Packaging industry review 2021: Circular economy, climate change and COVID-19

21 Dec 2021 --- As 2021 draws to a close, PackagingInsights looks back at the biggest industry developments of the year, from the EU Single Use Plastics Directive and US COMPOST Act to COP26 and Asia’s first Plastics Pact. Environmental sustainability persisted as the overriding theme but silver bullets remained elusive, with debates around single-use versus reusable models, climate change impact and the future of plastics intensifying. Moreover, “greenwashing” concerns proliferated, as NGOs and investigative journalists spotlighted where big brand initiatives were failing to deliver on environmental promises. Meanwhile, e-commerce packaging innovation advanced as the pandemic accelerated online purchasing.

January

Yum China’s KFC and Pizza Hut chains eliminate single-use plastics and embrace paper alternatives
In 2021, the war on single-use plastics raged on, with Yum China launching a series of plastic reduction initiatives across brands including KFC and Pizza Hut in line with China’s more stringent environmental sustainability regulations. The initiatives included replacing existing plastic packaging with paper straws, paper bags, and biodegradable plastic bags.

Amcor offers carbon labels on pack after identifying climate change as consumers’ top environmental concern
Amcor introduced printed “Reducing CO2 Packaging” labels accredited by the UK-based Carbon Trust on a range of flexible packs. The label is designed to inform consumers about products’ climate change impact. “We know consumers want more carbon labeling on products. A 2020 YouGov survey, commissioned by the Carbon Trust, confirms a continued high level of consumer support for carbon labeling,” Silvana Centty, senior manager at the Carbon Trust, told PackagingInsights.Dow and Mr. Green Africa partnered to tackle plastic waste in Kenya.

Single-use plastic ban called into question: UK firm launches legal action against the EU
Symphony Environmental Technologies sued the EU for damages relating to the ban imposed through Article 5 of the Single Use Plastics Directive on “oxo-degradable” plastics for failing to make clear the ban does not apply to “oxo-biodegradable” plastics. Symphony's d2w technology is oxo-biodegradable, causing ordinary plastic to biodegrade if it gets into the open environment and enabling reuse and recycling if collected during its service life.

Dow and Mr. Green Africa spur Kenya’s flexible plastic circular economy with waste picker income program
Dow and Mr. Green Africa (MGA) expanded their partnership to tackle plastic waste in Kenya and advance a circular economy for flexible plastics across sub-Saharan Africa. “The program aims to collect 167 metric tons of flexible plastics by September 2021, determine the exact composition of ‘flexible’ single-use plastics, experiment with a variety of processing and conversion techniques, including chemical recycling, and create a local market for flexibles,” said Keiran Smith, CEO and co-founder of MGA.

February

Spirit of circularity: Absolut Vodka launches in paper bottle in UK and Sweden
Absolut Vodka transitioned from glass to the Absolut Paper Bottle in the UK and Sweden after the Paboco bottle prototype was successfully trialed in the UK in the fall of 2020. “The ambition for our paper bottle is to create bio-based alternatives to traditional methods of packaging,” Niclas Appelquist, innovation director, future of packaging at Absolut, told PackagingInsights. The bottle is made of 57% paper and 43% recycled plastic, the latter making up a thin, recyclable layer within the bottle.

Nestlé’s Smarties fully transitions to recyclable paper packaging in global confectionery first
Nestlé’s Smarties brand adopted recyclable paper packaging for its chocolate confectionery products worldwide. Smarties was recognized as the first global confectionery brand to switch to recyclable paper packaging. The plastic-to-paper transition encompassed 90% of Smarties’ range, as 10% was previously packed in paper packaging.

Mondi’s fresh food delivery BCoolBox freezes out cooling truck dependency
Mondi released an e-commerce packaging design for fresh food transport, replacing the need for cooling trucks. Branded the BCoolBox, the corrugated packaging solution keeps food chilled below 7C for up to 24 hours using thermo-insulation technology. The inner corrugated panels are made from 100% recycled materials and enclose the box from all sides.Coca-Cola launched a 13.2 oz “sippable” bottle made from recycled PET.

