WRAP IT UP

BY MARIETE F. PACHECO

ALL WRAPPED UP

A COMPETITIVE MARKETPLACE MEANS MORE INNOVATIVE PACKAGING SOLUTIONS

Mariete F. Pacheco, MBA, PMP is managing director at FRW Services Inc.

The world of packaging has come a long way. Once seen as merely a container to protect a product on its journey from a manufacturer’s plant to a retailer’s store shelf, that packaging has now become a marketing tool to highlight one brand amongst a sea of others. The shift in packaging’s role has been brought about through the increasingly competitive marketplace because of globalization and brands crossing borders at an accelerated rate. Several key trends are driving innovation in the packaging industry including sustainability, lifecycle management, new packaging materials and packaging optimization.

SUSTAINABLE PACKAGING

Sustainability continues to remain top-of-mind with the recent United Nations Climate Change Conference in Scotland (more commonly known as the COP26 Summit) which further pressured nations looking to enhance their commitments to mitigate climate change and expand their portfolio of solutions. At the top of many sustainability lists is waste reduction, recycling and moving to zero waste. In the packaging industry, the diversity of materials has exploded from the standard paperboard (folded carton and corrugated, plastic (rigid and flexible), glass and paper bags.

A major shift has been in the reduction of overall plastic used in packaging. Most evident for consumers is in void fill applications. For many the common product used was Styrofoam packing peanuts, then bubble wrap. However, with demands for less waste and more efficient and less labour-intensive warehouse operations, this application is now being replaced by paperbased packing filler (often recycled paper). Paper-based alternatives have also started to take over the wrapping and insulation functions once owned by plastic packaging. These paper solutions are created through converting paper into 3D honeycombs or specially designed waved inserts to leverage paper’s natural insulating properties.

Sustainability in packaging has also been advanced by the call by retailers to reduce product costs, as well as by calls from governments. Retailers believe that reducing the amount of packaging used in a product will lower the product’s cost. Generally, packaging is a significant contributor to overall product cost.

Governments have started to mandate that manufacturers reduce packaging. For example, in Europe, boxed grocery items such as cookies that once had three packaging layers: a plastic shrink-wrapped box, paper box and plastic or wax paper wrapped cookie insert has been reduced to a sealed paper box with or without the wax paper wrapped cookie insert. In Canada, several provinces mandate manufacturers pay to operate local recycling programs based on waste generated, such as the case with the Ontario Blue Bin Program or the Electronics Recycling Program with eco fees. Some organizations are looking to make their conventional packaging more sustainable through utilizing recycled materials, converting to greener energy sources during the manufacturing process such as shifting from gas or coal powered energy to solar or wind energy.

LIFECYCLE MANAGEMENT

The trend to manage a product’s lifecycle from cradle to grave has expanded to include its packaging as part of the equation. Gone are the days of simply sending to landfill the box or bag a product came in. Consumers are demanding manufacturers look to maximize the use of the packaging as part of the product’s lifecycle. Some manufacturers have turned to alternate packaging materials to divert their packaging from landfills to be recycled into products such as glass jars. The glass can not only be recycled but can also be reused once the container is empty and cleaned. Some consumer-packaged goods (CPG) companies in the cleaning products space now sell their products in multiple components. These components can be re-used, such as by purchasing new cleaning solution spray bottles and re-using the trigger nozzle from bottle to bottle for multiple uses instead of selling new triggers each time a full bottle is needed. The change from buying only needed elements not only reduces waste of still operational product components but also makes shipping more efficient and reduces the product cost

to the end user. This creates loyalty between the brand and consumer as the components may not fit another brand’s packaging.

NEW MATERIALS

Demands to become more environmentally aware and sensitive to local communities have driven the need for more innovation in packaging with the explosive growth in bio-degradable options. These alternative packaging materials have grown in demand as pricing has reduced.

Plastic-based materials such as polybags have given way to paper-based materials like glassine bags. These offer enhanced water and grease protection due to their glossy, fibre-woven composition compared to traditional paper products. The glassine bags also offer better recycling options, as many curbside recycling programs can handle these bags as compared to traditional poly bags, which are generally sent to landfills. A trend in food packaging, primarily in food services is the

“The trend to manage a product’s lifecycle from cradle to grave has expanded to include its packaging as part of the equation.”

addition of plant-based packaging. Some of the plant-based options include cornstarch, sugar cane and polylactic acid (PLA). These unconventional materials perform similar to petroleum-based plastic food storage containers. However, their production is lighter on the environment and they can be recycled or biodegrade in a fraction of the time. Traditional petroleum-based plastic and foam food storage containers can take over 400 years to decompose compared to plant-based bio-containers which can decompose in as little as a few months for corn starch and sugar cane. Meanwhile, PLA products fully decompose in about a year.

PACKAGING OPTIMIZATION

Packaging optimization is the concept of using smart packaging design to maximize supply chain efficiencies while maintaining the integrity of the packaging contents. With ongoing challenges over the last two years, supply chain efficiencies are critical to businesses to reduce their freight costs by better utilizing packaging configurations to reduce the volumes of the average product to hopefully increase the quantities allowed in each shipping container.

When determining the type of packaging, there are three main considerations: palletization, weather conditions and handling methods. The palletization is a key driver in maximizing the efficiency of the packaging. The goal is to fit as much product as possible on each pallet and as many pallets as possible in a shipping container. Ideally, the pallets are filled to the edges with no overhangs. Additional pallets can then be added to the shipping container to maximize the cube capacity.

A consideration in packaging optimization is weather conditions the packaging will endure from manufacturing facility through transportation to the retailer’s shelf and finally in the end user. During this process, the packaging is exposed to temperature changes while travelling via sea or when stored at the retailer’s warehouse. Will the packaging protect the contents from exposure to weather or is it vulnerable to extremes? If so, additional packaging may be required for protection. This could cause a larger footprint and reduce the quantities per pallet.

Lastly, a product’s packaging needs to be reviewed to ensure it can keep the contents safe from the variety of handling methods it may encounter on its trip to the end user. There may be high product damage risk during transportation from vibration, manual drops, clamp truck handling and others which can increase costs.

Product packaging is the ultimate in double-duty workhorse. It must balance the protection of the product’s brand while maintaining the product’s integrity and safety from transportation or handling dangers through the supply chain. Packaging has evolved as regulations and consumer demands have changed to drive a greater focus on sustainability, new materials, lifecycle and optimization. Selection of the right amount and type of packaging is important not only to reduce product damage but to ensure the product’s cost is aligned with financial targets and to maximize process efficiencies. SP