国产麻豆

Change in consumer awareness drives packaging regulations and call to action.
By Emir Avdi膰, Sebright Products Inc.

Packaging is an industry valued at more than $1trillion, impacting major cities and small villages worldwide. Regardless of whether you are buying meat, pharmaceuticals, beverages, or other goods, this sector integrates science, art, technology, and the process of enclosing or protecting products for distribution, storage, or use.

Governments worldwide are addressing public concerns about packaging waste, especially single-use items. Consumer awareness of ocean and landfill waste is influencing these changes. However, consumer opinions can be inconsistent: many surveys show people consider compostable or recyclable plastic packaging sustainable, yet view recycled plastic containers and bottles as less sustainable. This raises the question鈥攄o we really understand what we want?

With demand for packaging showing strong, global growth, leakage or unmanaged deposits of packaging have increased. Plastics have low overall recycling rates: globally, less than one-fifth of all plastic waste is reprocessed to make new plastics1, and the majority is either incinerated or sent to landfill. In the U.S., current sorting technology cannot effectively manage approximately 33 percent of plastic packaging.

The Force Driving the Change
Over the past decade, the global packaging industry has enjoyed robust growth, driven by shifts in choice of substrates and expansion of new end markets. Significant changes include the increased use of plastics to replace other substrates and accommodate consumers鈥� demand for convenience. However, widespread usage of single-use packaging containers has resulted in a heavy burden on the environment, and the management of packaging waste is facing a crisis due to unresolved challenges.

Substantial amounts of packaging produced today cannot be recycled in existing recycling systems. This is especially true for multi-material packaging, which poses a significant challenge. Recycling rates for plastic packaging are low. In the U.S, for example, waste is managed with low leakage, but recovery rates for packaging and food service plastics are about 28 percent. In Europe, the plastic packaging recycling rate reported was higher at approximately 40 percent compared to approximately 80 percent for paperboard, and 75 percent for metal and glass.2 Asia is under pressure because packaging demand growth is outpacing global growth rates, and waste collection systems鈥攍et alone recycling鈥攁re not in place at the required scale.
Global leakage or unmanaged deposits of all plastic material flows is around 19 percent. In fact, most of the global plastics waste goes into incineration (25 percent) and landfills (40 percent), meaning that these materials are lost forever.3

U.S. Consumer Awareness
Higher inflation in the U.S. has shifted consumer behavior. Inflation has caused U.S. consumers to give priority to price, quality, and convenience over environmental concerns, especially regarding soaring prices for necessities such as food. Interestingly, the importance of environmental considerations and impact as a key buying factor varies depending on age group and locality. In fact, 37 percent of Gen Z, 39 percent of millennials, and 40 percent of those living in urban neighborhoods cited environmental impact as an extremely crucial factor when making their purchasing decisions. While only 18 percent of baby boomers and 21 percent of consumers living in rural areas stated the same.4

Consumer awareness really focuses on specific products and industries such as hygiene and food safety, especially since Covid-19. Consumers are also looking for a more robust shelf life of products, hence better and more durable packaging is needed. A majority of Americans consider ocean pollution as bad as deforestation and natural-resource depletion, however, in the last couple of years the new generations have brought ocean pollution as their primary concern even more than climate change. This change brought on by Gen Z showed that recycling is extremely common even though 75 percent of consumers do not really understand which product packaging is recyclable.5 This development has created more regulations on local, state, and federal levels and shifted more responsibility towards the manufacturers regarding packaging sustainability and recycling.

Government Regulations
New regulations are expanding on multiple fronts and are becoming ever stricter. At the same time, regulatory focuses and approaches vary by region and diverge even further when looking at country, county, and city-level regulations. Meanwhile, the number of new sustainability regulations is accelerating and becoming more ambitious. Beyond plastic bans, plastic taxes have started to be introduced in Europe, with recovery schemes to be developed on a national level. Taken together, these trends limit companies鈥� ability to plan reliably and make navigating the landscape even more complex, especially for multinational companies.

