PPRCE 2019: The changing face of packaging

When it comes to packaging, Thomas Kahl, the Vienna-based project manager for EcoSolutions within the Mondi Group, said, “sustainability is no longer a choice” for brand owners. Kahl spoke during the 2019 Paper & Plastics Recycling Conference Europe during the Nov. 5 session Sector Analysis: Packaging.

Fellow speaker Daniel Nordigarden, a senior expert with McKinsey & Co., who is based in Detroit, said sustainability and e-commerce are two “game-changers” that will affect packaging and paper and plastic recycling. Other key trends influencing the packaging sector are changing consumer preferences, margin compression occurring at consumer packaged goods (CPG) companies and at retailers and digitization.

Nordigarden said plastic’s impact on the environment is considerable, noting that recyclability and leakage are the primary problems. Roughly one-third of the plastic packaging produced is leaked into the environment, while a mere 14 percent is collected for recycling, he added.

Most larger brand owners and retailers have made sustainability commitments around packaging, Nordigarden said. Of those, 26 percent say they want to reduce their total plastic packaging use; 60 percent emphasize using recycled content and recyclability; and 40 percent promise innovation and system change. These commitments, he added, open up partnership opportunities with recyclers, which is the next step to facilitate the availably of recyclable material. A shortfall of recycled plastics will make obtaining the recycled content these companies need difficult.

Kahl said Mondi and more than 400 other signatories to the New Plastics Economy Global Commitment have pledged to use recyclable, reusable or compostable packaging by 2025.

The company’s customers that want to benefit from lower extended producer responsibility (EPR) fees can do so immediately by moving from paper to plastics, he added. However, Kahl said it was important to understand the full life cycle analysis for plastic packaging.

Currently, the themes of “replace, reduce, recycle” dominate the company’s daily business, he said. “Customers are asking for more paper-based solutions and to reduce packaging.”

Kahl said barrier functionality must be considered when selecting packaging, adding that plastic is the more preferred solution because it extends the product’s life. This has led the company to adopt the mantra, “Paper where possible, plastic where useful.”

Mondi has developed containerboard packaging that features barrier properties; however, Kahl said paper recycling technology must be further developed to be able to process this material. “We understand that recyclers would like simpler to recycle packaging.”

The 2019 Paper & Plastics Recycling Conference Europe, organized by Recycling Today Events, was Nov. 6-7 in Barcelona, Spain.