Vol. 10, No. 13
September 2019
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Packaging: More than meets the eyeBrands face a tall order to create sustainable options that meet safety, price and marketing requirements
2 INSIDER Sports nutrition: Joint health digital magazine September 2019
CONTENTS naturalproductsinsider.com
Vol. 9, No. 13 September 2019
Copyright © 2019 Informa Markets. All rights reserved. The publisher reserves the right to accept or reject any advertising or editorial material. Advertisers, and/or their agents, assume the responsibility for all content of published advertisements and assume responsibility for any claims against the publisher based on the advertisement. Editorial contributors assume responsibility for their published works and assume responsibility for any claims against the publisher based on the published work. Editorial content may not necessarily reflect the views of the publisher. Materials contained on this site may not be reproduced, modified, distributed, republished or hosted (either directly or by linking) without our prior written permission. You may not alter or remove any trademark, copyright or other notice from copies of content. You may, however, download material from the site (one machine readable copy and one print copy per page) for your personal, noncommercial use only. We reserve all rights in and title to all material downloaded. All items submitted to NATURAL PRODUCTS INSIDER become the sole property of Informa Markets.
p.3
Viewpoint: The five Rs
Trends in sustainable packaging: Overcoming the perils of plastic Consumers are motivated to buy products from companies that promote sustainable practices, so packaging is a clear way to provide consumers a differentiating choice, explains Steve French, Natural Marketing Institute.
p.5
Environmentally friendly consumers want less plastic packagingConsumers are concerned about the environment and want brands to reduce the use of plastic packaging. Mike Hughes, FMCG Gurus, breaks down survey data on this consumer behavior.
p.9
The time is now for sustainable packagingLisa Schofield, contributor, investigates why sustainable packaging is emerging as a necessity—not a marketing ploy or a luxury.
p.16
Thinking outside the box at Gaia herbs Alison Czeczuga, Gaia Herbs, breaks down her company’s commitment to sustainability and how other companies can follow in its footsteps.
p.21
Takeaways for your business
p.23
Roots of sustainable compostable packagingThe OSC2 Packaging Coalition is replacing conventional plastic food packaging with sustainable alternatives, describes Lara Dickinson, OSC2.
p.12
3 INSIDER Sports nutrition: Joint health digital magazine September 2019
The five RsPackaging solutions in the natural product industry has hit a critical point. It’s so useful, until it’s trash.
Humans generated 2.01 billion tons of solid waste in 2016, and by 2050, that could rise to 3.4 billion tons, according to the World Bank. About 12% of all municipal waste in 2016 (242 million tons) was plastic. And even recycling isn’t good enough anymore because it’s too expensive, and Asian governments have started declining to take our recycled materials.
Aside from the Three R strategy—reduce, reuse and recycle plastic waste—which everyone is aware of, two more Rs should be considered: energy recovery and molecular redesign, according to a 2018 research paper from Wroclaw University of Environmental and Life Sciences in Poland (Appl Microbiol Biotechnol. 2018;102(18):7669–7678).
But even with this suggested strategy, the researchers noted, “The future of our planet depends on us and on our responsibility for the plastic waste problem. Natural adaptation of microorganisms might take too much time, and consequently the littering of the natural environment may be irreversible.” Rarely do I see such passionate writing in scientific journals.
Responsible countries in the natural products industry are doing the hard work to help address all these Rs, with a focus on that last R of redesigning. The road has been challenging, but companies are making the difficult trip and have made great headway.
This INSIDER digital magazine celebrates those brands that have started this legwork and offers direction for those brands that know they need to do better in this area. It’s time for the natural products industry to put the same effort—or more—into the packaging that surrounds its products as it does toward creating those healthy products themselves.
Please join me and packaging experts to discusses more about these concerns and solutions at the SupplySide West workshop “Sustainable, Safe and Sanctioned Packaging for CPG Brands”, on Friday, Oct. 18 at 9 a.m. at the Mandalay Bay in Las Vegas.
Viewpoint
Sandy AlmendarezEditor-in-Chief(480)[email protected]
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INSIDER's Take
Excess packaging is a visible target for consumers’ disdain as they attempt to reduce their negative environmental impact.
Plastic is the biggest offender, so brands looking to improve packaging should start with ways to reduce this non-biodegradable option.
Packaging must still prevent food waste, ensure product safety and keep nutrients fresh until end of shelf life.
Market data
Trends in sustainable packaging: The perils of plastic by Steve French
IN THIS ISSUE Viewpoint p.3 Market data p.9 Table of contents p.2
The “less is more” trend is a central tenet of environmental protection, especially when it comes to packaging. With almost three-quarters of U.S. consumers feeling many products are over-packaged, according to surveys conducted by the Natural Marketing Institute (NMI), it is no longer a concern for only the highly integrated environmental consumer. It is now relevant to mainstream consumers as well. In fact, packaging is one of the first and most visible environmental impacts consumers think of. How many times have we noticed that the chip bag is half full, or that the cookies come in a tray, an inner bag, and an outer bag or that certain plastic packaging cannot be recycled in the first place?
