Tuesday, June 30, 2015

Securing The Future


      by Greg Kishbaugh

     Sustainability may still get the most media attention in the packaging market but the fight against counterfeiting remains one of the most critical facing the industry.
     The very nature of counterfeiting of consumer products lies cloaked in secrecy, one of the many reasons it remains a sensitive subject.
     A recent report from Allied Market Research looks at the ways in which converters are poised to combat counterfeiting in the pharmaceutical and cosmetics markets. According to the report, the anti-counterfeit pharmaceutical and cosmetics packaging market will grow at a Compound Annual Growth Rate of 15.7 percent during 2015-2020. 

     The hologram authentication technology segment accounted for about 52 percent share in 2014 and is forecast to continue to lead the market through 2020, mainly due to varied products and economic pricing.
E-pedigree authentication technology is predicted to be the fastest growing segment, estimated to grow at a CAGR of 21.5 percent during 2015-2020.
     The counterfeiting of pharmaceutical and cosmetic products raises more concerns than among some other product segment due to the health risk involved. According to the report, “Life threatening consequences due to counterfeit pharmaceutical and cosmetics products have increased the risk of losing brand equity and revenue by the manufacturers, which in turn, fuels the demand for anti-counterfeit technologies.”
     Another new report from Reportstack looks at the anti-counterfeiting market for food and beverages, which has generated revenues of $26.4 billion in 2014 and is forecast to reach $62.5 billion by 2020, at a CAGR of 16.1 percent over the forecast period.
     This market, like pharmaceuticals and cosmetics, faces health risks associated with the counterfeiting of its products. The adoption of novel, multi-layered technologies for the protection of food and beverages has helped manufacturer to minimize the impact counterfeiting.
     The global anti-counterfeiting market, as a whole, is expected to generate revenue of $142.7 billion by 2020 at 13.9 percent CAGR from 2013-2020.

Friday, May 29, 2015

The Energy Of Innovation


      by Greg Kishbaugh

     We live in a world driven by innovation. Today we use a host of devices we take completely for granted that just a few short years ago would have been considered science fiction.
     Although packaging is a very mature industry, it too thrives and grows through a constant influx of innovation. One needs look no further than the DuPont Awards for Packaging Innovation, the industry’s longest-running celebration of innovation and collaboration through the value chain.

     The just announced 2015 awards saw entries coming in from 25 countries and were witness to a slew of innovations. DuPont dubbed the event as “the year of design” with more than three quarters of this year’s winners being recognized for design excellence.
     Technological advancements in print also played a major role. Uflex developed Flex SafePack, which featured nano-embossing over a flexible extrusion layer. This development allows for high-definition graphics up to 10 colors to be printed on the bag, elevating a commodity product with a premium look.
     The award-winning Gillette Venus Swirl package is printed with think4D technology, which uses a patented process to create and reproduce three-dimensional objects, surfaces and textures.

     IPL claimed the highest honor, the Diamond Award, for SkinnyPack, a mono-material package that combines flexible and rigid packaging to create a thin, light and strong structure that uses less material, enables recycling and allows more message space.

     Awards like those sponsored by DuPont are important to spread the message about the ways in which packaging designers and converters are every day improving their products, striving to make them safer, more convenient and additionally environmentally friendly.
     And the DuPont awards are by no means alone. Within the past several weeks, IPACK-IMA was held in Milan, Italy, with a heavy emphasis on smart packaging. Many easy-opening innovations were launched (packages that can be opened with just two fingers, for example), as well as packaging for the visually-impaired equipped with a microchip and mini-speaker inserted into the label that “speaks” and tells users important information concerning type of product, its origins and its expiration date.
     At the end of this summer, the Packaging Innovations London show will he held, in which inventive developments such as microembossing and advanced substrates, to name but a few, will be discussed.
     The important thing for converters to remember about innovation is that it never ends. There is always something new and exciting on the horizon and the spoils of success belong to those who are able to first to capitalize on them.

Thursday, April 30, 2015

Not Easy Being Green


      by Greg Kishbaugh

     The market for green packaging, already a juggernaut in terms of sheer growth over the past few years, is looking to expand further. The global green packaging market is forecast to expand at a compound annual growth rate of 7.84 percent from now until 2019, according to a new research report from TechNavio.
     The report suggests that the food and beverage industry is the largest consumer of green packaging materials, a trend that is expected to continue.
     “Companies like Cadbury, Coca-Cola, ConAgra Foods, NestlĂ©, and PepsiCo use sustainable packaging materials, which gives them a competitive advantage over other market players,” said Faisal Ghaus, Vice President of TechNavio.

