General Packaging

Packaging free is nonsense, or is it?

Spending a working life dealing with packaging issues I have always been skeptical to the general idea of ”packaging free” or “edible packaging”. I think it doesn’t make any sense, at all. Wrapping something edible in, again, edible packaging normally creates a demand for yet more and properly protective packaging.

But I may have to reconsider and think out of my limited box.

First, I got to know about Saveggy, a company that have developed a concept of a protective and edible solution for fruit and vegetables.

They can offer a bio-based coating that does the same work normally done by using a plastic film and prolongs the shelf life of produce to minimize food waste. The plant-based coating, fully edible, is sprayed on fruit and veg to extend the shelf life and seems to do the same for a cucumber as a plastic wrap. Brilliant!

Another excellent, actually, usage of the ”packaging free” concept is the pod-like coffee system recently launched by Migros. CoffeeB is a fully compostable coffee ball without the usual aluminium pod. It’s simply coffee pressed to into a ball that fits in one of their CoffeeB machines. That is also the one downside, you have to buy yet another machine to squeeze in to your kitchen.

Well, that was two brilliant new products in an otherwise very dull segment. I wonder what comes next, and I am looking forward to being pleasantly surprised again.

A perfect storm building up from Brussels

You can easily say that, never before has so many EU-initiatives that concerns the packaging industry been active as right now.
Right now, we are looking at an intense mix of newly launched directives and updating of old ones, all with a direct impact on the packaging industry. Thereby also on the manufacturing industry in general and the food & beverage industry in particular.

You can speculate in why these initiatives are stacked so high at this moment, but it is right in time. Recycling, reusing and reducing packaging waste are the new normal and will not change in any other direction than, even more.

What we now see is an EU Commission pressing all buttons to quickly change the present situation and reach the rather ambitious goals. Goals that yesterday was increased to a 55% reduction of GHG by 2030. That is compared to the previous goal of 50%.

You could argue that 50-55% are within the margin of error but this demands a huge effort of the entire society of which the packaging industry is a part.

It is also this ambition that in the end, by 2050, to become a completely climate neutral continent that is the reason for the storm of initiatives initiated that involves the packaging industry. And their customers, the brand owners and fillers.

“The European Green Deal” is a major flag ship project launched last year. It contains a very ambitious set of policy initiatives regarding clean energy, toxic free environment and much more. In this bundle are two components that will have a significant impact on packaging.

Part of this initiative is “The Farm to Fork Strategy” which is much about food and beverages but contains parts that will affect packaging. You could summarise the goal to be “Sustainable food in sustainable packaging”.

The “Circular Economy Action Plan” is also a part of this huge initiative. A part where packaging is specifically named as a focus area. Key words are sustainability, reduced packaging and circularity.

These are new and you can say that about “The Single Use Plastic Directive” as well. This directive has from the introduction last year been hurried through the system and will be a reality next year. This with huge consequences for all involved when the use of plastic is limited and phased out with rules and fees.

Those were the new ones, then we have a few very well-established building blocks that are considered to need an update.

“The Packaging and Packaging Waste Directive” was introduced quite some time ago and has been updated every 10 years. Now it is time again, after only 5 years… This is an important part of the free movement of goods within the union and is much about promoting reuse and recovery.

Finally, it is time for a refreshing of “The Waste Framework Directive” which has been with us for a long time but is now due for an update. This is basically about the Extended Producer Responsibility and the Packaging Fees to finance the collection and processing of packaging waste.

This is together quite a lot and something of a perfect storm where separate forces are pulling in the same direction which promises real results. This is happening right here, right now and will have consequences within a period of 2-5 years. The result can be influenced but only now, before the train leaves the station.

It is now we have the chance to let the decision makers hear our voice in this. The Commission is welcoming input that we as an industry probably most efficiently can give them through our organisations. It is so important that we do this, a number of very important decisions are going to be made within short and it is crucial that these decisions are made on the basis of facts and science rather than on intuition and short-term gains. So, let them hear how things are, actually.

Virus crisis and packaging

The real effects on the packaging industry from the present virus crisis is hard to comprehend. But regarding food packaging in the short to medium term we will see online grocery shopping grow, more focus on hygiene and price without losing the grip of sustainable solutions.

The long-term consequences of a pandemic like this one is hard to have a strong view on at this stage. Likely short-term results appear to be a downturn in the overall economy with double digit declines of GDP’s and increased unemployment. Some of the hardest hit industries, so far, seem to be the hotel and restaurant industry, the travel and event industries and retail.