In the 1970s, laws such as the Clean Air Act and the Clean Water Act gave the federal government the authority to regulate pollutant discharges and implement pollution control programs. According to NMI’s Sustainability Consumer Trends Database (SCTD), however, even today, 7 out of 10 consumers feel the amount of waste on land and in the oceans is far worse than it was in the 1970s. That said, the sourcing and end life of packaging are becoming significantly more relevant as the product life cycle and waste impact are becoming a stronger part of consumers’ purchase decisions. In fact, about one-third of American consumers will look for something else to buy when they see something they perceive as having too much packaging. Furthermore, 31% consider “minimal packaging” as very important to their food and beverage purchase decisions, a sentiment that shows 13% growth from 2008. In addition, almost half of all U.S. adults indicated they are interested in learning about what companies are doing to not only use more recycled content in their products and packaging, but also to use less packaging. It is therefore understandable that a broad shift is underway at major U.S. corporations to develop more environmentally friendly packaging and to reduce their carbon footprint overall.
31% consider
“minimal packaging” as very important to their food and beverage purchase decisions, a sentiment that shows 13% growth from 2008.
According to NMI’s Sustainability Consumer Trends Database (SCTD)
6 INSIDER Sports nutrition: Joint health digital magazine September 2019
While over-packaging of products using any type of material produces negative reaction among consumers, it is plastic packaging that is on most consumers’ radar as the material of greatest concern. According to National Geographic, more than 200 million tons of plastic are produced each year, of which about 10% ends up in the oceans. And once most plastic is made, it never breaks down.
With images of “plastic islands” growing in the oceans and plastic products damaging wildlife and human health, it’s not surprising that more than three-quarters of consumers feel something needs to be done immediately about the amount of plastic accumulating in the environment and the ocean. In fact, consumers’ growing concern has been slowly re-shaping their own purchase patterns over the past several years.
A good example of consumer behavior change is the increase in the number of consumers who take a reusable shopping bag to the grocery store every week, rising from 20% of consumers in 2007 to 54% in 2018—almost a threefold increase. Consumers also indicated that they have increased their recycling behavior of plastic bottles over the past 12 years. Approximately two-thirds (65%) reported they recycle plastic bottles almost “all the time,” perhaps because they do not want them ending up in landfills or the ocean.
Challenges do exist, however. Packaging has a hugely positive impact on preventing food waste and ensuring product safety. As consumers are becoming more open to the use of different packaging types and even in refilling and reusing empty packaging, brands are tasked with finding new ways to keep products fresh, sanitary and safe. In addition, such efforts need to be balanced against consumers’ never-ending desire for convenience, which sometimes tends to come with a single-use or single-serving mentality. Therefore, innovation around sustainable packaging must incorporate these concerns as the sustainability wave may not be strong enough to counteract them.
These challenges, along with growing consumer concern over packaging, are driving innovative solutions. While some may be small steps or stopgap solutions, they are nonetheless evidence of a perceptible shift toward waste reduction for a more sustainable existence. With growing consumer momentum toward plastic reduction, several U.S. retailers are taking actions to reduce plastic. In 2018, Albertsons committed
Market data
A good example of consumer behavior change is the increase in the number of consumers who take a reusable shopping bag to the grocery store every week, rising from
20% 54% in 2018—almost a
threefold increase.
of consumers in 2007 to
Source: Natural Marketing Institute (NMI)
7 INSIDER Sports nutrition: Joint health digital magazine September 2019
to reducing its reliance on plastic materials with a focus on reducing, reusing and recycling. Trader Joe’s recently announced it is looking to cut plastic use by 1 million pounds per year by selling fewer produce items in plastic packaging and replacing plastic greeting card sleeves and floral wrapping. And research and development (R&D) innovations are creating innovative packaging, from bio-based plastics to forms that dissolve into non-toxic components in seawater. In addition, retailers are beginning to change the in-store experience, incorporating plastic-free aisles. The desire for packaging-free retail can be seen in the recent openings of several plastic-free, packaging-free or zero-waste stores. Reverse vending machines are turning up in Australia that dispense 10 cents for every bottle returned.
Responsible packaging must be part of corporate optimization and innovation for today’s companies across the supply chain. Packaging is commonly considered to be “low-hanging fruit” within the realm of sustainability. Consumers are motivated to buy products from companies that promote sustainable practices, and packaging is a clear way to provide consumers a differentiating choice and a straightforward option. Will the perils of plastic continue? Only time will tell.
