The role of packaging in minimizing food waste in the supply chain of the future

Australian-first research by RMIT University has shown the vital role of packaging in minimising food waste.

There are significant opportunities to reduce food waste in the supply chain through improvements and innovation in packaging and by communicating these benefits and opportunities to industry stakeholders.

Food is lost and wasted for many reasons, including damage in the field from severe weather events and disposal of inedible components during food preparation. While this loss/waste is largely unavoidable, other waste occurs due to inefficiencies or poor handling in the supply chain. This is where packaging can play an important role, for example by reducing damage in transit and handling or by extending shelf life. A number of packaging opportunities to reduce waste have been identified in this report, based on an extensive literature review and interviews with stakeholders. They are:

1) Distribution packaging that provides better protection and shelf life for fresh produce as it moves from the farm to the processor, wholesaler or retailer. This may require the development of tailored solutions for individual products.

2) Distribution packaging that supports recovery of surplus and unsaleable fresh produce from farms and redirects it to food rescue organisations.

3) Improved design of secondary packaging to ensure that it is fit-for-purpose, i.e. that it adequately protects food products as they move through the supply chain. Packaging developers need to understand the distribution process and where and why waste occurs.

4) A continuing shift to pre-packed and processed foods to extend the shelf life of food products and reduce waste in distribution and at the point of consumption (the home or food services provider). The packaging itself also needs to be recoverable to minimise overall environmental impacts.

5) Adoption of new packaging materials and technologies, such as modified atmosphere packaging and oxygen scavengers, to extend the shelf life of foods.

6) Education of manufacturers, retailers and consumers about the meaning of use-by and best-before date marks on primary packaging to ensure that these are used appropriately. Confusion about date marking results in food being thrown away when it is still safe to eat.

7) Product and packaging development to cater for changing consumption patterns and smaller households. Single and smaller serve products will reduce waste by meeting the needs of single and two person households.

8) Collaboration between manufacturers and retailers to improve the industry’s understanding of food waste in the supply chain. Greater attention to be given to where and why this occurs, tracking over time, will reduce the costs and environmental impacts of waste.

9) More synchronised supply chains that use intelligent packaging and data sharing to reduce excess or out-of-date stock.

10) Increased use of retail ready packaging to reduce double handling and damage and improve stock turnover, while ensuring that it is designed for effective product protection and recoverability (reuse or recycling) at end of life.

The implementation of these initiatives could be supported through further research and communication activities to highlight the critical links and trade-offs between packaging consumption, protection and containment of food, and food waste.

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Bioplastics pose no threat to food supply

The surface required to grow sufficient feedstock for today’s bioplastic production is less than 0.006 percent of the global agricultural area of 5 billion hectares. This is the key finding published today by European Bioplastics, based on figures from the Food and Agriculture Organization of the United Nations (FAO) and calculations of the Institute for Bioplastics and Biocomposites (IfBB, University Hannover, Germany).

Minimal fraction of land used for bioplastics

European Bioplastics market data depicts production capacities of around 1.2 million tonnes in 2011. This translates to approximately 300,000 hectares of land-use to grow feedstock for bioplastics. In relation to the global agricultural area of 5 billion hectares, bioplastics make use of only 0.006 percent. Metaphorically speaking, this ratio correlates to the size of an average cherry tomato placed next to the Eiffel Tower.

No competition to food and feed

A glance at the global agricultural area and the way it is used makes it abundantly clear: 0.006 percent used to grow feedstock for bioplastics are nowhere near being in competition with the 98 percent used for pastures and to grow food and feed.

According to European Bioplastics, increasing the efficiency of feedstock and agricultural technology will be key to assuring the balance between land-use for innovative bioplastics and land for food and feed. The emergence of reliable and independent sustainability assessment schemes will also contribute to this goal.

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Packaging gotchas: Mad at hard-to-open, shrinking, undersized, or overwrapped products?

You’d think that companies would get it right. They spend $130 billion a year on boxes, bags, and blister packs. You spend on packaging, too. According to Joe Angel, vice president and publisher of the trade publication Packaging World, packaging accounts for roughly 7 percent of a product’s overall cost, and some of that gets passed along to consumers.

Yet illogical, misleading, and over-the-top packaging continues to annoy consumers, and we have the letters, e-mail, and photos to prove it. The annoyances come in four basic types. 

