Packaging in 2020: Will CPG Companies Take the Lead on Plastic?

Originally Appeared in Presence Marketing News and New Hope Network’s Idea Xchange, January 2020
By Steven Hoffman

Presenting the theme, “Plastic Free by 2033,” Presence Marketing, in partnership with National Co+op Crocers (NCG), will host a panel on sustainable packaging solutions for natural products businesses at Natural Products Expo West in Anaheim, CA.

With its processing facilities and environment overwhelmed by handling nearly half the world’s waste for the past quarter century, China isn’t taking the U.S.’ recyclable waste anymore. And as costs skyrocket, many cities and municipalities across America have stopped plastic and paper recycling programs. As we enter the “post-recycling age,” according to retail innovation expert Piers Fawkes, consumers and businesses are becoming acutely aware that much of the amount of product packaging we generate ends up as waste that is choking landfills and the oceans. 

Those of us in the natural products market may be more aware of these issues than much of the population, but as owners and operators of consumer products companies, we also are responsible for much of the single-use plastic packaging making its way into the environment. 

Certainly, sustainable packaging is an issue that goes beyond natural products companies. As we enter a new decade, any industry using product packaging that is not recyclable, reusable, compostable or elsewise environmentally friendly is facing growing consumer backlash and the higher cost of creating and disposing of waste in what is being termed the circular economy.

Not all is gloom and doom, however. Innovation in sustainable consumer products packaging is happening, and a number of natural and organic products leaders, as well as some larger food and beverage and CPG corporations, are setting the pace. The good news is many businesses are taking action, from the emergence of dedicated bulk retail stores to TerraCycle’s Project Loop and Nestlé’s Institute of Packaging Sciences. Other manufacturers are investigating how to create sanitary single-serve containers without the waste. Shippers, too, are expanding the use of bio-based pallet wrap, corrugated bubble wrap, mushroom-based packaging, software to reduce waste, and more. And as the garbage piles up, sustainable packaging innovation comes not a moment too soon. 

Here are some highlights from companies that have been in the news recently for taking action to reduce the impact their product packaging has on the environment.

TerraCycle and Loop – Claiming it is boldly re-inventing waste-free packaging, renowned recycling firm TerraCycle unveiled at the 2019 World Economic Forum in Davos a service called Loop, which it says is a new approach to the days when the milkman collected reusable empty bottles and replaced them with refilled ones. Instead of the milkman, however, the local UPS driver delivers products from companies such as Procter & Gamble, Unilever, Nestlé, PepsiCo and others in durable, non-disposable packaging designed for multiple reuse before ultimately being recycled. When the products are consumed, the UPS driver returns to pick up the used packaging and sends it back to Loop where it will be cleaned, refilled and resold once again. Since its launch with a few hundred products in a handful of cities, Loop has engaged more than 10,000 consumers and a number of large household brands, as well as leading natural products companies.

Nature’s Path – Organic food leader Nature’s Path has committed to making all of its packaging reusable, recyclable or compostable by 2025, and was a founding brand partner with Loop, the reusable packaging program that launched earlier this year. The company is exploring fully compostable packaging, including films that will keep its breakfast foods fresh. It also is working toward fully recyclable plastic packaging. “As part of our 2025 packaging commitment, we’re currently testing new packaging options such as reusable (LOOP) and compostable with the OSC2 Sustainable Packaging Collaborative in the U.S.,” said Manuel Gorrin, Sustainability Manager for Nature's Path. The company also increased pallet efficiency by 17% for its Que Pasa Tortilla Chips line, reducing the number of truck loads and carbon emissions by 20 metric tons, the company says.

Pete and Jerry’s Organics – To reduce the need for packaging, nationally known organic egg producer Pete and Jerry’s Organics debuted a reusable egg carton in December 2019 at Hanover Co-op stores in New Hampshire and Vermont. The cartons, which retail for $2.99, are made from recycled BPA-free plastic and are refillable from a display of loose eggs discounted from a standard dozen to allow consumers to compensate for the initial investment in reusable packaging, the company said. "Reusable cartons are a logical next step in our ongoing commitment to sustainability, moving consumer behavior from recycling to reuse. We plan to expand this program in 2020 to reach even more consumers and amplify the program's impact with major retailers clamoring for this type of sustainable innovation," said Pete and Gerry's Organics CEO Jesse Laflamme.