Steve French ([email protected]) is managing partner at the Natural Marketing Institute
(NMI). NMI is a strategic consulting, market research and business development firm specializing in the health,
wellness and sustainability marketplace.
Market data
Packaging at SupplySide West
Learn more about trends in packaging for food, beverage and supplement products from Steve French during the “Sustainable, Safe and Sanctioned Packaging for CPG Brands” session on Friday, Oct. 18, 2019 at 9:00 am at SupplySide West in Las Vegas.
supplysidewest.com
Listen to the the Healthy Insider Podcast “Consumers demand sustainable packaging options – podcast” with Steve French to learn more about consumer packaging concerns.
9 INSIDER Sports nutrition: Joint health digital magazine September 2019
IN THIS ISSUE Market data p.5 Sustainability p.12 Table of contents p.2
Consumers around the world are concerned about the state of the environment and believe brands and manufacturers should be doing more to address this. When it comes to protecting the environment, one key issue is the packaging used for food and drink brands. Consumers want commitments to reducing the level of plastic used in packaging and, instead, want brands to demonstrate that they are using more sustainable forms of packaging.
An FMCG Gurus survey of 20,000 global consumers conducted in Q3 2019 showed 64% of consumers are concerned about the state of the environment, with 59% believing that damage is irreversible. As such, it is no surprise that 61% believe brands and manufacturers should be doing more to protect the environment.
Source: FMCG Gurus
Market data
Environmentally friendly consumers want less plastic packaging by Mike HughesINSIDER's take
Consumers are concerned about the environment and want brands to reduce the use of plastic packaging.
In lieu of plastic, consumers are looking for biodegradable options as well as less packaging altogether.
Consumers don’t often research, so brands need to ensure packaging achievements are clearly labeled.
64% of global consumers
say that they areconcered about the
environment
62%
of global consumerssay they want brands toreduce how much plastic
they use
61% of global consumerssay brands should be
doing more to protect the environment
62% of global consumers
say reduced plastic packaging claims are
influential on purchasing
10 INSIDER Sports nutrition: Joint health digital magazine September 2019
Packaging is a key issue for the many consumers who want to see themselves acting in a sustainable manner. A total of 62% of consumers said it is important that brands look to reduce their use of plastic, with 52% saying claims around minimizing/avoiding the use of plastic are something that influences purchasing habits when buying food and drink. Moreover, consumers believe it is not enough for brands to monitor how much plastic they use, but they also need to monitor how much plastic everyone uses. Indeed, 49% of respondents said it is important that brands monitor the supply chain of competitors when it comes to environmental policies. Additionally, a total of 54% of consumers said they would like to see brands introduce biodegradable packaging.
Currently, consumers are not likely to research about brands and packaging. For instance, only 42% of surveyed consumers said they regularly conduct research into food and drink brands; of these, only 33% said they research packaging material used. Finally, only 35% said they have used QR codes to research the sustainability initiatives of brands. This shows that commitments to reduced and alternative packaging need to be obvious at the point of purchase.
Research showed 60% of consumers said sustainability influences purchasing habits. Plastic is seen as evil in the packaging world because of the rate at which it decomposes and the damage it can do to the environment. This is important at a time when animal welfare has a growing influence on purchasing habits. One key way to overcome this would be to introduce biodegradable packaging that is easy to dispose.
While consumers find sustainable packaging important, they also admit that they do not always recycle. This is because consumers may lack the time, especially if there are no suitable recycling options nearby. This means brands need to look for ways to take the effort out of acting in a more environmentally friendly manner. This can be done through switching from plastic to biodegradable packaging, which not only portrays the brand in a more environmentally friendly way, but also takes the hassle out of recycling.
Mike Hughes is head of research and insight at FMCG Gurus. For more information, please contact FMCG Gurus at [email protected].
Market data
Research showed 60% of consumers said sustainability influences purchasing habits. Plastic is seen as evil in the packaging world because of the rate at which it decomposes and the damage it can do to the environment.
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12 INSIDER Sports nutrition: Joint health digital magazine September 2019
Six years ago, One Step Closer to an Organic Sustainable Coalition (OSC2) gathered 50 companies together at Natural Products Expo West to discuss an elephant in the room we were all facing: wasteful packaging. Alter Eco Foods, Numi Tea, Nutiva, Plum Organics, Whole Foods Markets, Gaia Herbs and many others came together. These companies had a lot to be proud of, as all of them were distributing packaged food nationwide and had grown into profitable businesses while maintaining deep roots in ethical purity.
However, every time they did production runs and ordered truckloads of products, they felt the burden of contributing to the biggest source of the waste stream in the U.S. The thoughtfully sourced, sustainably produced products they were proud of were packaged in flexible plastic—in other words, trash.
