PACKAGING
A majority of regulatory bodies and international
environmental organisations have
proposed a ban on single-use packaging
materials to mitigate the perilous effects
of non-degradable solid waste on the environment.
Increasing environmental awareness and consumer
inclination towards making sustainable purchases is
providing a major boost to the growth of the market.
Positive effects of the ban on single-use packaging
on the biodegradable packaging market are offset by
stringent labeling regulations and certification procedures
to control false claims about the biodegradability
of packaging materials. The market is characterised
by the need to comply with strict quality standards
established in various regional markets, which may
complicate it for market players to maintain competitive
prices of biodegradable packaging solutions.
The global war against plastic packaging materials is
opening an attractive window of opportunities for paper
packaging companies, enticing them into entering
the biodegradable packaging market. The market is
expected to envisage healthy value CAGR of 4.2%
during the period 2018-2028, with revenues surpassing
US$703 billion by 2028 end. The paper & paperboard
biodegradable packaging will retain its undisputed
dominance in the biodegradable packaging market, as
it may account for more than 95% of the total market
revenue by the end of 2028.
Meanwhile, the study finds that leading players in
the biodegradable packaging market are adopting
strategies to acquire their smaller rivals to consolidate a
stronger position in the packaging sector. DS Smith – a
British paper packaging company – recently announced
its plans to acquire its Spanish rival Europac Group for
more than US$2 billion, in order to merge the Western
European biodegradable packaging market. Another
leading player Smurfit Kappa Group recently completed
the acquisition of Reparenco – a paper and recycling
company in the Netherlands – for €460 million to expand
its European biodegradable packaging capacities.
An American manufacturer of biodegradable packaging
WestRock Company recently acquired packaging
businesses across the world, including Hanna Group,
Plymouth Packaging and Schlüter Print Pharma Packaging
GmbH, to establish a stronger presence in the
market. The company also revealed its plans to acquire
KapStone Paper and Packaging Corp, an American
paper company, for a total enterprise value of around
US$4.9 billion to leverage KapStone’s expertise in
biodegradable packaging using kraft paper.
Increasing growth of the e-commerce sector and
popular trends of online grocery shopping is opening
new avenues of growth for players in the biodegradable
packaging market. Purchasing decisions of environment
conscious consumers are greatly influenced by
sustainable packaging materials, which may create high
demand for biodegradable packaging solutions in the
coming future. Stakeholders in the biodegradable packaging
market are shifting their focus on the dynamic
trends in the e-commerce sector while adopting their
future business strategies.
Among all the leading end-user industries in the
biodegradable packaging market, the food & beverage
industry is expected to account for more than 30% of
the total market share throughout the forecast period.
Increasing demand for packaged food products,
convenience foods and ready-to-eat meals is reflected
in supermarket shelves. Leading market players are
introducing biodegradable packaging films, trays and
bags to further improve the fresh food experience for
consumers while offering numerous environmental
benefits.
Sensing the extraordinary growth opportunities in the
biodegradable packaging market for the F&B industry,
the Mondi Group recently developed an innovative,
paper-based, biodegradable packaging bag for food
called Sustainex, in collaboration with a Polish convertee
SILBO. Multifold opportunities for biodegradable
packaging in the F&B industry are boosting market
players to develop innovative technologies, biodegradable
packaging materials and designs, which is
expected to influence the dynamics of the biodegradable
packaging market in the upcoming years.
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average temperatures could benefit
some New Zealand marginal and
fringe winegrowing regions, such
as Waitaki, with earlier harvest
dates reducing the risk of poor
weather at harvest. Other areas
not currently suited to winegrowing
could become so. A recent Victoria
University of Wellington study
reported that a lack of specific
data and budget constraints meant
winegrowers were reluctant to
implement adaptation strategies to
mitigate against climate change.
It found that most adaptation
techniques involve significant
investment in new equipment,
locations and vines, noting a single
frost fan to help melt the frost on
vines can cost more than $40,000.
The stated key driver of the
recently-created New Zealand
Winegrowers Research Centre is
how New Zealand wine innovates
into the future. Following industry
consultation, it identified climate
change as one of its research
priorities and is in the process of
developing a programme of work
looking at its impacts and potential
adaptation techniques. Thus,
viticulturists can look forward to
the provision of well-researched
assistance enabling them to flourish
through warming times.
Wholesale Landscapes is a
Nelson-based manufacturer
and retailer of a wide range of
landscaping options.
www.wholesalelandscapes.co.nz
WHAT’S IN
STORE FOR
PACKAGING
It’s a reality…single-use plastic bags are now a distant
memory for most New Zealand supermarkets and other
retailers...following the footsteps of the world. So what’s in
store for the global biodegradable packaging market in the
aftermath? Fact.MR takes a look.
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