Sustainable packaging: companies are stepping up their sustainability game; focuses on eliminating plastic in packaging

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Indian consumers are also looking for brands with a social and environmental vocation.

Single-use consumption habits continue to pose a threat to the environment, especially in the context of plastic packaging. According to the World Economic Forum, only 14% of plastic packaging is collected for recycling worldwide. In addition, by 2050, the carbon footprint of plastics is expected to triple. With this in mind, companies are moving towards sustainable packaging solutions. For example, by 2030, L’Oréal Paris aims to reduce its carbon footprint by 50%. This includes using more recycled content in packaging, with the goal of achieving 100% recycled or bio-based plastic by 2030. PepsiCo India, as part of its sustainability agenda, aims to design 100% recyclable, compostable or biodegradable packaging. It plans to reduce the use of virgin plastic by 35% in its beverage portfolio by 2025. “The way a package is designed – its shape, its weight – determines the efficiency with which it can be dispensed over many areas. long distances. The lighter the package and the more packages that can be transported together, the lower the carbon impact, ”Jaideep Gokhale, Vice President – Sustainability, Asia Pacific, Director of Sustainability, told BrandWagon Online. South Asia, Tetra Pak.

Indian consumers are also looking for brands with a social and environmental vocation. For example, 77% of consumers are willing to invest time and money to support businesses that do good for the environment, a report from Kantar found. In addition, 66% of consumers said they had stopped buying products or services that had a negative impact on the environment and society.

Recently, meat brand Nandu’s launched eco-friendly packaging for all of its home delivery orders. The new packaging consists of a primary packaging made from a completely recyclable, non-plastic, non-plastic, virgin material. Likewise, secondary packaging is made from a blend of recycled and virgin paper that is fully recyclable. The company says the move increased the cost of packaging by around 10%. “Packaging today, in our category, is about a tenth of the cost. This decision will be a game-changer in smart and sustainable solutions that meet the needs of consumers as well as the planet. Nandu’s goal now is to make 100% of our packaging plastic-free by 2023, ”said Narendra Paséquencehy, CEO and co-founder of Nandu. Nivea presented its latest innovation in skin care – ‘Nivea Naturally Good’, in which each product in the range is presented in environmentally friendly packaging. Shower gels come in a bottle made from 97% recycled plastic, the deodorant line comes in glass bottles that eliminate the use of aluminum and the body lotion bottles are made with 50% plastic in less which also makes it possible to squeeze and roll the bottle. to the last drop to avoid waste.

According to industry experts, for most consumer companies, the cost of packaging is between 8-12% of cost of goods sold (COGS). For luxury brands, the cost of packaging is between 8 and 15%. Sustainable models impact costs, which increase by around 20-25% depending on the segment, said Sanjesh Thakur, partner of Deloitte India. “In addition to the cost, moving away from traditional packaging has many implications within the supply chain and logistics management, with factors such as transport, temperature and others playing a key role in the process. decision-making process, ”he added.

However, with millennials and millennials looking for sustainable products, most companies are willing to fork out extra dollars to build a strong brand image. While big brands are currently leading the pack, other companies are slowly changing their branding rhetoric and building it around sustainability. “Sustainability as a theme is at the heart of brand building. Globally, the most sustainable companies are also the most valued companies. This is the need of the hour for brands to communicate and engage with their consumers around their sustainable practices, ”explained Thakur.

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