www.packagingdigest.com Open in urlscan Pro
2606:4700:4400::6812:282c  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Packaging Digest is part of the Informa Markets Division of Informa PLC
Informa PLC|ABOUT US|INVESTOR RELATIONS|TALENT
This site is operated by a business or businesses owned by Informa PLC and all
copyright resides with them. Informa PLC's registered office is 5 Howick Place,
London SW1P 1WG. Registered in England and Wales. Number 8860726.

EventsWebinarsWhite PapersAbout

Subscribe Today

Subscribe Today
Sign Up TodaySign in

Food & Beverage

RELATED TOPICS

 * Food Packaging
 * Beverage Packaging
 * Food Safety

 * Labeling
 * Beer/Wine/Spirits

RECENT IN FOOD & BEVERAGE

See All
FB-Stream-GettyImages-ProStock-1305346806-1540x800.png
Food & Beverage
Best in New Food and Beverage PackagingBest in New Food and Beverage Packaging
byRick Lingle
Dec 22, 2023
2 Min Read
thumbnail
Food & Beverage
Plastic-Free Paper Packaging for the WinPlastic-Free Paper Packaging for the Win
byJoanna Cosgrove
Dec 13, 2023
2 Min Read
Pharma & Medical

RELATED TOPICS

 * Medical Packaging
 * Pharmaceutical Packaging
 * Drug-Delivery Devices

 * Serialization
 * Testing

RECENT IN PHARMA & MEDICAL

SEE ALL
Healthcare-GettyImages-843421738-ftd.jpg
Pharma & Medical
Healthcare Packaging News and Top IssuesHealthcare Packaging News and Top Issues
byLisa McTigue Pierce, Kassandra Kania
Dec 21, 2023
3 Min Read
Hair-raising-GettyImages-480884678-ftd.jpg
Pharma & Medical
Hair-Raising Healthcare Recalls in 2023Hair-Raising Healthcare Recalls in 2023
byKassandra Kania
Dec 18, 2023
2 Slides
Machinery

RELATED TOPICS

 * Automation
 * Machinery/Equipment
 * Smart Manufacturing

 * Robotics
 * Optimization

RECENT IN MACHINERY

SEE ALL
Prana-Paxiom-Case-Packing-Video2-1540x800.png
Machinery
Prana Organic Picks Productive Case Packing SystemPrana Organic Picks Productive
Case Packing System
Apr 25, 2023
PMI-KYOTO-KTB-100-Case-Packer-video-ftd.jpg
Machinery
Compact Case Packer Gets a Grip on Stand-up PouchesCompact Case Packer Gets a
Grip on Stand-up Pouches
byKate Bertrand Connolly
Apr 24, 2023
Trends & Issues

RELATED TOPICS

 * Cannabis Packaging
 * Ecommerce
 * Supply Chain/Logistics

 * Flexible Packaging
 * Careers, Education, & Training
 * Regulations & Standards

RECENT IN TRENDS & ISSUES

SEE ALL
Packaging-Digest-2023-Countdown-Top-Stories
Trends & Issues
An Unboxing Marathon!An Unboxing Marathon!
byLisa McTigue Pierce
Dec 29, 2023
29 Slides
Top-articles-Aug-2023-ftd.jpg
Trends & Issues
Inside Top Packaging TrendsInside Top Packaging Trends
byLisa McTigue Pierce
Aug 31, 2023
5 Slides
Technologies

RELATED TOPICS

 * Artificial Intelligence
 * Digital Printing

 * Smart Packaging

RECENT IN TECHNOLOGIES

SEE ALL
thumbnail
Packaging Technologies
The value of quality and consistency in changing timesThe value of quality and
consistency in changing times
Nov 21, 2023
1 Min Read
CIJ-code-7X5-dot-matrix-ftd.jpg
Packaging Technologies
Understanding Continuous Inkjet for Package CodingUnderstanding Continuous
Inkjet for Package Coding
byJohn R. Henry
Sep 15, 2023
2 Min Read
Design
Sustainability


Sponsored By

 * Sustainability
 * Packaging Design


DITCHING PLASTIC? PAPER-PACKAGING MARKET SAYS ‘WELCOME!’DITCHING PLASTIC?
PAPER-PACKAGING MARKET SAYS ‘WELCOME!’

Brand owners are switching from plastic to paper packaging to become more
sustainable. How is their choice affecting the paper-packaging market?

Kate Bertrand Connolly

May 4, 2023

13 Min Read



As more brand owners switch from plastic to paper-based packaging to boost
sustainability, the paper-packaging market is changing. The moving parts include
not only demand for paper packaging but also pandemic-related changes in
consumer behavior and supply chain issues.

