December 16, 2011
Originally posted on GreenBlue's Blog
Packaging Digest recently released the results to the 2011 Sustainability in Packaging survey. For the past five years, Packaging Digest and GreenBlue’s Sustainable Packaging Coalition have collaborated on this survey to provide a comprehensive view of sustainability trends in the packaging industry.
The survey, which included 674 total respondents, is meant to track the progress of the packaging industry at large as well as looking specifically at how SPC members compare so we at GreenBlue can start to measure the impact of our packaging work. Some of the trends are explored below, with an emphasis on responses from SPC members versus those of the total industry.
Sustainability Knowledge
According to the survey, industry knowledge of sustainability issues remains high. 80% of respondents indicated a high or moderate familiarity of sustainability issues, dropping slightly from 83% in 2010. This percentage is higher for SPC members, with 95% of members reporting a high or moderate familiarity of sustainability issues. There is a clear maturity and awareness of sustainability concerns in the packaging industry as this number has risen from 52% when the survey launched in 2007.
However, SPC companies recognize that more education and training is necessary for sustainability to move forward in their organizations. When asked, “To best achieve your company’s sustainability goals, what developments are most needed?” the top answer for SPC members was “more education and training.” The industry as a whole ranked education and training as a lower priority.
They survey reveals that sustainability knowledge and C-level support for sustainable products are both high in SPC companies, and it confirms our emphasis on education as a driver for change in the industry. While companies have educated and skilled professionals working on their sustainability goals and motivated C-levels, the remainder of the organization will also need higher level of understanding to truly transform packaging.
Drivers for Sustainability
The survey also explores internal and external drivers for sustainability in the packaging industry. C-level support for sustainable products is the top internal driver in SPC and non-SPC member companies, though SPC companies show a higher degree of C-level support.
The primary external influences on sustainable packaging are consumer demand, pricing pressure, and retailer/brand owner requirements. With consumers and retailers/brand owners exerting pressure for sustainable packaging, image and reputation will be important for the packaging industry to monitor.
Respondents still see extended producer responsibility (EPR) as a significant issue in the next five years, though this belief is beginning to soften. 68% of all respondents expect EPR to be a very or somewhat significant issue in the next five years, down from 89% in 2010. If implemented, respondents agreed that EPR should be regulated at the federal level.
Material Sourcing and Recovery
SPC members are more aware than their non-SPC counterparts that poor material recovery mechanisms are a barrier to improved packaging sustainability in the United States. Since SPC members use renewable and recycled content at a higher rate than the industry as a whole, they are more sensitive to the highly fragmented recovery system in the United States.
When asked, “What do you think are the biggest challenges to making your current packaging process more sustainable?” the top answers for all respondents were raw material costs, lack of alternatives (materials), and producing comparable quality. Top responses for SPC members were raw material costs, lack of recovery infrastructure, and producing comparable quality. This indicates that SPC members have moved beyond recovery as a waste management system to recovery as a material sourcing method. They see recycled content as an alternative, and are concerned about securing those materials.
There is no unified strategy or approach in place to improve recycling or make it more comprehensive, which SPC members indicated as an inhibitor to sustainability improvements. In addition, 73% of SPC members indicated that it is very important to significantly improve recycling and recovery of packaging in the next five years. With EPR concerns softening and municipalities facing continued budget cuts, funding of recovery will be a particular challenge in the coming years.
Moving Forward
How do we maintain momentum towards more sustainable packaging? It is clear that education, training, and improving material recovery are barriers. If the packaging industry does not succeed in overcoming these challenges, they risk growing negative consumer impressions. In this case, failing at sustainability for packaging is going to be a risk for our businesses in more ways than one—consumer dissatisfaction and securing alternative sources of materials through recovery.
The Packaging Digest survey provides a wealth of knowledge on current trends in the industry. If you have any questions about the information above, or would like to know more, please let me know. We also hope that you can encourage other companies to join the conversation by becoming SPC members.