1. Oysters, our term for hard-to-open products. Often, they’re gadgets imprisoned in clear, tight-fitting plastic. That displays merchandise from all angles and discourages theft. But it also foils honest folks, who have tried razor blades, scissors, box cutters, and saws to free the contents they’ve bought. Other oysters: cereals in stiff bags that split and spew their contents when you pry them open and pills in blister packs that give you a headache even as you’re trying to treat your ulcer.
2. Black holes, or products surrounded by lots of air. Federal law is supposed to prevent excessive “slack fill,” nonfunctional or empty space. But there are loopholes in the law if, for instance, the space limits breakage or discourages theft, or if the package does double-duty as a dispenser. One company we were about to criticize actually changed its packaging after buyers complained. Archway modified the tray design for its Original Windmill Cookies “to accommodate a more tightly packaged product,” a spokesman told us.
3. Downsized products, shrunken by companies unwilling just to raise the price. Downsizing can occur in sneaky ways, as when Huggies reduced the number of Pull­Ups diapers from 72 to 70 but kept the words “New Larger” on the label. Companies usually blame downsizing on higher costs of ingredients, labor, and energy.
4. Golden cocoons, tiny doodads shipped in giant cartons, sometimes with enough paper, bubble wrap, or airbags (called “void fill” in the packaging industry) to cradle a priceless vase. At least some companies are aware of the problem. (Read “Frustration-Free Packaging May Be Baffling,” below.)

Here you'll find a showcase of our latest examples of packaging faux pas, submitted by Consumer Reports readers and Facebook fans. For each product, we asked a company rep to explain the packaging decision. Usually we received an answer, though not always to the question we asked.

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US commission warns on compostable claims

The US Federal Trade Commission (FTC) has issued a revised version of its ‘Green Guide’, which warns against misleading claims regarding compostable plastics. 

The FTC had two concerns – the first related to the limited availability in the US of industrial composting facilities where plastics are accepted; the second related to the performance of compostable plastics in home and industrial composting.

The commission therefore warned that “to avoid deception about the limited availability of municipal or institutional composting facilities a marketer should clearly and prominently qualify compostable claims if such facilities are not available to a substantial majority of consumers or communities where the item is sold”.

Given that most compostable plastics cannot be handled by home-composting the guide indicates that firms should clearly and prominently qualify compostable claims to avoid deception if the item cannot be composted safely in a home compost device.

The FTC also warned against making potentially misleading claims about a material’s “renewable” credentials and said that any “compostable” claim must be substantiated by reliable scientific evidence that the entire item would break down in a safe and timely manner in an appropriate composting facility or a home composting pile. 

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Global aseptic packaging forecast to grow 24% in next five years

New study estimates that by 2016, the world market for aseptic packaging will reach 153 billion liters, in 333 billion packs, with the majority of additional demand coming from South/Southeast Asia and China.

The world market for aseptically packed products amounted to 123 billion liters, contained in 269 billion packs during 2011, according to the new “Global Aseptic Packaging” report from Zenith Intl. and Warrick Research Ltd. Volumes have grown by just more than 5% a year since 2008, with South/Southeast Asia achieving the fastest rise at 22% a year.

White drinking milk accounts for 39% of aseptically packed products, with beverages responsible for 37%, and other dairy or food products making up the remainder. Aseptic filling has yet to make a significant impact in food markets, but there are some established niche applications; sauces, tomato products, and baby food are important new areas of development.

“The market for aseptic packaging developed in Europe, and the industry supplying it has been centered on Europe. This report shows the market shift to Asia in the past four years and raises the prospect of this continuing in the next few years,” comments Warrick director David Warrick.

Adds Esther Renfrew, market intelligence director at Zenith, “At a time of economic recession in much of the world, the aseptic packaging market has grown at more than five percent a year in the past four years, as the technology is well positioned to supply the needs of new markets and applications,”.

Other findings of the 2012 "Global Aseptic Packaging" report include the following:

1-     There are more than 13,000 operational aseptic filling systems worldwide and more than 40 companies supply aseptic filling systems.

2-     The largest regional markets for aseptic packaging are set to be China and South/Southeast Asia, both of which are overtaking West Europe as the former largest region.

3-     World use of aseptic packaging has reflected global economic trends. Usage has been static in much of Europe, while there has been rapid growth in many countries across Asia.

4-     Value-added dairy products will be a fast-growing area of demand for aseptic filling systems. In some regions, fillers are used for both ambient and chilled products.

By 2016, Zenith and Warrick estimate that the world market for aseptic packaging will reach 153 billion liters, using 333 billion packs. The majority of additional demand will come from South/Southeast Asia and China, where growth is forecast at 11% a year and 3.5% a year, respectively.

