Mintel’s packaging year in review

2020 A packaging year in review

By Benjamin Punchard, Global Packaging Insights Director, Mintel

This year has seen COVID-19 drive a new appreciation for the protection and preservation that packaging can bring. In the UK, 63% of shoppers report that they prefer to buy products with packaging that will protect the contents from contamination. This renewed focus on hygiene and the role of packaging in keeping our products safe has seen brands look to reassure consumers with new structural packaging features. For example, in the Netherlands, Good Morning Crunchy Oat Biscuits are individually wrapped in tear-able wrappers to enable touch-free consumption. Looking to 2021, even if vaccines bring new confidence and a return to travel, consumers will remain concerned about touch and contamination. Consumers will continue to actively look for packaging formats that minimise contact with food and drink and make it easy to eat, serve or cook without unnecessary contact. Formats like pouches, bottles, wraps and sticks could be repurposed in that context. Consumers are currently rating hygiene over sustainability, but environmental concern still runs high. Packaging, consumerism and climate change are becoming inextricably linked, with a connection being drawn between man, nature and future pandemics. As a result, increased use of plastic to deliver hygiene benefits will have only short-term acceptance.

Consumers are looking to reduce their environmental footprint without compromising convenience or cost. This is driving an acceptance that plastic will be part of the packaging mix, but in a more responsible form. Mintel’s Global New Product Database shows that claims of plastic-free packaging remain niche, whilst claims of recyclability are growing fast, particularly for plastic based packaging. Whilst recyclable is the dominant sustainable packaging claim, use of recycled material is gathering pace as consumers see recycled content as validation of their own recycling activities. For example, Biona Organic in the UK retail in a tray made from 57% recycled plastic.

As a response to the stress of a difficult year, consumers will look for positive outcomes in 2021. As explored in Mintel’s Wellbeing trend driver, food and drink brands will look to support mental and emotional wellbeing. Mintel is already observing the growth in mental wellness foods, supported by packaging that can help create engaging moments of escape, peace and inspiration. As shoppers return to stores and look for affordable indulgences, those products that win will be the ones that can elicit a positive emotional response, with packaging that engages the senses through colour, texture and functional form.

Mintel can help you understand consumers’ packaging preferences and where innovations are heading. For more information on how, please get in touch with us.

Top left image: Good Morning Crunchy Oat Biscuits (Netherlands) are individually wrapped in tearable wrappers to enable touch-free consumption. Right image: Biona Organic Provencale Style Ballini (UK) retails in a package that is made from 57% recycled plastic. Source: Mintel Global New Product Database.

Challenges and solutions to the plastic packaging tax

By Barry Turner, Director of Plastics and Flexible Packaging Group, British Plastics Federation

The present design of the plastic packaging tax, although well intentioned, presents the plastic packaging supply chain with challenges. This is because it does not recognise the current supply, regulatory or technical constraints, nor the timescale to address these issues. Therefore, the result could be that some specifiers of packaging in applications where recycled content cannot be included will take measures to mitigate the increased cost. This will drive some to examine if less material can be used, move to structures that are less recyclable, as well as switch materials. Some of these alternative measures could result in greater environmental impacts and will not help drive the demand or use of increased recycled material in plastic packaging.

Recently, a body of 13 scientists and environmental experts called on the media and others to ensure that the realities of plastic pollution are not misrepresented. They also stated that action to reduce plastic pollution needed to be well informed and appropriate, and simply switching material use was not the right solution. Solutions would derive from design and ensuring markets and facilities existed to recycle all plastic waste.

Currently in the UK, we lag behind the rest of Europe in this regard because we do not collect all plastics. As a result, we have under-invested in waste sorting and recycling infrastructure for plastics. However, the collection of bottles is widespread, and now over three quarters of councils collect pots, tubs and trays. Although only 28 councils collect plastic film and flexible packaging, representing only 5% of film and flexible plastic packaging that consumers consume.

The reliance on mechanical recycling and requirements stated within food contact regulations has limited the development of the supply of recyclate for use within food contact applications. These regulations include the requirement that either 95% or 99% of the recyclate (depending on the polymer) must be derived from a food contact application in its first use. More information on the use of recycled materials in food contact applications can be found here. There are some developments in the marketplace that are expected to make some of the requirements easier to meet, such as the verification of first use, although their widescale adoption will take time.

As a result, the main feedstock for food contact materials at this time is limited, which has restricted the market to use recyclate in this sector. At present

most food-contact-safe recyclate is derived from PET and HPDE bottles (the latter in closed loop applications).

Of course, collection of all plastics for recycling is only the beginning of the journey. UK waste management companies will need to invest to handle all plastic formats, as they have done in the rest of Europe to sort plastics effectively and efficiently.

In addition, if recycled content is required in food contact applications then bearing in mind the types of polymer and film designs in use, chemical recycling (sometimes known as non-mechanical recycling) will be required. This is due to the thin structures, high ink coverage, barriers, additives, and the fact that more than one polymer can be used to enable the necessary barriers.

Chemical recycling is still an emerging recycling technology, but with plants now having operated successfully for several years elsewhere in Europe, applications are now starting to hit the shelves. One of the early adopters of chemical recycling was Unilever with its Magnum line.

Also, the supermarket Tesco, was an early adopter and is now using chemically recycled material to package one of its cheese lines. Tesco in common with several other retailers, has resorted to offering consumers front of store collection points for film and flexibles. This offers consumers the opportunity to recycle plastic packaging that they cannot put out for recycling either kerbside or at household waste recycling centres.

This lack of collection service of all plastic packaging at the kerbside can and should change with the introduction of extended producer responsibility. This will give the UK the opportunity to catch up with the rest of Europe. Some Councils are getting ahead of the curve, with one located in the West Midlands partnering with 8 other Councils to form a consortium. They are intending to build a super materials recycling facility (MRF) to produce high quality material for recycling using chemical recycling technology.

Continuing to support SMEs with Asset Refinance

Access the value held in your assets to use elsewhere within your business. Speak to us today – our experts are always here to support you!

The MRF is even configured to effectively sort from co-mingled streams and in many ways mirroring what is already happening in Europe, using the very latest in automated sorting. These MRFs can accept plastic film, alongside paper and other materials to automatically sort it to a high-quality standard. So, the solutions and the journey can begin when we start collecting films and flexibles from the kerbside. In the interim the only other solution for the collections of films is in the front of store collection points. There is now an intention by all major retailers to offer this service, like that trialled by Tesco last year. For Councils who want to be early adopters, there are two models to follow. One, the example being set by West Midlands, or by working with recyclers as part of the EPPIC program to be launched by Ecosurety.

As far as rigid plastic packaging is concerned, the journey can begin earlier as these containers are already collected. Therefore, to include recycled content will depend more on the availability of regulatory permission and having recycling facilities in place to provide food safe recyclate.

In terms of government policy, the main issue is the timing of the tax. It should have followed the introduction of EPR and the roll out of collection systems for all plastics and not the other way around.

All images: Packaging Innovations at the NEC, Birmingham, 2020

What Keeps You Awake At Night?

We understand the cost & frustra�on that many companies face if produc�on is delayed by something as simple as running out of labels. PFW Labels manufactures self-adhesive labels and we’re here to

encompass all of your label requirements so that the whole process is much more simple, easy & convenient.

That’s why we are more than just a Label Supplier! We are offering to come and review your current label processes, in view of sugges�ng improvements and solu�ons that will save you down�me & ensure you never run out. Contact us today to book a visit.