In general, sustainable packaging benefits all industries, but it has the greatest impact in the FMCG sector. Owing to the fact that the FMCG sector is the fastest-growing industry on earth, meaning that it is also one of the most demanding in terms of packaging. The pace of global and national climate change initiatives is forcing manufacturers to shift to more sustainable packaging methods. This article will review some of the benefits and drawbacks of these new sustainable packaging methods, while also highlighting some key innovations in this field.
As inflation continues to rise as a result of economic variations and most recently, the war on Ukraine by Russia, there has been a significant rise in costs for fast-moving consumer goods (FMCG) manufacturers, consumers are exposed to higher prices for the same or even less quality. To remedy this rise in cost, many manufacturers in the FMCG sector have doubled down on their efforts on ensuring that they reduce the materials used in making packages, packet size, and plastic use by embracing eco-friendly measures in packaging thus, reducing the commodity cost in packaging and freight and raw material acquisition. Wikipedia defines Sustainable packaging as the development and use of packaging which results in improved sustainability.
According to the Sustainable Packaging Coalition (SPC), the following 8 criteria define sustainable packaging:
- Beneficial, safe, and healthy for individuals and communities throughout its life cycle
- Meets market criteria for both performance and cost
- Sourced, manufactured, transported, and recycled using renewable energy
- Optimizes the use of renewable or recycled source materials
- Manufactured using clean production technologies and best practices
- Made from materials that are healthy throughout the life cycle
- Physically designed to optimize materials and energy
- Effectively recovered and utilized in biological and/or industrial closed-loop cycles
What does sustainable packaging do for the fmcg sector?
The fast-moving consumer goods (FMCG) sector is under global pressure to cut costs while reducing its environmental impact and one way they can achieve this result is by embracing sustainable packaging techniques.
Sustainable packages are made from materials that can be reused or recycled. Hence, it doesn’t cause damage to the environment when it’s disposed of and also helps to reduce the amount of waste produced by the FMCG sector.
The use of sustainable packaging is a key part of the transition to a circular economy. In a circular economy, resources are used again and again, instead of being thrown away. This reduces waste, protects the environment, and creates jobs and growth.
The FMCG sector has a vital role to play in making the transition to a circular economy. By using sustainable packaging, companies can make a big difference.
Benefits Of Sustainable Packaging
There are several benefits derivable from sustainable packaging namely;
- Builds Brand Affinity With Eco-friendly Consumers
- Improve how your brand is perceived,
- Increase your sales amongst some demographics,
- Improve customer satisfaction,
- Reduce your carbon footprint,
- Minimize the excess waste and unnecessary use of material. This can potentially reduce the cost of your packaging.
- Decreasing carbon footprint and lowering shipping costs
- Driving down operational costs
- Demonstrating corporate social responsibility (CSR)
- Increasing sustainability in manufacturing, operations, and the supply chain
- Using fewer natural resources and raw materials
- Improving health and safety for workers
Since manufacturers are becoming increasingly aware of the need to reduce the environmental impact of their products and manage production costs, sustainable packaging is becoming increasingly important. Sustainable packaging is designed to reduce the environmental impact of packaging throughout its lifecycle, from the point of manufacture to the point of disposal.
Sustainable packaging is therefore a key part of any manufacturer’s efforts to reduce their environmental impact. And with consumer demand for sustainable products on the rise, it’s an important consideration for any business in the FMCG sector.
Lowering packaging costs and waste produced by the FMCG sector can ensure the benefits earlier mentioned as well as customer satisfaction. With this much to gain, don’t you think it’s time for the FMCG sector to strategically switch to sustainable packaging?
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