These were not the only companies facing sustainability challenges. As more consumer packaged goods (CPG) companies started using flexible plastic pouches to package food, the stand-up pouch market grew at a 9% clip each year between 2006 and 2012, according to the 2018 report “Pouches in the U.S.” from the Freedonia Group. The shift made sense: Plastic pouches use less air space and are more logistically efficient.
The U.S. alone uses more than 26 billion plastic pouches every year, according to the “Stand-Up Pouches, 2015 to 2019” report from Packaging Strategies, but not one ounce of the flexible pouch material is decomposable or recyclable. This means that when a consumer disposes a conventional petroleum-based plastic pouch, it is sent
directly to the landfill—they cannot be recycled or reused. These flexible plastic pouches are particularly concerning because they are a fusion of different petro-based plastic layers, which are impossible to separate, and therefore
cannot be recycled. As a result, in 2015, containers and packaging made up the largest portion of
municipal solid waste generated at almost 78 million tons (29.7%), according to the “Advancing Sustainable Materials Management Fact Sheet” from the
Environmental Protection Agency (EPA). If all the flexible plastic pouches that currently sit in landfills worldwide were stacked on top of one another, they
would equate to 48,000 miles, according to the Packaging Strategies report—a distance that could circumnavigate the earth twice over.
Sustainability
Roots of sustainable compostable packaging by Lara J DickinsonINSIDER's take
Natural product brands work diligently to ensure products are healthy for consumers and the environment, but often, the packaging doesn’t live up to the same standards.
The OSC2 Packaging Collaborative brings together natural product leaders to research and develop a compostable packaging solution that will reduce environmental waste.
With help from OSC2, Alter Eco launched the first fully compostable stand-up pouch that keeps food safe, preserves product taste and integrity, and prints beautifully.
IN THIS ISSUE Market data p.9 Sustainability p.16 Table of contents p.2
13 INSIDER Sports nutrition: Joint health digital magazine September 2019
Alter Eco and Numi Tea, among hundreds of other ethical food companies, were operating in isolation to lessen the environmental impact of packaging, long before any packaging vendors considered investing in such changes.
It wasn’t until 2013 that many of these packaging pioneers came together, with the formation of a network of mission-driven CEOs under OSC2.
I formed OSC2 in partnership with Ahmed Rahim, CEO of Numi Organic Tea. Our goal was to bring together CEOs of conscious food companies on a regular basis to discuss shared challenges of integrating sustainable principles into their business operations, engage in genuine dialogue on solutions, and collaborate with one another. In our first OSC2 conversations, however, packaging emerged as an Achilles heel of nearly every food company at the table. Packaging was the issue that all the leadership had been battling behind closed doors, the challenge that kept them up at night and the roadblock that they wanted nothing more than to fix.
With this in mind, we created the OSC2 Packaging Collaborative, which has spent the past six years investing in the research and development (R&D) of a compostable packaging solution that will work across the industry to reduce environmental waste.
The OSC2 Packaging Collaborative is unique for several reasons. First, it brings all packaging stakeholders to the table: those who make materials, those who convert materials, those who sell products, those who certify packaging and those who manage packaging waste. The OSC2 Packaging Collaborative has tested new materials at an expedited pace. By virtue of our power in numbers and influence, we have been able to show the upstream movers the hidden demand for a fully compostable packaging option.
“We all felt tremendously compelled to fix our package,” said Mat Senard, co-founder, Alter Eco Foods. “We knew it did not hold up to our mission for full circle sustainability. The shift toward a meaningful solution has been harder than we ever imagined, but we see the long-term benefit.”
Creating a compostable packaging alternative is exceedingly complex. The perfect compostable pouch material must hold the weight of its food product; it cannot let in too much oxygen but must let in just the right amount of moisture. Though compostable material is by its nature designed to break down, the pouch must stay together long enough to meet consumer expectations around shelf stability. Finally, it must print beautifully and function on the same machine that packs the food product, and it must survive the distribution chain.
Sustainability
Packaging is one of the top five investments food companies can make to address climate change, but we must convince companies to invest in compostable packaging.
14 INSIDER Sports nutrition: Joint health digital magazine September 2019
Not one company had been able to create the perfect compostable pouch. Three years ago, after months of collaboration and knowledge sharing among the OSC2 Packaging Coalition, Alter Eco finally launched the first fully compostable stand-up pouch that meets all those requirements, and began shipping it nationwide.
Numi Tea, Patagonia Provisions, Amy’s Kitchen and others have shown that the packaging crisis has hopeful solutions, but that sustainability will not succeed when it is confined to a corporate silo or a research organization. We have much more work to do. To create a truly sustainable packaging alternative, we must continue to test, develop and improve new materials. Packaging is one of the top five investments food companies can make to address climate change, but we must convince companies to invest in compostable packaging.