Consumer packaged goods (CPG) companies and their packaging suppliers are
keeping an eye on those market dynamics and also on environmental issues such as
climate change and wildfires, which could potentially affect raw material
supplies needed for manufacturing paper packaging.



 


WHAT ARE THE DRIVERS FOR TODAY’S PAPER-PACKAGING MARKET?

Corporate sustainability goals are a primary motivator in the shift from plastic
to paper. “All the major players in all the major CPG companies have some form
of sustainability goals factored into their business model,” says Wayne Towle,
sales manager at fiber-packaging supplier Planet Paper Box Group. “It is
becoming more of a necessity for companies to do that.”

In the United Kingdom, Kellogg Europe recently tested paper liners, in place of
plastic, for its iconic corn flakes. Kellogg has publicly stated its goal of
using 100% reusable, recyclable, or compostable packaging by the end of 2025.





Also in the United Kingdom, PepsiCo is testing recyclable, paper-based outer
packaging in place of plastic film for Walkers Baked potato crisp six-packs. The
trial began on March 1, 2023. A few months earlier, the brand rolled out new
paperboard outer packaging for 22- and 24-bag multipacks of the crisps.



PepsiCo has stated that by 2025 it will have designed 100% of its packaging to
be recyclable, compostable, biodegradable, or reusable. Paper bottles may play a
role: In 2020, PepsiCo began working with Pulpex to develop the world’s first
recyclable paper bottle (developed initially by Diageo and Pilot Lite).

Retailers are also looking at paper packaging from new angles. “At Amazon, there
are cases where we are switching from plastic to paper. For example, we created
our recyclable paper-padded mailer to replace our mixed mailer that was unable
to be curbside-recycled,” says Pat Lindner, VP of packaging innovation at
Amazon.



“We consider recyclability when it comes to selecting the right materials, but
we also look at carbon and resources,” he adds.



 


CERTIFIED PAPER PACKAGING: SUPPLY AND DEMAND SITUATION.

The content of paper packaging — specifically recycled fiber or virgin fiber
from forests certified as responsibly or sustainably managed — is an important
consideration for brand owners making the switch from plastic to paper.

Recent research from PMMI, the Association for Packaging and Processing
Technologies, and the American Institute for Packaging and the Environment
(AMERIPEN) indicates that CPG companies are increasingly interested in certified
paperboard, including certified recycled.

The research results indicate that during the next 10 years, CPGs’ use of:

• Certified solid bleached sulphate (SBC) paperboard is expected to grow 34%.

• Certified kraft paperboard will grow 32%.

• Certified recycled paperboard will grow 24%.

• Certified corrugate will grow 21%.

Use of the noncertified analogs of these materials is forecast to shrink during
the same period.

So is there enough certified fiber available to meet growing demand from CPGs?



Forest Stewardship Council (FSC) certification, “is like any other
sustainability strategy: It is best accomplished in partnership with suppliers
by setting clear goals over a period of time. Today, demand for some types of
packaging fiber exceeds available supply, especially in the wake of the COVID
pandemic, when consumer purchasing habits changed,” says Brad Kahn,
communications director at FSC US.



“At the same time, there are FSC-certified forest managers who would love to
sell more certified fiber,” Kahn adds. “These sourcing relationships take time
to develop but generally speaking, yes, there is enough fiber to meet current
and growing demand.”

 


CERTIFICATION AND FAMILY FORESTS.

Family-owned forests continue to play an important role in assuring adequate
supply of certified paper products, and standards/certifying bodies are making
it easier for those landowners to gain certification.

“Family woodlands represent the largest landowner class in the US. In some
regions, such as the Southeast US, family forests represent the lion’s share of
supply into mills,” says Kahn.

Statistics from the Congressional Research Service indicate that 61% of the 443
million acres of privately owned US forests are family owned.

To lower barriers to certification for these landowners, FSC operates a group
certification program. “Groups typically share costs among group members and
provide technical assistance to landowners. Leading pulp and paper companies
manage groups to meet their needs for FSC-certified fiber,” Kahn says.

International Paper (IP) is working with FSC to streamline certification of
small forests from which it sources wood, particularly those struggling with the
administrative work required for forest certification.

“We recognize the administrative and financial challenges of certifying forests.
To help landowners with the administrative burden, International Paper has
started an internal Forest Stewardship Council forest certification management
group. This group helps small private landowners who supply to IP [to] certify
their forest lands while minimizing administrative burden,” says Jay Fowler,
marketing director, North American Container, International Paper.



