INTHEBLACK April 2022 - Magazine - Page 54
F E AT U R E
// PA C K A G I N G I N D U S T RY
“ T O D AY T H E R E I S M O R E VA L U E P U T O N
S U S TA I N A B I L I T Y T H A N I N T H E PAS T, A N D S O M E
B U S I N E S S E S A R E P R E PA R E D T O PAY A 10 P E R C E N T
T O 15 P E R C E N T P R E M I U M F O R PA C K A G I N G .”
JOANNE HOWARTH, PLANET PROTECTOR PACKAGING
The 2025 targets set by the Australian Packaging
Covenant Organisation (APCO) are for 100 per cent
of Australian packaging to be reusable, recyclable or
compostable. Of plastic packaging, which has some of
the lowest recovery rates of any material, the target is
for 70 per cent to be recycled or composted.
The targets are helping to keep the pressure on
food and beverage businesses to make their packaging
more sustainable. One of the world’s largest food
manufacturers, Nestlé, has established an Institute
of Packaging Sciences that, together with suppliers
and other external partners, is exploring alternative
packaging materials.
Unilever, another fast-moving consumer goods
(FMCG) giant, says it is well on track to halve its
use of virgin plastic by 2025, reducing its use of
plastic packaging by more than 100,000 tonnes and
employing more recycled plastic in its packaging.
COST OF GOING GREEN
While fast-developing technologies are creating
alternatives such as plant-based plastics, the APCO targets
are under threat when cost is pitted against sustainability.
54 ITB April 2022
For a company to change its packaging material
– such as swapping from a fossil fuel-based polymer
to a biodegradable polymer – “requires a significant
investment of time, money and HR costs”, says
Dr Nicole Garofano, head of circular economy
development at Planet Ark’s ACE (Australian Circular
Economy) Hub and member representative with the
Australian Institute of Packaging. Several rounds of
trials and approval stages need to be gone through
before the packaging comes to market.
Packaging costs have also been heading north since
the onset of the COVID-19 pandemic, says packaging
consultant, Neil Ainslie.
“During COVID-19, we have seen shipping and
freight costs grow tenfold. It is forcing Australia to go
back to manufacturing after letting our capabilities go
offshore. But the question is, will people absorb the
increased costs? We make an Australian plastic punnet
for 10 cents, when one can be imported for 7 cents,”
says Ainslie.
Unfortunately, the pandemic is also negatively
affecting research and development exactly at a time
when brands are wanting to introduce more sustainable