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AnneJohnsonRRS
Oct.17,2016TLMI
SustainabilityTrendsinPackaging:WhatYouNeedtoKnowtoFutureProofYourBusiness
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AGENDAo U.SSolidWaste&Recoveryo TrendsinSustainabilityandPackagingo PointsofViewfromtheMarketplaceo InsightsfortheFuture
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THEU.SSOLIDWASTEANDRECOVERYSYSTEM
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EliminateWaste
Reuse
Recycling
WastetoEnergy
Landfill
WasteD
isposition
WASTE&RECOVERYHIERARCHY
WasteReduction
Diversion
WasteManagement
WasteReduction-Sourcereduction
o materialelimination,materialconversiono improveddesign
-Innovation
WasteDiversion-Recycling-Composting
Todayo SourceReductionandDesignforRecyclability
Emergingo Transitionalmodelsofdisruptiveinnovation
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Ofthis,75.8MillionTonsisContainers&Packaging
CorrugatedCardboard,40.0%
Non-Corrugated
PaperPackaging,11.0%
GlassBeerandSoftDrinkBottles 7.0%
OtherPlasticContainers 2.0%
OtherPlasticPackaging 6.0%
PETBottlesandJars4.0%
GlassWineandLiquorBottles 2.0%
OtherGlassBottlesandJars 3.0%
SteelPackaging 3.0%
AluminumPackaging2.0%
HDPEBottles-Natural 1.0%
PlasticBags,Sacks,Wraps 5.0%
WoodPackaging,12.0%
Misc.Packaging2.0%
USEPA
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2013U.S.MSWGENERATIONANDCONTAINERSANDPACKAGING
254MillionTonsofMunicipalSolidWaste
Paper27.0%
Glass,4.5%
Metals9.1%
Plastics12.8%
Rubber,leather,&textiles,9.0%
Wood6.2%
YardTrimmings13.5%
Food14.6%
Other,3.3%
USEPA
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Avg recyclingrateis25.4%
Avg tippingfeeis
$49.78/ton
Largest20% ofMRFSaccountfor50%ofrecyclingthroughput.
Landfill 52.8%MunicipalSolidWaste2013USRecoveryRate*
34.3%
*USEPAdefinesRecoveryRateasRecyclingandComposting.C&Disaccountedforseparately.
Avg organicsrecyclingrateis
8.9%
WastetoEnergy 13%
• ResidentialRecycling~40%
• Commercialrecycling~60%
THEU.S.WASTEANDRECOVERYSYSTEM
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THEU.S.WASTEANDRECOVERYSYSTEM
<3333– 4141– 5151– 76>76
Avg.LandfillTipFee($/ton)
10LargestZeroWasteCities
NYC
DC
DallasAustin
Seattle
Minneapolis
OaklandSanFrancisco
LosAngeles SanDiego
• 1540landfillsintheU.S.in2013andtippingfeesvaryregionally(EREF)
• Recyclingislargelylegislated/managedatthelocallevel
• Municipalitiesandcompanies aredrivingzerowaste
• Approx.9000recyclingprogramsnationwide(RRS)
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ZEROWASTE/ZEROWASTETOLANDFILLCOMPANIES
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HOWPACKAGINGISEVOLVING:2013to1990BaselineSource:USEPA
1010
Mostisnotcollectedthrucurbside
WHATWERECYCLE–ORNOTSource:USEPA
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TRENDSINSUSTAINABILITYANDPACKAGING
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AMOMENTOFSHIFTINGPARADIGMS– EXPANDINGEXPECTATIONS
Theinternethaschangedexpectations.
TRANSPARENCY
ACCESSIBILITY
INFORMATION
DISCLOSURE
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SHIFTINGPARADIGMSTOWARDSCIRCULARECONOMYPRINCIPLES
RenewableEnergyNotFossilFuel
SustainableMaterialsManagementNotWasteManagement
LocallySourcedNotGloballySourced
NutrientsNotWaste
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Shift to lighter and more resource efficient
materials
Focus on Circular Economy
Demand for recycled materials
Growing cost to manage complex wastes
Zero waste goals
Aquatic trash and litter issues
Zero waste to landfill goals
Consumer demands
Risk and financial issues
Consumer demand for recyclable packaging
Growing awareness of environmental issues and limited power to act
Consumer/Customer demands
Global considerations
Risk and financial issues
NGO pressure
DRIVERSFORPACKAGINGSUSTAINABILITYANDRECOVERY
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WHAT’SALLTHEFUSSABOUTRECYCLING?
• In2011,75%ofAmericanssaytheyfeelgoodwhentheytakestepstohelptheenvironmentandtwiceasmany(58%)peoplerecycleregularlytodayas20yearsago.
• Individualsfindtheycan“doalittle”tohelptheenvironmentandmakepositivedecisionsratherthandoingnothingordoingalot.
Recyclingallowsconsumerstotakesmallbutmeaningfulactions.
RECYCLINGISNOTJUSTABOUTTHEENVIRONMENT,IT’SABOUTCOMMUNITIES
Source:2011GfK RoperGreenGaugeReport
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THETHREEQUESTIONS?whatare
Howdoweknowifsomethingisreally
recyclable?