Some of the largest and most developed countries and regions are taking significant steps to introduce regulations to drive sustainability, while others are still operating as per the status quo, with limited or no regulations in place. In the U.S., 16 states have enacted statewide regulations around packaging waste, which tend to target single-use plastics, shopping bags, and increasing recycling targets.

Meanwhile, Europe has progressed further than some other regions when it comes to sustainability. European measures announced in May 2019, under the 鈥淣ew EU Directive for Single-Use Plastics,鈥� aim to reduce leakage of the 10 single-use plastic products most often found on European beaches.

Thailand recently announced a nationwide ban on single-use plastic bags at major stores. India has shelved plans for a full ban of single-use plastics for now, but is pushing for increased awareness campaigns and more collection points to improve collection and curb waste. China has banned imports of plastics waste and approved legislation to ban/reduce single-use plastics, increase recycling, recovery, and recirculation of used plastics.

Call to Action
The coming decade is crucial for attaining net-zero emissions by 2050. With consumers gravitating towards sustainable options and regulators expected to enforce tougher environmental mandates, companies are under significant pressure to meet their rigorous sustainability goals.

By 2030, the most ambitious retailers aim to raise the proportion of recycled content in their packaging to 50 percent. Companies must not only grasp consumer purchasing behaviors, but also how products are used and how packaging is disposed of. Additionally, they need to address challenges related to separation, cleaning, and sorting.

Thriving in sustainable packaging during market uncertainties demands a versatile strategy. There is not one perfect solution, but sustainability offers significant growth potential. Products with environmental, social, and governance claims grew 8 percent more over five years compared to those without as consumers are willing to pay extra for sustainable packaging.6

To meet changing consumer habits, the entire packaging value chain must act on multiple fronts. Packaging converters need to adopt a comprehensive sustainability approach. Clear labeling and accessible options will help consumers understand the sustainability story. Educating end-users on sustainable packaging is crucial; companies must grasp in detail how consumers buy, use, and dispose of products. By 2030, demand for post-consumer recycled plastic packaging will triple due to retailers鈥� sustainability goals and higher regulatory targets, while supply will only double, squeezing retailer margins.

The demand for recycled plastics is projected to reach approximately 90 million tons, while the supply is expected to lag at around 60 million tons.7 This imbalance will likely exacerbate pressure on prices and profit margins. To mitigate this risk and meet consumer expectations, companies need to invest in their capabilities now and engage more comprehensively with their value chain further upstream. The strategic focus should include at least the following elements:
鈥� Organizations must form cross-functional teams to evaluate their use of raw materials, environmental impact, costs, and CO2 emissions comprehensively. Addressing the most significant bottlenecks first, is crucial to identifying opportunities and establishing an optimal packaging strategy.
鈥� Sustainable packaging design should aim to reduce the use of unsustainable materials, favor those with a minimal environmental footprint, select recyclable or biodegradable plastic polymers, and consider alternative materials such as paper or cardboard when appropriate.
鈥� Collaborations throughout the supply chain are necessary to create closed-loop systems. Partnering with recyclers, packaging suppliers, and waste management establishments can help ensure the return of used packaging for reuse or recycling.
鈥� Effective reverse logistics are vital to ensuring that collected feedstock reaches the correct processors along the value chain. Currently, retailers often manage reverse logistics independently; however, integrating these efforts with supply and procurement across the business will be essential.

Future Outlook
With consumers becoming increasingly aware and vocal about their sustainability concerns, and with increasing regulatory pressure, leading fast-moving consumer goods companies have made strong commitments to sustainability. However, transforming the packaging industry has proven to be challenging, as it requires managing complex trade-offs and implications for sustainability.