The Sustainable Forestry Initiative (SFI) takes a different tack with wood
coming from small forest owners, putting the onus for sustainable forestry on
the SFI-certified company buying the wood.



“About 60% of fiber in the US does come from small family forest landowners,
people like me or you who may own five, 10, 1,000 acres of forest land,” says
Jason Metnick, senior VP, customer affairs, at SFI. “Most likely, they’re not
managing those lands for timber production. They’re managing it for other
benefits,” but timber does come off those lands.

“Because SFI was developed in North America, we knew early on that the majority
of fiber in the supply chain comes from these small landowners,” Metnick adds.
“So what can we do to positively impact that larger landscape? That’s really
where the benefit of the Fiber Sourcing Standard comes into play.”

Companies certified to the SFI Fiber Sourcing Standard must show that the raw
material in their supply chain comes from legal, responsible sources.
Third-party audits confirm the use of sustainable forestry practices.

Larger forestlands typically get certified to the SFI Forest Management
Standard, the largest forest certification standard operating in North America.

SFI also collaborates with the American Tree Farm System to increase forest
certification on family-held land.

 


RECYCLING, AND RECYCLED CONTENT.

Brand owners switching to paper packaging are interested in recycled content, as
well as certified-sustainable materials. Among their concerns are the
availability of recycled fiber and the need to strike a balance between recycled
and virgin fiber in packaging materials.

“Wastepaper collection issues combined with global supply chain shortages and
bottlenecks due to coronavirus and the Ukraine/Russia war have certainly had an
impact on brand owners’ ability to access recycled fiber over the last few
years,” says Charles Haverfield, CEO of US Packaging & Wrapping.

“However, it is not a lack of recycled-paper content so much as suppliers
reducing product offerings … due to a lack of demand for certain products,”
Haverfield adds.



> The availability of recycled fiber depends on recycling infrastructure and
> capacity, as well as consumer behavior.

The availability of recycled fiber depends on recycling infrastructure and
capacity, as well as consumer behavior. As more brand owners move “away from
single-use to alternatives such as paper or corrugated, that [fiber] volume will
now come back into the recycling stream,” says Towle, of Planet Paper Box.

“The question then becomes: Is there enough recycling infrastructure or
recycling facilities to handle that volume and the amount of product?” Towle
notes. Additionally, are consumers “disposing of paper packaging … in a
respectful manner to ensure that the product can be recycled?”

According to the American Forest & Paper Association (AF&PA):

• In 2021, 94% of Americans had access to community paper recycling programs.

• The US paper recycling rate has met or exceeded 63% every year since 2009.

• The recycling rate for old corrugated containers (OCC) was 91.4% in 2021, and
the three-year average leading up to 2021 was 90.5%.

• In 2021, 41.1% of paper recycled in the United States was made into
containerboard, aka corrugated.

AF&PA also reports that about 80% of all US paper and paperboard mills used some
recycled paper to manufacture new paper and paperboard products, including
packaging, in 2021. One-third of the mills used only recycled paper.



It’s important to note that “paper fiber can only be recycled a certain number
of times before it becomes too weak to reuse. 100% recycled paper packaging
therefore cannot meet the demand for paper packaging in the long term,”
Haverfield says.

Combining recycled fiber with certified-sustainable virgin fiber can optimize
the material’s strength and performance without sacrificing sustainability.

“Because fiber is not indefinitely recyclable, new fiber has to be introduced in
the paper-making process to keep the process sustainable,” says IP’s Fowler.

“We take the time to educate our customers about both the health of US forest
lands and the already very high corrugated recovery rate for recycling — greater
than 90%. Requiring specific recycled content in corrugated can suboptimize an
efficient raw material supply chain, causing unintended environmental and cost
consequences,” Fowler adds.

To promote the use of recycled fiber, the US Environmental Protection Agency
(EPA) has developed procurement guidelines for paper products, including
packaging.

According to the guidelines, “Paperboard mills use more recovered fiber than any
other segment of the paper industry to manufacture a wide variety of product
packaging (folding cartons), beverage carriers, mailing tubes, industrial
paperboard (cores, drums, tubes, and cans), and many other items.”

For corrugated containers, EPA recommends post-consumer recovered fiber levels
of 25% to 50%, or 25% to 30%, depending on the container’s burst strength. The
agency recommends 40% to 80% post-consumer fiber in folding cartons.

 


POTENTIAL AFFECTS OF CLIMATE CHANGE ON PAPER SUPPLY AND THE PAPER-PACKAGING
MARKET.

