Lightweighting across the packaging supply chain PDF
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packaging > e-book Lightweighting Across the Packaging Supply Chain Companies that implement a strategy of lightweighting their packaging can reduce their costs and raise their margins as well as improve their corporate and brand profiles from an environmental perspective. www.PirA-internAtionAL.Com Lightweighting Across the Packaging Supply Chain Pira Business Intelligence Ashley Gange The worldwide authority on the packaging, paper and print Published by About viewing this ebook industry supply chains this document will attempt to open in Pira International Ltd established in 1930, Pira provides strategic and technical consulting, testing, Cleeve road, full page viewing mode by default for intelligence and events to help clients gain market insights, identify opportunities, Leatherhead a more immersive reading experience evaluate product performance and manage compliance. we offer a wealth of Surrey Kt22 7rU and to maximize screen space. 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Contact Paul Squires at +44 1372 80 2051 or nick waite [email protected] for more information. [email protected] Find out more Head of US publishing www.pira-international.com Charles e. Spear, Jr. [email protected] Contact: Pira International Sales Assistant editor Stephen Hill mina odavic +44 (0)1372 802025 [email protected] [email protected] Customer services manager Denise Davidson [email protected] t +44 (0)1372 802080 www.PirA-internAtionAL.Com table of contents Executive Summary 3 5 Abbreviations and Definitions 1 Material Trends Outlook rigid Plastic Packaging Flexible Plastic Packaging Drivers and Barriers for Lightweighting Flexible Packaging rigid Plastic Packaging Costs and Commodity Prices Paper and Board Paper and Board environmental Awareness metal Packaging metal Packaging regulation Glass Packaging Glass Packaging initiatives Shrink and Stretch Film Packaging Stretch and Shrink Film Packaging 4waste and resources Action Programme 4 nanotechnology 4Courtauld Commitment 6 4Glassrite 4envirowise internet retailing End-Use Trends Alternative Distribution Channels Primary Packaging Implementation Conspicuous Consumption 4Beverages Packaging Keys to Success Private Label 4Food Packaging 4Case Studies 4Personal-Care Product Packaging 2 4Health-Care Product Packaging List of Tables and Figures Secondary Packaging 4Corrugated 4retail-ready Packaging Supply Chain Perspectives tertiary Packaging overview materials and machinery Suppliers Packaging Converters Packer/Fillers and Brand owners Logistics and Distribution retailing www.PirA-internAtionAL.Com packaging > e-book > lightweighting across the packaging supply chain Executive Summary Companies that implement a strategy of lightweighting their review period) also contributed to brand owners’ and retailers’ packaging can reduce their costs and raise their margins as well as desire to reduce packaging. Following their collapse in the wake Companies improve their corporate and brand profiles from an environmental of the financial crisis, commodity prices bottomed out in February that implement perspective. However, more recently companies have been taking 2009, but staged a sharp rebound thereafter. a strategy of the stance of not promoting environmental benefits in material lightweighting reduction to the consumer at product level, rather referring to an tension between rapid demand and sluggish capacity growth their packaging overarching philosophy of sustainability that drives a business. is likely to re-emerge once the global recovery matures into a Furthermore, consumers dislike of what is generally perceived as sustained expansion, thereby keeping primary commodity prices can reduce their overpacking, which routinely features in the mainstream media, is a at elevated levels by historical standards. Although demand for costs and raise more visible nuisance than ‘overweight’. lighter-weight packaging may continue to rise due to material cost their margins as concerns, not all savings from packaging reduction will be passed well as improve A lightweighting strategy is most commonly implemented in one down the supply chain; this is due to the considerable investment their corporate and of three ways: packaging redesign, packaging elimination and required to really push the boundaries of material performance brand profiles from packaging reduction. Packaging redesign includes the elimination both in converting and on the production. an environmental or substitution of certain materials and a decrease in packaging size or weight. Packaging elimination is a form of reduction that Public awareness and concern regarding the environment’s well- perspective tackles the root cause of overweight by removing an unnecessary being has been a key driver behind the lightweighting trend-- layer or component of packaging; this is frequently a relatively low- directly, through consumer purchasing patterns, and indirectly, via cost lightweighting strategy with immediate payback. Packaging the political and ensuing regulatory environment. Development reduction cuts volume or weight through relatively straightforward and penetration of lightweight packaging was aided in the eU actions such as creating a smaller package size or reducing the over the review period by the Packaging essential requirements thickness of a particular packaging material. regulations 2003, one of which was aimed at minimising packaging weight: ‘Packaging volume and weight must be the Downward pressure on margins because of rising costs led brand minimum amount to maintain necessary levels of safety, hygiene owners and retailers to try to maintain competitiveness through and acceptance for the packed product and for the consumer.’ efficiency savings such as using less packaging or switching to more economical packaging materials. Significant growth in Penetration of lightweight packaging in the UK also benefited the price of primary commodities used in the manufacture of from the establishment in 2000 of the waste and resources packaging, such as oil and metals (prices within the 2005 to 2010 Action Programme (wrAP). with regard to packaging, wrAP’s 4 CHAPTER ES 1 2 3 4 5 6 TOC www.PirA-internAtionAL.Com packaging > e-book > lightweighting across the packaging supply chain Executive Summary initiatives contributing to the lightweighting trend were to a shifted toward dampened demand, cost-cutting measures, great extent shaped by the Courtauld Commitment: a voluntary environmental concerns and unclear outlook, the supply chain agreement with major retailers, brands and suppliers to reduce increasingly used lightweighting to provide cost savings and the environmental impact of packaging. Since the launch of the other driver-led benefits. A number of new material grades Courtauld Commitment in 2005, a significant number of major were developed by suppliers to assist in packaging converters’ brand owners, manufacturers, suppliers and more than 40 retailers lightweighting aims, while technical innovations among machinery representing 92% of the UK’s grocery supermarkets have signed up suppliers also aided packaging converters in meeting the to the agreement. wrAP also developed the Glassrite wine project. lightweighting demands of their clients. Packer fillers and brand this project, which was first launched in 2006, is designed to owners had a significant amount to gain from lightweighting in promote the use of lighter-weight wine bottles, both in the UK and terms of potential savings in packaging materials costs, and the in the countries from where they are sourced. review period saw a wide range of major global brand owners adopt lightweight packaging for their products. internet retailing had an overall positive effect on demand for lightweight or lighter-weight packaging because of the potential the greatest growth in lightweighting--in penetration and savings these could bring to delivery and transport costs. in other development--within the rigid plastic packaging sector was recorded alternative distribution channels such as vending, some marketers by bottles. A study commissioned by the international Bottled ceded certain characteristics of their packaging in order to meet water Association indicated in 2010 that the average weight of a their lightweighting aims while striking a balance between weight, single-serve 500 ml Pet still-water bottle had declined by 26.7% to strength and appearance. the growing penetration of private labels 13.83 grams over the 2000 to 2008 period. in the retail environment also encouraged lightweighting among mass brands, since many retail chains who control their private- Flexible-plastic structures met three of the most important trends label products have taken a positive approach to lightweighting over the review period: favourable reception by consumers, who from their inception. However, a number of brand owners in perceive them to occupy less space in waste-disposal containers added-value sectors, where conspicuous consumption plays a role and landfills; significant material reduction for packagers, in consumer choice, were not amenable to the idea of adopting which minimises weight, cost, storage and transport size; and lighter-weight packaging; they cited a potential negative effect on customization, so they provide only the functional properties perceived product value and quality among consumers. required by the product. Around the eU, the flexible-plastic packaging sector grew at the expense of other packaging media, As the review period progressed and the business environment such as metal cans, glass bottles and cartons. 5 CHAPTER ES 1 2 3 4 5 6 TOC www.PirA-internAtionAL.Com packaging > e-book > lightweighting across the packaging supply chain Executive Summary Global demand for board packaging remained high despite the Abbreviations and Definitions growing demand for plastic packaging. General pressure in the logistics chain to reduce weight led to a trend of declining carton Biodegradable of such a nature that it is capable of undergoing and carton-board grams per square metre (gsm) over the review physical, chemical, thermal or biological decomposition such that period. this was further fuelled by upward pressure on the price of most of the finished compost ultimately decomposes into carbon modern corrugated board with the increasing demand coming from dioxide, biomass and water. the rapidly expanding economies of China and india. BOPP Biaxially oriented polypropylene metal packaging continued to hold the interest of brand owners because of its mechanical stability, rigidity, chemical inertness EPS expanded polystyrene and recyclability. the metal packaging sector contributed to the lightweighting trend in two key ways: it gained share of overall EVOH ethylene vinyl alcohol packaging from heavier, comparable products in the glass sector, and technological developments within the metal sector enabled G Gramme beverage cans to become lighter. GSM Grammes per square metre the glass sector lost share of the packaging market over the review period as industry and retailing increasingly opted for HDPE High-density polyethylene lighter-weight packaging products to save costs and reduce their carbon footprints. However, although advancement was made KG Kilogramme in the lightweighting of glass bottles, resulting gains in market penetration were not able to match those recorded in other sectors L Litre such as rigid plastic and metal. LDPE Low-density polyethylene TABLE 0.1 Lightweighting significance rankings – drivers, materials and end use LCA Life-cycle analysis LLCA Limited life-cycle analysis CLICK TO VIEW TABLE 6 CHAPTER ES 1 2 3 4 5 6 TOC www.PirA-internAtionAL.Com packaging > e-book > lightweighting across the packaging supply chain Executive Summary LLDPE Linear low-density polyethylene PEN Polyethylene naphthalate Machinability machinability, also known as machine PET Polyethylene terephthalate performance, is the ability of a film to travel and track well through a packaging machine. Different machines favour different film PETG Polyethylene terephthalate glycol properties. therefore, a film may demonstrate good machinability on one piece of equipment and not on another. PLA Polylactic acid. Produced through the poly-condensation of lactic acid, PLA is similar in appearance to polystyrene. it MAP modified atmosphere packaging is modified with plasticisers to increase flexibility for use in applications where brittleness is unacceptable. MM millimetre PP Polypropylene Opacity opacity is a common paper measurement that describes a substrate’s light-blocking ability. A perfectly opaque paper has an PS Polystyrene opacity value of 100%. PVC Polyvinyl chloride OPET oriented polyester PVdC Polyvinylidene chloride OPP oriented polypropylene Sustainability Development that meets the needs of the present, OP oriented polyester without depriving future generations of the raw materials or environmental quality that they will require to meet their own OTC over-the-counter needs. OTR oxygen transmission rate WRAP waste and resources Action Plan PC Polycarbonate WVTR water vapour transmission rate PE Polyethylene 7 CHAPTER ES 1 2 3 4 5 6 TOC www.PirA-internAtionAL.Com
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