Meanwhile, options can be limited due to often slim margins and significant branding implications. Nonetheless, despite these challenges, fast moving consumer goods manufacturers and retailers continue to innovate in their efforts to meet their sustainability commitments for packaging, either through alternative materials or through reusable/returnable packaging.
Despite promising innovations, widespread market adoption has not occurred yet. Plastics remain prevalent, though there is a rising green premium on recycled materials. While converters advance packaging sustainability, are these efforts sufficient? Many packaging companies focus their sustainability on energy efficiency and waste reduction rather than just lightweighting.

Because of infrastructure gaps and technical issues, major brands are not abandoning plastic packaging. Instead, they are improving its use by standardizing types for easier recycling, cutting down on new resin, and boosting the use of recycled materials.

Paper and board producers are innovating high-barrier materials using bio-derived products to replace plastics. Specialty paper companies are developing flexible, paper-based packaging with water-based coatings that can act as barriers for vapor, oxygen, and oil, replacing plastic or aluminum covers. Additionally, some are creating lighter, stronger packaging boards with a lower carbon footprint.

Plastic film manufacturers are striving to create mono-material packaging, like all-polyethylene, which can be entirely recycled and serve as an alternative to current multi-material flexible plastics.

Demand for textiles and other uses is rising. With low plastic recycling rates, infrastructure gaps, and increasing demand, there is a growing premium for high-quality recycled plastics. This will persist as long as supply lags demand, varying by region. In the U.S., changes like e-commerce growth, shifting consumer preferences, health focus, and digitalization are permanent trends.

To achieve more sustainable packaging with minimal environmental impact, it is essential to educate consumers on what materials are genuinely recyclable and their environmental effects. Government entities, at both national and local levels, should collaborate with converters and retailers to develop a replicable and sustainable strategy. Initially, the focus should be on simple, impactful changes such as eliminating unnecessary packaging, enhancing existing packaging by increasing its recyclable content, and simplifying packaging designs to facilitate easier recycling. | WA

Emir Avdi膰 is President and CEO for Sebright Products. Emir has spent almost two decades in the international realm of business. Before joining Sebright Products, Emir worked as a consultant focusing on Market Entry Strategies, Supply Chain optimizations, and Process Improvement for multinationals between Europe and USA. Emir also holds Executive Lean Six Sigma Black Belt and is on the Board of Directors of Michigan Lean Consortium. He can be reached at (269) 793-7183, e-mail [email protected] or visit
.

Notes
Feber, David, 鈥淪ustainability in packaging: Inside the minds of US consumers鈥�, October 21, 2020, www.mckinsey.com/industries/packaging-and-paper/our-insights/sustainability-in-packaging-inside-the-minds-of-us-consumers
Feber, David, 鈥淭he drive toward sustainability in packaging鈥攂eyond the quick wins鈥� January 20, 2020, www.mckinsey.com/industries/packaging-and-paper/our-insights/the-drive-toward-sustainability-in-packaging-beyond-the-quick-wins
Feber, David, 鈥淭he drive toward sustainability in packaging鈥攂eyond the quick wins鈥� January 20, 2020, www.mckinsey.com/industries/packaging-and-paper/our-insights/the-drive-toward-sustainability-in-packaging-beyond-the-quick-wins
Feber, David, 鈥淪ustainability in packaging: Inside the minds of US consumers鈥�, October 21, 2020, www.mckinsey.com/industries/packaging-and-paper/our-insights/sustainability-in-packaging-inside-the-minds-of-us-consumers
McKinsey & Company, April 26, 2023 鈥淪tream Listen to the article: Sustainability in packaging: US survey insights by McKinsey & Company | Listen online for free on SoundCloud鈥�
McKinsey & Company, April 26,2023 鈥淪tream Listen to the article: Sustainability in packaging: US survey insights by McKinsey & Company | Listen online for free on SoundCloud鈥�
Steve, Hoffman, December 14, 2023, www.mckinsey.com/industries/retail/our-insights/reimagine-reuse-recycle-how-to-reach-sustainable-packaging-targets-in-retail