As packagers move toward using more paper-based packaging — at a time when
wildfires pose a greater threat to forests in North America and Europe — should
they be concerned about climate change and wildfires affecting paper supply?

“While we’ve not seen any sign of wildfires affecting paper supply chains yet,
there is no telling what could happen in the coming months, as we enter the
height of fire season,” says Haverfield.

Towle points out “the question we need to ask is: Is this land forested land or
protected land? A lot of the content we see on the news regarding fires may not
be forested land but protected land, so from our perspective we do not see the
drought or the wildfires affecting paper supply in any way.”

Recent data from the Congressional Research Service indicate there have been
more than 61,410 wildfires per year in the United States since 2013, affecting
7.2 million acres of land annually, on average. In just the first two months of
2023, about 3,500 wildfires impacted 28,7000 acres in the United States.
Wildfires don’t discriminate between government-owned and privately held land.

In addition to potentially affecting the supply of wood and pulp, wildfires
cause “other rolling consequences to paper packaging supply chains,” Haverfield
notes.

“Emergency evacuations to protect employees effectively puts a stop to all
operations, while road blockages and transportation delays can set supply chains
back weeks, if not months,” he adds. “And even as suppliers recover, customers
that have also been affected by wildfires may take longer to bounce back.”

> Fire and other climate-related issues are a pressing issue for
> responsible-forestry standards and certification organizations such as SFI and
> FSC, as well as forest managers and the paper-packaging supply chain.

Fire and other climate-related issues are a pressing issue for
responsible-forestry standards and certification organizations such as SFI and
FSC, as well as forest managers and the paper-packaging supply chain.

“As climate change impacts worsen, corporate commitments to action increase. In
particular, the focus on nature-based solutions to climate change has increased
dramatically over the past five years,” says FSC’s Kahn.

“Whether from small family forests or large industrial ownerships, companies are
demanding ‘climate smart’ management that promotes resilience, conserves
biodiversity, and protects other forest values,” he adds. “FSC remains the most
trusted proxy for such management, and we’re seeing new interest every day.
Every company uses forest products, so eventually they all look at the
associated impacts.”

As for sustainable-forestry standards, SFI added two new climate-related
objectives to its Forest Management Standard in 2022. One addresses climate
change mitigation and adaptation. The other targets fire resilience and
awareness.

 


COSTS CONSIDERATIONS.

Various factors, including higher demand for corrugated shippers to accommodate
robust ecommerce sales, have played a role in recent price dynamics for
paper-based packaging.



“Demand for paper has gone up over the last several years, during the pandemic,
as many brick-and-mortar businesses had to pivot to a more online platform to
get their products to consumers,” Towle says.

“That drove cost tremendously over the last two years in the corrugated
industry,” he adds. “We have seen an increase of 30% in corrugated costs.” For
coated recycled board (CRB), “the numbers are closer to a 26% increase. Prices
are starting to come down modestly, but they will likely never return to
pre-pandemic levels.”

Data from the Federal Reserve Bank of St. Louis show that commodity prices for
pulp, paper, and allied products (packaging and industrial converting paper)
rose between July 2020 and October 2021 and then fluctuated for nearly a year.
Since August 2022, prices have dipped.



//fred.stlouisfed.org/series/WPU091303



This supports Fastmarkets’ prognostication, in December 2022, that prices for
packaging board and paper — particularly linerboard and corrugated sheets — in
the US market were on the way down.

For brand owners and retailers, one tactic that may provide the dual benefit of
improved sustainability and lower materials costs is to simply use less
packaging.



“A key focus for us is using less packaging overall, including both paper and
plastic,” says Amazon’s Lindner. “Our Ship in Own Container program allows us to
certify products to be delivered to customers without any added Amazon
packaging.”

In 2022, more than 10% of Amazon’s packages were shipped without Amazon-applied
packaging, and the company intends to boost that percentage.

Amazon also invests “in right-sized packaging through machine-learning
algorithms and strive[s] to eliminate excess space when possible and pack
products more efficiently,” Lindner says. “Since 2015, Amazon has reduced the
weight of packaging per shipment by 38% and eliminated the use of more than 1.5
million tons of packaging materials.”




ABOUT THE AUTHOR(S)

Kate Bertrand Connolly

Freelance Writer

Kate Bertrand Connolly has been covering innovations, trends, and technologies
in packaging, branding, and business since 1981.

See more from Kate Bertrand Connolly
Sign up for the Packaging Digest News & Insights newsletter.