Organizations such as the Green/Blue Sustainable Packaging Coalition commissions research and educate on why brands should prioritize composting packaging solutions. Others are studying different types of sorting methods in landfill facilities in order to address the problem downstream. However, notable action toward change is still lacking. We believe this is because it is so exceedingly difficult to achieve a solution.
Not only is the technology emerging, but the packaging industry is fragmented. It is necessary to bring many different players together to make a single flexible pouch package. That is part of the magic of OSC2’s collaboration. We bring a great group of different players together, who were primarily working in silos before.
Lara J Dickinson is OSC2 executive director & co-founder and Climate Collaborative Co-founder.
Sustainability
Packaging at SupplySide West
Learn more about sustainable packaging solutions from Lara Dickinson during the “Sustainable, Safe and Sanctioned Packaging for CPG Brands” session on Friday, Oct. 18, 2019 at 9:00 am at SupplySide West in Las Vegas.
supplysidewest.com
Listen to the Healthy Insider Podcast “Food pouch packaging with integrity” to hear Lara Dickinson, discusses how food brands work together to improve packaging solutions across the industry.
LEARN MORE AT SUPPLYSIDECONNECT.COM
CONNECT WITH SUPPLIERS OFFERING SOLUTIONS
FOR YOUR NEXT PACKAGING INNOVATION.
16 INSIDER Sports nutrition: Joint health digital magazine September 2019
Sustainability p.12 CPG Insights p.21 Table of contents p.2IN THIS ISSUE
In a case of “truth is stranger than fiction,” a mammoth floating island of plastic waste three times the size of France (1.6 million km) was found in the Pacific Ocean in March 2019. Dubbed “The Great Pacific Garbage Patch,” it mimics a 1950s horror movie. According to one study, this undulating mass is comprised of 79,000 metric tons of plastic (or about 1.8 trillion pieces) (Sci Rep. 2018 Mar 22;8(1):4666).
This reality casts a blinding glare on the world of consumer products packaging. Product waste is a hazard to the livelihood of the earth. Since the 1950s, according to market research firm Our World in Data, annual global plastics production increased almost 200-fold, reaching approximately 381 million tons.
In 2000, 9% of global plastic waste was recycled; in 2015, that figure more than doubled to 19.5%−with 55% being simply discarded and the remainder incinerated, according to a 2015 report published in Science (2017 13 Feb;3(7): 768-771 e1700782) This report noted in 2010:
But things seem to be turning around—and brand marketers need to be on board. The Surfrider Foundation, an environmental group focused on ocean pollution, declared 2018 to be “the year we say goodbye to straws,” a movement that quickly grew and became adopted by cities, restaurants and corporations throughout the country. Paper and metal straws are becoming ubiquitous. Additionally, the E.U. finalized an agreement to reduce the use of single-use plastics, including straws, in all member countries by 2021.
Sustainability
The case for sustainable packaging by Lisa Schofield
INSIDER's take
Consumers’ relationship with plastic has turned from love to problematic as the environment experiences the devastating effects of the throw-away culture.
Packaging companies feel the pressure to reduce plastic use and are offering biobased, paper and bamboo options to the health and nutrition industry.
Food, beverage and supplement brands are increasing their marketing and communication to consumers about the sustainable options they use.
270 million tons of plastic were produced globally
275 million tons of global plastic waste was produced (including waste from prior years)
3% (8 million tons) of global plastic waste entered the oceans
Source: Science 2017 13 Feb;3(7): 768-771 e1700782
17 INSIDER Sports nutrition: Joint health digital magazine September 2019
Brands and retailers are turning to sustainable packaging. Ora Organics, an organic, clean-label company asserts on its website, “we went a step further with our efforts and made our bottles recyclable. We also ship in boxes that are made from 100% post-consumer material.” Also, this past March, Portland, Oregon-based Lilly’s Foods, which makes small-batch, non-GMO hummus and salsa, announced it began using only 100% recyclable packaging, including tub and label.
Brand marketers realize that the packaging is often the first impression online or on the shelf, and it instantly communicates its value system, benefits, features and environmental and/or humane commitment.
“One of the largest challenges CPG brands will face as they work to eliminate waste in their packaging is perceived value,” said Meghan Nardone, director of sales and marketing, Creative Printing + Packaging LLC. “Even as the CPG industry is evolving and working toward eliminating waste, there are brands that are trying to increase the size of the exterior package to drive consumers to purchase their product. On the other side of the playing field, we are seeing brands embrace transparency and modify their packaging to increase visibility to the product.”