Coca-Cola launches sip-sized rPET bottle, transitions Sprite to clear plastic for easier recycling
Coca-Cola launched a 13.2 oz “sippable” bottle made from 100% recycled PET, excluding the cap and label, as part of a range of new virgin plastic reduction measures in the US. “Our consumers want us to lead on plastic waste solutions because they know we can be a catalyst for driving change, not just in our industry, but across consumer packaged goods,” Alpa Sutaria, VP and general manager for sustainability, North America Operating Unit of The Coca-Cola Company, told PackagingInsights.

Nine US states coordinate on EPR legislation holding manufacturers accountable for plastic waste
State legislators from nine US states introduced extended producer responsibility (EPR) bills or legislation in a coordinated effort to hold producers responsible for the end-of-life management of packaging, particularly plastics. The National Caucus of Environmental Legislators facilitated this EPR network by providing a space for legislators to regularly meet to discuss policy ideas, strategies and lessons learned.

March

ACE outlines ten commitments for sustainable beverage carton industry in 2030 roadmap
The Alliance for Beverage Cartons and the Environment (ACE) released its ten-year roadmap for more environmentally sustainable beverage packaging, supported by alliance members such as SIG Combibloc, BillerudKorsnäs, Elopak, Stora Enso and Tetra Pak. As wider goals, the ACE members pledge to use only renewable or recycled materials in carton production, integrate more fiber and less plastic, and design packaging for circularity.

Mars Wrigley and Danimer Scientific partner on home compostable confectionery packaging
Mars Wrigley and Danimer Scientific announced a two-year partnership to develop flexible and rigid home compostable packaging for confectionery products, starting with the Skittles brand in the US. Danimer Scientific’s signature biopolymer – Nodax PHA – is renewably sourced and can serve as an alternative to traditional petrochemical plastic.

Danone’s evian launches label-free fully recycled water bottles in Singapore
Danone’s evian mineral water brand launched a label-free, 100% recyclable and recycled PET bottle in Singapore, excluding the cap. The stripped-back 400 ml bottle took two years to develop and features an engraved logo and a new pink cap.Oatly addressed the “absurdity” of the EU’s Amendment 171 with a humorous public awareness campaign.

European Aluminium and Metal Packaging Europe launch roadmap toward 100% beverage can recycling by 2030
European Aluminium and Metal Packaging Europe launched a joint roadmap toward achieving 100% aluminum beverage can recycling by 2030. The roadmap targets four key areas:

• Improving curbside and on-the-go collection systems.
• Increasing efficiency in sorting infrastructure and addressing information recycling effectively.
• Recovering aluminum from bottom ash treatment.
• Informing and engaging consumers effectively.

Plastics industry lashes out at Break Free From Plastic Pollution Act, Greenpeace criticizes “desperate” attempts to derail the legislation
Key players in the plastics industry came together to voice concerns over the Break Free from Plastic Pollution Act in the US, which they feared would damage job security and derail recycling efforts. The Act targeted phasing out throwaway plastics made from fossil fuel, holding the plastic industry responsible for its waste, and pausing construction on any new plastic-making plants.

Plant-based milks in spray bottles and balloons? Oatly fights back against EU Amendment 171
Swedish alt-milk company Oatly addressed the “absurdity” of the EU’s Amendment 171 – which threatened to place further labeling restrictions on plant-based dairy alternatives – with a humorous public awareness campaign. Oatly took to Instagram to demonstrate what an inconvenience this could be. In a lighthearted but serious video, company employees are seen struggling to consume their oat drink through balloons, spray bottles, soap dispensers and other unusual formats.

April

Diageo, Encirc and Glass Futures produce most carbon-efficient glass Scotch whisky bottles ever
Diageo revealed its involvement in a successful pilot project to pioneer the lowest carbon footprint glass bottles “ever produced” for a Scotch whisky brand. The distiller’s collaboration with glass manufacturer Encirc and industry research and technology body Glass Futures used waste-based biofuel-powered furnaces to reduce the bottle-making process’ carbon footprint by up to 90%.

Amazon approves Smurfit Kappa’s 3 L Bag-in-Box as “Frustration-Free Packaging”
Smurfit Kappa’s 3 L Bag-in-Box packaging design received Amazon’s “Frustration-Free Packaging” certification. “This new collaboration gives businesses the opportunity to sell through Amazon Marketplace at a much faster speed,” said Arco Berkenbosch, Smurfit Kappa VP of innovation and development.

