The cheese company’s new sustainable packaging strikes the perfect balance of product protection and environmental responsibility.
In a recent interview with Packaging Digest, Jed Davis, Cabot’s Vice President of Strategic Engagement and Sustainability, emphasized the environmental advantages of the company’s new packaging initiatives. This innovative approach is set to yield substantial reductions in resource consumption and greenhouse gas emissions. Specifically, the new packaging is projected to achieve a 23% decrease in fossil fuel emissions per bar, alongside a 19% reduction in water usage during the production of Cabot’s 8oz bar line. To put this in perspective, the water savings amount to three cups per 8oz bar produced.
Additionally, Cabot’s packaging strategy will offset 100,000 pounds of single-use resin by incorporating recycled materials, reinforcing the company’s commitment to sustainable practices. Davis stated, “This initiative not only benefits our operations but also has a broader significance for the industry.”
To further enhance its impact, Cabot has committed to sharing the findings of its grant-funded research with the dairy industry. This collaborative approach aims to extend the positive effects of these sustainability measures across the sector. As companies increasingly recognize the importance of environmental stewardship, Cabot’s efforts set a commendable benchmark for others to follow.
Mickey D’s US rollout of the lid-free paperboard cups reduces plastic waste and supports sustainability goals. Watch a video of a machine producing an international variant, and read reviews from social media “experts.”
In a significant step towards sustainability, McDonald’s has introduced a novel soft-serve packaging design aimed at reducing plastic use in the United States. The fast-food giant has replaced its traditional McFlurry packaging, which featured a plastic dome lid, with an innovative lid-free cup made of paperboard.
The new design incorporates four perforated flaps that elegantly fold over the filled cup, offering both functionality and a more environmentally friendly alternative. This initiative aligns with McDonald’s broader commitment to minimizing its environmental footprint and promoting sustainable practices.
The rollout of the four-flap cups commenced on September 10, 2024, across all U.S. locations. Alongside this packaging innovation, McDonald’s introduced the Mini McFlurry, which is served in a smaller version of the same eco-conscious cup. Both the standard and mini McFlurry options will now utilize the four-flap packaging, further reinforcing the company’s dedication to reducing plastic waste.
By embracing innovative packaging solutions, McDonald’s is setting a precedent for sustainable practices within the fast-food industry, showcasing how consumer convenience can align with environmental responsibility.
Embracing Sustainability: McDonald’s Updated Cup Design
In a commendable effort to bolster its commitment to sustainability, McDonald’s has introduced an updated cup design for the US market. This initiative not only aims to reduce plastic packaging and mitigate single-use plastic waste but also aligns with the company’s broader environmental objectives.
As part of its pledge to source 100% of its primary guest packaging from renewable, recycled, or certified materials by the end of 2025, this new cup design marks a significant step forward. By prioritizing sustainable materials, McDonald’s is demonstrating a proactive approach toward minimizing its ecological footprint and fostering a circular economy.
This move serves as an exemplary model for corporations striving to blend operational efficiency with environmental responsibility. In a time when consumer awareness of environmental issues is at an all-time high, McDonald’s updated cup design exemplifies how innovation can facilitate a more sustainable future. As we look ahead, it is imperative that other organizations recognize the value in similar endeavors, thereby contributing collectively to a healthier planet.
Consumer demand for sustainable food packaging has become a major catalyst for change in the industry. With a growing awareness of environmental impacts, consumers are now choosing products with reduced packaging waste and materials that are recyclable and as a result, companies are being compelled to innovate and develop eco-friendly packaging solutions.
According to a KLA YourView poll of 692 South African consumers, 34% indicated that sustainability and eco-friendliness are a priority when making packaging choices. This heightened awareness among consumers has led to significant changes in the industry, as companies are now more willing to explore environmentally responsible packaging options in order to meet the expectations of consumers, thereby impacting purchasing decisions and brand loyalty.
Respondents from the KLA YourView poll indicated the following leading factors that influenced their food packaging choices:
26% emphasised convenience and ease of use, such as resealable options and portion control.
26% considered health-conscious features including BPA-free materials and allergen labelling.
23% prioritised sustainability and eco-friendliness, focusing on recyclable materials and biodegradability.
10% preferred innovative packaging with features such as QR codes and interactive elements.
8% valued transparency and minimalism in packaging.
The food packaging industry is experiencing a remarkable shift towards eco-friendly innovations, which includes the use of biodegradable and compostable materials, recyclable packaging solutions, and reusable packaging systems. Some of the key innovations include:
Plant-based plastics derived from renewable sources that decompose more quickly than traditional plastics.
Mushroom packaging made from agricultural waste and mycelium, providing sustainable and protective packaging.
Seaweed packaging that is both edible and compostable.
Biodegradable films made from natural polymers.