Packaging Digest’s 2018 Sustainable Packaging Study (in concert with the Sustainable Packaging Coalition), found that packaging professionals promote the earth preservation concept via eco-healthy packaging—93% of respondents said they believe environmental concerns about plastics used for packaging will continue to increase. And like consumers and environmental activist groups have maintained, marine health (and debris) is the most critical environmental challenge for plastics.
Biobased plastics, explained Kevin Ireland, communications manager of Green Dot Bioplastics, is a solution, and the demand for bioplastics continues to dramatically increase. With this comes confusion between the terms “biobased” and “biodegradable.”
Sustainability
“Soy-based inks are utilized (you can literally eat the ink we use).”Meghan Nardone, director of sales and marketing, Creative Printing + Packaging LLC
Packagers are looking seriously at bioplastics as more technologies and resources become available and costs decrease.
18 INSIDER Sports nutrition: Joint health digital magazine September 2019
Biobased plastics, he noted, are made from renewable resources including commodities like corn, potatoes, sugarcane, wheat, soy and vegetable oil. The USDA BioPreferred Program certifies products with such renewable content as “biobased.”
In Packaging Digest’s survey, 74% of packaging professionals stated that biobased plastics improve the environmental perception of plastic packaging, yet only 42% think it improves the reality. Packagers are looking seriously at bioplastics as more technologies and resources become available and costs decrease.
“We are seeing consumer demand increase for recyclable materials, and now even compostable materials,” Nardone observed. “The folding carton industry has had a bad reputation when it comes to sustainability, but we are actually quite green. Soy-based inks are utilized (you can literally eat the ink we use). Most printing companies mix ink for each project so there isn’t any ink waste, and all of the paperboard we use is FSC [Forest Stewardship Council] certified.”
Consumers are a driving force as well as the corporate consciousness working in tandem with environmental activist groups. FMCG Gurus, a global market research firm specializing in market intelligence in the food, beverage and supplement industry, recently released a report assessing consumer attitudes about sustainable packaging. The report’s data is culled from a survey of 10,000 consumers conducted in fourth quarter 2018.
According to Mike Hughes, head of research and insight, FMCG Gurus, consumers deem environmental practices and policies of the food and beverage industries to be of high importance as they have concerns that damage wrought on the planet is irreparable. However, at the same time, consumers admit that they are not proactive when it comes to recycling packaging, despite attaching importance to packaging that tout sustainability claims.
“Two key challenges exist when it comes to encouraging consumers to recycle more frequently,” he explained. “First, consumers can find recycling time-consuming, and secondly, consumers can be skeptical about sustainability claims on packaging. These two issues are something that the industry needs to address.”
The report found that when it comes to important sustainability features, consumers are most likely to say that packaging needs to be recycleable more than once (65%). The next more popular feature is packaging that prevents food waste (63%).
Hughes further explained consumer skepticism can be related to high-profile incidences of “green-washing” related to outlandish sustainability claims. For instance, only 46% of consumers said they trust environmental claims made on food packaging, and 45% said they trust such claims on soft drink packaging.
Sustainability
19 INSIDER Sports nutrition: Joint health digital magazine September 2019
The industry “needs to take a two-pronged approach when it comes to encouraging consumers to recycle more,” Hughes advised. “First, sustainable packaging needs to be easy to dispose of in order to take the hassle out of recycling. Second, information regarding sustainability claims and recycling need to be deemed as credible and transparent to encourage consumers to act more on this information.”
Across the globe, consumers seek eco-friendly products from their favorite brands and manufacturers. A 2019 Nielsen research report, “Global Consumers Seek Companies that Care about Environmental Issues,” found that in every geographic area, most consumers are extremely or very concerned about packaging waste. For example, in Latin America, according to the report, 94% of respondents asserted that it is extremely or very important that companies implement programs to improve the environment, followed by 83% of Asia-Pacific respondents.
The good news is food, beverage and supplement brands are paying attention. While still an emerging space, from 2017 to 2019, brands that exhibit at the Natural Products Expo West tradeshows increased their claims related to sustainable and reduced packaging, meaning an expanding presence of packaging awareness. This is according to the NEXT Trend Database, which analyzes thousands of products exhibiting at Natural Products Expos according to growth of product attributes and categories over the years.
Sustainability packaging claims grew in the beverage category by 154% from 2017 to 2019, according to NEXT’s Trend Database.
