VerticalBlueLine Sustainable Packaging

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Digitalization/ AI

Are packaging companies using AI to find solutions in circular packaging?

Packaging companies are increasingly adopting AI technologies to drive innovation and sustainability in packaging design and materials.

  • AI enables supply chain optimization, quality control, intelligent packaging with sensors, and sustainability improvements like eco-friendly algorithms and analyzing recyclability. Unilever uses AI to develop sustainable packaging using recycled plastics and AI-powered waste sorting.
  • AI is revolutionizing packaging through design optimization, supply chain efficiency, and gathering insights to inform sustainability decisions. Companies like Tetra Pak are using AI to research sustainable materials and designs, like plant-based caps.
  • AI can boost smart and interactive packaging to engage consumers. Brands like Clinique use AI-enabled NFC chips on packaging for personalized recommendations. AI also enables accessible packaging, like QR codes for vision-impaired consumers.

Overall, key AI applications include optimizing design, improving sustainability and recyclability, supply chain transparency through smart packaging, and gathering data to inform circularity efforts across packaging lifecycles. However, consumer education on using smart packaging remains a challenge.

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Digitalization/ AI

Supply Chain

Supply Chain

What are the challenges and opportunities for businesses in transitioning to a carbon-conscious supply chain?

Transitioning to a carbon-conscious supply chain presents both challenges and opportunities for businesses.
Challenges:
  • Cost: The transition often requires significant upfront investment in new technologies, infrastructure, and processes. This can be a barrier, especially for smaller businesses.
  • Supplier Cooperation: Businesses need their suppliers to also commit to reducing emissions, which may not always be feasible or a priority for the suppliers.
  • Communication: Effectively communicating sustainability efforts to stakeholders can be difficult. Many businesses struggle with this, and there is a push for standardization in defining terms and metrics.
  • Regulatory Compliance: As regulations around emissions and sustainability become stricter, businesses must ensure they are in compliance, which can be complex and time-consuming.

Opportunities:
  • Innovation: The transition can spur innovation in supply chains, leading to more efficient and cost-effective processes.
  • Cost Savings: While the transition requires upfront investment, it can lead to cost savings in the long run. For example, energy-efficient lighting and insulation can reduce energy costs.
  • Market Demand: Action on emissions sends a message to the market that can increase demand for a business's products or services.
  • Sustainability: The transition can help businesses meet their sustainability goals and reduce their environmental impact.
  • Reputation: Businesses that successfully transition can enhance their reputation with consumers and stakeholders, who are increasingly concerned about climate change and sustainability.
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Circular Economy

Will EPR reduce paper recycling rates?

Extended producer responsibility (EPR) laws are gaining momentum in the United States as a strategy to reduce plastic waste and increase recycling rates. Four states - California, Colorado, Maine, and Oregon - have already enacted EPR laws for packaging, which require companies to fund the recovery and recycling of their packaging materials. Industry groups predict additional states will follow suit, with Washington and New York potentially being next.

EPR is expected to accelerate the transition to a circular economy by providing sustainable funding for recycling infrastructure and motivating companies to use more recyclable packaging. However, its impact on emerging chemical recycling technologies is still being scrutinized, as some laws allow it to count toward recycling requirements while others do not. Overall, EPR has bipartisan support from state lawmakers and environmental groups as a policy solution to the plastic waste crisis, but business interests have raised concerns about potential cost increases

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Circular Economy

Biobased/Compostable Materials

Biobased/Compostable Materials

What are some innovations in barrier coatings and materials that can help make packaging more sustainable, including recyclable, biodegradable or compostable?

There are several promising innovations in barrier coatings and materials that can help make packaging more sustainable, recyclable, biodegradable or compostable

  • Advances in biobased polymer coatings derived from renewable resources as more eco-friendly alternatives to petroleum-based polymers
  • Plant-based coatings to replace polyethylene in paper packaging
  • Mushroom-based packaging utilizes agricultural waste bound together by mushroom mycelium to create protective cushioning
  • Agricultural waste to create sustainable materials, like cellulose nanofibers and silver nanoparticles from used egg cartons
  • Nanocellulose coatings made from soybean residues can create effective moisture barriers for paper while remaining biodegradable
  • Closed-loop distribution systems that eliminate single-use packaging by transporting spirits in bulk and decanting into reusable containers at the point of service

Overall, the research indicates that a combination of barrier coatings using bio-based polymers from renewable agricultural sources along with innovative bio-based and compostable materials can provide more sustainable alternatives to traditional plastic packaging. However, work remains to make these solutions cost-competitive and available at scale

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Consumer Behavior

Do consumers think paper packaging is more sustainable?

Consumers do think paper packaging is more sustainable than plastic packaging, according to multiple surveys and reports.

  • A 2022 survey by Two Sides North America found that 55% of US consumers believe paper-based packaging is better for the environment than plastic, glass or metal packaging.
  • A 2023 ESW survey across 16 countries also found that 46% of consumers consider environmentally friendly packaging when making purchases, with 63% actively seeking out products in sustainable packaging.

However, consumer perceptions don't always match reality. A 2023 Bain & Company report showed that while 70% of consumers think glass packaging has a lower carbon footprint than plastic, only 12% correctly identified plastic as the more sustainable choice. This indicates significant consumer confusion around sustainability impacts of different packaging types. Brands have an opportunity to educate consumers, as a McKinsey survey found consumers lack clarity on which packaging is most sustainable. To appeal to environmentally conscious shoppers, brands need to align packaging solutions to consumer values through a tailored, incremental strategy based on purchasing behaviors and product usage.

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Consumer Behavior

Paper Packaging

Paper Packaging

What are the latest innovations in specialty paper?

The latest innovations in specialty paper include:

  • Grass Paper: Creapaper, a German paper manufacturer, has developed a grass-infused product. The company uses grass to make a pulp that can then be used by mills to produce paper or cardboard, which is mainly sold as packaging material. Producing grass pulp is also more sustainable than making the equivalent wood pulp.
  • Paper Waste in Construction: The PAPERCHAIN project has developed a way to use paper waste in construction. In Slovenia, the project used a new material made out of waste from a local paper mill, to build stabilization walls to prevent landslides. In Portugal, the project turned waste products such as lime mud into base materials for concrete and asphalt production, which was used to make roads.
  • Eco-friendly Cellulosic Paper Packaging: Researchers have developed a new one-pot process to produce eco-friendly paper packaging based on cellulose microfibers (CMFs). The process uses a thermo-compression method under pressure at 150°C for 45 minutes, during which diammonium hydrogen phosphate and urea are added to the reaction. This results in the production of phosphorylated cellulosic paper with a compacted structure via hornification phenomenon.
  • Researchers are also engineering trees, like poplar, to have less lignin and more carbohydrates. This makes them more efficient for paper production, reducing chemical waste and emissions. New eco-friendly paper coatings using cellulose microfibers provide enhanced properties like strength, fire resistance and hydrophobicity

Overall, recent specialty paper and packaging innovations are driven by sustainability goals to reduce reliance on forests, utilize waste streams, and decrease environmental impacts across the life cycle. Companies are commercializing these technologies, but work remains to convince brands to adopt them at scale

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