By Ed Klein, Contributing Editor
The growing consumer demand for greener packaging alternatives comes not as a huge surprise to industry trend watchers. A recent Pike Research study found that sustainable packaging is expected to grow to 32 percent of the total global packaging market by 2014, up from 21 percent in 2009. On top of that, it’s hard to ignore large global retailers like Wal-Mart, who continue to raise the bar for sustainable packaging on store shelves and throughout their supply chain through such actions as the company’s Sustainability Packaging Scorecard, which measures suppliers on such criteria as GHG emissions, product-to-package ratio and the amount of renewable energy used in manufacture and delivery of products.
For some, this begs the question about solutions, especially when currently there is no packaging solution in the marketplace that is 100 percent sustainable. But fortunately the technology and innovation within our industry to address these challenges is growing. So despite the lack of a magic bullet there is good reason for food and beverage packaged goods companies to move forward with more sustainable packaging solutions that provide better environmental performance & business value.
First, it is important to understand from the offset what we mean when we talk about sustainable packaging. While the concept of sustainable packaging has been around for years, it’s still a relatively new idea to consumers and some in industry who have historically associated good environmental performance solely with recycling. While recycling is clearly important, there is a lot more to sustainable packaging.
According to the Sustainable Packaging Coalition (SPC) – a not-for-profit industry group dedicated to helping corporations meet their corporate sustainability goals for packaging – companies should embrace a cradle to cradle approach to their packaging, not just an end-of-life approach. The SPC believes that sustainable packaging is that which:
- Is beneficial, safe and healthy for individuals and communities throughout its life cycle;
- Meets market criteria for performance and cost;
- Is sourced, manufactured, transported, and recycled using renewable energy;
- Maximizes the use of renewable or recycled source materials;
- Is manufactured using clean production technologies and best practices;
- Is made from materials healthy in all probable end of life scenarios;
- Is physically designed to optimize materials and energy;
- Is effectively recovered and utilized in biological and/or industrial cradle to cradle cycles.
When combined, these criteria may seem daunting. However, making the switch to more sustainable packaging can contribute to an organization’s efforts to achieve their sustainability objectives. For example, the use of more sustainable packaging can help to reduce energy consumption, decrease carbon emissions, limit the use of fossil based fuels & reduce costs.
Importantly, while the intent of sustainable packaging strategies is to protect our planet’s natural resources for future generations, this greener approach also offers a competitive business advantage that food product designers and manufacturers should keep top of mind. Specifically, large retailers like Wal-mart are tracking and evaluating their own purchasing decisions based on green product attributes like packaging through their Sustainable Packaging Scorecard. Other retailers are also concerned with the sustainability of the packages that are sold in their stores. So the competitive advantage will go to those food and beverage suppliers that have the more sustainable product. Good environmental performance and business value can work hand in hand, and this is all the more relevant during an economic downturn.
In addition to the clear business benefits of current sustainable packaging options, as an industry we are exploring innovative opportunities for improvement that are literally on the horizon. Packaging manufacturers and the food and beverage industry are working together to employ a number of different approaches to improve the sustainability of their packages. Some of these innovations include expanding recycling infrastructure to include cartons, using less packaging, and producing packaging from renewable and bio-based materials.
Consider the commitment to expand carton recycling. Although since the 1970s, Americans have become fluent in the recycling of materials like aluminum, glass and paper, not every city provides for curb-side recycling of carton packaging. Recently, the Carton Council, a collaborative effort of leading carton manufacturers, joined forces to advance improvements to carton recycling infrastructure across the country. Currently, communities in 26 states in the U.S. are able to recycle cartons which give more than 60 million people access to carton recycling. Along with Waste Management, the Tropicana brand, Dean Foods and others, the Council is working to significantly increase carton recycling in the U.S.
We see trends emerge too as the outcome of today’s volatile fossil fuel prices. Manufacturers are realizing that less packaging can lead to greater efficiencies in the supply chain and in the manufacturing process itself. Less or lighter packaging makes products weigh less, which in turn makes it cheaper and more efficient to transport, not to mention the energy savings yielded to make the packaging.
And of course increasing the use of renewable materials like paper is another solution. The global packaging market is projected to be $429 billion with paper and paper-based packaging making up 40 percent of the market.
Lastly, we cannot ignore growing consumer and media interest in the concept of sustainable packaging. Recent studies have shown there is a shift taking place in consumer awareness as a result of growing attention to this issue among the industry and the media. An April 2009 study by Datamonitor noted that not only is sustainable packaging a growing concern for consumers, it is increasingly a consumer demand and expectation driven by economics, ethics and environmentalism.
While many industries are still stagnating (or worse) in the current bleak economy, sustainable strategies can provide the packaging industry with a silver lining to the downturn. The industry remains poised for growth across all sectors but in particular, sustainable packaging as a part of the global food and beverage packaging industry is expected to grow by 32 percent by 2014 according to Pike Research.
These days there aren’t many win-win scenarios for planet and profit, and for consumer and manufacturer. But sustainable packaging uniquely fits the bill. It’s what’s responsible and right for the environment. It’s what consumers want. And it provides business value for the food industry & the food packaging industry.
Ed Klein is vice president, environmental affairs, for Tetra Pak, Inc. where he is responsible for U.S. environmental matters. He also leads Tetra Pak's environmental efforts in North America. Ed first became involved in sustainability in 2000 and has been a strong advocate since then. He joined Tetra Pak in May of 1989. Before joining Tetra Pak, he worked for the United States Government. He directed the Environmental Protection Agency's National strategy on solid waste, entitled "The Solid Waste Dilemma; An Agenda for Action," and managed the Division which reviews new chemicals and regulates toxic substances such as PCB's, asbestos and CFC's. He was the Special Assistant to the Occupational Safety and Health's (OSHA) chief lawyer, where he managed numerous regulatory hearings and rules, including OSHA's National Cancer Policy. He also was a trial attorney for the National Labor Relations Board. Ed is a graduate of Penn State University and New York Law School.
Citations
Datamonitor study on Sustainable Packaging
Bioplastics growth
Wal-mart scorecard