     Surely, the benefits to be gained over competitors is a primary driving factor behind the expansion of green packaging. But, it appears that legislative demands are beginning to play a larger role, as well.
     The introduction of an extended producer responsibility (EPR) approach in many states is one example. EPR mandates that manufacturers pay for the recycling process and safe disposal of their products. The EPR approach is based upon the idea that because brand owners and converters have the greatest control over product design, they are the ones who have the greatest responsibility to lessen a product’s environmental footprint.
     There’s no question that the more proactive a company has been in its sustainability efforts, the less it will have to worry about possibly intrusive legislation. But for those companies late to the green game, they may have to contend with having a little less control over how they implement their plans.
     “As a consequence of stringent policies,” Ghaus said, “many manufacturers prefer using green packaging materials for sustainable products rather than incurring the additional expense of handling the packaging at the end of its life cycle.”

Tuesday, March 31, 2015

The Road Ahead


      by Greg Kishbaugh

     It’s hard to fathom that in this day of almost non-stop discussion in the packaging industries concerning the importance of sustainability, there remain many consumer goods companies and retailers that operate woefully underperforming environmental programs. But that is exactly the information presented in a new study from As You Sow, an organization dedicated to increasing environmental and social corporate responsibility, and The Natural Resources Defense Council, an international environmental organization.

     The study examined the current packaging practices of three sectors with particular attention provided to quick service restaurants (QSRs, or “fast food”). The study found, surprisingly, that most companies have not sufficiently prioritized packaging source reduction, recyclability, compostability, recycled content, and recycling policies.
     In terms of the ‘fast food’ segment, the report found that most companies have a long way to go in terms of their sustainability efforts. Starbucks was found to be the leader for packaging sustainability with McDonald’s second. But most companies fell into the ‘needs improvement’ category (Dunkin’ Donuts, Subway, Chick-fil-A, Chipotle, Panera), while many others were rated as ‘poor’ (Arby’s, Quizno’s, Burker King, Wendy’s, Jack in the Box, Dairy Queen, Domino’s Pizza, and Papa John’s Pizza).
     The report declares that the four pillars of packaging stewardship include source reduction, recycled content, recyclability and material use, and materials recycling.
     In terms of source reduction, the report cited Starbucks as a leader with its commitment to serve 25 percent of all beverages in its stores in reuseable mugs or tumblers in 2015, a goal it had to substantially reduce due to tracking problems.

     Both McDonald’s and Starbucks have made strides in recycled content. McDonald’s uses 33 percent post-consumer recycled content in paperboard sandwich boxes and Starbucks uses 10 percent in coffee cups.
     The report analyzed 47 companies and found that none are doing enough to make their packaging more sustainable. The United States only recycled half of packaging discards (and only 34.5 percent of all municipal waste), lagging behind other developed countries.

Friday, February 27, 2015

Sustainable Surge


      by Greg Kishbaugh

     One of the key talking points behind sustainability is the fact that it is a win/win proposition for most companies, something very rare in today’s business world. In short, companies with strong sustainability programs are not only proving themselves good environmental stewards, they are also reaping financial reward, as well.
     A new report from Transparency Market Research seems to bear this out. The report, entitled Paperboard Packaging Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020, predicts the global paperboard packaging market will grow from its 2013 value of $108.08 billion to $181.81 billion by 2020, expanding at a 7.8 percent compound annual growth rate between 2014 and 2020.

Global Paperboard Packaging Market Volume Share, by Region

     But it is the reason for the anticipated growth that is the real takeaway from the report, which speculates the significant growth in the global sustainable packaging industry  will drive the growth. 

     Expansion in the global packaged food and cosmetics industries is perceived as another growth factor, and expansion in the e-commerce in BRICS countries (Brazil, Russia, India, China and South Africa) is also expected to provide tremendous growth opportunities in the paperboard market.
     Containerboard is currently the largest product segment of the paperboard packaging market and is expected to be the fastest growing product type during the forecast period. Boxboard is expected to expand at a more moderate rate, with folding boxboard, however, estimated to grow at its fastest clip in the next several years.
     The food & beverage segement holds the largest global share of the paperboard packaging market (with about 45 percent share in terms of volume) and is expected to remain the fastest growing segment in the coming years.
     The geographic area representing the largest segment for paperboard packaging is the Asia Pacific region, which accounts for 45 percent share in terms of volume.