Australia pledges to eliminate “killer plastics” by 2025, draws praise from marine conservationists
The Australian government pledged to phase out some high-polluting single-use plastic items by 2025. The decision has been hailed as a necessary advancement on industry commitments, which have been optional until now. Darren Kindleysides, CEO of the Australian Marine Conservation Society, released a statement praising the legislation as necessary to protect the country’s sea life.Diageo, Encirc and Glass Futures used biofuel-powered furnaces to reduce bottle production CO2 by up to 90%.

Unilever designs inclusive deodorant for consumers with motor and visual disabilities
Unilever’s deodorant brand Degree developed an antiperspirant for people with visual impairment and upper limb motor disabilities. The UK trial of Degree Inclusive commenced in August. Degree Inclusive was designed specifically for those with visual impairment and upper limb mobility disabilities, also taking disabilities like multiple sclerosis, ALS, muscular dystrophy, and cerebral palsy into consideration.

May

Rabobank strategist: Advanced recycling is proliferating but not the circular economy silver bullet
Rabobank predicted advanced recycling plants will double to around 140 plants globally by 2025 as regulatory and public demand for recycled plastics packaging drives “huge” investment. The Dutch multinational bank indicated advanced or chemical recycling is a “promising solution to drastically increase recycling rates of plastic packaging waste” in light of mechanical recycling’s limitations.

Chameleons inspire color-changing artificial material to detect seafood spoilage
Scientists in China and Germany designed an artificial material mimicking chameleon skin that detects seafood freshness by changing color. Smart packaging and technology that can detect food spoilage in real-time could help reduce food waste and ensure food safety for the retailer and consumer.

Graphic Packaging to acquire AR Packaging in US$1.45B fiber-based mega-deal
In the year’s big acquisition, Graphic Packaging agreed to acquire AR Packaging, reportedly Europe’s second largest producer of fiber-based consumer packaging, for approximately US$1.45 billion in cash. “Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions,” commented Michael Doss, Graphic Packaging’s president and CEO.Graphic Packaging agreed to acquire AR Packaging for approximately US$1.45 billion in cash.

Australia, New Zealand and Pacific Islands form ANZPAC Plastics Pact, join Ellen MacArthur Foundation’s global network
Australia, New Zealand and the Pacific Islands formed a plastic waste elimination pact called ANZPAC as part of the Ellen MacArthur Foundation’s global Plastics Pact Network. The cross-regional program united businesses, NGOs and governments behind a series of ambitious 2025 targets, including eliminating “unnecessary” plastics and ensuring “necessary” plastics are reusable, recyclable or compostable.

June

The Body Shop rolls out refill stations worldwide, extends in-store recycling scheme
The Body Shop launched an ambitious rollout of refill stations across 500 stores globally this year, with a further 300 stores planned for 2022. The company also revealed it will extend its in-store recycling scheme Return, Recycle and Repeat across 800 stores in 14 markets by the end of 2021.

EuPC: SUPD guideline delay has left EU plastics industry “scattered, unharmonized and in vagueness”
European Plastics Converters bemoaned the nearly one year delay on the release of the EU’s Single Use Plastics Directive (SUPD) guidelines – which eventually published in May – warning it had already resulted in “the first signs of scattered and unharmonized transposition scenarios” throughout the EU. The SUPD took effect on July 3, banning popular throwaway plastic items like cutlery, plates, straws, beverage stirrers, and beverage cups and containers made of EPS.

Unilever joins Nextek’s Nextloopp project to pioneer food-grade PP circular economy
Unilever joined Nextek’s global multi-participant project called Nextloopp, pioneering the conversion of post-consumer polypropylene into food-grade packaging through mechanical recycling infrastructure. “PP is one of the most popular and versatile polymers,” Professor Edward Kosior, managing director at Nextek, told PackagingInsights. “It also happens to be the least widely recycled simply because it is not made into bottles but into many varied products.EuPC bemoaned the nearly one year delay on the release of the EU’s Single Use Plastics guidelines, warning it had already resulted in unharmonized transposition scenarios.

