Research

Packaging Moving With the Times

11 October 2019 17:31 RaboResearch

PackExpo Las Vegas is one of the largest packaging trade shows, hosting everything related to packaging, from machinery, resin suppliers, to converting powerhouses. It is where commodity material meets the packaging of the future. We want to share some highlights from the recent 2019 event: sustainability, high-performance packaging, e-commerce, and aseptic packaging.

Intro

Much Buzz Around Sustainability

The many new innovations and of course stand-up pouches in a variety of formats, materials and configurations, did not distract attention away from the main theme at this year’s PackExpo Las Vegas. Sustainability: It’s simply everywhere. In the past few years there has been significant negative publicity concerning plastic packaging and waste, and brand owners are addressing these public concerns by setting ambitious sustainable packaging goals. Packaging suppliers throughout the show displayed innovative developments for sustainable packaging:

  1. Down-gauging: minimizing material usage through re-design and functionality. We saw developments of in-mold labeling with Ethylene Vinyl Alcohol (EVOH), a high barrier resin. This allows for the use of mono-layer non-barrier containers by significantly reducing the number of packaging layers. Examples are Berry’s 410 Plus or 409 Quad designs and Sonoco’s In-Mold Labeled containers.
  2. Designing for recyclability: designing out non-recyclable layers. Examples are DS Smith’s repulpable coatings as wax replacement on corrugated containers for wet shipments (e.g. fresh produce and animal protein), or Klöckner Pentaplast’s seal mechanisms on meat tray flanges. This innovation enables the use of a low-temperature seal initiation on PET for faster sealing while promoting package integrity. This package is also recyclable by eliminating the glue layer in the PET waste stream.
  3. Paper-based alternatives to plastics: using paper-based packaging to replace plastics such as polystyrene or polyolefin. Many applications are in the foodservice segment (e.g. molded pizza boxes) and protective packaging. There is a growing interest in the adoption of crumpled paper void fill, as it is perceived to be a sustainable alternative to traditional plastic inflatable bags.
  4. Bio-based materials: a plethora of companies were promoting bio-based materials as a substitute for petroleum-based resins. There were various levels of bio-based content, from 30% to 90%. An example is BeGreen Packaging, backed by private equity, which manufactures foodservice containers from bagasse. It is biodegradable and compostable but with a limitation of six-hour moisture resistance for hot liquids. However, bio-based materials sometimes struggle to compete as they find it difficult to market a value-added product in a commodity marketplace. We also saw many suppliers of bio-based plastic packaging from China.
  5. Post-consumer recycled (PCR) materials: Post-consumer feedstock has made its way into various materials, and rigid and flexible packaging formats. Placon, for example, was promoting Ecostar®, an FDA-approved, post-consumer recycled PET made from curbside-collected bottles and thermoformed containers. Many are using small percentages, and many want to get to 100% PCR use. A major concern, however, is the collection of clean PCR materials.

Performance Packaging a Money-Maker

With sustainability dominating the show, we also saw the promotion of high-performance packaging structures to reduce food waste and extend shelf-life. The primary function of food packaging is to protect the contents, and mono-layered plastic-based solutions often lack barrier performance. Adequate barrier performance still requires more sophisticated solutions, like multi-layered structures. Regardless of the spotlights, sustainability does not drive commercial agendas, and multi-layer structures are still the money-maker for most plastic packaging solutions due to these superior barrier properties.

For example, ExxonMobile has developed innovative blends of polyethylene (PE) and polypropylene (PP) that provide improved sealability and higher performance with thinner materials. Without impacting recyclability, the material has higher dart, creep, and flex crack resistance. In an application for frozen fish, this material significantly reduces food waste by improving package integrity. Other high-barrier examples include various coating technologies on plastic materials (metalized, glass, and ceramic) to improve oxygen and moisture barriers, but they have limited marketability in North America.

E-Commerce Solutions

E-commerce was also prominent at the show. We saw clear evidence addressing Amazon’s move towards Frustration-Free Packaging. There are multiple efforts aimed at the simplification of the overall packaging process, whether it's primary, secondary, or tertiary packaging. We want to highlight two hotspots:

    Automated packaging systems that enable packaging on demand, optimizing packaging space, reducing waste, and minimizing void space. Multiple manufacturers look to identify the shapes of objects as they flow through their systems and build customized corrugated boxes on demand. High-performance multifunctional films to replace secondary and tertiary packaging, thus protecting the product during shipping, and eliminating the need for excess packaging (e.g. Sealed Air StealthWrap).

Aseptic Packaging

Aseptic sterilization is a well-known method of food processing to promote better food quality. Aseptic packaging must withstand the rigors of steam or hydrogen peroxide solutions and is highly specialized. We see continued growth in popularity despite its high cost of entry. Historically, aseptic packaging is considered environmentally unfriendly due to its multilayer structure often containing aluminum, making it hard to recycle. At the show, we saw innovations that address these issues and that expand the applications of aseptic packaging.

    Sholle has developed an EVOH-lined clear flexible aseptic pouch (as an alternative to the aluminum in liquid carton). It has also developed an introductory-level aseptic machine at 30-50 packages per minute to allow for a low-cost entry and trial productions. Liqui-Box, backed by Olympus Partners, developed a solution for water coolers that replaces plastic bulk water bottles with a coated PET aseptic bag-in-box solution. This development eliminates the need for the return of the bottle and enables easy recycling with the PET stream. This design is reportedly gaining traction, especially in Europe.

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The information and opinions contained in this document are indicative and for discussion purposes only. No rights may be derived from any transactions described and/or commercial ideas contained in this document. This document is for information purposes only and is not, and should not be construed as, an offer, invitation or recommendation. Read more