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13 Emerging Flexible Packaging Markets

In a new study, PCI Films Consulting have identified 13 emerging flexible packaging markets comprising of Poland, Russia, Turkey, Mexico, Brazil, India, Indonesia, Thailand, Vietnam, Saudi Arabia, UAE, Nigeria and South Africa. Collectively these markets, valued at $14 billion, have grown by almost 70 percent since 2006 and now account for 20 percent of total world demand.

One of the key findings is that although a number of these emerging markets have been affected by the global economic downturn, they have weathered the crisis well, with demand growth averaging almost 11 percent per annum since 2006, led by countries including India, Indonesia, Brazil and Russia. In general, all emerging markets have illustrated strong growth over the past five years, with only three of the thirteen posting overall growth of less than 30 percent between 2006 and 2011.

The report identifies the major driving forces in flexible packaging demand within these emerging markets including strong GDP growth, high population growth, liberalization in a number of markets, continued urbanization and the development of mass retailing. In addition, changing consumer lifestyles and increasing disposable incomes have encouraged the development of new convenient packaged food and non-food products.

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US demand for Pouches to Reach $8.8 billion in 2016

Demand for pouches in the US is projected to increase 5.1 percent per year to $8.8 billion in 2016, driven by faster gains for standup pouches stemming from sustainability, functional, and marketing advantages over alternative packaging media. Unit demand is expected to expand 3.0 percent yearly to 90 billion.

Burgeoning consumer acceptance of pouches as an alternative to rigid containers will buoy demand, as will such advantages as superior aesthetic appeal, portability, light weight, reduced material use, and significantly lower shipping costs than rigid containers.  In addition, heightened use of reclosing and dispensing components will increase the competitiveness of pouches against rigid containers. These and other trends are presented in Pouches, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

Standup pouch demand is forecast to expand 7.2 percent annually to $2 billion in 2016. Advances will be well above those of the overall packaging industry, reflecting heightened interest among packaged goods companies resulting from savings achieved in shipping costs due to the benefits of lighter weight and lower material use compared to rigid containers. Also supporting gains will be attributes of product differentiation; aesthetics; the presence of convenience features (e.g., zippers, spouts); and the perception, especially among younger consumers, of pouches being a more contemporary packaging format than cans, bottles, and cartons.

Demand for flat pouches is forecast to increase 4.5 percent yearly to $6.8 billion in 2016, fueled by above average gains for four-side-seal pouches based on rising demand in medical and pharmaceutical markets and in food uses such as meat, poultry, and seafood; and cheese.  Advances will also be aided by improved barrier structures and solid gains for pouches employing self-venting films to enable steam cooking of contents in the package.  Additionally, robust growth is expected for stick packs (small tube-shaped flat pouches), based on differentiation and material savings over conventional single portion configurations.

Discover the Hidden value of Packaging

New brochure explains how the thoughtful use of packaging actually helps prevent waste and save energy. Sections focus on economic, environmental, and social benefits.

The brochure is available free for download on the AMERIPEN site.

US bioplastics demand to exceed 550M lbs in 2016

US demand for bioplastics is forecast to climb at a 20 percent annual pace through 2016 to 550 million pounds, valued at $680 million.  Although they have achieved a considerable degree of commercial success, bioplastics remain in an early stage of development, representing only a small niche within the overall plastics industry.  Going forward, technical innovations that enhance the properties of bioplastics and lower their price will drive growth.  These and other trends are presented in Bioplastics, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Although biodegradable resins accounted for the vast majority of bioplastics volume in 2011, the emergence of non-biodegradable bioresins will dramatically alter the market landscape going forward.  By 2021, these materials will represent more than two-fifths of volume demand, up from 13 percent in 2011.  Growth will be propelled by large-volume production of bio-based polyethylene, as well as the eventual commercialization of bio-based polyethylene terephthalate (PET), polypropylene, and polyvinyl chloride (PVC).  Since these resins are chemically identical to their conventional counterparts, market acceptance is forecast to occur at a rapid rate.  Among these bio-based plastics, PET is projected to offer significant growth potential over the longer term, particularly as large corporations -- especially those in the soft drink industry -- are investing heavily in the development of this material.

Polylactic acid (PLA) is expected to remain the most extensively used resin in the bioplastics market through the forecast period, despite issues regarding the inability of biodegradable products such as PLA to decompose in landfills and their potential to contaminate the recycling stream.  Advances will be promoted by a widening composting network and greater processor familiarity, as well as ongoing efforts to diversify PLA feedstocks, as critics cite the food versus fuel debate and the energy- and pesticide-intensive nature of corn production as a key drawback of biopolymers.

