Advanced Materials for Advanced Packaging
As consumer and regulatory demand for eco-friendly solutions grows, materials science startups are driving the next wave of packaging innovation.
Packaging is ubiquitous in our daily lives, allowing for minimal food waste and overall product breakage with advanced convenience features and low costs.
Over the past decade, the global packaging industry has experienced strong growth, driven by changes in substrate choices and the expansion of new end markets. Key changes include the increased use of plastics to replace other substrates and meet consumer demand for convenience, as well as the economic boom in China and other emerging regions.
Today, the world is producing twice as much plastic waste as it did twenty years ago, yet according to the OECD, only 9% is successfully recycled.
Therefore, the focus on sustainable packaging has become more critical than ever. The urgency to address environmental concerns has given rise to a new wave of innovative startups dedicated to reducing the environmental footprint associated with packaging.
In this analysis, we delve into why sustainable packaging is of utmost importance now, what technological solutions exist, and which startups are working on them.
From waste reduction to minimizing pollution, sustainable packaging aligns with the growing consumer demand for eco-friendly solutions. Furthermore, the capital flows into these startups reflect a shifting paradigm where investors recognize the potential for both financial returns and positive environmental impact.
Why do we need sustainable packaging today?
Traditional packaging, while it has improved product preservation and protection, has also significantly contributed to environmental pollution and waste increase.
Plastic production has exponentially risen in recent decades, going from 1.5 million tons in 1950 to 359 million tons today.
As a result, countries around the world are seeking to curb plastic usage through regulation. For instance, France and Belgium have already introduced fines for non-recyclable packaging, and the UK is expected to follow suit.
With the enforcement of regulations, companies and suppliers will need to become more environmentally friendly. Fortunately for them, there is a cohort of startups across Europe working on sustainable packaging solutions.
However, despite efforts to reduce the amount of plastic used, a significant portion of it still goes towards disposable packaging.
Packaging accounts for over 60% of plastic waste in Europe.
Inadequate management of traditional packaging also has a significant impact on the health of marine ecosystems and biodiversity. Plastic ending up in the ocean can harm marine organisms through ingestion or entanglement, leading to negative consequences for the entire food chain.
Furthermore, plastic can persist in the environment for hundreds of years, contributing to the formation of so-called "plastic islands" and pollution of natural habitats.
The main environmental challenges of traditional packaging
🟡 Recyclability of packaging:
Large quantities of produced packaging cannot be recycled in current systems. Multimaterial packaging poses a significant challenge in recycling. Recycling rates for plastic packaging are low.
🟡 Recycling and packaging losses:
In the United States, only 28% of packaging and plastic for food is recovered. In Europe, the recycling rate for plastic packaging is slightly above 40%, compared to 80% for cardboard and 75-80% for metal and glass.
🟡 Pressure on emerging regions:
The growth in packaging demand outpaces global growth rates, and waste collection and recycling systems are lacking, especially in emerging regions like Asia.
🟡 Environmental impact of traditional packaging:
The packaging industry accounts for approximately 40% of globally produced plastic. In 2019, the packaging industry generated over 1.3 billion tons of waste, with only 9% being recycled. Traditional packaging contributes to pollution and climate change.
🟡 Negative effects on marine life:
Every year, 8 million tons of plastic end up in the oceans, harming marine life and polluting beaches and waterways. Plastic can be ingested by animals, with negative consequences for their health.
🟡 Contribution to climate change:
Packaging production releases greenhouse gases into the atmosphere, contributing to global warming.
So, Let’s deep dive into this trend and discover 10 startups to watch!
The management of packaging waste is facing a crisis due to two unresolved challenges:
Recyclability of packaging: Large quantities of packaging produced today cannot be recycled in existing recycling systems. This is particularly true for multi-material packaging, which currently presents a significant and unresolved challenge in recycling.
Recycling and packaging losses: Recycling rates for plastic packaging are relatively low. In the United States, for example, waste is generally managed with low losses, but the recovery rates for packaging and plastic for food are around 28%. In Europe, the reported recycling rate for plastic packaging has been slightly above 40%, compared to approximately 80% for cardboard and 75-80% for metal and glass.
Emerging regions, particularly Asia, are under greater pressure because the growth in packaging demand is outpacing global growth rates, and waste collection systems, let alone recycling, are not in place at the required scale.
Addressing these challenges requires a shift towards sustainable packaging, utilizing renewable and recyclable materials. Alternatives such as cardboard, glass, and metal offer more environmentally friendly options than single-use plastics, but they are not sufficient. In addition to this, the market will need to embrace solutions related to innovative technologies that provide unique solutions to these issues.
Benefits of sustainable packaging:
Reduced environmental impact: Sustainable packaging materials can help reduce the environmental impact of packaging by being made from renewable resources, being biodegradable or compostable, or being recyclable.
Improved product quality: Sustainable packaging materials can help enhance product quality by providing better protection against damage, moisture, and contaminants.
Increased customer satisfaction: Consumers increasingly demand sustainable products, and sustainable packaging can contribute to improved customer satisfaction and loyalty.
Impact Mapping
Adopting a sustainable approach to packaging is crucial for addressing environmental issues and preserving the environment for future generations.
Data and statistics demonstrate the urgency of acting responsibly and sustainably in the packaging industry:
Sustainable packaging can contribute to various SDGs. For example, SDG 12 ("Responsible Consumption and Production") aims to reduce resource waste, including the reduction of packaging waste.
According to a report by the European Environment Agency (EEA), in 2018, the European Union generated 175 kg of packaging waste per capita, of which only 42% was recycled. This indicates the need for adopting a sustainable approach to reduce waste and improve resource efficiency.
Furthermore, sustainable packaging can also contribute to SDG 13 ("Climate Action") by addressing greenhouse gas emissions and reducing environmental impact.
According to a study conducted by Climate Reality Check, a 3-degree Celsius increase in average temperatures could trigger disastrous chain reactions by 2050.
Adopting sustainable packaging that promotes the use of recyclable or compostable materials and reduces greenhouse gas emissions during production and transportation can help mitigate climate change.
The Role of Deeptech in Sustainable Packaging
Deep technologies are at the forefront of the sustainable packaging revolution, offering innovative solutions to mitigate the environmental impact of packaging.
These cutting-edge advancements encompass various aspects of the packaging lifecycle, from material development to tracking and tracing.
Bioplastics derived from renewable sources provide a biodegradable and compostable alternative to traditional plastics, addressing the issue of plastic waste accumulation.
Nanotechnologies drive the development of packaging materials with enhanced durability, protection, and biodegradability, while recycled materials significantly reduce reliance on virgin resources.
Mushroom-based materials and compostable films promote a circular economy and minimize environmental footprints.
Seaweed-based materials offer biodegradability, availability, and low energy consumption. Beyond materials, Deep Tech technologies encompass advanced systems and data-driven approaches.
Artificial intelligence optimizes packaging design and efficiency, while the Internet of Things enables traceability and waste reduction.
3D printing allows for customized and lightweight packaging, while blockchain ensures transparency and sustainability in sourcing.
Robotics streamline processes, smart sensors monitor conditions, and AR/VR technologies educate consumers.
Machine learning identifies patterns for efficient packaging solutions, and automation reduces environmental impact.
With these advancements, Deep Tech technologies revolutionize sustainable packaging, paving the way for a greener and more sustainable future.