Friday, January 30, 2015

Paying The Price


      by Greg Kishbaugh

     The goals of the sustainability movement are pushed from many different directions, including retailers, CPGs and converters. But ultimately the biggest driver may lie with consumers themselves.
     A newly released report from Asia Pulp and Paper (APP) finds that well more than half of American shoppers (56 percent) would like to have more sustainable options for the packaged products they buy. Additionally, just more than 42 percent of respondents said they would be willing to pay an added cost for more sustainable packaging.
     As should come as no great surprise, the younger the respondent, the stronger they leaned in favor of greater sustainability initiatives and options. Just more than half of the Generation X respondents and 55 percent of Baby Boomers stated they would like to see a wider range of sustainable packaging options, while 63 percent of Millennials indicated they have a strong preference for sustainable packaging.

     “The U.S. market is seeing an increasing number of Americans placing higher levels of importance on the role of sustainability — be it reused, recycled, certified, or deforestation-free materials — in a company’s product packaging and broader environmental practices,” said Ian Lifshitz, Director of Sustainability and Stakeholder Relations, Americas, for Asia Pulp & Paper (APP). “This is a fundamental and critical marketplace shift with significant implications for brands, particularly with regard to how they integrate environmental sustainability in the paper and product packaging they sell in the marketplace and, more broadly, across their supply chains and global operations.”
     Millennials are also the most determined when it comes to evaluating the overall environmental footprint a company demonstrates to the world. Just 20 percent of Baby Boomers say they conduct research into a company’s environmental practices before making a purchase, with 31 percent of Generation X respondents saying the same thing. But a full 50 percent of Millennials report that they will use a company’s environmental responsibility to make purchasing decisions.

Tuesday, December 30, 2014

Lessening The Footprint


      by Greg Kishbaugh

     Considering the maturity of the packaging market, it is astounding the amount and scope of change it continues to undergo. With most consumers demonstrating increased concern over environmental issues, retailers, CPGs and converters have shown spectacular levels of innovation as they aim to meet increasingly stringent sustainability goals.
     Procter and Gamble recently released its 16th annual sustainability report, unveiling the fact that the company has reached its waste reduction goals six years earlier than planned and its pulp certification goal a year early. The fact that the company now has 70 global facilities delivering zero manufacturing waste to landfill is a testament to what can be accomplished when innovators up and down the supply chain work in unison.
     “Our teams are driven to make a significant, positive and lasting impact on the communities we serve through our operations, product designs and innovative partnerships, and this year’s report showcases the results of that dedication,” said Martin Riant, P&G Executive Sponsor of Sustainability and Group President of Global Baby and Feminine & Family Care. “Our work to drive zero manufacturing waste to landfill across our manufacturing facilities has exceeded expectations with nearly 50 percent of our sites achieving this goal since 2010.”      
     In the area of waste, the company exceeded its waste reduction goal by achieving only 0.4 percent of input materials being disposed of as manufacturing waste to landfill across all its facilities; the goal called for less than 0.5 percent by 2020.      
     The company also reduced total emissions by 14 percent and installed two co-generation energy systems that will considerably reduce CO2 emissions, including 120,000 less metric tons per year at its largest global plant in Mehoopany, Pennsylvania.      
     And the company continues to make advancements to its packaging. Like CPGs and converters the world over, it strives to continually analyze ways in which its packaging can not only provide more benefit to the consumer but can also lessen its environmental footprint.      
     The company’s new Mr. Clean Liquid Muscle packaging, for instance, includes a 2.5x compaction formula with 45 percent less packaging and 64 percent less water per bottle, along with a unique single-dosing cap that ensures people don’t use too much. The company has committed to further compact its detergents by 2018 in North America, with 25 percent less water, less CO2 and less plastic.      

     The report also highlights four new 2020 sustainability goals P&G launched in October:     
     • Reduce water usage at manufacturing facilities by 20 percent per unit of production.      
     • Provide 1 billion people access to water-efficient products.      
     • Double the use of recycled resin in plastic packaging.      
     • Ensure 90 percent of product packaging is recyclable or that programs are in place to create the ability to recycle it.     
     “Our teams, in collaboration with some leading external partners, have delivered high-impact innovations and projects, helping us exceed goals in two key areas of the business, and closing in on others.” said Riant. “We recognize that there is more to be done and are committed to focusing on areas where we can make the biggest positive impact.”