US Plastics Pact reveals national roadmap to accelerate packaging circular economy
The US Plastics Pact, a consortium led by The Recycling Partnership and WWF as part of the Ellen MacArthur Foundation’s global Plastics Pact Network, unveiled an “aggressive national strategy” to ensure all plastic packaging will be reusable, recyclable or compostable by 2025. The “Roadmap to 2025” is supported by nearly 100 corporations, start-ups, research entities, NGOs, universities, and state and local governments across the plastics packaging value chain.

July

EU SUPD enters into force: NGOs concerned plastic ban underserves DRS and reusable models
As the EU Single Use Plastics Directive (SUPD) came into force, NGOs argued the legislation does not go far enough in addressing throwaway culture, undeserving deposit return schemes and reusable models. “The SUPD was a good first step. Now, the EU needs to shift from telling us ‘what not to do’ to nudging us to do the right thing,” stressed Henriette Schneider, circular economy expert at Deutsche Umwelthilfe (German Environment Action).

PFAS legislative overhaul? Experts warn US chemical regulations require revamp to prevent health risks
The American Chemical Society published a paper calling for “meaningful action” on per- and polyfluoroalkyl substances (PFAS) to attenuate the “systematic failures” of US chemical regulation. According to the environmental researchers, legislative strides should go beyond legacy contamination clean-up and also reduce current production and uses to limit future exposures. 

Give it back: EU non-alcoholic beverage industry requests priority access to rPET amid downcycling concerns
Natural Mineral Waters Europe, the European Fruit Juice Association and UNESDA Soft Drinks Europe urged the European Commission to provide the non-alcoholic beverage industry with “priority access” – or a similar mechanism guaranteeing “right of first refusal” – to recycled PET in the revision of the Packaging and Packaging Waste Directive amid short supply concerns and material downcycling.Compost organizations welcomed the introduction of the US’ COMPOST Act.

British Plastics Federation: Industry workforce and production hit by NHS COVID-19 app “pings”
The British Plastics Federation published a members survey revealing 60% of plastics companies had staff absent due to being “pinged” by the NHS COVID-19 app, with an average of 7% of staff being requested to isolate.

US COMPOST Act: Tipa welcomes federal bill promising composting infrastructure funds
Compost organizations across the US welcomed the introduction of the Cultivating Organic Matter through the Promotion of Sustainable Techniques (COMPOST) Act in the US House of Representatives. The COMPOST Act would create new US Department of Agriculture (USDA) grant and loan guarantee programs for composting infrastructure projects, including large-scale composting facilities as well as farm, home, or community-based projects.

August

Nature Works set to build US$600M biopolymer plant in Thailand as Asia boosts plastic alternatives
International biopolymer manufacturer NatureWorks announced it is building a US$600 million polylactic acid (PLA) complex in Thailand. The plant, which will produce lactic acid, lactide, and polymers, will also be the world’s first PLA facility designed to be fully integrated, according to the company.

Powered by scent: air up water bottle tricks the senses for healthy flavor kick
air up announced itself as the world’s first drinking bottle that flavors water only by scent with the help of retronasal smelling. Co-founder Lena Jüngst explained how the concept is good for consumer health and is a “more sustainable alternative” to flavored and sweetened beverages. Jüngst also shares the science behind how taste is transported through air.

Kellogg’s smartphone detectable cereal boxes championed as game-changer for blind consumer inclusivity
Kellogg’s permanently adapted all of its cereal boxes for blind and partially sighted consumers after a successful trial on Coco Pops boxes with UK supermarket Co-op. The inclusive cereal boxes are printed with coding technology enabling smartphones to detect and play back labeling and allergen information to users.Kellogg’s adapted its cereal boxes for blind and partially sighted consumers.

What plastic tax? Veolia finds UK businesses are not prepared for incoming legislation
Veolia research found 83% of businesses asked were not aware of the impending UK Plastic Packaging Tax, with less than a year until the legislation comes into force. The UK government released draft legislation and a draft policy paper on its Plastic Packaging Tax – effective from April 2022 – for public consultation. The measure is expected to impact around 20,000 plastics packaging producers and importers.

