TRENDS IN PACKAGING

PPI, Feb 2007 by Toland, Justin

PPI visits the Salon de L'Emballage expo in Paris to discover more about the latest demands and innovations

TO FIND OUT what paper-based packaging is up against, you only have to visit a 'material neutral' packaging show such as the Salon de l'Emballage (Paris Expo, November 20-24,2006). Most of the six large exhibition halls were dedicated to plastics, glass, metals and mixed-material packaging. Of course, paper-based packaging also had its place, with familiar names such as Mondi, Körsnas, Arjo Wiggins and others, among the exhibitors, but seeing these companies in the context of the packaging sector as a whole, really puts things in perspective, both in terms of understanding the attitude of retailers and fast-moving consumer goods (FMCG) companies to the packaging they use (typically, 'whatever material is best for the job'), and understanding why innovation is so important to packaging producers.

In common with many other leading producers of paper-based packaging, Mondi Packaging also manufactures packaging made from other materials. However, as marketing manager, Mondi Packaging, Angelika Siber explains, the company's Hex Pack division and Packaging division are not really competing for the same business. "Flex Pack is more targeted at FMCG and food packaging. Of course, there is some crossover and some competition, but that is good for Mondi."

Last year, Mondi Packaging opened a new R&D center in Austria for the paper business and industrial bags with the aim of developing barrier coatings, water resistant paper products and other new products. One recent innovation from the firm is the World Bag, a sack that comes printed with instructions in 18 different languages.

Corporate relations director, Cham Paper, Timothy Dean told PPI, "I've been in the industry for 20 years and I can't remember a more exciting time in terms of innovations." Dean was referring to things such as barrier coatings and the combination of bio-polymers with the paper substrate. "The plastics industry was right -10 years ago we were sleeping," he says. This is no longer the case, believes Dean, who was talking after a press conference at the Salon de l'Emballage by Paperplus, the Specialty Paper Manufacturers Association.

The Brussels-based organization, which has 12 member companies and two associate members (Santher and Södra Cell), represents the interests of producers of papers for flexible packaging of food and the labeling of food and beverages. The association's main aim, however, says general secretary, Tiina Heikel, is, "To promote the use of paper and the advantages paper has... We should be proud of the things that we do - we are not old-fashioned, we are moving ahead."

At the press conference in Paris, Paperplus released the results of a survey carried out on its behalf by IPSOS. The world's second largest market research agency surveyed 6,500 consumers in seven major European countries (UK, France, Germany, Poland, Spain, Sweden and Belgium) to find out their responses to the use of various materials for packaging. According to the results, almost nine out of 10 shoppers said they would choose products packed in paper rather than plastic or other materials.

Some 93% of respondents considered paper more 'environmentally friendly' and 87% find paper more 'convenient' (for instance, easier to open and close) than competing materials. Close to 80% of the survey group said they find paper more pleasant to handle or touch.

While the results of the IPSOS survey can be seen as heartening for the paper companies, what consumers say they prefer in a market research survey and what they do in stores can be two very different things. And when it comes to the value chain, "If we look at the dynamics now, it's about retailer mandates," says product development director, global specialty paper, Stora Enso, David Diekelman. In other words, retailers call the shots, taking into account consumer demands. Today, the demand voiced by ENGOs - for sustainability, less waste and so on, is particularly strong. As Diekelman pointed out in his presentation in Paris, retailers and large FMCG firms are already responding to these demands: Wal-Mart has created a sustainability scorecard and asked 2,000 private label suppliers to input data, with the aim of using more renewable resources and slashing energy use; Heinz, Northern Foods and Unilever have signed a commitment to reduce packaging waste; in the UK, supermarket Sainsbury's has pledged to cut packaging by 5% by 2010.

"It's hard to say whether the new supermarket commitment to waste reduction will benefit the paper industry or not," cautions Dean. However, for Diekelman, "This whole sustainable focus with retailers is really putting paper back out in the forefront." Taking advantage of this, Stora Enso has developed a new product, the Multiplex Lid, to replace lids made from aluminum. According to the company, this new lid is lighter, uses less greenhouse gases during manufacturing and includes more renewable content than existing alternatives, Table 1.