Bio-based polyethylene -- which entered the market in 2010 -- is expected to offer the best opportunities for growth through 2016, increasing rapidly from a small base.  These exceptionally strong gains are predicated on the expansion of production capacity, which will reduce prices and enable this resin to compete more effectively with its petroleum-based counterpart. 

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The future looks bright for stand-up pouch

The stand-up pouch packaging industry grew at an impressive 11.6% rate per year between 2006 and 2011 to achieve worldwide sales of US$2.3 B. A new global industry study, "Stand-up Pouches 2012-2016" from Allied Development Corp., projects that worldwide industry sales will reach the US$4.0 billion level by 2016.

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Read related article: Stand-up Pouches: MaximumFlexibility, Sustainability and Convenience

Bright future for flexible packaging

Modern developments in flexible packaging are bringing pouches, films and foils to the market on an unprecedented scale. We profile some of the flexible packaging market's most promising innovations to safeguard product quality, enhance visibility, improve environmental sustainability and more.

Flexible packaging has been shaking up the packaging industry for many years now, especially in the food packaging market, where flexible materials are introducing a wide range of new design concepts to minimise waste (both in terms of conservation and cost), attract consumer attention and maintain the freshness of the products within.

The flexible market looks set to continue its impressive rate of growth in the industry and on store shelves. A 2011 report by packaging consultancy Smithers Pira forecast that the worldwide value of flexible packaging would grow from $58.3bn in 2011 to $71.3bn by 2016, with a compound annual growth rate of more than four percent.

Whether in the West or the East, this growth will be driven by a raft of factors within the packaging and consumer retail sectors. Growing demand for features, such as longer product shelf-life, weight reduction and customer convenience, is an open door to packaging developers to solve problems with innovative ideas. Here we round up some of the products and trends that could help satisfy this expanding demand.

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Global Packaging Industry CEO Business Outlook Survey 2012-2013

"Global Packaging Industry CEO Business Outlook Survey 2012–2013" is a new report by Canadean that analyzes how global packaging industry companies' procurement expenditure, business strategies, and practices are set to change in 2012–2013.

What is the current market landscape and what is changing?

C-level respondents from the global packaging industry expect increased levels of consolidation, with 61% of respondents anticipating that there will be either a 'significant increase' or an 'increase' in merger and acquisition (M&A) activities over the next 12 months.

What are the key drivers behind recent market changes?

Large packaging companies are seeking small and specialized companies to strengthen their core competencies, reduce costs, and resist competition with their enriched product mix. The higher expected levels of consolidation in the global packaging industry is also due to new cost or demand pressures, repayment of debts, the potential need to meet new compliance procedures, or gain quick access to new markets, business expansion, and attempts to increase market share.

Key Market Issues

Global packaging industry C-level respondents identify China to be the most important region for growth among emerging markets, along with India and the Middle East. Strong growth of semiconductor wafer fabrication and domestic electronics markets is further aiding growth expectations in China. There has been significant growth in the aseptic packaging sector in the country, driven by a rise in technological sophistication.

According to the survey, 56% of C-level respondents rate 'raw material prices' as the most important business concern in 2012, while 54% and 46% highlight 'responding to pricing pressure' and 'cost containment' respectively.

The average size of the global annual procurement budget among packaging industry C-level respondents is forecast at US$85 million for 2012. In addition, the Canadean industry survey reveals that C-level respondents' procurement expenditure is projected to rise by 11.5% over the next 12 months.

'Quality', 'level of service', and 'price' are considered very important factors for C-level respondents while selecting a supplier, whereas 'supplier's environmental record', 'supplier's CSR reputation', and 'proximity of supplier operations' are considered the least important factors.

The main reasons for an expected increase in the level of consolidation in the global packaging industry have changed to new equipment acquisition, increase operational efficiency, and to acquire growth opportunities.

Key Highlights

An analysis of responses by packaging C-level respondents reveals that 'new product development', 'IT infrastructure development', and 'machinery and equipment purchase' will record a significant increase in capital expenditure over the next 12 months.

As global packaging demand is projected to increase in the next 12 months, packaging C-level respondents plan to significantly increase their capital expenditure on 'new product development'.