Tom’s of Maine (Colgate-Palmolive) – After more than five years in development, the Colgate-Palmolive Co. announced it has finalized the design of what the company says is a “first-of-its-kind recyclable toothpaste tube.” The tube will debut in the U.S. this year under Colgate’s Tom’s of Maine brand. Roll-out to select international markets under the Colgate brand will follow. The company also says it plans to fully convert to recyclable tubes by 2025, when it says all of its products will be in 100% recyclable packaging.

Patagonia – In calling out the outdoor industry for its plastic problem – from product packaging to the plastic shrink wrap used to ship pallets to trade shows, the company used itself as a role model, and unveiled its own internal waste audit that it says can be used by manufacturers throughout the industry. “We shouldn't forget the pack-in, pack-out mentality we use in the backcountry when we hit the trade show floor,” the company said. "The trade show industry itself is large, complex and wasteful," Patagonia Environmental Analyst Tellez said. "Patagonia and the Plastic Impact Alliance can spearhead a theory of change to ensure meaningful, actionable impacts through collaboration–not just talk.”

Justin’s – Partnering with flexible packaging provider ProAmpac, Justin’s, maker of natural and organic nut butter products and snacks, began using a high-barrier pouch made with 25% post-consumer recycled (PCR) materials. “Finding ways to make our packaging more sustainable has been a long-time goal and continues to be something we’re committed to,” said Justin’s Founder and CEO Justin Gold. “We’re beyond excited to take another step in more sustainable packaging solutions with them.”

Meow Meow Tweet – By its own admission a “teeny company,” Meow Meow Tweet founder Tara Pelletier developed a formula for deodorant she loved, but couldn’t abide by the multiple plastic component parts – most of which are not readily recyclable – in the hard plastic containers used to house most deodorant products. Why, she asked, should a product she’d use for a few weeks or months come in a plastic case that would be around longer than she’d be alive? Searching for an alternative, Pelletier settled on a company that made sturdy paper tubes. While her team needs to hand-fill each tube and margins are “paper thin” because the tubes cost 60 times as much as mass-produced plastic options, it’s worth it, she says, not just because it makes ethical sense but to help demonstrate to others that there are workable, functional, creative alternatives to the plastic that has infiltrated every aspect of modern commerce, National Geographic reported. In related news, learn how other personal care companies are tackling the plastic problem in this New Hope Network report.

Tetra Pak – Shelf-stable packaging leader Tetra Pak announced in December 2019 that it has become “the first company in the food and beverage industry to responsibly source fully traceable plant-based polymers” using sustainably produced sugarcane. “We see plant-based materials as playing a key role in achieving a low-carbon circular economy. In the future all polymers we use will either be made from plant-based materials or from post-consumption recycled food grades,” said Mario Abreu, VP of Sustainability for Tetra Pak.

Giant Eagle - Grocery chain Giant Eagle claims it is the first major grocery retailer to commit to removing single-use plastic from its stores by 2025. “We know it’s a lofty target, and will involve conversations with many partners, but we feel strongly that committing to anything less will only limit our potential success,” said Dan Donovan, Giant Eagle’s Senior Director of Corporate Communications. The company says it will begin moving away from the use of plastic bags, straws, single-serve fresh food containers and bottled beverages. In related news, in 2019, national fast-food restaurant chain KFC said that by 2025 all plastic-based, consumer-facing packaging will be “recoverable or reusable.” KFC said the move is part of a long-term plan to implement a more sustainable packaging strategy in its restaurants.

Carlsberg – International beer brand Carlsberg announced it is in the prototype phase in creating a sustainable, “bio-based,” fully recyclable paper beer bottle it calls the “Green Fibre Bottle.” The prototypes are being made from sustainably sourced wood fibers and either a recycled polymer film barrier or one made from bio-based polymers. The company says it has been working on the idea since 2015.

Procter & Gamble – Through its popular Head & Shoulders shampoo brand, P&G has launched what it says it the world’s first completely recyclable shampoo bottle. Teaming with recycling experts TerraCycle and SUEZ, P&G made the bottle with 25% recycled beach plastic. The company says it aims to make more than half a billion hair care bottles with 25% post-consumer recycled plastic. (That’s still a lot of plastic!)