September

“Voluntary agreements not enough”: Ellen MacArthur Foundation calls for legally binding UN treaty on plastic pollution
The Ellen MacArthur Foundation released a white paper detailing its position on establishing a UN treaty to address global plastic pollution and transition to a circular economy for plastics. The foundation called on all governments, industry and civil society to work together toward a common understanding of how a UN treaty on plastic pollution should be built and establish an international negotiating committee at the UN Environmental Assembly in February 2022.

Holy Grail 2.0 hits semi-industrial milestone as Copenhagen prepares city-wide recycling trials
The city of Copenhagen, Denmark, partnered with AIM, the European Brands Association and the Alliance to End Plastic Waste on a semi-industrial pilot test phase for intelligent waste sorting under the Digital Watermarks Initiative Holy Grail 2.0. Engineers tested for several parameters, including the system’s speed and accuracy, ensuring its ability to withstand the pressures of full-scale industrial operations.

Asia’s first Plastics Pact: India’s industry unites with WWF and WRAP for circular economy boost
India become the first Asian country to launch a plastics pact. The Plastics Pact for Asia brings together WWF India and the Confederation of Indian Industry with a shared goal to make all plastic packaging reusable or recyclable by 2030.Coveris and Brigl & Bergmeister launched a recyclable paper pouch with the same functionality as plastic.

Forget “forever chemicals”: California bans PFAS in paper-based packaging from 2023
Lawmakers in California, US, passed a bill banning “forever chemicals” (per- and polyfluoroalkyl substances (PFAS)) in all paper-based packaging from January 1, 2023. The legislation will make California the sixth US state to outlaw PFAS for F&B packaging, following similar action in Connecticut, Maine, Minnesota, New York, Vermont and Washington.

Paper power: Coveris and B&B Paper Solutions steal show at FachPack with PaperBarrier Seal launch
Coveris and Austrian paper manufacturer Brigl & Bergmeister (B&B Paper Solutions) launched a recyclable paper pouch with the same functionality and product safety as conventional plastic alternatives at FachPack 2021. The PaperBarrier Seal also minimizes packaging and product waste in support of Coveris’ No Waste strategy. The paper is designed to maintain runnability with standard packaging equipment.

October

COVID-19 exacerbates plastic waste: Researchers advocate biodegradables, EPR and chemical recycling
International researchers advocated for governments to ensure plastic waste generated during the COVID-19 pandemic is more efficiently collected, segregated and recycled. Crucially, the COVID-19 pandemic has not only stalled legislation to reduce plastic waste, but also exacerbated plastic consumption, particularly personal protective equipment and home food delivery packaging, said the Korea Biochar Research Center at Korea University in Seoul researchers.

Greenpeace Africa issues corruption warning as Cameroonian authorities intercept non-biodegradable plastics smuggling
Cameroonian authorities intercepted a smuggling operation attempting to bring illegal non-biodegradable plastics into the country. Greenpeace Africa highlighted the incident as an example of corruption impeding efforts to improve environmental sustainability in packaging.

Coca-Cola announces 100% plant-based bottle prototype for commercial testing
Coca-Cola unveiled a fully plant-based PET (bPET) bottle prototype, excluding the cap and label. The beverage giant produced a limited run of 900 bottles, confirming the prototypes are recyclable within existing recycling infrastructures, alongside PET from oil-based sources.A shortage in the global magnesium supply threatened to derail the European packaging industry.

Catastrophe looms as Chinese magnesium shortages threaten European packaging industry
A critical shortage in the global magnesium supply threatened to “catastrophically” derail the European packaging industry after the Chinese government slowed production to reduce the country’s energy consumption. Magnesium is an essential alloy for producing packaging materials like steel and glass.

Boris Johnson’s recycling “doesn’t work” comments enflame plastics debate ahead of COP26
UK Prime minister Boris Johnson riled up the plastics recycling industry ahead of the COP26 climate change summit by claiming plastics recycling “doesn’t work” and “doesn’t begin to address the [pollution] problem.” Johnson suggested “we’ve all got to cut down our use of plastic” instead.

Greenpeace labels Unilever, Coca-Cola, Nestlé’s plastic incineration “dirty and misleading” following Reuters investigation
Major FMCGs including Unilever, Coca-Cola, Nestlé and Colgate-Palmolive were accused of “dirty and misleading” waste incineration practices after a Reuters investigation flagged a series of global collaborations with cement companies, who use plastic waste as fuel for their kilns.

