Making biocomposite materials entirely from renewable sources is great. Using waste material in the process is fantastic.
Last week Finnish UPM introduced a new fibre based biocomposite material, all made from forestry and renewable resources and even including using waste from existing pulp production. The material is called EcoAce and meets the desired sustainability requirements and can be widely used, including uses in food contact, personal care and consumer goods, made by injection moulding or extrusion. This is great and will save tonnes of GHG and I really like concept of finding practical use of stuff that would otherwise be waste! Splendid!
StoraEnso is at present busy with a trial of lids made from DuraSense, another biocomposite, together with Finnish dairy Valio. The lids are reusable and will be used on dairy product cups to test the wood-based biocomposite in food packaging. Valio sees it as a step not only towards a more sustainable packaging solution but also to less food-waste. With re-sealable packaging the content is protected, and an opened product lasts longer. Brilliant!
Power from the forest! Swedish Ligna Energy came up with another use for wood from the forest. They have developed a fibre based battery for storing of energy made from forestry waste material. Ligna Energy plan to convert ordinary paper machines to manufacture batteries based on organic electronic polymers and biopolymers from the forest. It wood be nice if this could make a difference for storing energy!
Yes, what do we want instead? We can’t always replace plastic with a renewable material. Then what about recycled plastic, more sustainable plastic that is efficiently recovered and that comes from an organised collection system? Does that sound a bit better?
Coca-Cola is in the news with their new line of bottles entirely made from recycled PET. Fantastic! Coca-Cola Sweden is during 2020 switching to only use PET bottles with 100% recycled material for their leading brands, Coca-Cola, Fanta, Sprite and Bonaqua, 40 SKUs.
This is not a small thing as using recycled material in food contact is a complex mission surrounded by of rules and regulations. The Swedish deposit system really helps here as it makes the recycling stream of PET bottles relatively pure. Beverage bottles, and cans, are here collected and recycled separately and can in theory be turned back into new cans and bottles. Today around 85% of the distributed bottles are returned and recycled. Normally recycled PET tends to be cloudy due to unintended mixes and potentially tainted by other random plastic in the recycle process. This is avoided in a controlled stream like this.
In a recent report from McKinsey, “The drive toward sustainability in packaging—beyond the quick wins”, this is discussed, among other things. The report concludes that to successfully address the recyclability and waste challenges more collaboration is needed along the value chain. To manage increased recycling new infrastructure needs to be built and more closed system must be employed.
A closed and dedicated deposit system clearly makes recycling more efficient as it is separate and, closed. The Swedish deposit system is managed by Returpack, an organisation owned jointly by retailers and fillers together. When the deposit system was created also packaging converters were involved which makes it a good example of an efficient recycling structure.
Another brand owner who is blazing new trails in this field is Nestlé. The company is seriously investing in the development of new packaging concepts in their effort to have 100% of its packaging recyclable or reusable by 2025. The newly inaugurated Nestlé Institute of Packaging Sciences is unique and aims to support the process. The Institute is going to do its bit of development of functional and environmentally friendly packaging solutions and to address plastic packaging waste.
Nestlé is now investing a staggering €2 billion to explore the possibilities to widen the market for food-grade recycled plastics. The Institute will be involved but the main investment will be in driving the market for food-grade recycled plastics by boosting demand and by being ready to pay a premium. They are now demanding 2 million tons over a period of time and are willing to pay for it, to create a market. Brilliant!
Plastic is at present needed, especially in the food industry to minimise food waste, and it is possible to create a circular economy also for plastics. To get there a system for collecting and recycling plastic must be in place. But there needs to be a corresponding demand as well. Today it is more expensive to use recycled materials than virgin. But with a higher demand and larger volumes the price should go down and thereby generate more demand. Hopefully a process that creates a virtuous cycle spinning us towards a circular and healthy economy.
These are great examples of steps in the right direction to increase demand for recycled plastic materials. This will also drive the development of efficient systems for processing. But, in the end, the consumers are going to do a big part of the job. We must not forget to inform and motivate to sort and return the empty packaging through this efficient system.
A new and purpose-made design can involve minimising size and weight, leading to concentrates and container reuse.
2019 looks like another big step forward for e-commerce, across categories. The final statistics might not quite in yet and the growth rates might not be as huge as a few years ago but the share of all retail is definitely growing, with consequences for the entire value chain.
One estimation is that, globally, the total growth of e-commerce in 2019 was 21% taking the online share of total retail sales up to a staggering 14%. The numbers vary strongly between categories and we are looking forward for the dust to settle and to get the final numbers for 2019.
As brand owner you respond to this shift in purchase patterns and adjust the offer, products and packaging to online shopping. One main consequence from a packaging/logistics point of view is that products are no longer shipped neatly stacked on pallets protected by secondary packaging.
