In an era marked by growing environmental awareness and concerns about the planet’s wellbeing, sustainability has become a buzzword in virtually every industry. And none more so, than in the packaging industry.
While most of us are aware of the damage consumer packaging causes to our land, oceans and rivers, surprisingly, it is less known that in Australia we produce one of the highest amounts of waste per capita in the world. In fact, waste from packaging is increasing twice as quickly as our population.
According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), in Australia in 2020–21:
- 6.74 million tonnes of packaging was placed on market (POM)
- 86% of packaging POM had good recyclability
- 35% of packaging had good recyclability but was not collected or reprocessed
- 44% of packaging POM was disposed to landfill.
If all landfilled packaging had been recycled in 2020–21, DCCEEW continues, we could have reduced national greenhouse gas emissions by about 2.2 million tonnes. This is equal to removing 740,000 cars from the road per year.
Australia has been taking various steps to reduce the environmental impact of packaging materials through sustainable packaging as part of broader efforts to combat plastic waste and promote sustainability.
To reduce the environmental harm caused by non-sustainable packaging, the Australian Government has set a target for 100% of packaging to be reusable, recyclable or compostable by 2025. Regulations are currently in place to focus on optimising the recovery and recycling of packaging waste.
Today, more packaging is being made from recycled materials, however, most packaging is still being created from new, limited resources.
The challenge for sustainable packaging is to minimise the negative impact on the environment while still ensuring the vast array of packaging supplies offer sufficient protection for goods and remain affordable for industry.
This calls for innovative solutions that encompass the use of eco-friendly materials, smart design, and innovative technologies.
What Is Sustainable Packaging exactly?
Sustainable packaging refers to the design and use of packaging materials and practices that minimise their environmental impact while meeting the needs of the product they contain. It aims to reduce waste, conserve resources, and limit the negative effects on the environment.
This can involve various strategies, such as using recyclable or biodegradable materials, reducing excess packaging, optimising transportation efficiency, and considering the entire lifecycle of the packaging from production to disposal to reuse. The goal is to balance the protection of products with environmental responsibility, making packaging more eco-friendly and less wasteful.
Some key approaches include:
1. Use of eco-friendly materials: This involves using materials like recycled paper, cardboard, glass, metal, and biodegradable plastics. These materials reduce the environmental footprint, decreases the use of non-renewable resources, and minimises waste.
This is of particular importance, as president of packaging firm PKG, Kevin Keating advises, “The majority of a product’s carbon footprint is accounted for by the production of the raw materials that go into the product.”
2. Designing for reusability: Sustainable packaging entails creating products that are sturdy and practical for multiple uses. This not only cuts down on waste but also delivers economic advantages for both consumers and businesses.
3. Prioritising biodegradability and compostability: Certain sustainable packaging options naturally decompose without causing harm to the environment. These materials are particularly suitable for items such as food packaging, where minimising waste is crucial.
However, sustainable packaging isn’t just about repurposing traditional materials; it’s about embracing innovative technologies. This may encompass advancements in packaging design, such as smart packaging that extends the shelf life of products, protective packaging that is embedded with sensors, or utilising 3D printing for personalised, low-waste packaging solutions.
Costs vs Benefits of Sustainable Packaging
Despite the numerous benefits to both the environment and businesses sustainable packaging solutions offer, changing to sustainable packaging comes at a significant cost for packaging suppliers and packaged goods manufacturers and retailers.
The materials and processes involved in creating sustainable packaging are much higher than traditional packaging. This is of particular concern for brands that sell everyday products with small profit margins, for example, fast-moving consumer goods (FMCG). To date, emphasis has been placed on “light weighting” or reducing the amount of material used to lower cost.
Mckinsey & Company’s research shows that the top 100 FMCG companies are actively pursuing commitments to act on reducing packaging waste in three core areas:
- full recyclability and a significantly higher degree of recycled content (60%)
- reduction of total plastics usage (26%)
- innovation and promotion of change in the use of packaging (14%).
Innovation In Implementing Sustainable Packaging Solutions
Innovation is steadily growing in areas such as:
- Material selection: Prioritising eco-friendly materials that are biodegradable, compostable, or recyclable such as plant-based plastics, mycelium (mushroom-based packaging), fiber-based packaging instead of traditional polymer packaging.
