In order to satisfy customer needs, legal constraints, and environmental objectives, FMCG companies are placing a higher priority on sustainable packaging solutions. Growing environmental consciousness and the desire to cut down on plastic waste are the main drivers of this change.
Key Trends
Transition to Packaging Based on Paper
Several FMCG companies are switching from plastic to paper-based packaging. The most popular replacement materials these days are paper and cardboard. This trend is considered crucial to enhance environmental performance and reduce reputational concerns.
Circular Economy Focus
Businesses are using the concepts of the circular economy into the design of their packaging. Among these are:
- Planning for recyclability
- Using repurposed materials
- Encouraging reusing
- Lowering waste from single uses
Throughout the supply chain, brands are working together to develop closed-loop systems that gather, recycle, and reuse materials.
Right Sized Packaging
The right-sizing tactics are being used by FMCG companies to match packaging size to product content. This strategy saves material utilisation, shipping expenses, and carbon emissions. Customers find it appealing as well; 67% of them would rather not purchase from internet merchants that use big packaging.
Alternative Materials
Companies are investigating environmentally friendly materials like:
- Bioplastics
- Plant-based substitutes
- High-barrier mono materials: (e.g packaging made of flexible paper)
These materials are designed to preserve product protection while taking the place of hazardous plastics or aluminium laminate packaging.
Motivators & Challenges
Important Motivators
- Customer demand: according to 82% of UK customers, companies need to protect the environment.
- Regulation pressure: Businesses are being pushed towards sustainable solutions by the UK Plastic Packaging Tax and other laws.
- Brand image: Using environmentally friendly packaging improves consumer loyalty and brand perception.
- Cost-cutting measures: Reducing packaging and using recycled materials to save money over time.
Challenges
Increased costs: The cost of alternative packing materials is frequently higher.
Material accessibility: Finding appropriate sustainable materials can be difficult.
Functionality: Using environmentally safe materials while guaranteeing product protection.
Regulatory complexity: navigating several market-specific recycling laws.
Leading Examples
A number of FMCG brands in the UK are leading the way in innovative sustainable packaging:
Innocent Drinks: Pursuing complete recyclability by 2025; bottles made entirely of recycled plastic.
Lush Cosmetics: Using recyclable materials and providing goods without packing.
Pukka Herbs: Using recyclable packaging and organic, biodegradable tea bags.
Schwartz: Introduced fully recyclable recipe sachets in 2021, meaning they are using 61% less plastic.
Future Outlook
UK FMCG companies will probably concentrate on the following as 2024 goes on:
- Creating cutting-edge recyclable solutions
- Purchasing innovative materials and technology
- Industry collaboration to expedite research and development
- Pledging to phase out conventional plastics
- Adjusting to tougher environmental laws.
The FMCG business needs to adapt to the sustainable packaging trend, which is more than simply a fleeting fad. Businesses may fulfil customer expectations, improve their environmental credentials, and set themselves up for long-term success in a market that is becoming more environmentally conscious by embracing these changes.