According to the survey, 67% of C-level respondents project an increase in investment toward 'IT infrastructure development'. For example, in November 2011, Omni Systems, a private label converter based in the US, announced that it will invest in new MIS and ERP software. A senior executive from the company states, "We have selected the Radius ERP solution because of its specific focus on the labeling industry, its robustness, and the ability to cover the complete workflow, from quoting to printing to shipping."

Global packaging industry C-level respondents plan to increase capital expenditure on 'machinery and equipment purchase' over the next 12 months. For example, in March 2012, Beatson Clark, a glass packaging manufacturer based in the UK, decided to invest US$15.6 million in furnace improvements and new equipment at its Rotherham plant, and plans a complete reconstruction of its white flint furnace in July 2012. A senior executive from Beatson Clark states: "Our company sees growth in the food, beverage, and pharmaceutical sectors in the UK over the next 12 to 18 months. Therefore, we expect to invest in new design technology by updating its computer-aided design system to the 3D visualization software."

'Email and newsletters', 'social media and networking sites', and 'public relations' are expected to register the highest investment, as identified by 47%, 44%, and 36% of respective C-level respondents. Conversely, 'television and video', 'outdoor', 'radio', and 'newspaper' advertisement are expected to attract the least investment.

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Eco-friendly packaging: More Interest…more Confusion

More U.S. shoppers are interested in choosing eco-friendly packaging, but they're confused about which types are best for the environment, according to a study on packaging and the environment released Monday.

The study from the New Jersey marketing firm Perception Research Services reports that 36% of shoppers in 2011 were likely to choose environmentally friendly packaging, a 29% increase over 2010. Half of the shoppers polled said they were willing to pay more for such packaging. One-third of the shoppers said they bought more of a product if its package was labeled "recyclable" or "made from recycled material," and a quarter of the shoppers said they have switched brands for more eco-friendly packaging.

Packaging had the biggest effect on buying behavior if it was labeled "recyclable," "made from recycled materials" or "easier to recycle," or if it was marked with a recycling symbol. Conversely, made with less material is less influential.

Ironically, while shoppers continue to notice environmental claims at a high level, they are increasingly frustrated by the information provided. One in five shoppers said packaging didn't include enough environmental information and provided confusing claims, the study found. Many respondents said they didn't know which packaging was best for the environment.

Importantly, fewer shoppers feel that manufacturers’ motives are primarily honorable (57% vs 61%).  Shoppers are becoming more skeptical of manufacturers behaviors and motives in this area, as more state that companies are increasingly self-serving (enhance reputation; realize profit gains) and show less concern for the environment. 

Read more: Eco-friendlyPackaging Influences Shopping Decisions

Read more: Packaging& the Environment, Shoppers Say: "Please Help Me!"

Global packaging industry expected to reach $820 billion by 2016

The global packaging industry will swell to almost $820 billion by 2016 predicts Pira International in a new market forecast. Driven mainly by increasing demand for packaging in emerging and transitional economies, a 3% per annum growth rate will focus on board products and rigid plastics, with $40 billion and $33 billion in cumulative predicted growth respectively to 2016.

This growth is being driven by a number of broad trends such as growing urbanisation, investment in housing and construction, a burgeoning healthcare sector and the rapid development still evident in the emerging economies, including China, India, Brazil and some eastern European countries. An increase in personal disposable income in the developing regions fuels consumption across a broad range of products, with consequential growth in demand for the packaging of these goods. For instance, increased demand for white goods, like washing machines and dishwashers, driven also by growing time pressure on consumer lifestyles, leads not just to a growing demand for packaging for the machines themselves, but also for associated products such as the household care products needed to operate these machines, thus stimulating demand across a range of packaging media.

More specifically, robust growth in demand for rigid plastic packaging, especially in sectors like drinks, cosmetics, toiletries, and household and personal care products, is stimulating packaging consumption. Similarly, flexible plastic packaging materials are receiving a boost from sectors like perishable foods, healthcare, convenience foods and various industrial markets. Corrugated board consumption is being egged on by the processed food sector and a number of non-food applications including personal and household care, chemicals, electrical goods and others. At the same time, folding carton consumption is benefiting from the growth found in healthcare products, electrical goods, and frozen and chilled foods, among others.

According to the Pira, the US was the largest consumer for packaging in 2010 with a demand of $137 billion; China was close behind at $80 billion. China is anticipated to surpass the US by 2017, and India will enter the top ten packaging countries with its demand set to almost double in the next five years to $24 billion.

Technological developments in packaging are seeing an upswing in the consumption of bio-polymers in both rigid and flexible applications, improved value adding in products with functional and barrier coatings, as well as enhanced graphics, resource reduction by way of continuous lightweighting across all materials, and other developments.