November

EU and US suspend aluminum and steel trade war and target decarbonized production
EU and US political leaders “hit pause” on an aluminum and steel trade war that has raged since 2018 under the Trump presidency in a move that could have wide-reaching ramifications for the metal packaging industry. During the G20 Rome Summit, US President Joe Biden and European Commission President Ursula von der Leyen agreed to suspend current tariff measures in “a new milestone in the transatlantic relationship.”

Coca-Cola launches label-free PET bottles in South Korea amid new national recyclability rules
Coca-Cola introduced its first-ever labelless PET bottles in South Korea called Coca-Cola Contour Label Free. The move aligns with the national government’s mandate to enhance plastic bottle recyclability by eradicating labels on plastic bottles.

China imposes regulations on excessive consumer packaging to combat domestic waste issues
China announced new restrictions on excessive packaging, requiring all food and cosmetics producers to adhere to specific guidelines determining the volume of packaging allowed in proportion to a product. The legislation aims to cut down on empty space and needless material usage in consumer packaging, thereby reducing industry’s environmental footprint. It will impact 31 F&B categories – including oils, meats, dairy, beverages, grains and confectionery – and 16 cosmetics categories.Exxergy revealed details of promising new glass lightweighting technology en route to decarbonization.

The circular shadows: TerraCycle applies legal pressure against journalists amid Bulgarian incineration exposé
TerraCycle faced fresh public scrutiny after being exposed for allegedly exporting its UK recycling waste to Bulgaria for incineration. The company claims the export resulted from a single human error and is now applying legal pressure against the investigative journalists for publishing their findings.

Scotland’s “regrettable” DRS delay alarms environmentalists but lobbyists highlight long-term harmonization
Scotland suffered further delay of its long-planned deposit return system for beverage packaging until late 2023, over three years after the plan was unveiled. Environmental campaigners accused the government of yielding to industry lobbying and risking increasing already high levels of pollution in the country.

Ellen MacArthur Foundation identifies alarmingly low reusable packaging growth in 2021 Global Progress Report
The Ellen MacArthur Foundation was “alarmed” at how signatories to its Global Commitment failed to prioritize reusable packaging models in the past year. According to the organization’s 2021 Global Progress Report, 56% of its 65 brands and retailers did not launch any reuse pilots in 2020. Of those who have, only 22% distributed more than 3% reusable plastic packaging in their portfolios.

Glass decarbonization: Virtual trials could unlock lightweighting revolution, claims Exxergy CEO
German consulting firm Exxergy revealed details of promising new glass lightweighting technology following the close of the UN COP26 climate summit. Exxergy has partnered with glass packaging giant Ardagh Group and software company Dassault Systèmes to scale the solution. The trio believe the upcoming technology – set to begin virtual trials next year – could be a major contributor to glass production decarbonization globally.

December

Bioplastics boom: Global production will triple in five years as Asia dominates, finds EUBP
European Bioplastics revealed global bioplastics production will more than triple over the next five years (2021-2026), according to market data compiled in cooperation with the nova-Institute. Notably, Asia is predicted to surpass 70% market share by 2026.

Suntory unveils plant-based PET bottle prototype after decade-long development
Suntory Group created a prototype PET bottle from 100% plant-based materials for Orangina in Europe and Suntory Tennensui bottled mineral water in Japan. The beverage producer aims to eliminate all petroleum-based virgin plastic from its global PET supply by 2030.Suntory unveiled a prototype PET bottle from 100% plant-based materials.

Deposit return what? Tetra Pak finds consumer confusion risks derailing UK recycling
Tetra Pak revealed more than half (58%) of UK consumers do not understand what the incoming Deposit Return Scheme entails, potentially undermining the UK government’s flagship recycling policy. Moreover, 59% of people who had a view on the issue would be confused by the DRS unless it was “consistent with household recycling collection.”

FDA sued over “deadly” inaction on phthalate plasticizers in F&B packaging
The US Food and Drug Administration was sued by eight environmental and human health organizations for failing to ban phthalate chemicals from F&B packaging, despite years of research proving its danger to human and environmental health.

By Joshua Poole