotech, an Indian
    biotech startup, “manufactures biopolymer compounds for application in
    extrusion blowing of film for shopping bags, packing of grocery, fruits,
    vegetables, and apparel, as well as garbage bags, disposal bags, and
    agricultural films.” Increasingly, the use of bioplastics to create more
    sustainable packaging material can be expected to be rolled out across large
    to mid-sized FMCG companies.
 3. Packaging Solutions that Naturally Biodegrade: London-based startup, Notpla,
    specialized in packaging solutions made from seaweed and plants that
    biodegrade in 4-6 weeks, naturally, making it the ideal material for
    on-the-go products. 

While many FMCG market leaders have 5-10 years sustainable goals in place, we
have seen the complexities in planning, packaging and scaling, and these
challenges aren’t going away anytime soon. In fact, sustainability is much more
than just packaging, for numerous, unseen and unidentified challenges still
remain throughout the value chain. And yet, the future looks bright because
global awareness is leading to action, in both small and big ways—and we’re
together in this fight to make our world a better place. 

For more actionable insights on how to ramp up sustainability efforts in your
organization, reach out to Benori’s Sustainability Desk at
info@benoriknowledge.com.


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