SUBSCRIBE TODAY

You May Also Like

--------------------------------------------------------------------------------

Sustainability

Paper Packaging Is Here, There, & Everywhere
September 14, 2023
Sustainability

Packaging Sustainability by Design: 7 Steps to Circular Success
June 07, 2023
Sustainability

P&G Tests Paper Bottle for Liquid Laundry Product
May 24, 2023
Sustainability

4 Sustainable Packaging Predictions for 2023
January 05, 2023



EDITORS' CHOICE

Flexible-Packaging-Breaking-News-Best-1540x800.png
Flexible Packaging
Breaking News in Flexible Packaging December 2023
Breaking News in Flexible Packaging December 2023

Dec 29, 2023


Packaging-Digest-2023-Countdown-Top-Stories
Trends & Issues
An Unboxing Marathon!
An Unboxing Marathon!

Dec 29, 2023

Food Packaging
Packaging Solutions to Food Security Problems
Packaging Solutions to Food Security Problems

Dec 28, 2023


Food Packaging
Recyclable Mono-Material Snickers Bar Packaging Debuts
Recyclable Mono-Material Snickers Bar Packaging Debuts

Dec 27, 2023

Recent Headlines

 * Breaking News in Flexible Packaging December 2023
   
   Dec 29, 2023

 * Packaging Solutions to Food Security Problems
   
   Dec 28, 2023

 * Recyclable Mono-Material Snickers Bar Packaging Debuts
   
   Dec 27, 2023

 * On-Body Drug Delivery System Reduces User Error & Waste
   
   Dec 27, 2023






OUR NETWORK

PlasticsTodayMD+DIQmed+Design NewsPowder & Bulk SolidsBattery Technology

EVENTS

WestPackMinnPackSouthPackPACKEX TorontoPACKEX MontrealMore Informa Markets
Engineering Events

CONNECT

AboutAdvertiseFAQContent Licensing & Reprint Rights

JOIN US

Subscribe Today
Subscribe Today

FOLLOW US



Copyright © 2023 All rights reserved. Informa Markets, a trading division of
Informa PLC.

Accessibility|Privacy Policy| Cookie Policy|Terms of use|Visitor Terms and
Conditions


Cookies Button


ABOUT COOKIES ON THIS SITE

We and our partners use cookies to enhance your website experience, learn how
our site is used, offer personalised features, measure the effectiveness of our
services, and tailor content and ads to your interests while you navigate on the
web or interact with us across devices. You can choose to accept all of these
cookies or only essential cookies. To learn more or manage your preferences,
click “Settings”. For further information about the data we collect from you,
please see our Privacy Policy
Accept All
Settings



COOKIE POLICY

When you visit any website, it may store or retrieve information on your
browser, mostly in the form of cookies. This information might be about you,
your preferences or your device and is mostly used to make the site work as you
expect it to. The information does not usually directly identify you, but it can
give you a more personalized web experience. Because we respect your right to
privacy, you can choose not to allow some types of cookies. Click on the
different category headings to find out more and change our default settings.
However, blocking some types of cookies may impact your experience of the site
and the services we are able to offer.
More information
Allow All


MANAGE CONSENT PREFERENCES

STRICTLY NECESSARY COOKIES

Always Active

These cookies are necessary for the website to function and cannot be switched
off in our systems. They are usually only set in response to actions made by you
which amount to a request for services, such as setting your privacy
preferences, logging in or filling in forms.    You can set your browser to
block or alert you about these cookies, but some parts of the site will not then
work. These cookies do not store any personally identifiable information.

Cookies Details‎

PERFORMANCE COOKIES

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and
improve the performance of our site. They help us to know which pages are the
most and least popular and see how visitors move around the site.    All
information these cookies collect is aggregated and therefore anonymous. If you
do not allow these cookies we will not know when you have visited our site, and
will not be able to monitor its performance.

Cookies Details‎

FUNCTIONAL COOKIES

Functional Cookies

These cookies enable the website to provide enhanced functionality and
personalisation. They may be set by us or by third party providers whose
services we have added to our pages.    If you do not allow these cookies then
some or all of these services may not function properly.

Cookies Details‎

TARGETING COOKIES

Targeting Cookies

These cookies may be set through our site by our advertising partners. They may
be used by those companies to build a profile of your interests and show you
relevant adverts on other sites.    They do not store directly personal
information, but are based on uniquely identifying your browser and internet
device. If you do not allow these cookies, you will experience less targeted
advertising.

Cookies Details‎
Back Button


COOKIE LIST



Search Icon
Filter Icon

Clear
checkbox label label
Apply Cancel
Consent Leg.Interest
checkbox label label
checkbox label label
checkbox label label

Confirm My Choices