Unilever – One of the world’s largest consumer products companies, Unilever, announced in October 2019 its commitment to reduce its use of virgin plastic by half, and a promise to help collect and process more plastic packaging than it sells. Cutting down on plastic is “the area that’s going to require the most innovation,” Richard Slater, Unilever’s head of research and development, told MSN News. Unilever currently generates 700,000 metric tons of plastic packaging each year, MSN News reports. (That, too, is a lot of plastic!)

Nestlé – Targeted among a number of CPG giants in a 2019 Greenpeace report as moving too slowly to phase out single-use plastic, Nestlé in 2019 established the Institute of Packaging Sciences to develop its own internal solutions rather than rely on suppliers, it said. The institute will focus on refillable or reusable packaging, simplified packaging materials, recycled packaging materials, high-performance paper and/or bio-based barriers, and compostable and biodegradable materials. Nestlé CEO Mark Schneider said, "Our vision is a world in which none of our packaging ends up in landfill or as litter. To achieve this, we introduce reusable packaging solutions and pioneer environmentally friendly packaging materials. Furthermore, we support the development of local recycling infrastructure and deposit schemes to help shape a waste-free world." According to Nestlé, it was able to develop recycled paper packaging for its Yes snack bars and for Nesquik All Natural cocoa powder in less than a year. “This ambitious timeline shows more progress toward sustainability is possible if sufficient resources and ambition are applied,” said Food Dive.

Amazon – Since introducing its Frustration-Free Packaging (FFP) program designed to reduce waste by providing consumers with easy-to-open packaging that also is 100% recyclable and shippable without the need for an additional box within a box, Amazon has expanded the program to include vendors. It has also taken other measures including using flexible, recyclable mailers for small items and optimizing box fit to avoid waste. However, adoption of the FFP program among vendors has been slow. Though time consuming, the FFP certification process can be worth it for sustainably minded brands selling on Amazon, advises digital marketing strategist Kevin Weiss in New Hope Network’s Idea Xchange.

Further Reading:

Coming Full Circle: Sustainable Retail in a Post-Recycling Age
By Piers Fawkes, founder and CEO of PSFK, Dec. 1, 2019
https://www.psfk.com/2019/12/sustainable-retail-circular-economy.html

10 Dynamo Sustainable Packaging Revelations of 2019
By Lisa McTigue Pierce, Packaging Digest, Dec. 11, 2019
https://www.packagingdigest.com/sustainable-packaging/10-dynamo-sustainable-packaging-revelations-of-2019-2019-12-11

2020 Will Be the Year Major Brands (Finally) Rethink Packaging
By MindBodyGreen, Dec. 8, 2019
https://www.mindbodygreen.com/articles/pepsico-unilever-and-more-make-using-less-plastic-easier

The Top 5 Packaging Trends for 2020
By Nathan Dube, Industrial Packaging, Nov. 14, 2019
https://www.industrialpackaging.com/blog/the-top-5-packaging-trends-for-2020

Pay Attention to These 2020 Packaging Trends
By The Unique Group, Nov. 25, 2019
https://theuniquegroup.com/pay-attention-to-these-2020-packaging-trends/

Packaging Trends in 2020 for Food and Beverages
By Gaurav Jain, Entrepreneur Magazine, Dec. 18, 2019
https://www.entrepreneur.com/article/344012

Why Reusable Food Packaging Has a Promising Future
By Jessi Devenyms, Food Dive, June 25, 2019
https://www.fooddive.com/news/why-reusable-food-packaging-has-a-promising-future/557119/

New Method Upcycles Plastic Waste to Valuable Products
By New Hope Network, Oct. 25, 2019
THE CIRCULAR ECONOMY
https://www.newhope.com/news/new-method-upcycles-plastic-waste-valuable-products-0

Eco-friendly Plastic: Hemp & Reclaimed Ocean Packaging
By A.J. Herrington, The Hemp Magazine, May 8, 2019
https://thehempmag.com/2019/05/eco-friendly-plastic-hemp-reclaimed-ocean-packaging/