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1.CollectionProgramsDoconsumershaveaccess to
community-basedrecyclingprograms?
2.MRFCompatibilityHowwellisapackagesorted ina
typicalmaterialrecoveryfacilityandtheprobabilityitendsupinthe
correctbale?
3.EndMarketsArethereendmarketsavailabletoaccept,tradeandreprocess the
recoveredcommoditybale?
THERECYCLINGVALUECHAIN– DesigningforRecyclability
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DESIGNINGFORRECYCLABILITY
AnidealPETcontainerforrecyclingwillhavethefollowingfeatures:
1. BeclearandcolorlessPETwithnoadditives.2. Haveaplasticclosuremadefrom
polypropylenethatfloatsinwaterandisreadilyseparatedfromPETwhichsinks inwater.
3. Haveaplasticlabelthatfloatsinwater,isreadilyremovedfromthebottleinawashstep,andwheretheinkonthelabeladhereswelltothelabel.
PackageComponentDescription Material EndMarketCompatibility
Bottle PET- Clear • Clear colorispreferred
Seal PE/Al foilw/heatsealcoating • Shouldbecompatiblewithfloat/sinksystems
Cap PP – Translucent• PP ispreferredasacapperAPR.• Morecompatiblew/floatstreaminPETreclaim
facilities.
Label Polypropylene pressuresensitive
• Ensurelabelwillcomeoffinhotcausticwashifnotremovedbyconsumer.
• Needclearconsumerguidancetoremovepriortorecycling.
• PP,OPParepreferredlabelbaseresins• Recyclablepressuresensitivelabelarebest
solution.
APPLYINGAPRDESIGNGUIDELINESACCORDINGTOAPRGUIDELINES
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• Growthoftheperimeterofthegrocerystore– desireforfreshthrough“clearpackaging”
• “Millennialsdon’tdodishes”• Desireforsingleserveandconvenience• Shiftfromtraditionaltoinnovativeformats• BPAscare• InnovationforconvenienceANDoperationalefficiency• Shelfappeal• Transformationoftraditionalformatstonewformatsthatmaynotrequirelabels
• E-Commercegrowingfastandroleofpackagingandlabelsunderscrutiny
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RETAILTRENDSINFLUENCINGSUSTAINABILITYANDPACKAGING
RonSasine,PrincipalHudsonWindsor
EXAMPLE:formfilledseal4-packfruitcupinpaperboardsleeve.Starterproject(now8-12ft ofshelf)transformedthecannedfruitbusiness,thepricepoint,thecategory,andthewayconsumersexpectconvenience.
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POINTSOFVIEWFROMTHEMARKETPLACE
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PACKAGINGGOALSFROMTHEBEVERAGEINDUSTRY
Company Packaging&WasteGoals Othermajorfocusareasandcomments
The Coca-ColaCompany
•Workwithpartnerstorecoveryandrecycleequiv.of75%ofthebottlesandcansweintroduceintodevelopedmarketsby2020
•Water• Reducethecarbonfootprint ofthedrinkinyourhandby25%• Sustainably sourcedagriculturalproducts
PepsiCo • Bestinclass recycledcontentforprimarypackagingby2020• Increaserecyclabilityofrigidbeveragepackaging• Recycleandreuse90%ofwaste
• Abouttoreleasenewpackaginggoals•Water• Sustainableagriculture•GHG Emission• ResponsibleSourcing
Dr.Pepper/SnappleGroup
• Conservemorethan60Mlbs ofplasticthroughPETlightweighting andredesignsandincreaseduseofrecycledPET• Recycle90%ofmanufacturingsolidwaste
• Shouldbescheduled toupdategoals•Water• Energyefficiency•GHGemissions
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PACKAGINGGOALSFROMTHEPERSONALANDHOMECARE
Company Packaging&WasteGoals Othermajorfocusareasandcomments
P&G •Use100%renewableorrecycledmaterialsforallproductsandpackaging• Reducepackagingby20%perconsumeruse•Doubleuseofrecycledresininplasticpackaging• Ensure90%ofproductpackagingiseitherrecyclableorprogramsareinplacetocreatetheabilitytorecycleit
• Powerallourplantswith100%renewableenergy• Ensureplantsarepoweredby30%renewableenergy•Havezeroconsumerandmanufacturing wastegotolandfills
Note:2020packaginggoalsarerelativeto2010benchmark
Unilever •Halvethewasteassociatedwiththedisposal ofourproductscomparedto2010baselineby2020.• Increaserecyclingandrecoveryratesonaverageby15%by2020inourtop14countries• Increasetherecycledplasticmaterialcontentinourpackagingto25%by2025
• Source100%ofenergy acrossoperationsfromrenewablesourcesby2030• Sourceallelectricitypurchasedfromthegridfromrenewablesourcesby2020• Supportthegenerationofmorerenewableenergythanweconsumeandmakethesurplusavailabletothemarketsandcommunitiesinwhichweoperateinordertobecomecarbonpositiveby2030
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PACKAGINGGOALSFROMRETAIL
Company Packaging&WasteGoals Othermajorfocusareasandcomments
Walmart • Increaserecycledcontentinplastic packaging• Sustainablyincreasetheamountofrecycledcontent• IncorporatesuccessesofpackagingscorecardintoSustainabilityIndex
• Zerowasteacrossallglobaloperations•Drive theproductionorprocurementof7billionkWhofrenewableenergybyendof2020• Besuppliedby100%renewableenergy
Target • Enhance atleast50owned-brandpackagingdesignstobemoresustainableby2016
• Divert70%ofretailwastefromlandfillsthroughreuseorrecycleprogramsby2020• Increasethenumberofbuildingswithrooftopsolarpanelsto500by 2020
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Traditionalpressure-sensitivelabels
(i.e.thestickersaffixedtomanyplasticpackages)contaminatePETbottlesas
labels,adhesiveandinkremainattachedtotherecycledflake.