Brands have many choices to transition to sustainable packaging. For example, MJS Packaging provides bamboo, a type of sturdy grass that grows robustly, which is being used in packaging due to its sustainability and perception of clean luxury. Bamboo is known as the world’s most renewable material because it grows quickly (up to two feet
Sustainability
Share growth of sustainable and reduced packaging claims at Natural Products Expo West, 2017 to 2019
Source: NEXT Trends database
Packaging that can be repurposed or reusable packaging
Less or reduced packaging
Renewable packaging
19% Sustainable packaging
270%
208%
45%
20 INSIDER Sports nutrition: Joint health digital magazine September 2019
per day), and can be harvested in three to seven years, much faster than traditional hardwood trees, according to “The Book of Bamboo: A Comprehensive Guide to This Remarkable Plant, Its Uses, and Its History” by David Farrelly. Bamboo also absorbs five times more carbon dioxide and produces 35% more oxygen than many trees. Further, growing bamboo promotes healthy soil, and harvesting bamboo doesn’t require replanting when done properly.
The folding carton industry has various paper grades and benefits, Nardone explained. One of the latest trends is tree-free seed paper. This paper can be made by hand or machine and is typically made from hemp fibers and has wildflower, vegetable or other seeds embedded into the paperboard. It is a 100% post-consumer recycled material that can be used in multiple applications.
Full Cycle Bioplastics produces polyhydroxyalkanoate (PHA) naturally by using bacteria to transform mixed organic waste into a sustainable alternative to a wide range of synthetic plastics. The bioplastic is compostable, marine degradable and, according to the company website, cost-competitive with fossil-fuel based alternatives.
“All industries will be forced to address material health and sustainable packaging in the next 10 years,” Nardone predicted. “The Recycled symbol will be the standard and the BPI logo will be very common.”
Lisa Schofield is a veteran writer and editor who got her start
interviewing rock stars for national music magazines. She now
writes and edits content for B2B media and suppliers in the
natural health product industry. In the industry, she has served
as editor for Vitamin Retailer and Nutrition Industry Executive,
and prior to that as associate editor for Whole Foods. For fun,
Schofield writes Stephen King-inspired short stories.
Sustainability
21 INSIDER Sports nutrition: Joint health digital magazine September 2019
Climate change is one of the biggest challenges we face. To truly create a better tomorrow for the planet and future generations, it’s the responsibility of everyone from individuals to large companies to work together to make that difference a reality. At Gaia Herbs, we’ve taken on that initiative as a purpose-driven company, and we are reminded about that commitment every day by the environment that we work with so closely.
As a large business, making a commitment to sustainability can be challenging, but it’s a challenge that we are dedicated to tackle. From the health of our soil to packaging the final product, we look for ways to improve our efforts to help the environment.
Packaging and shipping hundreds of thousands of products has been a challenge. We believe we are responsible to the environment. Conscious packaging is something consumers prioritize in addition to quality when looking for herbal supplements.
Some of the ways that Gaia Herbs has incorporated more sustainable packaging are as follows:
We use amber glass bottles for our Liquid Phyto-Caps, powdered capsules and liquid extracts, not only to ensure the quality of the botanicals inside, but to have our products in a recyclable container.
In 2011, we partnered with Pratt Industries to help reduce our packaging waste. We obtain our shipping boxes from Pratt Industries, which works in a closed-loop system that saves forests and water, reduces landfill waste and decreases CO2 emissions.
Our cartons are also made from 100% recycled paperboard from Forest Stewardship Council (FSC)-certified forests. With these changes in place, we were able to save 742,635 gallons of water, 2,806 trees and 347 cubic yards of landfill space in 2018.
While the results from these efforts have been great, there’s more work to be done. We think about ways we can improve our packaging, from the potential to use hemp as a replacement to our plastic caps. We are also looking at ways to initiate a closed-loop system to avoid the infrastructure challenges that the recycling and composting industries face in the U.S.
CPG Insights
Thinking outside the box at Gaia Herbs by Alison CzeczugaINSIDER's take
As a large supplement brand, Gaia Herbs’ commitment to sustainability is challenging but achievable.
The brand uses amber glass bottles and paperboard to ensure its packaging can be recycled.
The company partners with the Climate Collaborative to help ensure it continues to improve.
IN THIS ISSUE Sustainability p.16 Takeaways p.23 Table of contents p.2
22 INSIDER Sports nutrition: Joint health digital magazine September 2019
Through our involvement with the Climate Collaborative, as well as becoming a Certified B Corp., we encourage the growth of a healthier planet and the protection of the places we love. Working with other companies through the Climate Collaborative has been a way for us to partner with other purpose-driven companies for a greater cause, putting brand competition aside for the good of the planet. B Corp certification keeps us aligned with our values and encourages us to improve. That doesn’t just go for our environmental sustainability initiatives but providing benefits and a living wage for our employees as well.
At Gaia Herbs, we rely on the health of our environment to produce high-quality products we stand behind. The only way we can continue to provide for our customers, employees and our families is to stand behind the planet.
