Retailers, with their increased use of sustainable packaging, are playing a leading role in encouraging consumers to adopt bio-based packaging materials; manufacturers and retailers that adopt biodegradable packaging materials will benefit through cost cuts and tax reductions, according to a Technavio market research analysis.
Technavio says the global biodegradable paper packaging materials market will grow at a CAGR of close to 11% from now through 2021. The increased adoption of sustainable packaging products by retailers will increase the replacement of non-renewable packaging materials with renewable ones.
Food manufacturers are also speeding the adoption of bio-based packaging materials as consumers are increasing their demand for fresh and minimally processed food and beverages.
Additionally, initiatives by governments of many countries have encouraged retailers and intermediaries to adopt biodegradable materials for packaging purposes, says Ajay Adikhari, a lead analyst at Technavio.
A recent study from Smithers Pira indicated that retailers and manufacturers say sustainable packaging is no longer just “nice to have,” but is something they expect from the packaging industry. Packaging materials are extremely visible to the consumer, and retailers, packaged product suppliers, governments, regulators, NGOs and environmental groups are placing intense and growing pressures on packaging manufacturers to develop environmentally-friendly materials, packaging designs and end-of-life processes.
Target is one company that says it is devoted to pursuing a day when all packaging will be recyclable. The retailer recently said it will use its “power and scale” as one of the country’s largest retailers to advance that idea, and to help consumers understand how and why recycling is so important. With that in mind, the retailer joined the Material Recovery Facility of the Future, a collaborative committed to seeing that flexible packaging is recycled and that the recovery community captures value from it.