2025 looms fast, and we have made good progress in Australia in making flexible packaging designs to enable the packaging to be more readily recycled and collected. The latest data suggests that up to 60 per cent of flexible packaging on the market meets the CEFLEX guidelines, and I know that in Australia and New Zealand, Amcor is closer to over 90 per cent.
However, more needs to be done to make our packaging fully circular, and we will collectively, as an industry, miss our 2025 Australian packaging targets.
As a consumer myself, I find it disappointing. The lack of ability to recycle flexible packaging at scale in Australia means consumer trust in industry being responsible is not high.
It is encouraging that we see the federal government's engagement in helping through regulatory guidance on packaging design. This might include mandatory levels of local circular content for all materials and formats, including flexibles.
We know consumers expect the government to help with the circularity of packaging. There is also an expectation that the industry will collectively lead, create trust with consumers, and be seen as doing good as an industry.
A recent survey by Leo Burnett (The Good Study, May 2024) of Australian consumers underpins that, as consumers, we want our favourite brands to “be doing good”. Consumers expect this from their brands as much as they do from the government. When it comes to packaging, consumers see doing good as re-using, recycling and reducing impact; clearing oceans and waterways; and reducing the use of plastic.
We know from the survey and other studies that if consumers can trust and see a brand is doing good, it shapes consumer behaviour, their communications with others, and ultimately, purchasing behaviours.
Leading the way
Doing good and communicating well is good for business and the environment.
The opportunity to do good as an industry means collectively changing our current systems for circular packaging. As I write this piece, the Australian Packaging Covenant Organisation (APCO) is engaging its members nationally for a 2030 strategy to undertake such a transformation. APCO is advising that all packaging, including flexible packaging, needs to address the economic levers required to build the collection and reprocessing infrastructure and equitably allocate costs for funding such infrastructure and services for recycling. Additionally, an accountable industry-led system administrator is required to efficiently manage across all material streams and ensure relevant parts of the system are aligned and accountable.
We see such changes occurring under new product stewardship schemes in Europe, and we have the opportunity to be a leading example for Asia Pacific in Australia.
Our industry has the opportunity to lead the way in demonstrating positive change to consumers without delay.
The shift to sustainable raw materials
In an era where sustainability is paramount, the focus on developing packaging materials to protect products and reduce environmental impact is high. Design of packaging that accounts for all the value chain, from virgin material production through use to collection and reprocessing or re-use, is more critical than ever. One area where this shift is particularly impactful is in flexible packaging.
Flexible packaging is crucial in preserving the quality and extending the shelf life of countless products, from food, pharmaceuticals and even medical devices.
A significant industry trend for reducing the impacts of flexible packaging is using recycled plastics. By reprocessing materials that have already been used, we reduce waste that may be mismanaged and enter the environment, decreasing the demand for virgin plastics.
For food packaging, it's crucial to have food-grade recycled materials, and this can be achieved only by advanced recycling for flexible packaging. Using advanced recycled materials exemplifies how circular economy principles can be practically applied.
Traceability and certification of recycled content are critical for the industry to transition to a circular economy. For flexible packaging, a globally recognised traceability system, ISCC Plus, exists for advanced recycled materials. Amcor has ensured all its sites using advanced recycled materials in Australia and New Zealand are certified to ISCC Plus to provide confidence for customers to make valid environmental claims on their packaging, and ensure consumers can trust their favourite brands are doing good and making their packaging circular with certified circular plastic content.
We see a great example already today of leadership through Mondelez changing its packaging for Cadbury Dairy Milk Chocolate wrappers to 50 per cent certified circular content with Amcor. Mondelez has committed to using approximately 1000 tonnes of ISCC Plus certified circular plastics from Amcor, reducing by 50 per cent the use of virgin plastic, which consumers clearly see as doing good.
The Cost of Inaction
Consumers expect the industry to take the lead on making its packaging sustainable. In terms of plastic packaging, including flexible packaging, consumers expect the industry to recycle, reuse, reduce the use of virgin plastic, and ensure it does not leak into the environment.
The opportunity for the industry is really to lead, to create trust with consumers and all our stakeholders, and to avoid excessive regulatory intervention that may have further unintended impacts on the industry.
While the benefits of adopting sustainable packaging are compelling, the cost and risk of industry inaction could be substantial.
Collaborative Efforts and Innovations
Addressing these challenges requires a collaborative effort. At Amcor, we are committed to working with suppliers, customers, and our partners to innovate and improve the materials we use. By investing in research and development, we aim to enhance the performance of sustainable materials through technological advancements and support our customers across the markets they serve.
The industry is rightly focused on improving the recyclability of flexible packaging. Innovations such as mono-PP or mono-PE material packaging solutions, which use only one type of polymer, make it easier to recycle products at their end of life, ensuring they remain in the economy and out of the environment.
One of our latest innovations is Amcor's AmPrima. It is a recycle-ready packaging solution that replaces non-recyclable materials like PET in flexible packaging. This innovation simplifies flexible packaging recycling, offering a practical packaging solution across many commercial and retail applications.
Looking Ahead: The Path to Sustainability
The journey towards more sustainable, flexible packaging is ongoing and evolving. It is driven by a commitment to innovation and a deep sense of responsibility towards getting plastics out of the environment. Consumers play a crucial role in this transition. Their growing preference for sustainable products motivates companies to prioritise more sustainable packaging solutions. By choosing products with sustainable packaging, consumers can drive the demand that encourages further innovations in this space.
As we look ahead, the opportunities for sustainable growth in the flexible packaging industry are immense. With continued advancements in materials science, a collaborative approach across the value chain, and supportive regulatory frameworks, we can significantly reduce our environmental impact.
At Amcor, we are optimistic about the future. We remain committed to leading the industry towards more circular practices. The opportunity is to act now as an industry, and we are ready at Amcor to support our customers with recycle-ready, flexible packaging that minimises virgin plastic through the use of certified circular content.
This article was first published in the May-June 2024 print issue of PKN Packaging News, p24.
