Rigid Plastic Packaging: Analyzing the Changing Nature of the Industry with Growing Focus on Environmental Sustainability

Key takeaways:

• Introduction
• Increasing shift toward sustainability and its impact on the industry
• Product launches in the sector

The growth of the food processing, pharmaceutical, and consumer goods industries has led to a massive increase in demand for plastic packaging. While plastic packaging is primarily of many types, rigid plastic packaging has become particularly important due to some of its inherent advantages. Rigid plastic packaging is the plastic packaging manufactured using polypropylene, polyethylene terephthalate (PET), and High-Density Polyethylene (HDPE).

How is environmental sustainability shaping the rigid plastic packaging industry?

One major reason why traditional plastics face criticism is that they are not decomposable. Also, recycling traditional plastics is a cumbersome process. Hence, the majority of such plastic items end up in a landfill. As per a study, around 4 billion tons of plastic that have been manufactured since the 1950s is now being used in landfills. Due to this environmentally degrading nature of plastics, there has been a growing awareness regarding the need to replace plastic packaging with sustainable packaging materials like paper, cardboard, or cloth.

However, manufacturing industries avoid using materials like paper or cloth for packaging as the cost of the product goes up. As a result, the final cost of the product increases that too without any value addition to the product, which ultimately makes the product uncompetitive as compared to those who prefer plastic packaging. Thus, despite its environmental hazards, plastic is still the most widely used packaging material.

To solve this problem, researchers have been looking to develop sustainable rigid plastic packaging solutions. Sustainable rigid plastics have certain characteristics; firstly, the material used for production is renewable and is easily compostable or biodegradable. Also, the material is lightweight which makes it easy to recycle. Finally, the environmental footprint of the packaging solution is minimal.

Another way in which environmental sustainability in packaging is being achieved is by adopting manufacturing processes that have the least negative impact on the ecology. The use of injection and in-mold labeling is one such example. These manufacturing processes help in making lightweight rigid plastic materials that can be easily recycled. Also, the emissions caused by these processes are quite low. In in-mold labeling, the label is made from the packaging material itself, which is why it need not be removed in the recycling process. Thus, recycling the packaging container or bottle becomes easy. Moreover, the strength and durability of the plastic containers manufactured using these processes are quite high; thus, they can be used numerous times before disposal.

How have multinational conglomerates contributed to the growth of this industry?

The rigid plastic packaging sector has been highly successful in the past few years due to the dynamic actions taken by the major stakeholders in the industry. In November 2022, STERIMED, a sterilization packaging materials manufacturer, announced the launch of Polybond® CGP 85, a sustainable rigid plastic packaging solution. Manufactured using reinforced cellulose-based materials, Polybond® CGP 85 has a unique fiber mesh structure with high strength that reduces the risk of breakage or puncture. The company has claimed that since 70% of the material used for manufacturing this packaging solution is biodegradable, the plastic pollution caused by it will be reduced drastically. This innovative product is predicted to help the company improve its footprint in the industry in the years to come.

Similarly, in February 2023, TotalEnergies, a multinational petroleum company, announced a partnership with Ecolab, a water purification solutions manufacturer, to develop packaging material using recycled materials. Under this partnership agreement, both companies will share their expertise, resources, and capital to develop reusable and recyclable materials for heavy-use purposes. Thus, this collaboration is anticipated to help both the partnering companies as well as the entire plastic packaging domain in general.

To sum it up, the rise of the rigid plastic packaging industry is on the account of growing demand for plastic packaging from different sectors such as food processing, pharmaceutical, and consumer goods industries. The growing trend toward environmental sustainability is estimated to transform the sector in the coming period. The launch of several innovative products by multinational giants is projected to play a vital role in the industry’s growth.

To get an in-depth analysis of the growth drivers and investment opportunities in the industry, feel free to contact us.

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