Recyclable packaging solutions play a pivotal role in the shift towards more sustainable food packaging practices. Companies like Unilever and Nestlé have invested heavily in creating easily recyclable packaging, with innovations such as clear PET bottles, which are easily sorted and recycled, and bio-based plastics, which offer a lower carbon footprint, gaining traction.
Reusable packaging systems are also emerging as a key innovation in eco-friendly food packaging solutions – durable materials designed for multiple uses help reduce waste volume – examples include:
Returnable containers.
Deposit schemes whereby consumers pay a deposit on packaging, which is then refunded upon return.
Refill stations where consumers can refill containers.
Subscription services where businesses provide reusable packaging through subscription models.
Leading companies have set powerful examples in sustainable packaging.
For example, Unilever’s commitment to sustainability is exemplified through initiatives in eco-friendly packaging – the company aims to halve its environmental footprint by 2030 through strategies including:
Pledging that 100% of its plastic packaging will be reusable, recyclable, or compostable by 2025.
Investing in biodegradable materials that break down naturally.
Exploring innovative solutions like paper-based soap wrappers and aluminium shampoo bottles, with the aim of reducing plastic usage.
Educating consumers on proper waste disposal and recycling practices.
Another example is Nestlé’s extensive investment in research and development which positions it at the forefront of sustainable packaging innovation. The Nestlé Institute of Packaging Sciences focuses on biodegradable, compostable, and recyclable materials.
Then there is McDonald’s transition to paper straws which is a reflection of the significant shift towards sustainable practices. This move reduces plastic waste and highlights the influence of consumers on corporate policies.
Effective food packaging also plays a pivotal role in minimising food waste by extending product shelf life and preserving freshness. Innovations like vacuum sealing and modified atmosphere packaging (MAP) enhance the longevity of perishable items, and portion-controlled packaging helps reduce waste by providing the right amount of food needed for single servings. Smart packaging technologies offer real-time information about food conditions, empowering consumers to make informed decisions.
The South African packaging industry is experiencing significant growth driven by sustainability, convenience, and smart technologies, with key trends driving this growth including:
Rising demand for sustainable materials including biodegradable, compostable, and recyclable materials.
Development of convenience-focused features such as resealable and portion-controlled packaging.
Emphasis on health-conscious features that ensure product safety and preservation of nutritional value.
Integration of smart packaging technologies including QR codes, RFID tags, and sensors for enhanced product traceability.
The future of food packaging will be marked by significant innovations in sustainability and technology. Promising areas include the development of biodegradable and compostable materials, advanced recycling technologies, and smart packaging technology. Reusable packaging systems also encourage a shift from single-use to multi-use containers.
As consumer awareness and regulatory pressures intensify, the food packaging industry must embrace innovative and sustainable practices. Companies that prioritise sustainability will gain competitive advantages and build stronger customer loyalty. The path forward involves material innovation, consumer education, the circular economy, regulatory compliance, and cooperation across the value chain.
The NextLooPP initiative’s success and breakthroughs across the Atlantic and an FDA Letter of No Objection to 14 companies bode well for food-grade PP recycling on American shores.
At a Glance
Research suggests PP residual contamination levels one-tenth of HDPE milk bottles and one-hundredth of PET.
2024 trials of recycled PP achieved food-grade purity levels exceeding 95% in packaging applications.
New performance standards and an automatic sorting technology breakthrough will ease market acceptance.
In May 2023, we published an article in Packaging Digest announcing the NextLooPP initiative’s success with food-grade recycled polypropylene (rPP) in the UK and EU, and our decision to replicate that success in the Americas. Since launching the project in 2020, 53 participants across the plastics supply chain have steadily broken through most of the barriers to producing recycled food-grade polypropylene (FGrPP) from post-consumer waste. We continue to share our science-based findings and expertise with US organizations.
Since that 2023 article, the FDA has given its Letter of No Objection (LNO) to 14 companies in North America, Asia, and Europe to use their recycled resin products for food-contact packaging. Yet, so far, there is no information or publicity on applications of recycled food-grade Polypropylene (PP) resin that are actually being used in food-contact packaging.
It didn’t take long to understand why, given that PP is just embarking on its recyclability journey. If we consider the most widely recycled polymers to date — PET and HDPE — their recycling journey was not an immediate overnight success, either.
I recall when we were first producing food-grade rPET (in the UK) there was considerable reluctance to its use in food-contact packaging, and it required extensive trialing before being adopted for standard production. Now this is an everyday occurrence.
PP is currently going through the exact same phase.
Recycled food-grade PP is at the starting gate.
PP accounts for more than 20% of global plastics production and food packaging is one of its primary products. In the USA PP is one of the most converted polymers with a market share of about 20% (in 2018) yet it is also one of the least recycled (3% to 5%) mainly due to its use in non-bottle packaging, such as cups, tubs, and trays.