Board products account for the biggest sector of the packaging market, totaling some $210 billion in 2010 and maintaining their leading position into 2016 when the sector will be worth $40 billion more at nearly $250 billion.

Pira research shows that food and healthcare packaging will continue to be the biggest end uses in global packaging, with the food and drinks industry growing by almost $43 billion combined to 2016. The study shows that health care packs will grow 4.5% each year to reach a total of $34 billion. Cosmetics packaging should grow 4.2% per year to reach $24 billion.

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Bioplastics News : Growth, Demand and Innovation

European Bioplastics report: The end of the oil age and rise of bioplastics

With 420 attendees, the 6th European Bioplastics conference in Berlin could rightly be termed a major success. This year, more than 80% of the participants came from Europe, 10% from Asia, and the better part of the remaining 10% from North and South America. Established players ranging from BASF, DSM, PolyOne, NatureWorks and Dow to Novamont, BioAmber and the World Wide Fund for Nature offered insights and information on new materials, environmental aspects and strategic market development.

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World demand for bioplastics to triple by 2015

Global demand for biodegradable and bio-based plastics will more than triple to more than 1 million metric tons in 2015, valued at $2.9 billion, according to a new market study.

Gains will be fueled by rising petroleum prices, consumer preferences for sustainable materials, improved performance of bioplastics, and the introduction of commodity plastics produced from bio-based sources.

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Researchers Make Biodegradable Plastic Bottles From Olive Skins

Soon you may be able to buy olive oil in bioplastic bottles made from a compound found in olive skins, thanks to the work of  a Spanish researcher.

Jesús Zorrilla has found a way to extract PHAs (poly-hydroxy-alcanoates) from the residues of olive skins, which in turn can be used to make plastic containers that are non-toxic and 100 percent biodegradable

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Sustainable packaging market at $107.7B in 2011

Sustainable & green packaging is gaining prominence in the global packaging market and is gradually becoming an essential area for industry players, says a new study by UK-based researcher Visiongain.

The sustainable & green packaging market is experiencing a rise in demand from consumers, and this is made possible due to advanced packaging technologies. Although the market was negatively impacted by reduced margins due to pressure from higher production costs involved, the sustainable & green packaging industry still stands firm and is likely to enhance its market share in the global packaging industry. Visiongain calculates that the sustainable & green packaging market will be worth $107.7 billion in 2011. 

Rising concerns over environmental hazards, eco-friendly packaging, carbon emissions, waste reduction targets specified by different countries and the trend towards 'green packaging', are the factors likely to boost the market for sustainable & green packaging solutions. The sustainable & green packaging market is likely to register consistent growth during 2011-2021, mainly influenced by rising environmental concerns, increasing health awareness, high disposable incomes, rapidly growing economies, dearth of natural resources and high-energy consumption. The North American and Western European economies are successfully established markets. However, the growing economies of Asia-Pacific (India and China), Eastern Europe (Germany and Russia) and Latin America (Brazil) offer tremendous potential to explore.

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Global biopolymers market expected to grow to 2.4 billion lb by 2016

The global market for biodegradable polymers will amount to an estimated 932 million pounds in 2011 and is expected to increase to more than 2.5 billion pounds in 2016, for a five-year compound annual growth rate (CAGR) of 22%. That’s according to a new technical market research report, “Biodegradable Polymers” (report #PLS025D), from BCC Research.

According to the report, the largest segment of the market, packaging, is expected to reach nearly 1.7 billion pounds in 2016. The market in 2011 is estimated at 656 million pounds, making the five-year CAGR 20.5%. The second-largest segment, made up of fibers/fabrics, is expected to increase in volume from an estimated 134 million pounds in 2011 to 435 million pounds in 2016, for a five-year CAGR of 26.6%. The food service segment is estimated to be 25 million pounds in 2011 and will increase to 40 million pounds in 2016 at a CAGR of 9.9%. Other markets expected to experience growth include agriculture, automotive, medical, and electronic/electrical.

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What's driving sustainable packaging development?

Two primary drivers have been identified by a Pira Intl. poll for sustainable packaging development, and both start with the consumers. During a recent poll of a survey of key players across the global packaging value chain, Pira Intl. found that an overwhelming 79 percent of respondents said that consumer awareness of environmental issues and new material developments are the most important drivers in the development of sustainable packaging, as growth drivers. The growth drivers' specific terminology used in the poll was ‘Increased exposure of consumers to environmental issues' and ‘Advances in materials technology."

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