Trends in Ethical and Sustainable Packaging: Innovation by product category

Trends in Ethical and Sustainable Packaging: Innovation by product category

Trends in Ethical and Sustainable Packaging
Innovation by product category

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Key issues examined by this report...
• Environmental packaging regulations are heavily influencing packaging development in Europe. In Europe Packaging Directive 2004/12/EC sets out recycling and recovery targets to be met by 2010

• Retail Pressure. Retailers such as Wal-Mart have embraced ethical packaging initiatives not only because they enhance their ethical profile but also because many greener packaging technologies, such as lightweight packaging, bring with them cost benefits. In addition, retailers are pressuring manufacturers to reduce packaging and use more sustainable packaging sources.

• Consumer concerns for the environment. 58.9% of industry executives rated concerns about the environment as the most important driver in influencing consumers to purchase food and drink packaged in ethical and sustainable packaging.

Trends in Ethical and Sustainable Packaging
Innovation by product category

Ethical product development is now a major issue in the industry, and this trend includes the use and promotion of sustainable packaging formats. Ethical packaging is being driven by consumer environmental concern, retailer pressure and the development and promotion of manufacturer CSR. Retailers and manufacturers must be seen to be contributing to a greener and more sustainable way of life by the media, the industry and consumers alike. To remain competitive, retain consumer loyalty and be innovative, retailers and food and drinks manufacturers need to invest in ethical policies by either developing products in ethical packaging or promoting and reminding consumers to act ethically and responsibly.

Trends in Ethical and Sustainable Packaging is a new management report published by Business Insights that examines the new innovations in ethical and sustainable packaging by category, region and material. It profiles major innovations within ethical and sustainable food and drinks packaging, including the latest packaging technologies and materials.

Discover the key trends impacting the ethical and sustainable packaging market and understand how these are changing packaging design with this new report...

This new report will enable you to

• Gain insight into industry opinions on the usage and future of ethical and sustainable packaging through an exclusive survey of industry executives carried out by business insights.

• Create more effective competitive strategies with this reports detailed analysis of packaging technologies including recyclable, lightweight, biodegradable and packaging from natural sources. Evalualte the pro’s and con’s of these packaging innovations and decide whether these may be appropriate for your organisation.

• Improve targeting and the effectiveness of your NPD strategies with this report’s analysis of Productscan data of over 6,000 ethical and sustainable packaging product launches between 2005 and 2008. Detailed analysis of leading ethical packaging types and insights into key regions and packaging materials.

Your questions answered...

• To what extent should manufacturers and retailers be investing in ethical and sustainable packaging?

• Which countries are driving NPD in ethical and sustainable packaging?

• What are the most innovative forms of ethical packaging?

• How will packaging regulation affect NPD in ethical and sustainable packaging?

• How are key players, including Wal-Mart and PepsiCo investing in ethical and sustainable packaging?

• What is driving the trend of ethical and sustainable packaging?

Some key findings from this report...
• Packaging from natural sources is a key ethical innovation. Other leading innovations include biodegradable, lightweight and packaging made from recycled sources.

• There has been an increase in the share of food and drinks launched in ethical packaging between 2004-2007. Within this share recyclable took the greatest share with 89.5% in 2007. However the largest growth was seen in biodegradable packaging and packaging made from recyclable materials.

• 53.5% of industry executives believe that recyclable packaging will be significantly important or the most important ethical packaging innovation over the next 5 years. 37.5% believe reduced packaging will be the most important.

• Leading retailers are investing in ethical packaging initiatives. This includes Wal-Mart who has pledged to eliminate all private label packaging waste by 2010, with a look to have zero packaging waste land filled by 2025.