Alison Czeczuga, sustainability and social impact manager, Gaia Herbs leads the sustainability strategy across the
company to ensure a positive environmental and social impact across all operations. As a community developer,
Czeczuga has worked with farmers and artisans around the world, from Jamaica to Ethiopia, to advance business
strategies that foster positive the economic impact of rural livelihoods while fostering ecological conservation. After
working as a full-time organic farmer in rural West Virginia, Czeczuga settled in North Carolina. For four years,
she worked for the NC State Extension Service in Western North Carolina where she worked to advance organic
agriculture systems and alternative crop research and marketing, specifically medicinal herbs and native plants of the Southeast.
CPG Insights
Packaging at SupplySide WestLearn more about Gaia Herbs’ sustainable packaging initiatives from Stacey Gillespie, director of product strategy, Gaia Herbs during the “Sustainable, Safe and Sanctioned Packaging for CPG Brands” session on Friday, Oct. 18, 2019 at 9:00 am at SupplySide West in Las Vegas.
supplysidewest.com
Learn more about how CPG brands are using sustainable packaging in these Healthy Inisder podcasts:
• Gaia Herbs passionate about packaging that preserves the planet with Stacey Gillespie, director of product strategy and Alison Czeczuga, sustainability and social impact manager, Gaia Herbs
• Packaging dream: Shifting from waste to resource with Jeremiah C. McElwee, senior vice president of merchandising and product development, Thrive Market
• Nutiva’s compostable and sustainable packaging initiative with Derek McNamara, senior purchasing manager at Nutiva
23 INSIDER Sports nutrition: Joint health digital magazine September 2019
IN THIS ISSUE
The people have spoken. Product packaging, especially nonrecyclable plastic, threatens the environment, and brands need to reduce packaging and use alternative materials that can be recycled, composted or reused.
Consumers want to see themselves acting in a sustainable manner, and 61% believe brands and manufacturers should be doing more to protect the environment, according to an FMCG Gurus survey of 20,000 global consumers conducted in Q3 2019.
The Natural Marketing Institute (NMI) has found concerns about overpackaging and the environment are no longer just for the prototypical “green” consumers, but have begun to resonate with mainstream shoppers. NMI reported almost three-quarters of U.S. consumers feeling many products are overpackaged.
Further, NMI’s Sustainability Consumer Trends Database (SCTD) found 7 out of 10 consumers feel the amount of waste on land and in the oceans is far worse than it was in the 1970s—more than 200 million tons of plastic are produced each year (National Geographic), of which about 10% ends up in the oceans, and plastic never breaks down.
The U.S. alone uses more than 26 billion plastic pouches every year, according to the “Stand-Up Pouches, 2015 to 2019” report from Packaging Strategies, but most flexible pouch material is not decomposable or recyclable.
Six years ago, One Step Closer to an Organic Sustainable Coalition (OSC2) gathered 50 companies representing all parts of the product packaging chain to discuss wasteful packaging. The coalition tested new materials at an expedited pace, but it found creating a compostable packaging alternative is exceedingly complex: It must protect the contents, be environmentally friendly, print well and survive the distribution chain.
In 2016, OSC2 member Alter Eco launched the first fully compostable stand-up pouch that meets all those requirements and began shipping it nationwide. This is only the beginning, as the coalition members continue to test, develop and improve new materials.
Another movement is focused on biobased plastics, which are made from renewable resources including commodities like corn, potatoes, sugarcane, wheat, soy and vegetable oil, instead of the nonrenewable petroleum-based resources used to make conventional plastic. However, a Packaging Digest survey found 74% of packaging professionals think biobased plastics improve the environmental perception of plastic packaging, but only 42% think it improves reality of the environmental impact.
Food, beverage and supplement brands have responded to the packaging demands. From 2017 to 2019, brands that exhibited at the Natural Products Expo West trade shows increased their claims related to sustainable and reduced packaging, according to the NEXT Trend Database. However, consumers are a tough crowd to please. They want attractive, responsible packaging, but most can’t be bothered to recycle, and almost half don’t trust packaging claims on food and beverage products.
CPG Insights p.21 Inside INSIDER p.24 Table of Contents p.2
Takeaways: Brands confront the plastic problem by Steve Myers
Takeaways
24 INSIDER Sports nutrition: Joint health digital magazine September 2019
What do you look for most
in product packaging?
Inside INSIDER
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Laurel RiversAccount Manager, Health & Nutrition
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I’m looking for compostable first—like coffee pods and dry
food packaging. I want to throw something away and not think about how many years it will sit in a landfill or how we’re leaving the planet for the next generation.
What I look for most in packaging is
material usage. It is very important
to see whether the manufacturer is willing
to choose recyclable, eco-friendly
material. Its commitment to
packaging also shows its
commitment to its
consumer, community
and overall environment.