To understand why recycled food-grade PP resin is still dithering on the sidelines, even with an LNO, we need only check PET and HDPE’s first, tentative recycling steps. The reticence to accept a new resin’s safety is wholly understandable. It comes from a lack of experience and awareness that this food-grade recycled material can be safely used in consumer food-contact packaging.
The challenge with recycled polypropylene (rPP) is that until now it has not been possible to accurately differentiate between PP packaging that once contained non-food products from those containing food. Consequently, FGrPP has been limited to closed-loop recycling, hand sorting or advanced recycling technology processes based on mass balance (which is not yet recognized as recycling in the EU).
Characterizing residual contamination levels in rPP.
Progress is rapidly catching up, however, through science-based explorations to close the loop on post-consumer food-grade PP. Achieving this has meant methodically addressing every roadblock along the way and diving into the specific sorting and decontamination requirements for the recycling processes for PP. This led to NextLooPP’s investigation to determine the residual contamination levels of post-consumer PP packaging, which up until now, have never been characterized.
A lack of data showing the misuse/mis-selection rate within PP feedstocks prevented any reliable way of defining the residual levels that could potentially migrate into food, and any understanding of which molecules to target via decontamination processes. NextLooPP’s study aimed to identify substances that might cause samples of rPP to be outliers from the expected input stream that could represent challenges to the final safety of the recycled plastics. The key issue was to check whether the substances observed could potentially be genotoxic.
Considerations include the shape of the package.
Although being olefinic, the packaging format of consumer PP packaging reduces the chances of it being in such a consumer-misuse scenario. A large proportion of PET packaging is relatively durable, with a tight closure, making it a container of choice when used for storing hazardous materials. Likewise, HDPE packaging is also in bottle form with a closure meaning it, too, may be used in such a scenario. PP food containers, on the other hand, are less likely to come in bottle form and much more likely to be pots, tubs, or trays with limited closure capability, making them a less likely candidate for consumer misuse.
Characterizing the residues in post-consumer packaging that have been sorted into mono-polymer fractions was done by analyzing and testing multiple batches of food and non-food samples to see what molecules are present and if there are any areas of concern.
To achieve this, our team of scientists worked on 20-tonne (US 22.5-ton) batches of PP bales sourced from a UK-based materials recovery facility (MRF). Using automatic optical sorters to separate color fractions of natural (clear), white, and colored articles, each color fraction was hand-sorted to separate articles from food and non-food applications. The analytical study involved 700 tests, representing approximately 17,500 different PP packs based on 25 significantly sized flakes per test. This was estimated to be a cross-sectional representation of 7% of the packs from the combination of batches of 260,000 packs.
Following this contamination study, researchers characterized the contamination levels in PP, concluding that they are on the order of 10 times less than that which we expect in HDPE milk bottles; and 100 times less than that expected in PET. This is not surprising given the applications that select PP as the packaging material.
“Finding validated local end-of-life solutions for post-consumer food-grade PP packaging has been the driving force behind NextLooPP’s participants.”
New food-grade resins challenge the status quo.
This study marked a turning point in the NextLooPP project, giving us the confidence to use our PPristine food-grade rPP resins in food-contact packaging.
The performance standards we have now developed will enable us to help organizations reach a high level of technical performance as well as commercial and legal confidence in food-grade rPP. By deploying NextLooPP’s expertise and technical backup, we aim to license the technology to ensure that the resin standards can be fast-tracked into US-produced rPP food-grade packaging.
Finding validated local end-of-life solutions for post-consumer food-grade PP packaging has been the driving force behind NextLooPP’s participants, who continue to produce and trial a range of unique grades of high-quality food-grade recycled PP resins produced using Nextek’s patented PPristine decontamination technology.
Commercialized trials prove the concept.
Eighteen of NextLooPP’s brand and converter participants have now finalized 55 commercialization trials using five PPristine resin grades: Natural food-grade IM, Natural food-grade, White food-grade, Mixed Color food-grade, and non-food grade Mixed Color INRT. The results have been outstanding. For example, trials using 30% of PPristine resins in both extrusion and thermoforming trays achieved product quality comparable with the virgin products with no changes in processing conditions.
Breakthroughs lead the project toward the finish line.
The multi-participant project fine-tunes resin quality standards that are poised to become standard for food-grade recycled PP, and the success continues.
Sorting trials conducted in February by NextLooPP together with Tomra Recycling have confirmed a major breakthrough in the automatic sorting of food-grade PP packaging. The trials combined Tomra’s near-infrared visual spectrometry and GAINnext deep-learning technology. The trials achieved food-grade purity levels exceeding 95% in packaging applications. This is an exciting development and an invaluable boost to the NextLooPP project.
