Packaging for Success

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There are a few factors driving sustainable packaging claims, according to Nielsen IQ (NIQ): one is legislation and the other is consumer demand.¹ When it comes to legislation, NIQ says that laws establishing Extended Producer Responsibility (EPR) for packaging and paper products are growing in the United States. While EPR is well established in Europe and Canada, there are only 13 states that have introduced EPR legislation, five of which have passed.

NIQ explains that EPR “uses eco-modulation to determine the cost for the entire packaging life cycle. Resulting tariffs are assigned by package material weight and cost of disposal, with recycling having the lowest tariff. This legislation makes manufacturers responsible for the sustainable end of their product packaging, ideally in a recycling bin, not in a landfill.”

It is therefore worthwhile to invest in sustainable packaging solutions in anticipation of potential government requirements, and ease one’s transition to new packaging solutions. NIQ says that more than 150 companies and organizations have already publicly committed to EPR. That said, many brands aren’t waiting on legislative efforts to increase sustainability in packaging. According to NIQ, items with sustainable packaging claims are already a $72 billion category, having grown 6.2% over four years which is on pace with the total store’s 6.8% growth.

Of all sustainable packaging claims, recyclable is the most developed, says NIQ, appearing in 1,239 categories, with an 8.1% CAGR. Other claims such as Recycled Packaging, Free from BPA, and 100% Recycled Paperboard are proven trends based on total sales volume, while claims like TerraCycle and Tetra Pak Certification are gaining traction. EPR will very likely increase demand for recycled grade material, says NIQ. Indeed, 20 of the largest fast-moving consumer goods (FMCG) companies have committed to 100% recyclable packaging by 2030.

According to a global 2023 survey from McKinsey & Company, when asked what type of packaging material they thought was most sustainable, compostable and plant-based materials ranked the highest among respondents, followed by plastic films made out of renewable raw materials that can be compostable, and paper-based cartons. McKinsey also observed that these views are not consistent throughout the world. For example, Japanese consumers view fully recyclable plastic bottles and containers as equally sustainable as compostable packaging and “plastic films made out of renewable raw materials that can be compostable,” while French consumers view glass bottles and jars as the most sustainable option.²

While consumers may desire compostable packaging, there may be some confusion about what that means. They may interpret terms like compostable or biodegradable as meaning the packaging will break down in compost under normal condition when in fact compostable packaging may need industrial conditions to be able to break down.

“Lack of transparency and standardization causes confusion around claims of biodegradability and compostability for businesses and consumers,” says Scott Thompson, head of technology and development of Xampla (Cambridge, UK), which manufactures Morro plant-based coatings and films. “Most traditional bioplastics require high temperatures and controlled environments to decompose. If left in the environment, they can break down into harmful microplastics.”

For its part, Xampla uses a proprietary process to manufacturer coatings and films made from plant-based feedstocks without the use of chemical modification. Xampla’s Morro Coating is “designed for use on paperboard packaging for a range of industries, offering an alternative to traditional petrochemical-based or fluorochemical coatings,” says Thompson. “Ideal for takeaway boxes, quick-service restaurants (QSRs), and fast-moving consumer goods (FMCG) packaging, this coating provides robust barriers against grease, water, and oxygen.”

The coating is also designed as a drop-in solution to seamlessly integrate into existing manufacturing processes, explains Thompson. Adaptable to different packaging sizes and substrates, the coating is also certified by DS Smith as “Best in Class” for recyclability, meaning it can be recycled without affecting the quality of the recycled pulp. It is also biodegradable and home compostable.

The Morro Edible Film is meant to be a replacement for plastic films, serving as a wrapper “for a range of food ingredients and can also be used as innovative soluble, edible packaging, where consumers can consume their packaging at the same time as their food,” says Thompson. “Morro Edible Film is heat-sealable and compatible with existing flow-wrapping equipment. The material has already been brought to market with leading recipe kit company, Gousto, with the launch of the world’s first edible stock cube wrapper.”

Looking beyond the substrate, packaging is meant to protect and maintain the quality of a product over its intended shelf life. This is not just important for the consumer experience but also to reduce waste. When it comes to dietary supplements like tablets, capsules, and even gummies, controlling the atmosphere inside of packaging is crucial to protecting the integrity of a product before and after it gets into the consumer’s hands. This ensures that the active ingredients in the supplement remain “active” and offer the advertised health benefits.

“Packaging can keep things ‘in’ such as a pleasant aroma or relative humidity; or it can keep elements ‘out’ that can have a significant impact on the quality and desirability of the medicine like moisture, air, and odor,” says Dave Bain, vice president, functional packaging for Colorcon (Harleysville, PA). “Controlling the atmosphere within packaging depends on several factors including: the barrier properties of the packaging, the sorbent added to maintain humidity or oxygen levels within the packaging, and the combined needs of the contained medication.”

According to Bain, the active ingredients require a certain environment to remain stable, but the way these ingredients are formulated also determine how they need to be stored. “Some APIs [active pharmaceutical ingredients] are formulated into more soluble forms that can be better absorbed when taken orally. Others are crystals that have moisture or other solvents in their structure. Moisture can change the physical character of these APIs and, as a result in some cases, destroy their therapeutic effect,” says Bain. “Maintaining the hard-won formulation gains is key. In other instances, depending on the chemistry, there may be a risk to reacting with oxygen or moisture, which can cause the breakdown of APIs causing a chemical change.”

The dosage form can also determine the ideal environment for a supplement product. Tablets, for example, have a low moisture content and tolerate low humidity, but still require some moisture to hold together and prevent from being brittle, says Bain. Soft gels, for their part require moisture to remain soft, and capsules require some moisture as well to prevent brittleness and preserve stability. Gummies, a fast growing dosage format also requires moisture to maintain the right texture.

“The right level is influenced by what the gummy contains, not just the external atmosphere,” explains Bain. “To maintain the desired patient experience and the soft gummy texture, the atmosphere should be neither too dry nor too humid. The goal is to avoid the ‘sticky’ effect, which can make the patient experience unpleasant.”

To achieve this, companies like Colorcon offer drop-in solutions like packets or cannisters that go inside of supplement bottles, as well as specially-designed bottles. “Functionally, the absorption of moisture, oxygen or odor is the same, so determining which format to use often comes down to what equipment is available to the manufacturer,” says Bain. “Designed bottles can certainly be more elegant, more discrete and complement whatever protection has already been ‘dropped in.’ Bottles with associated desiccant ‘caps’ also eliminate the induction seal step in the production line, which is an added benefit.”

Packaging solutions continue to evolve as consumers demand more sustainable options, placing a premium on recyclability and compostability. While the lifecycle of one’s packaging should be a major consideration, manufacturers should not lose sight of the most important function of packaging: preservation.

References

1. Good Things Come From Sustainable Packaging: How to Get Ready for EPR. NielsenIQ. June 18, 2024. https://nielseniq.com/global/en/insights/education/2024/good-things-come-from-sustainable-packaging-how-to-get-ready-for-epr/ (accessed 2024-11-30).
2. Sustainability in packaging 2023: Inside the minds of global consumers. McKinsey & Company. August 15, 2023. https://www.mckinsey.com/industries/packaging-and-paper/our-insights/sustainability-in-packaging-2023-inside-the-minds-of-global-consumers (accessed 2024-11-30).