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Packaging industry's balancing act

How are the packaging companies rising up to the challenge of balancing sustainability with functionality and shelf appeal? Experts explain to R. Keerthana


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Sustainable Packaging
 
September 3 2024
 
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The dominance of single-use plastics and excessive packaging waste is steadily being replaced by a new era of sustainable packaging.  As concerns over pollution and resource repletion mount, businesses and consumers are in pursuit of a compelling solution. By using materials that are recyclable, biodegradable or made from renewable resources, they are looking to significantly reduce their environmental footprint. While the efforts are now directed towards meeting these demands, the packaging companies are also investing their resources to cater to the brands’ demands by balancing functionality with sustainability, while also navigating the regulatory requirements. 

Abdelghany Eladib, President & General Manager, (India, Middle East and Africa), SIG, noted that the packaging industry has been significantly influenced by recent trends emphasising sustainability and environmental legislation. “For instance, there is an increasing push towards minimising environmental impacts and embedding a circular economy for all materials. This trend is supported by growing regulatory measures such as the EU’s Packaging and Packaging Waste Directive, which aims to expand into a legally binding regulation to ensure all packaging is recyclable, reusable, or compostable” 

On the other side, consumer demand for sustainability and affordability has driven innovations. Eladib noted, “People are increasingly prioritising value for money, which has led to a rise in the use of smaller, more affordable packaging sizes and bundled discounts to encourage larger purchases.” Citing the ‘Overall Packaging Trends Report’, he noted that the demand for environmentally-friendly packaging has pushed companies to innovate in reducing plastic use and carbon footprint as well as increasing recyclability. 

Balancing functionality, aesthetics, and sustainability without increasing costs is something the brand owners and packaging companies are trying to achieve. “The industry is focusing on achieving a balance between sustainability and functionality, aesthetics, but also cost-efficiency in packaging designs by ensuring that sustainable options do not compromise product shelf life, packaging performance, or value for money.” One of the significant challenges is achieving cost parity between standard packaging materials and structures and innovative, more sustainable packaging materials, he noted. 

Jeevaraj Pillai, President  Flexible Packaging and New Product Development and Director  Sustainability, UFlex, India highlighted the noticeable shift in priority. He noted, Previously, packaging innovations were aimed at improving product functionality, ease of use, and shelf appeal. But over the last three-four years, the landscape has been dominated by efforts to create sustainable structures and meet regulatory requirements.” 

Explaining the transition, he noted that many businesses, particularly those with headquarters in Europe and the United States, are increasingly prioritising their Environmental, Social, and Governance (ESG) scores. As a result, packaging companies are now concentrating on developing recyclable materials and incorporating recycled content. “Innovation in functionality has not disappeared completely, but sustainability is now the dominant driver of change,” he clarified.   

Do companies face the challenge of balancing eco-friendly solutions with the functionality and aesthetic appeal that consumers still demand? Pillai pointed out that addressing brand owners' pain points is critical: "It's about meeting the demands of the brand owners, complementing the developments happening on the sustainability front."

“Uflex is working on several innovative products that improve functionality without compromising sustainability,” he said, citing examples of its recent projects that strike that sweet spot. 

Abdul Jebbar PB, Group CEO and Managing Director, Hotpack Global, noted that the packaging industry has undergone remarkable transformations during recent years. “The focus is increasingly on recyclable and biodegradable packaging options. This shift is enabling development of innovative trends in the industry that minimises environmental impact and addresses food safety.” 

In the modern packaging scenario, packaging is an extension of the product itself, offering added value to the customer in many ways, he observed. “In food packaging, where Hotpack excels, apart from the conventional theory that packaging should keep the product fresh for longer periods, packaging also plays a pivotal role in communicating a brand’s value and their commitments as well as their sustainability goals. Hotpack invests in the latest infrastructure and technical knowhow to ensure that we balance all these dimensions into the packaging that we offer our customers.”