The technology has the potential to be rolled out to all PP packaging sorting facilities and will help produce valuable food-grade, post-consumer recycled PP streams. By providing a sorted food-grade PP PCR stream, GAINnext will enable the NextLooPP decontamination process to be carried out in many more recycling operations globally.
After nearly four years of intense collaboration, the NextLooPP participants are now breaking down the final barriers to producing food-grade recycled PP from post-consumer packaging into new circular economy products, and the initiative is looking forward to launching the NextLooPP Americas project to achieve similar outstanding results.
Cutting-edge algae-based bioplastics could revolutionize sustainable packaging (and beyond) while meeting consumer and regulatory demands.
At a Glance
Innate biodegradability and renewability make algae an ideal solution to traditional plastics’ environmental issues.
Applications include water bottle replacement, food wrappers, drinking straws, and condiment sachets.
The global bioplastics market is projected to rose from $8.14 billion in 2021 to $18.05 billion by 2027.
Algae, once primarily associated with marine ecosystems, is emerging as a game-changer for sustainable packaging solutions. With the escalating global concern over plastic pollution and the urgent need for eco-friendly alternatives, algae-based packaging has stepped into the limelight — and is not leaving anytime soon.
Below, we’ll explore how this remarkable resource is transforming packaging, why startups are investing heavily in it, and the immense potential algae holds for the future.
The science behind algae-based packaging
Algae refers to a diverse group of aquatic organisms possessing remarkable properties that make them an ideal candidate for sustainable packaging. They can be cultivated rapidly, requiring minimal nutrient input and obtaining energy from sunlight. Algae can thrive in saltwater and even wastewater, reducing the strain on freshwater resources. This adaptability makes them a cleaner alternative to traditional raw materials.
At the heart of algae-based packaging lies its innate biodegradability and renewability. This edge makes it ideal for food packaging and a viable solution to the environmental woes caused by traditional plastics. Algae also absorb atmospheric carbon during growth, further reducing greenhouse gas emissions. Remarkably, they contribute to approximately 70% of the oxygen in the Earth’s atmosphere.
As a packaging material, algae-based polymers offer comparable functionality to traditional plastics while presenting a sustainable end-of-life solution through compostability and biodegradability.
The rise of algae-based packaging
The global algae market is rapidly growing as new uses for algae are continually discovered, generating about $1 billion in sales each year. Here are various innovative applications for algae and seaweed as alternatives to plastic, showcasing their potential to revolutionize packaging and other industries:
Notpla’s Ooho water pods: Notpla’s Ooho is one of the most prominent examples of algae-based packaging. It’s a seaweed-based edible and biodegradable water pod. It’s a sustainable solution used in conjunction with reusable bottles and has gained significant attention at major events. Over 30,000 Ooho pods were distributed to runners during the 2019 London Marathon, replacing thousands of plastic bottles and substantially reducing plastic waste.
Evoware’s biodegradable food wrappers: Indonesian startup Evoware has developed biodegradable food wrappers made from seaweed. These wrappers are used for packaging various products, from coffee to cookies to soap. The materials are edible, biodegradable, and home-compostable, ensuring they can safely return to nature without harming wildlife.
Loliware’s seaweed-based straws: U.S.-based Loliware has created seaweed-based straws designed to replace single-use plastic straws. Unlike paper alternatives, they maintain their structural integrity for up to 24 hours after getting wet. While edible, Loliware straws will naturally degrade in the environment within two months.
MarinaTex’s fish waste and algae packaging: London-basedstartup MarinaTex has developed a bioplastic film made from fish waste and red algae. This innovative material is designed for use in packaging and has been awarded the James Dyson Award for its potential to reduce plastic pollution. This bioplastic is stronger than LDPE (low-density polyethylene) and decomposes in four to six weeks under home composting conditions.
Skipping Rocks Lab’s condiment sachets: Skipping Rocks Lab — the creators of Ooho — has also developed an eco-friendly alternative to single-use plastic packets for condiments and sauces to reduce plastic waste in the food industry. These seaweed sachets biodegrade within six weeks.
The potential for long-term impact
The potential for algae-based packaging to make a significant long-term impact is immense, driven by continuous advancements in research and technology. Ongoing improvements in extraction and processing enhance algae-derived biopolymers’ properties, making them more viable for various applications.
The role of algae in sustainable packaging is poised to expand exponentially as the urgency to combat plastic pollution intensifies. Packaging leaders can harness algae’s inherent properties to spearhead the transition toward a more sustainable and eco-friendly future.
The global bioplastics market, valued at $8.14 billion in 2021, is projected to reach $18.05 billion by 2027, with a CAGR of around 14% from 2022 to 2027. Despite a slight decline in global plastic production, bioplastic demand is rising steadily, driven by technological advancements, increased research and development, and expanding applications.