“Theyrunhotwashtemperatures,usingalotofwashwaterandalotofdetergent.Thishasabigcostimpact.”JohnStandish,TechnicalDirector,APR
InternationallabelandpackagemanufacturerConstantiaFlexibles,NC-basedUPMRaflatac,Multi-ColorCorp.andCCLLabelallhaveAPR-recognized
pressure-sensitivelabels.
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KEYINSIGHTSONCHALLENGESFROMTHEMARKETPLACE
ShrinkLabelsareProblematic.Theycanleadtomaterialsbeingsortedbythecolorofthelabelratherthanthematerial.Youneedabout20to25percentopenareatoproperlyidentifythebottle.mostshrinklabelsaremadefromPETG,whichisnotcompatiblewithstandardPET. PETGhasalowermeltingpoint.Whenthetwopolymersgetmixed,PETGmeltsatPET’sstandarddryingtemperaturesandcausesclumping.PETGgetsthroughthesystemandcontaminatesthefinishedflakewehavetodowngradetolowerendusesandamuchreducedvalue.
– ByronGeiger,CustomPolymers
”HowPackagingLabelsCauseHeadachesforMRFOperators”Waste36010/12/2016
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• Providebusinessvaluefirst– convenience,innovation,shelfappeal
• Sustainabilityisabuildingstep• Labelsneedtodetachforrecycling- fullstop.• Opportunities
o Largeworldofstart-upstryingtogetintotheworldoffood.Needpre-formed,pre-printed,shortrunpackaging,highlycustomized,oftenhighend.
o Storesdeepeningofferingindeli,needpre-formedflexiblewithlabels
RETAILPOINTOFVIEWFROMRONSASINE,FORMERHEADOFPACKAGING,WALMART
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• “DesignforRecyclingisanareathatPepsiCowantstodobetterandwillfocusonaspartofits2025goals.”
• “Number#1reason(wewantrecyclablepackaging)isfromaconsumerstandpoint,recyclingisenvironmentallyfriendlyinthisspace.P&G
• Wearedrivingrecycling,reduction,andinnovation.
• Severalcompaniesinterviewedindicatedthattheyactivelyreachouttotheirsupplierstohelpthemreachtheirsustainabilitygoalsandsee”authentic”effortstoimprovetheirfootprint.Theywanttoworkwith“like-minded”companies.Sustainabilityfootprintsmatter.
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INSIGHTSFROMBRANDS
SpearRC recyclablepressuresensitivelabelsnowonallSimple
BeveragesTM TheCoca-ColaCompanyandConstantiaFlexibles
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• Twocompaniesmentionedthatlabelsprovideimportantinstructions,contentandbranding,butifthiscanbedeliveredwithlessornomaterialsthen,“Thebestlabelisnolabel”.
• Exploringmono-weblayeroptions.Inkmaystillposechallenges.APRdevelopingguidance.UsingHDPElabelexperienceandapplyingtolabelsforPE.
• InvestingsmartlabeltechnologieslikeRFID,NearFieldCommunication(NFC)thatmayallowformoreinteractivityanddifferentconsumerengagement.
KEYINSIGHTSONINNOVATIONOVERTHENEXT3-5YEARS
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1. TLMIshouldconsiderbeingamemberofAPRforoutreachandtoengageontechnicalissues (i.e.,howdorecyclersidentifynon-recyclablelabels?)
2. Brandsrecognizeindustryneedstosupportcommercializationofrecyclablealternatives.Nextsteps?
3. Thereisaneedfor“full”communicationwithinsupplychain– printingconverterstorollstockproviders,etc.needtocommunicateaboutchangesastheybuilduptothelabel.
4. Needtoengagewithbrandsorgsandassociationstobeabletoshareinnovationandsharesustainabilitystories.
5. Innovationtohelpbringaddedvalueisachallengeandopportunity6. Canlabelsbepartofhelpingtotellthe”BRANDSTORY”?7. Lastly,howcansustainabilityhelpbuildoutthenarrativeoftheTagand
LabelManufacturerstotheircustomers?
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KEYINSIGHTSANDOPPORTUNITIESFROMINTERVIEWS
