A few years ago, the European Union conducted a study on consumer packaged goods (CPGs), which found that on average, every citizen in the EU generated around 156 kg of packaging waste per year. Multiply these numbers with the total population in EU and , and we’ve got an almost inconceivable amount of garbage on our hands.
More and more CPG vendors are switching from non-biodegradable plastic packaging, to eco-friendly alternatives in efforts to remedy this problem—and for the most part, consumers of everything from candy to toothpaste are jumping on board. As is such, the Global Green (Sustainable) Packaging Market is currently at an all-time high with revenues of $US 129.78 billion, with a forecasted CAGR of 14.32 percent for the 2012-2016 period.
It’s not hard to see the logic behind this sunny forecast. After all, the current state of our environment demands that we start doing something to minimize the impact of our eco-footprints, and with consumers eager to do their own part by “buying green”, what could go wrong?
Unfortunately, there are still a few wrinkles to iron out before green packaging starts to eclipse the less sustainable alternatives like plastic.
First and foremost, we have the issue of price. New designs and materials required to produce these sustainable materials have led to big increases in overall costs. Some of the more expensive materials used for packaging are moisture absorbing desiccant packets, hydraulic-pressured compact film, and regenerated cellulose films.
Vendors face the threat of incurring losses because of the non-competitive prices of these materials, making them hesitant to go green when it comes to packaging.
Then there’s of course the matter of function. In general, green packaged products are much lighter and smaller than the industry norm. This runs the danger of product damages during transportation. Naturally, many vendors of fragile products—think potato chips and compact disks—aren’t willing to run this risk.
All that being said, allow us to bring a couple very positive trends that are expected to have lasting impact on the future of green packaging.
They are namely, increased packaging regulations being implemented by governments across the globe and the subsequent increased R & D spending within the market.
We’ve recently witnessed the introduction of number stringent regulations by the governments of various countries across the globe. Take for instance, the introduction of an Extended Producer Responsibility (EPR) approach for many packaging companies in several states in the US. EPR is a law that mandates manufacturers to pay for the recycling process and safe disposal of their products. Given this situation, manufacturers prefer using green packaging materials for sustainable products, rather than incurring the additional expense of handling the product at the end of its life cycle.
What’s more, as such regulations are implemented; a number of government bodies, educational institutes, and research institutes are now funding the R&D for innovative green packaging, allowing vendors to develop products that eliminate the challenges of cost and functionality mentioned above.
We have little doubt that the Global Green (Sustainable) Packaging Market is going to gain some serious leverage during the next few years, making vendors, consumers, and most importantly our beloved mother nature very happy!