The rapid growth of the bioplastics market underscores the economic and environmental benefits of sustainable packaging solutions like algae-based materials. Algae require minimal resources to grow and significantly contribute to carbon sequestration. These advantages position algae-based packaging as a scalable, eco-friendly alternative to traditional plastics, addressing environmental concerns and market demands.
Embracing a sustainable future
By embracing algae-based packaging, companies can capitalize on bioplastic technology advancements while meeting consumer and regulatory sustainability demands. Integrating algae-based solutions promises a future where packaging is functional and environmentally responsible.
Incorporating algae-based packaging into your company’s sustainability strategy reduces environmental footprint and positions your brand as a leader in responsible practices. Explore this cutting-edge technology to enhance your product offerings and contribute to a greener future. Your proactive steps today can set the standard for sustainable packaging in the future.
Plaintiffs argue companies that make and sell bottled water have violated consumer protection statutes by labeling their bottled water as “natural” when the products allegedly contain microplastics.
Class actions involving bottled water is on the rise as attention focuses on chemicals and plastics in food packaging (in particular, PFAS and microplastics). Following studies in 2018 and 2019 and a fresh February 2024 Consumer Reports study, microplastic litigation should be on every consumer packaged goods manufacturer’s radar. While there is no consensus within the scientific community on harm caused by microplastics, the plaintiffs’ bar has chugged its drink and ran straight to the courthouse.
Plaintiffs across the country, with nearly identical allegations (and for some, the same plaintiff), are not bottling it in anymore. They argue companies that make and sell bottled water have engaged in a host of consumer protection statutory violations by labeling their bottled water as “natural” when the products allegedly contain microplastics. So far this year, we have seen five class actions brought against bottled water manufacturers seeking to certify nationwide and state-specific subclasses.
Without scientific consensus on the impact of microplastics, or guidance from the Environmental Protection Agency or FDA on the presence of microplastics (nor the definition of “natural”), defendants are left to draw analogies to other trending litigation, such as PFAS and glyphosate claims, to challenge these claims. In similar litigation, defendants have found some success in arguing that the FDCA preempts migratory substances like PFAS from disclosure as an ingredient. Likewise, courts have recently found that a “natural” claim could not lead a reasonable customer to believe there are no “accidental or innocuous amounts” of glyphosate in a product. These types of challenges could support dismissal as defendants attempt to put a lid on claims in the bottled-water battle.
Of these five cases, plaintiff Dotson voluntarily dismissed both complaints in April. The other cases are in various stages of motion to dismiss briefing. We’ll watch out for future splashes and keep you updated.
In partnership with rePurpose Global, the sale of each Chlorophyll Water bottle supports the equivalent recovery of one ocean-bound plastic bottle.
For plastic litter, an ounce of prevention is worth a pound of recovery. That describes the notion of diverting ocean-bound plastic by collecting plastic bottles before they ever reach the water.
The latest bottle brand to wade into the greener waters of preventive sustainability is Chlorophyll Water, a uniquely formulated, green-colored functional water.
With the brand’s new partnership with rePurpose Global, the sale of each bottle supports the diversion of the the equivalent of one ocean-bound plastic bottle. This ocean-bound plastic is then recycled, reducing the need for virgin plastic.
rePurpose Global is a major Plastic Action Platform that has recovered more than 25 million kilograms/27,558 tons of plastic waste from the environment to date, protecting vulnerable coastal regions across the Americas, Africa, and Asia.
CHLOROPHYLL WATER
Chlorophyll Water has gone deeper into sustainability over the years since the beginning. It debuted in 2019 in biodegradable plastic bottles. In October 2023, it switched to 100% recycled PET bottles. In that same move to rPET, the brand selected CleanFlake label technology from Avery Dennison to optimize the recyclability of the bottles.
Chlorophyll Water was also the first bottled water in the US tested for heavy metals, pesticide residues, and plasticizers to pass stringent Clean Label Project certification.
“Chlorophyll Water is committed to sustainability and using technology to lessen packaging’s environmental impact,” says Matt Levine, founder. “By originally launching in landfill-biodegradable bottles and recently transitioning to 100% recycled plastic bottles, we aim to significantly impact the plastic waste issue and reduce the use of virgin, fossil-fuel-based packaging. Our partnership with rePurpose Global further supports this progressive mission by preventing ocean plastic pollution with every bottle of Chlorophyll Water sold.”
Sainsbury’s is introducing a number of packaging changes across its own-brand chicken and fish lines, set to save 694 tonnes of plastic annually.
All own-brand salmon fillet trays are switching to pulp cardboard instead of plastic, a UK retailer first, which will result in 70% less plastic, saving 346 tonnes of plastic a year.
The supermarket giant said the pulp trays are made from sugarcane pulp, and are lined with polyethylene film.