Speaking about other trends in the market, he said the demand for packaging has increased significantly as a result of the recent boom in e-commerce. This resulted in many technical advancements that made sure minimal environmental impact and encouraged circular economy principles. “Packaging innovations have the power to influence consumer choices and behaviours. At Hotpack, we recognise that packaging is not just a protective shell; it's a communication tool. Appealing and informative packaging can educate consumers about sustainability and encourage responsible choices.” 

Packaging solutions for recyclability 

Brands are increasingly adopting recyclable packaging options, such as single-polymer plastics or paper-based solutions, to enhance the circularity of their products.  Jebbar said that efforts include the development of packaging solutions that are either recyclable, reusable, compostable or biodegradable. “Hotpack’s R&D team has been at the forefront, offering innovative solutions to tackle recycling and waste management challenges.” 

For SIG, the efforts include  supports collection and recycling through country specific roadmaps, especially in those places that account for more than 90% of its global packaging sales (by weight). Eladib said, “For instance, we set up a collection project in Egypt with GIZ funding focusing on household collection and raising awareness about recyclability and sorting on a large scale. At the same time, we have been innovating to simplify our aseptic carton structures to make them easier to recycle. The aluminum-layer-free packaging materials in our SIG Terra portfolio have already reduced the number of main materials from 3 to 2.” 

He added that SIG’s goal is to produce aluminum-layer-free aseptic cartons with at least 90% paper content by 2030 to enter the paper recycling stream. “Eventually we aim to enable carton packs to be recycled anywhere in the world, even in those places that have little established infrastructure for recycling.” 

Regulatory landscape 

India’s EPR regulations mandate that companies use a specific amount of recycled content in the packaging materials by April 2025. However, there are several hurdles to achieving this goal. 

“The existing recycling infrastructure falls short in managing the volume of waste generated by flexible packaging," he stated, adding that the situation could improve as the government shows more commitment to implementing regulations. The country relies heavily on the unorganised sector to collect and transport waste. This system is not scalable, making it difficult for companies to meet EPR targets, he added. 

Another regulatory issue is the use of recycled content in packaging materials, especially for food-grade applications. "Right now, the FSSAI only allows polyester(PET) for food packaging, while other materials like polypropylene(PP) and polyethylene(PE) are still under review."

He also noted challenges related to the recycling of materials multiple times, as the quality of recycled content deteriorates with each cycle. "Every recycle degrades the material. What is the threshold limit beyond which you cannot recycle it? These are the challenges the industry needs to address."  Standards committees and regulatory bodies also need to play a more active role in developing guidelines for recycled content usage, he said. With just seven months remaining before the April 2025 deadline, the industry is racing against time to find solutions. 

Despite these challenges, Uflex remains optimistic, he said, as the company is investing heavily in technology and expects to have solutions for at least two of the three major packaging materials by the 2025 deadline. Additionally, the company is working on tools to measure recycled content in packaging. 

Jebbar said, “The Middle East region has seen many positive efforts recently from Government bodies aimed at reducing carbon footprint and encourage using responsible packaging solutions. While the regulations will help combat waste pollution to a certain extent, a lot also depend on pollution created by humans dumping waste irresponsibly. “As an extension of our responsibility, we have tried to ensure that our investment plans are designed in a manner that we are able to produce sustainable products that comply with the current legislation, at the same time focus on offering alternatives that help reduce carbon footprint.” 

Future of packaging 

Jebbar noted that in future packaging solutions, focus will be to enhance product safety, shelf-life extension, real-time tracking using RFID technology or advanced QR code functions as well as interactive customer engagements.  

“The upcoming Intergovernmental Negotiating Committee (INC) on Plastic Pollution will drive investment in technology, encourage innovation, and push the industry to respond swiftly, presenting significant opportunities for companies involved in sustainable packaging,” Pillai remarked. The INC-5 is expected to produce a legally binding document on plastic packaging. This framework will likely focus on increasing recycling, using more recycled content, and banning harmful additives, particularly in food packaging, pushing countries to follow stricter guidelines. 

As companies like Uflex gear up for these changes, they view the evolving landscape as an opportunity. "We are very excited, and in fact, we see this as a great opportunity for a company like ours, who has the wherewithal to jump into this new method of making packaging material to meet these demands,” he concluded.