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September 7, 2023
Flexible Packaging
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Companies face several key challenges in adopting compostable packaging solutions. A major hurdle is cost, as compostable materials tend to be more expensive than traditional plastics. However, there is rising consumer demand for sustainable packaging, with 71% of European and 70% of US consumers wanting to buy sustainable products.
Another obstacle is consumer confusion about composting. Consumers struggle to identify compostable packaging, with 49% confusing terms like “biodegradable” and “compostable.” Standardized labeling and education campaigns are needed to resolve this confusion and contamination of waste streams.
Design also plays a role. Certain colors and shapes mislead consumers on compostability. Companies should design packaging to clearly communicate proper disposal.
Finally, there is a lack of infrastructure, as companies need better systems for collection and commercial composting. Building this infrastructure requires collective action from brands, policymakers and composters.
While challenges remain, consumer demand and environmental benefits present a compelling case for compostable packaging. With a tailored approach considering costs, infrastructure, design, and education, companies can overcome hurdles to adoption.
Consumers are increasingly concerned about sustainability and want companies to adopt more environmentally friendly packaging. According to the ESW survey, nearly 60% of Gen Z and millennial shoppers decline to purchase from brands seen as unsustainable. A Bain report notes 71% of European consumers want sustainable products, and McKinsey finds that younger consumers prioritize environmental impact more.
While consumers care about sustainability, other factors such as price, quality, hygiene, and food safety remain top priorities, according to surveys by McKinsey and Bain. Bain's study also reveals that 70% of consumers incorrectly believe single-use glass has lower carbon footprint than single-use plastic, indicating consumer confusion on packaging sustainability.
Consumers want clear recycling instructions, and 84% of Europeans are seeking them, according to Amcor. They also respond well to sustainability logos, which positively influence 60% of European purchase decisions. FSC and PEFC certification matter too, according to Two Sides.
Regarding materials, consumers perceive plant-based and compostable packaging as very sustainable but lack consensus on others, McKinsey reports. Paper scores well for sustainability in some countries like the UK. Plastic films from renewable/compostable materials are gaining favor, McKinsey notes.
In summary, consumers increasingly want sustainability but remain confused on packaging materials. Providing clear recycling instructions, sustainability logos, eco-friendly materials like paper, and FSC/PEFC certification can appeal to consumers’ sustainability preferences. But quality, price and hygiene must not be sacrificed.
In summary, biopolymers show promise as more sustainable flexible packaging materials, but cost, performance, safety, and infrastructure challenges remain. More R&D and investment are needed to optimize biopolymer properties and scale up production.
The packaging industry faces several key transportation challenges:
In summary, key transportation challenges include problems related to e-commerce shipping, packaging material shortages, inconsistent recycling policies, lack of sustainable packaging infrastructure, and labor shortages.
Companies are adapting through route optimization, sustainable packaging innovation, driver incentives, and automation, but overcoming these hurdles requires collaboration across the packaging value chain.
In summary, key R&D trends for packaging films include biodegradability, renewable materials, barrier properties, antimicrobial activity, intelligent packaging, and recyclability. The focus is on more sustainable and functional packaging films.
Brands face several key challenges in adopting recycled-based packaging.
First, there is a lack of infrastructure and demand for recycled materials, making them more expensive and harder to obtain than virgin materials. This poses difficulties in scaling recycled packaging, especially for global brands that require massive material volumes.
Second, recycled materials can present technical challenges, like contamination or inconsistent quality, that make them difficult to incorporate into packaging manufacturing processes designed for virgin materials. Brands must invest in R&D and equipment upgrades to accommodate recycled content.
Third, brands struggle to make recycled packaging look and perform the same as packaging made from virgin materials. Consumers expect consistency, but characteristics like color and odor can differ with recycled materials. Brands may need to educate consumers and conduct market testing before transitioning packaging.
Finally, the complex global supply chains of major brands present traceability and logistical challenges in sourcing recycled materials. Brands must develop systems to verify and transport recycled materials to worldwide production facilities. Overcoming these hurdles requires major investments in infrastructure, innovation, and strategic partnerships across the value chain. But leading brands are increasingly prioritizing recycled packaging to meet consumer and stakeholder demands for sustainability.
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