Sainsbury’s is also rolling out cardboard trays across its Taste the Difference and by Sainsbury’s breaded chicken lines, which it said will save 300 tonnes of plastic a year.
The retailer is also making the same changes to its Taste the Difference breaded fish fillets, set to save 48 tonnes of plastic a year.
It added that the pulp cardboard trays from all salmon lines and cardboard trays across breaded chicken and fish are easily recyclable.
Claire Hughes, director of product and innovation, Sainsbury’s, said: “With salmon being one of our most popular fish, we made it a priority to reduce the plastic on the packaging of this much loved product as we work towards our Plan for Better goals.
“We are now the first retailer to make the move to have recycled pulp card trays across all our bySainsbury’s and Taste the Difference salmon products, enabling a whopping 70% plastic reduction. Together with changes to our breaded fish and chicken packaging, we are set to save 694 tonnes of plastic a year – a significant step towards our plastic reduction goals.”
Sainsbury’s recently launched its ‘Good to Know’ logo to help customers find products that are more sustainable, including those with reduced plastic packaging.
The new logo is aimed to help customers understand the retailer’s work around sustainability and its work towards its Plan for Better ambitions. Customers will be able to find the ‘Good to Know’ logo on the latest packaging across its salmon products.
The urgent need to eliminate single-use plastic packaging and drastically reduce waste has become a pressing business imperative. However, despite the evolution of technology and the availability of innovative solutions that enable smart and sustainable practices, much of the industry remains mired in outdated paradigms, resistant to the major shifts required, says Nevo Hadas of digital transformation consultancy DY/DX.
“We are at a pivotal moment where the technology exists to make significant strides towards sustainability in retail. A true circular economy solution is not just about recycling, it’s about completely rethinking how products are packaged and delivered to consumers, reducing waste and improving efficiency, while still increasing sales,” says Hadas.
Despite the clear benefits and the pressing need, Hadas says the industry’s response to finding solutions that reduce plastic has been tepid.
“While profit-drivers like new product trials receive substantial funding and resources, pilots focusing on packageless retail and sustainability are often underfunded and under-resourced,” says Hadas.
“Retailers may claim slow consumer adoption, but they run pilots that can only fail by choosing to poorly implement trials in the back corners of stores and by selecting sustainable options that are too expensive. Dispensing technology is often based on gravity bins and scales, which many research reports indicate have significant usability flaws for consumers. There’s an urgent need for retailers and manufacturers to boldly embrace innovation in this area, and invest in technology that offers real solutions.”
Hadas points out that in many countries, retailers already provide purchase options from bulk sections.
“Packageless retail, done well, reduces wastage, increases hygiene and improves the customer experience significantly. It allows bulk sales to move out of a wall at the back of the store, right to the aisle. It gives consumers a wider choice.”
“The retail sector’s slow movement towards packageless solutions mirrors the hesitancy seen in other industries disrupted by technology. Yet, those who have embraced change, have seen substantial benefits. Others were left behind.”
Signs of progress
The Smartfill IoT dispenser, an innovation developed through a partnership between DY/DX and retail solutions provider Smollan, is a case in point.
This IoT dispenser is poised to transform traditional retail shelf models by enabling packageless sales, significantly cutting down on single-use plastics, driving product affordability in developing nations and aligning with the growing demand for sustainable shopping experiences.
https://youtu.be/Co0coKYXVQo
This aligns with the principles of the circular economy, aiming to minimise waste and make better use of resources.
By enabling packageless sales and reducing single-use plastics, innovations such as these contribute directly to several United Nations Sustainable Development Goals.
Specifically, it promotes responsible consumption and production (Goal 12), supports climate action (Goal 13) through waste reduction, and fosters partnerships for the goals (Goal 17) by leveraging technology for sustainable retail solutions.
“The OECD projects a 67% increase in global plastics use by 2040,” says Hadas.
Packageless pilot shows strong consumer demand
The Smartfill system has already demonstrated its value and viability through pilots at leading retailers like Spar and collaborations with global brands such as Unilever. These initiatives have shown that not only is packageless retail possible, but it also offers a compelling business case.
The case studies demonstrate how the technology can be successfully integrated into a retail setting, offering customers a convenient and eco-friendly way to shop. Customers can use their own containers or paper bags, fill them with the desired amount of product from Smartfill dispensers, and only pay for the product they take.
“Everybody tells you customers are not interested in packageless refill options. However, Smartfill pilots demonstrated strong consumer demand, with 40% of the users coming back,” says Hadas.
Consumers purchased varied amounts that were not prepackaged on shelves, while the retailer enjoyed higher margins by selling from bulk at small-size prices, Hadas explains. “The pilot tripled the sales of product under 1kg, moving over 550kg of product. We outperformed 3m of shelf space in 30cm.”