When it comes to retailing it is not anything like a general decline, the grocery retailing is in a much better position than capital goods retailing. Right now, people obviously stay more at home for eating and socializing. Going out is rarely an option and food and beverages are bought from stores rather than restaurants. Also, pharmacies are open for business selling medicines as well as personal care products.

Where is this possibly going then?

As a result, the pandemic is speeding up trends like remote working but also online grocery shopping and possibly other retail technologies. The effects of this pandemic for the retail industry could be an increased e-commerce business as well as growing interest in cashless stores, automated replenishment and cashier free self-checkouts.

And for food packaging?

Demand for food packaging as such will be up as people will eat more at home. Now when many restaurants and food-service outlets are closed this is obvious, but as the crisis opens for new behavior patterns some will stay, also when things get a bit more normal. There might also be some stockpiling and a new normal can very well be to have more than a few days of preserved food in the larder. This also goes for personal care and healthcare products.

Grocery e-commerce has so far been developing at very different paces in Europe. The UK is still in the lead according to Forbes (2018) followed by Czech Rep. and Estonia. As a result of the virus pandemic the habit of ordering online and receiving, or picking up, your shopping is fast developing and will get a boost from the extreme situation we are now experiencing. This is a clear step in consumer acceptance and adoption of the channel. New and better packaging solutions are being developed and innovative delivery methods are created.

I don’t think that sustainability will go away because of the shifted focus. The consumer demand is too strong, and the concept of sustainable packaging solutions has gotten ingrained in product and company positioning. Demand might temporary go down but if so, it will rapidly bounce back. It could however mean a changed view on initiatives such as the reusable cups introduced at certain coffee chains. People are also probably less interested in the packaging-free shops where you fill loose product in a bag of your own.

Sustainability is also related to the expected increase in general demand for hygiene. Packaging might even become appreciated by the consumers. It is visibly protecting and guaranteeing the freshness of the product. This could also be supporting the introduction of track and trace systems to a broader use. Blockchain technology is available, among other solutions, and is implemented as a useful tool in the distribution chain. This crisis could be a catalyst for increased use of technology for tracking and to guarantee the product origin and what it has experienced before consumption. An increased cost is hard to get around and can, in particular now, be a disadvantage.

It will take a while for the world to get back on track and increased unemployment and uncertain employments will make the average consumer more price sensitive than usual. The result comes as a shift towards a consumer demand for more value-products and private labels will have a field day. Converters and others in the packaging industry will not be spared the requirements for lower prices.

The future is right now not bright, but it is not a dark abyss either. We will have to adopt and be as agile as we can to survive and succeed also in the new tomorrow.

Turn on, tune in and listen to a Packaging Pod!

Some podcasts are for fun and other are for news and updates. And then there are “industry pods” aimed for people with very particular interests looking for inspiration and information. Like for instance, packaging pods.

I try to squeeze in a podcast whenever I have a minute to spare. There is plenty to choose from and I am sure that we all can find pods that cover our very special interest. This includes the packaging industry which is covered in the quite impressive and completely overwhelming flow of pods.

And here I mean pods, not webinars, that are reasonably regularly occurring broadcasts and here are a few to bookmark to the pod platform of your choice.

Below I have listed a few English speaking pods that are focused on the packaging industry and current packaging issues.

Packaging Strategies, the American trade magazine, is running a pod under the name Packaging Perspectives. They are interviewing industry experts and are covering industry news to keep us “up-to-date, informed, and entertained.” Not very frequent but in total 6 episodes during 2019.

Flexible Packaging is a related magazine who are offering the Flexible Packaging Podcast. The same concept as above but a bit less frequent, 3 shows during last year. And with a focus on flexible packaging.

People of Packaging Podcast is also an American podcast where people in the packaging industry are discussing current issues with Adam Peek and Ted Taitt and is a part of the Business and Bourbon network.

Shelf Impactors is about branding and packaging design. Blue Nectar Design, a British design agency is behind the show. It might have a slightly sporadic schedule but there are interesting things to dig out from archives.

FoodBev Media are behind the FoodBev podcast. Focus is more on news updates rather than interviews and is a weekly podcast, at least until November last year. It has been quiet since, but we hope for a soon return.

Packaging Europe, the magazine, is distributing a podcast every now and then. 7 shows were recorded last year and already two are available for this year. Various topics and interviews.

Turn up the volume and enjoy. Or why not make a pod of your own!