- Efficient packaging design and minimalism: streamlining packaging to minimise excess material usage while maintaining the necessary product protection, including lightweight options.
- Promoting reusability and refillability: developing containers and packaging that can be returned, refilled, and used again, such as tote bags for shopping or refillable containers. This includes initiatives at the store level including “bulk” purchase options where consumers can use refillable containers to purchase the quantity of a product they want, reducing the need for individual packaging; and at the manufacturer level where certain products can be sold in concentrated forms.
- Smart packaging technologies: such as the use of QR codes and RFID tags to provide consumers with information about a product’s lifecycle and disposal instructions. This helps consumers make informed choices and promotes proper disposal.
- Extended Producer Responsibility (EPR) Programs: EPR programs in Australia have encouraged manufacturers to take responsibility for their product packaging. Various businesses in Australia are adopting circular economy business models, such as product-as-a-service, to extend the life of products and reduce waste. Efforts are also being made to improve the recycling of textiles and clothing, as the fashion industry is a significant contributor to waste.
These strategic sustainable packaging initiatives not only align with sustainability goals but also have the potential to improve operational efficiency and appeal to an increasingly eco-conscious market.
Benefits of Sustainable Packaging Solutions
Sustainable packaging represents both a strategic and responsible choice for both businesses and the environment.
Businesses today understand that sustainable packaging offers benefits that extend beyond corporate responsibility in reducing the carbon footprint with less waste going to landfill. It can also reduce waste disposal costs, enhance brand image, appeal to environmentally conscious consumers, and promote customer loyalty.
Cost savings: While there may be some initial and more costly investments in eco-friendly materials and packaging design, the long-term benefits can outweigh the upfront expenses. Sustainable packaging typically uses fewer resources, reduces waste, and can result in lower disposal and transportation costs. Companies can also benefit from tax incentives and grants aimed at promoting sustainability.
Improved brand image: Consumers are increasingly environmentally conscious, and many appreciate and support brands that demonstrate a commitment to sustainability. Using sustainable packaging can set your business apart as environmentally responsible and can help attract a larger customer base, including those who prioritise eco-friendly products. A commitment to sustainable practices and environmental concern contributes to a positive brand image and reputation.
Competitive advantage: Embracing sustainable packaging can provide a competitive advantage in the marketplace. It can differentiate your products from competitors who may not have adopted eco-friendly packaging practices. As sustainability becomes more important to consumers, this advantage can be significant.
Innovation and product differentiation: Sustainable packaging encourages innovation in product design and packaging materials. Companies that invest in sustainable practices are often at the forefront of new developments in packaging technology, which can lead to product differentiation and a unique selling proposition.
The Future of Sustainable Packaging
The future of sustainable packaging looks bright with new, innovative solutions emerging every day. Such solutions are important in facilitating the appeal and change toward sustainable packaging by driving consumer adoption and decreasing its cost.
Today, there are still a number of challenges to be overcome not the least of which is the need for packaging converters to commit additional investments to significantly expand their innovation capabilities. Many innovations face challenges in scaling beyond their current small-scale initiatives, partly because they are often in early stages of development and rely on expensive materials. For sustainability innovations to gain widespread acceptance, they must come with a break-even or at least economical cost trade-off.
There is no single solution that the industry can embrace as they work on strategies for sustainable packaging, but there are some easy wins including those mentioned above:
- Removing unnecessary packaging and using light weight options
- Redesigning existing packaging
- Material changes.
Australia, like many other countries, is increasingly focused on addressing waste and recycling challenges and as more people become environmentally conscious, investments in sustainable packaging innovation, afford companies the opportunity to meet eco-friendly goals and benefit from the growing demand for greener alternatives in the market.
References:
- https://www.dcceew.gov.au/environment/protection/waste/packaging
- https://www.uts.edu.au/isf/explore-research/projects/isf-research-packaging-something-out-box
- https://tembopaper.com/news/the-challenges-and-opportunities-of-sustainable-packaging
- https://www.mckinsey.com/industries/packaging-and-paper/our-insights/the-drive-toward-sustainability-in-packaging-beyond-the-quick-wins