Offering zero plastic packageless options could enhance affordability for developing markets, rather than being limited to eco-friendly elites and speciality stores, according to Hadas.
Packaging costs contribute significantly to the overall price of products and services, up to 40% of the total cost in cases.
Research conducted in Smartfill trials in South Africa and Kenya with Spar and Tiger Brands showed that gross margins for retailers increased by an impressive 17% to 32%, depending on the product, demonstrating that the unpackaged approach can be economically viable for both consumers and retailers.
Needs of the customer
Understanding customer behaviour and usage patterns is crucial in this transition. Hadas argues that the current pre-packaged retail paradigm simply does not consider the benefits of allowing consumers to purchase exactly what they need.
A Unilever pilot in Bangladesh showcases the adaptability of Smartfill technology. The project focused on delivering personal care products in a packageless format, demonstrating that even industries heavily reliant on traditional packaging can successfully embrace this new approach.
While small-quantity sachets were thought to be a favoured choice, a shift to dispensing machines with the option of small bottles soon showed that this option was preferred by customers and led to more efficient use, without the waste that sachets create.
Hadas believes that engaging with customers and clients about the reality of how they use products can lead to unexpected insights. “By challenging the limited options available in the traditional retail world and truly understanding customer needs, there is an opportunity to rethink and innovate for better sustainability and efficiency in retail practices.”
Overcoming barriers
The industry cites consumer convenience and perceptions, regulatory and health concerns. Supply chain and logistics and lack of infrastructure as barriers to packageless retail.
However, the biggest barrier is industry response to innovation in this area, says Michael Smollan, director of international retail solutions company, Smollan.
“It frustrates me that we do not adopt viable solutions to global problems faster,” says Smollan.
“Solutions like Smartfill can solve the devastating plastic problem in a smart, user-friendly, data-driven and cost-neutral way, yet due to a combination of inertia and legacy systems, mainstream adoption is much slower than it should be. It takes brave and future-facing people to partner with, to take a risk and ultimately do the right thing, even if it’s not the easiest thing at the time.”
The call to action for retailers, brands, and manufacturers is clear: the time to embrace packageless retail solutions is now, says Smollan.
Collaboration across the industry, along with supportive policies and consumer education, will be key to accelerating the adoption of package-free retail solutions and achieving the environmental benefits.
“The technology exists, the business case is compelling, and the environmental imperatives are undeniable. It is time for the industry to move beyond lip service and take bold, decisive steps towards sustainability. Let’s rethink the possibilities, embrace available innovation and technology, and lead the charge towards a more sustainable and responsible future.”
If the packaging industry wants to make reusable packaging systems more mainstream and widely used, boosting efficiency is key. One company aiming to facilitate this is Sykell, whose ‘Circular ERP’ product has been designed to revolutionise how companies manage and judge the performance of reuse projects. We spoke with the company’s co-founder, Michael Kappler, to learn more.
I think it’d be good to start with some context: What is Sykell’s Circular ERP?
The CIRCULAR ERP offers an Operating System to companies in the circular economy to efficiently manage their inventories of reusable assets. Sykell has developed a reusable packaging system that enables retailers and partners in the food, beverage, cosmetic and drugstore sectors to shift from disposable to reusable packaging and towards a circular economy.
In addition to the primary functionalities of an ERP solution, including clearing and deposit processing, CIRCULAR ERP also unlocks synergies within return logistics and washing.
How does it work in practice? Please take us through each step of the process.
The CIRCULAR ERP accompanies an asset from production, through usage, washing and deposit clearing to the end of life. All operationally relevant product components are rounded off by comprehensive analysis tools and data processing to create detailed LCAs and sustainability reports.
1. Production & Procurement Whether straight from production or supplied by a producer, the system enables quick, effortless creation or import of all essential asset information.
2. Assets & Inventory Maintaining complete visibility over the asset portfolio. The system enhances the capacity for precise demand planning and forecasting.
3. Orders & Logistics Tackling the increasing complexity of order management and logistics optimization as user’s systems expand. The CIRCULAR ERP automates all these processes so users can focus on their operations.
4. Clearing & Deposits The system is engineered to provide unparalleled transparency in handling intricate deposit setups across various partners within the clearing process. Tracking all deposit operations down to the individual asset or by quantity.
5. Financials & Analytics Generating comprehensive financial reports and maintaining audit-ready data and usage history with ease. The dashboard provides a quick overview of crucial KPIs, ensuring users are always informed in their daily operations.
6. Sustainability & LCA Creating sustainability reports based on real-time insights and using them as starter or additional data for life cycle assessments (LCA).
You’ve already collaborated on three use-case projects: Please could you tell us more about some of these?
