Sustainable Packaging Solutions for More Efficient and Less Wasteful Global Food Supply Chain
Interview with Mr. Surendra Soni, Sector Marketing Director, Asia Pacific, Sealed Air
As modern-day consumers are becoming more environmentally conscious, businesses can no longer focus solely on pricing and sales. Conventional business approaches are phasing into greener and more efficient trends that encompass both quality and environmental concern. The increasingly popular concept of ‘going green’ that permeates through every fibre of the global industries has driven packaging manufacturers towards the path where technological novelties, entrepreneurial performance and sustainable efforts harmoniously converge. Mr. Surendra Soni, Sector Marketing Director, Asia Pacific, Sealed Air, shares with Food Focus Thailand the corporate insights that have helped steer the company towards eco-friendly solutions.
When it comes to creating innovative and environmentally friendly packaging, one needs to re-think the whole concept to reach a never-before-seen breakthrough for its integration with environment conservation. And such is precisely the belief Sealed Air has always been operating on. “Sustainable packaging is the development and use of packaging that either incorporates recyclable content or is recyclable or reusable. A common misconception is that switching out packaging to more environmentally friendly materials such as paper will solve all sustainability issues. We need to take a more holistic view to sustainability and look across the supply chain to ensure that in the process of making products more recyclable, we are not missing critical opportunities to reduce waste and resources like water and energy,” remarks Mr. Soni in the initial statement of the interview.
He further adds that designing an innovative solution that meets sustainability goals goes back to Sealed Air’s purpose, which is to protect and to preserve. “Using the right type of packaging can dramatically decrease safety risks and help in minimising waste. For packaging that protects important resources like food, we need to be thoughtful in our approach and in the way we engineer solutions, or we risk trading one problem for another. We need to strike a balance between reducing excessive packaging while ensuring food safety, quality, and minimising food waste. This is the same for protecting valuable goods such as medicine and delicate electronic components,” reveals Mr. Soni.
While ‘sustainable packaging’ has a beautiful ring to it, it is generally viewed as a burden that comes attached with higher costs and challenges for feasibility. Shifting away from this common mindset, Sealed Air adopts a different perspective concerning this approach and its practical nature for manufacturers. “For decades, business decisions have been built on a simple model of price versus performance. Business leaders were looking at product portfolios that translated into the right combination, one that drove sales and maximised profit margins. So, when proposals were put forward on ‘greener’ packaging solutions a few years ago, the decision matrix was simple and focused on key aspects of performance and pricing, coupled with convenience. But it was soon realised that solutions such as biodegradable packing peanuts and foam cushioning made from cultivated mushrooms did not perform better and were not cheaper to produce.” affirms Sealed Air’s Sector Marketing Director.
“A new model has emerged where sustainability has joined the ranks and is now a third important dimension. Sustainable packaging should not just be about the recyclability or reusability of the final packaging material, but also its overall impact along the supply chain. It is important for businesses to consider the value that their packaging can bring to society and not just in the sustainability of the packaging material itself. For example, essential food packaging ensures food safety, extends shelf life, and reduces food waste, and protective packaging reduces the damage of the product that is being shipped. This ensures that all the resources that went into the production of that food item or product (for example, materials, water, energy, etc.) are not wasted due to either spoilage or damage.”
The newly adopted paradigm has rippled out across the vast span of enterprises, including many SMEs, which are trying to reconcile the concepts of sustainable packaging with practicality. Mr. Soni offers valuable advice on how SMEs can access and efficiently reap the benefits of sustainable packaging, “Sustainability has moved from being a ‘buzzword’ to becoming a ‘necessity’ in the last couple of years. In the past, it would have been enough for businesses and manufacturers to pay lip service to sustainability, but consumers today are becoming more conscious of the impact their buying decisions have on the environment, while investors are looking at sustainability as a key metric when putting together the valuation of a company.”
“For larger brands, readjusting a packaging strategy can be a significant undertaking, particularly due to the sheer number of products they carry. On the other hand, fast-growing SMEs have not always placed packaging high on the priority list and instead place focus on ensuring the business is set up correctly. That being said, it is far easier for SMEs to get their packaging strategy right during this initial growth phase – using sustainable and recyclable materials – to prevent the need for an overhaul further down the business’s timeline. While retaining customers and minimising costs tend to be a key area of focus for small businesses, we believe damage reduction (savings) is the missing piece of the sustainability equation.” According to Sealed Air’s tenets, preventing damage during shipments is not just a better business decision, it is imperative to achieving sustainability goals. Oftentimes when retailers think of sustainability, they focus solely on finding the right packaging that is environmentally friendly.
This proposed solution involves zooming out for the big picture and extrapolating from available statistical facts, “But here is the thing, manufacturing and disposing of the packaging materials accounts for just five per cent of the environmental impact of the shipping. So even if a retailer discovered a packaging material that was “carbon neutral” and was recycled 100 per cent of the time at best, they would only improve the environmental footprint of its shipping cycle by five per cent. On the other hand, 48 per cent (almost half of the total environmental cost of shipping) comes from damage, and that is assuming a damage rate of just one per cent which most would deem outstanding. Even with a one per cent damage rate, the impact of that damage still represents 48 per cent of the environmental impact associated with shipping.”
“When it comes to food, the carbon footprint of its production along the entire supply chain is much larger than that of the packaging that protects it. For example, cheese has over 70 times the carbon dioxide equivalent (Co2e) footprint of its plastic wrap and for beef, over 270 times the Co2e footprint of shrink bags used to protect it. Packaging, therefore, plays an essential role to protect and extend shelf life of the food product so that the resources that went into its production are not wasted,” concludes Mr. Soni.
The accumulated efforts to reduce plastic in packaging that has picked up the pace in recent years, seem to be hindered by the current pandemic where people are prioritizing the safety and protection of F&B products more than the reduction of plastic waste. In this regard, Mr. Soni offers the following observation, “On average, products go through more than 15 handoffs and touchpoints throughout the supply chain journey, and this has become increasingly more complex with the current demands brought on by the spike in e-commerce during the pandemic. As a result, we have seen businesses re-think their packaging solutions to adapt to the rigours of the modern-day supply chain to address the needs of consumers for safety and convenience.”
“Since the start of the pandemic, we have also seen significant growth in the adoption of more advanced solutions, such as cook-in or freezer-ready packaging. This vacuum skin-like packaging was specifically designed and engineered for fresh meat products, which delivers flexible portion sizes while extending product shelf life. Interestingly, this is a more sustainable option as the vacuum packaging uses at least 40% less material compared to other products and eliminates material scrap, reducing the cost of waste. Therefore, we believe sustainable packaging and food safety are not mutually exclusive,” continues Mr. Soni. According to Sealed Air’s sustainability philosophy, the role of packaging can go beyond protecting a product as it can also be used to inform consumers about sustainable living and reduce food wastage. In addition, packaging plays a role in educating consumers about nutrition, storing, and cooking food, and using leftovers, as well as its ability to enable traceability of their food through the supply chain.
“The role of packaging within the food supply chain is often underestimated, but with the right technology and application, it can go a long way in ensuring our supply chain remains sustainable. The most pressing question for the F&B industry now is how can it create a supply chain that addresses new consumer preferences and minimises food waste,” concludes Mr. Soni in his final statement for the interview.