Table of Contents
Trends in Ethical and Sustainable Packaging
Executive Summary 8
Introduction 8
Market drivers in ethical packaging 9
Innovation and NPD 10
Key trends 11
Conclusions 12
Chapter 1 Introduction 14
Summary 14
Introduction 14
What is ethical and sustainable packaging? 15
Drivers and resistors 15
Packaging types 17
Packaging materials 19
Eco brands versus large multinationals 21
The scope of the report 23
Chapter 2 Market drivers of ethical
packaging 26
Summary 26
Introduction 26
Retailers 28
Wal-Mart 29
Tesco 30
Kroger and Co 31
Costco 32
Schwarz group/Lidl 33
Conclusion 34
Food and drink manufacturers 34
Nestlé 37
PepsiCo 37
Other manufacturers 38
Consumers 39
Ethical packaging innovations 42
Premium pricing for ethical and sustainable packaging 44
Regulatory issues 46
Europe 46
US 48
Japan and Asia-Pacific 49
Ethical logos and labeling 50
Chapter 3 Innovation and NPD 54
Summary 54
Introduction 54
Category analysis 55
Alcoholic drinks 56
Soft drinks 58
Bakery and cereals 60
Other categories 61
Regional analysis 62
Europe 63
North America 65
Japan 66
Packaging material analysis 67
Plastic 67
Glass 69
Paperboard and cardboard 70
Aluminum 71
Chapter 4 Key trends 74
Summary 74
Introduction 74
Key ethical packaging innovations 75
Package tag analysis 76
Recyclable 77
Recycled materials 78
Reduced and lightweight packaging 80
Biodegradable 82
Bioplastics 84
Corn based packaging (PLA) 85
Innovative ethical packaging 85
Nanotechnology 85
Edible packaging 86
Chapter 5 Conclusions 90
Summary 90
Introduction 90
Investing in ethical packaging 91
Ethical packaging usage 91
By category 92
By region 93
Europe 94
Labeling and marketing 96
Risk versus reward 99
Index 103
List of Figures
Figure 1.1: Emergence of the ethical trend 15
Figure 1.2: Drivers and resistors of ethical and sustainable packaging 16
Figure 1.3: Innovation in ethical packaging 17
Figure 1.4: Analysis of packaging materials 20
Figure 2.5: Key ethical players’ initiatives and restrictors 27
Figure 2.6: alexipack packaging 31
Figure 2.7: Importance of drivers in influencing consumers to purchase ethically packaged goods 40
Figure 2.8: Ethical packaging innovations in order of their importance for consumers over the next 5 years 43
Figure 2.9: How much of a premium are consumers willing to pay for products with an ethical positioning? 45
Figure 2.10: Packaging recycling symbols and logos 51
Figure 3.11: Food and drinks launched in ethical packaging, by category, 2004-2007 56
Figure 3.12: Purus Vodka and Vinissimo Primitivo Italian Red Wine 57
Figure 3.13: Reduced packaging - Diet Coke 59
Figure 3.14: Belu Mineral water 59
Figure 3.15: Envirokids Organic Cereal 60
Figure 3.16: In which product category is ethical packaging innovation likely to have the most impact on NPD? 62
Figure 3.17: Food and drinks launched in ethical packaging, by region, 2004-2007 63
Figure 3.18: Cereal Partners Shredded Wheat 65
Figure 3.19: Pocari Sweat 66
Figure 3.20: Innocent 100% recycled PET 68
Figure 3.21: Ventisquero Clasico wine and 360 Vodka 70
Figure 3.22: Aqua Planet 72
Figure 4.23: Comparison of ethical packaging innovations 75
Figure 4.24: Bombay Organic Ready to Drink Tea 79
Figure 4.25: Heinz aluminum can 82
Figure 4.26: All Natural Seafood Company Jumbo White King Prawns 83
Figure 4.27: Good organic spring water 84
Figure 5.28: Uptake of ethical packaging globally 94
Figure 5.29: Uptake of ethical packaging in Europe 95
Figure 5.30: Valvert Eau Minerale - Bouteille Fabrique avec du Plastique Recycle 99
Figure 5.31: Risk versus reward of each ethical packaging type 100
List of Tables
Table 2.1: Top 15 global food retailers’ ethical packaging policies 28
Table 2.2: Ethical packaging survey 35
Table 2.3: Top 15 food and drink manufacturers CSR 36
Table 2.4: Top 10 ethical food and drink manufacturers 39
Table 2.5: Importance of drivers in influencing consumers to purchase ethically packaged goods 41
Table 3.6: Food and drinks launched in ethical packaging, by packaging material, 2004-2007 67
Table 4.7: Food and drinks launched in ethical packaging, by claim, 2004-2007 76
Table 5.8: Ethical packaging innovations by category 93
Table 5.9: Claims found on ethical and sustainable packaging 98