In addition to the advantages such as efficiency and transparency for the system partners, we also support service providers along the sometimes individual cycles to connect to the CIRCULAR ERP (e.g. via API) and providing all system partners in real-time the tracking status, clearing information and updates about the asset conditions.
Using the CIRCULAR ERP solution, Sykell successfully operates its own reusable system with more than 2 million reusable assets all over Germany: EINFACH MEHRWEG. The reusable packaging system, which has been awarded the Blauer Engel (Blue Angel) ecolabel, has been embraced by consumers thanks to its ease of use and convenient returns via reverse vending machines, which makes returning used containers and cups as easy as returning deposit bottles.
Sykell has a nationwide network (ca. 7.500) of EINFACH MEHRWEG system partners, including major food retailers, petrol stations and restaurants. The asset portfolio includes different containers for take-away food and pre-packaged foods as well as various cups for hot and cold drinks.
Zerooo is a reusable system for cosmetics and drugstores. Parallel to the successful piloting of care and cleaning products under its own SEA ME brand in the reusable deposit system, SEA ME GmbH began in 2021 to set up the infrastructure for the return, cleaning and refilling of the specially developed reusable containers.
From January 2024 reusable containers from the zerooo system will be available in more than 900 stores and the empties can be returned. With new, innovative reusable packaging solutions, more retail partners, more product categories and more sustainable brands in the system, SEA ME GmbH is expanding the reusable system as a transparent, resource-saving and low-emission alternative to the standard disposable system.
What is the carbon impact of these projects, and how is this calculated?
The carbon impact of the CIRCULAR ERP can be calculated based on various factors, because the software facilitates other companies to implement, manage, and operate their reusable assets efficiently. Primarily, the CIRCULAR ERP enables the reduction in single-use packaging through external companies, which indirectly leads to a decrease in waste generation and directly contributes to carbon emissions reduction.
This is assessed by comparing the carbon footprint of single-use packaging, including production, transportation and disposal with that of reusable packaging over its lifecycle, including production, transportation, return logistics, washing and disposal. Moreover, the efficiency gains in logistics and transportation, enabled by streamlining processes through the CIRCULAR ERP, result in reduced fuel consumption and emissions.
By optimizing routes for return logistics and minimizing empty trips, the carbon impact of transportation is mitigated. Integrating more projects and reusable packaging into the CIRCULAR ERP besides our own reusable system EINFACH MEHRWEG like zerooo and dotch, enhances operational efficiency and reduces the environmental footprint of their products. As mentioned above, the carbon footprint and impact of the reusable packaging are calculated by conducting a comparative life cycle assessment (LCA).
Ideally, the LCA is conducted according to the ISO 14040/ISO 14044 standard to ensure standardized and accurate results. (Additionally, the results of a comparative LCA are subject to third-party verification. It is also possible to conduct a simplified LCA not following those standards, but transparent communication of the calculation method is essential.)
To understand the carbon impact of the reusable packaging, it is necessary to select a single-use alternative utilized in the same use case, as well as a number of reuses or uses of the packaging to create a realistic comparison of the life cycle stages.
A comparative life cycle assessment and its third-party verification are in execution for all EINFACH MEHRWEG products according to the LCA Standard ISO 14040/ISO 14044. The life cycle impacts for all EINFACH MEHRWEG products, as well as its single-use alternatives, are calculated, such as climate change, water consumption, and material consumption.
The results show the emissions, water, and waste saved when reusing an EINFACH MEHRWEG packaging 50 times compared to the usage of 50 single-use packaging. Additionally, the break-even point is calculated for each impact category to determine the number of circulations and reuses required for an EINFACH MEHRWEG packaging to outperform single-use packaging across various impact categories, thereby resulting in a lower environmental impact.
In terms of the whole value chain, as well as legislators and regulators, what can be done to make reusable packaging systems more widespread?
We see different efforts on the part of national legislation and the EU to decide on the right framework for the use of reusables. Unfortunately, this currently mostly fails due to different interests and measures taken by the disposable lobby. But the implementation or obligation to offer reusable products does not necessarily mean a visible change.
In Germany, for example, the urgently needed control measures have been lacking since the obligation to offer was introduced on January 1, 2023. Unfortunately, this is usually due to the fact that no authority simply feels responsible or that authorities are understaffed.
In addition to the legal framework, the success of reusable reusables is, above all, acceptance, both externally and internally. Externally means the consumer, who must be convinced in particular by a high level of convenience and quality.
From simply borrowing hygienically perfect containers to adequate deposit amounts and return options suitable for everyday use, for example the approach of cross-system and cross-location returns (“return anywhere”).
At the same time, internal acceptance also plays a major role. This refers to all employees who are involved in the cycle or who have direct customer contact as ambassadors for reusables. Here too, processes must be designed to be simple. This is the only way to actively offer the customer a reusable alternative.
