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Sustainable Converting


The business of sustainability in packaging W


hile definitions of sustainability are plentiful, it is still a buzzword that is on


everyone’s lips. Its basic definition refers to the balance between environmental, social and economic factors. From a business perspective, sustainability is most commonly associated with cost effectiveness due to energy savings and resource efficiency, as well as waste reduction. These aspects also apply to the packaging industry in general, and packaging material in particular. Paper and paperboard are the most commonly used packaging materials in the world, accounting for 35.7 per cent of global packaging consumption (data from 2016). Packaging made from paper and board is considered a sustainable material: since it is made from renewable resources, it is easy to recycle. However, the sustainability of the material itself is not the only aspect to consider.


PRODUCT PROTECTION Packaging has an important role to play in terms of product protection, waste reduction and resource conservation. Research shows that the environmental impact of paper packaging in terms of product protection and resource conservation outweighs the material’s footprint by a factor of 10. Moreover, primary packaging reduces food waste in retail by a third. These statistics indicate that packaging can significantly impact resource efficiency by preventing waste through product protection. Sustainability concerns are even more


prevalent in the secondary packaging industry. Outer packaging is primarily considered a commodity which simply needs to protect its content during transport. However, in the face of growing demands from the e-commerce market, which is estimated to reach $4.88 trillion US dollars by 2021, food producers need to develop an understanding of sustainability that goes beyond energy use and product waste. In fact, sustainability concerns should be integrated into business practice at every level, which can significantly boost overall financial performance. McKinsey reports that sustainable business practices can account for as much as 70 per cent of earnings before interest, taxes, depreciation and amortisation.


THE COST OF MATERIALS To help optimise your food production, take a look at the following three key sustainability factors for secondary packaging solutions. The first consideration relates to financial sustainability, ie cost


34 November 2018


savings and resource efficiency, by looking at the material price itself. Greener packaging materials, like paper and paperboard, are generally cheaper compared to conventional plastics, partly due to raw material prices, but also processing, finishing, printing, and waste management. For example, using paper can help minimise harmful waste products and toxic by-products. On top of that, EU member states apply disposal and containment fees that are reduced or eliminated when you switch to sustainable alternatives. In terms of recycling, paper is once again a sound choice as it accounts for 65 per cent of all recycled packaging. In the end, elaborate packaging can cost you more money and involves a higher degree of product waste. Simplifying your packaging can generate long-term cost savings as it is easier to produce.


DESIGNED TO FIT Transport costs are another element to consider. They can be reduced by using sustainable secondary packaging material to help decrease package size and enable you to ship more products. When trying to maximise space during shipping and efficiently using the available space, food producers need to design their secondary packaging efficiently and stack more boxes on each pallet or container. This is especially important for e-commerce applications. Offering intelligent solutions that optimise the use of corrugated material means using the correct box size for each individual delivery. According to Olivier Cottard, DS Smith Packaging’s head of industries


Frank Bühler, product manager at Bosch Packaging Technology, offers reasons for using sustainable materials in secondary packaging production


business units, by shaving 5 millimetres off a standard secondary pack in one year they took twenty trucks off the road, reduced their carbon emissions by 100 tonnes and generated huge cost savings. The emission reductions are equal to the amount of carbon absorbed by 2,500 coniferous tree seedlings in 10 years.


MAKING CUSTOMERS SMILE Last, but not least, using sustainable packaging materials can increase your sales and customer loyalty. Modern consumers, especially millennials, are focused on buying organic, locally produced products, packed in environmentally-friendly packaging. They feel very strongly about preventing material waste and prefer biodegradable or recyclable packaging materials. In fact, according to a global retail


analysis conducted by Nielsen, 55 per cent of online consumers from 60 countries are willing to pay more for brands that are committed to positive social and environmental change. The study compared the sales figures for twenty brands in nine countries and came to the conclusion that brands that make sustainability claims on their packaging reported a sales increase of two to five per cent. “More than half (52 per cent) of the respondents made their purchasing decisions based on packaging, which means they checked the labelling first to ensure the brand is committed to socially responsible projects”, explains Amy Fenton, global leader of public development and sustainability at Nielsen.


SOLUTION THAT EVERYONE NEEDS It is not simply a matter of when, but rather how food and packaging manufacturers will shift to sustainable packaging materials and processes. Basing business decisions on sustainability concerns certainly pays off for secondary packaging, benefitting production and logistics. To answer the above demands, Bosch is continuously optimising its secondary packaging machines to handle different cartons and carton boards, including both raw and recycled materials. By choosing the right secondary packaging system, customers can benefit from the flexibility to produce the most convenient packaging solutions in terms of material use, pack format and style, as well as logistics. As mentioned above, becoming a sustainability leader requires big changes, but the effort is worth it – environmentally and economically. uboschpackaging.com


convertermag.co.uk


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