Facts & Findings

Pickle topic:

Continued Inflationary Pressure Across Food Packaging Materials

Published:

March 1, 2022

https://research.rabobank.com/far/en/documents/499749_Rabobank_Continued-Inflationary-Pressure-Across-Food-Packaging-Materials_Li_Freundlich_Mar2022.pdf

Continued Inflationary Pressure Across Food Packaging Materials

Key finding

48% increase in 2021

in the price of major packaging resins, such as PET.

These once-in-a-lifetime increases in plastic packaging pricing are a result of weather events, infrastructure breakdown, Covid-19, and labour shortages… Recent events in Ukraine continue the upward pressure on packaging resins, with regional PET prices increasing by USD 0.20/lb in the first two months of 2022.

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Review

your internal processes

Whatever systems your packaging fits into, you can take steps to track and ensure that the systems are working properly. If you find they aren’t functioning as well as they could, identify the pain points and work to reduce them. Reliable data is invaluable here.

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Help your customers

change their behaviours and give clear directions

Clear communication to customers about what to do with the packaging after they use it will help to make your chosen packaging system more effective in practice.

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Upstream Innovation

A guide by the Ellen Macarthur Foundation

This is one example of how businesses are innovating and moving towards circularity in their packaging. Globally recognised frameworks and certifications are readily available and can help your business to set the course to improve your packaging.

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Getting out of this Pickle

Step back and ask yourself these questions:

What were the reasons for choosing a certain set of materials, a supplier, or a system? Do the reasons for these decisions still stand, or is there room to move? What aspects of your current packaging are the most environmentally costly? What aspects are the simplest to improve? Are there components in your current packaging that could be removed altogether?

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The success of a refill system

relies on educating customers

"Beauty Kitchen is doing a fabulous job of educating their customers about the importance of plastic packaging reduction and shifting out of single-use packaging. They credit that educational process with the success and the acceptance of this program by their customers.”

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Beauty Kitchen

has designed and implemented an effective packaging refill system

“Beauty Kitchen has developed a really exciting program called “Return, Refill, Repeat”, which is a packaging refill system. They have designed their packaging to support the system, made from aluminium and glass jars and bottles. They're making it possible to move away from single-use packaging and promoting refilling of packaging, which is high up on the hierarchy of sustainable packaging strategies.”