Online shopping means the opposite for a shipped product. It could be sent alone to be delivered at a doorstep or be dispatched together with random products to a pick-up point, probably both. In any case the product will need more protection than the standard primary packaging can provide.
The situation is improved either by adding more and protective packaging, changing material from glass to plastic or why not design the packaging and product for e-commerce, or omnichannel, from the beginning.
A new and purpose-made design can involve minimising size and weight, leading to concentrates and container reuse.
Unilever has decided to make all their plastic packaging reusable, recyclable or compostable by 2025. To get there they are, among other things, offering shoppers refillable containers. This also works well for online shopping where the smaller sized refill units are saving weight and cost. Cif household cleaning products are offered as concentrated refill capsules for the original spray bottle. Just add water and hey presto the product is ready for use. Unilever is also part of the Loop initiative where a whole range of products are offered online in refillable containers.
Another similar product concept from a leading brand owner is Pepsico’s Drinkfinity, also an example of a concentrated product sold in shipping friendly containers. The concept consists of juice-based pods and a reusable water bottle. Just add some H2O. This is probably also a move to meet a shift in consumer demand for more healthy products. Nevertheless Drinkfinity was launched online where the product has an e-commerce site of its own, just like any other direct-to-consumer brand.
Perso is a L’Oreal concept that takes this a step further. Perso is a device that actually makes personalised skincare products for you, in your home, and is powered by Artificial Intelligence. From the three cartridges contained in the machine it makes unique skincare, lipstick and foundation products, just for you. All personalised as you have fed the thing with pictures of yourself, location and your preferences. This is what you can call reusable and smart packaging.
The concept of concentrated, space saving, light weight products has many positive sides. It saves cost, it is a great way to streamline online sales logistics and maybe it even gives the consumer the satisfaction of a “homemade” product.
The mantra in the packaging industry has for some time been Recycle, Reduce, Reuse. Recycling material is great when there is a demand for the recovered material and reduced use of material is good for both the environment and the budget. Reusable packaging is more complicated in many ways, in particular for food products.
The reuse concept has developed since the olden days of refillable glass bottles and today has an appeal also as an alternative to Single Use Plastics items for the foodservice industry and has a potential to improve environmental footprints for the e-commerce industry. It can also be a great marketing tool for food and beverage brand owners and a way to reach specific consumer groups. Below a few examples of reusable packaging spotted along the way.
Hot drink cups with a deposit are now available in several cafés and restaurant, although in a small scale, where you pay up an extra dollar, pound or euro for your coffee, which then is returned when the container is returned at the bar.
Australian Returnr is taking the concept one step further when offering a series of foodservice containers. Not only cups but a whole range of reusable cups, bowls and lids that are designed for multiple use and also for takeaway. The aim is to support cafes and restaurants to eliminate single-use takeaway packaging. Returnr cups and bowls are, in Australia, free to borrow from cafes and restaurants with a $6 deposit. The deposit can then be claimed back from any restaurant who are working with Returnr. Something that attracts not only local cafés and restaurants but also Deliveroo who are offering Returnrs containers to their customers.
E-commerce as such is developing very fast but is from a packaging point of view there is plenty of room for new ideas.
RePack is an example of this. RePack is a packaging solution made specifically for e-commerce. It is a resealable and durable plastic bag in varying sizes that close with a zipper. It is unique though as it is made for reuse and linked to a deposit system. The reusable packaging itself is made from recycled materials and is space efficient in that it is flexible and adjustable to minimise air, saving money and resources. When the consumer receives the delivery, they return the now empty bag that is designed to fold back into letter size which simply is dropped in the nearest mailbox. The consumer incentive lies in the refund that comes as a discount on the next purchase. Back at RePack’s logistics hub the bag is cleaned and sent out to be used again.
Food and bev brand owners
Online grocery shopping is also growing very fast albeit from a small base and has some catching up to do compared to other segments. One significant example of new thinking is from Loop who promote reusable packaging for grocery and personal care products.
Loop is an interesting grocery e-commerce concept including a deposit-based refillable packaging scheme. It starts when a consumer order a home delivery where the Loop products arrive in a bespoke crate. With the following doorstep delivery of Loop products the empties are then picked up and returned for reuse. The packaging used is bespoke and made to be returned, cleaned and refilled. Materials used are metal, glass and plastic. Leading FMCG producers like Unilever, P&G and Nestlé have joint forces with TerraCycle an American recycling company to organise the Loop model. It’s in use in North America and in Europe the system is, at present, used by Tesco in the UK and by Carrefour in France.
Reusing containers is intuitively a good thing to do but the entire operation has to be considered, from start to landing. More transportation is usually needed, washing and rinsing using detergents and more material is normally used. When it comes to packaging it is never going to be simple but packaging reuse is definitely a path to explore. Looking forward to following the developments.