BillerudKorsnäs debuts tough and durable paper for e-commerce streams

06 Sep 2019 --- In a bid to slash packaging waste generated by the rise of e-commerce in the retail market, fiber-based packaging materials provider BillerudKorsnäs has introduced a paper specially designed for e-commerce bags. Coined Xpression E-Com, it provides a superior and direct substitute for single-use plastic mailing bags and other less efficient solutions. E-commerce is likely to remain the fastest growing segment of retail. This makes for a fantastic opportunity for BillerudKorsnäs to disrupt a market which has been working solely with plastic mailing bags and corrugated boxes for so many years, notes the company. It will contine to explore other packaging oppurtunities within the space to meet unmet consumer needs, Tom Hallam, Business Development Manager at BillerudKorsnäs, tells PackagingInsights.

“Pressure for e-commerce packaging with low environmental impact is being driven primarily by the brand owners and also the end users. Our customers (the bag converters) are reacting positively to this paradigm shift in demand and preparing their machinery to meet these requirements. The launch of Xpression E-Com is a long time in the making and we have been working on this topic long before we we made aware of demand for a product of this nature from our customers,” says Hallam.

Xpression E-Com makes a shift to sustainable paper e-commerce bags possible. The material is renewable, recyclable and biodegradable with a low carbon footprint. Xpression E-Com is available in white, as well as in brown for those wanting a natural-looking package, while both grades are suited for mailing bags at a time when alternatives for plastic are in high demand.

Consumers demand safe and sustainable e-commerce solutions
Both paper and packaging for e-commerce have been cemented as key packaging trends for 2019. As the demand for e-commerce has proliferated among consumers, packaging has had to catch up.

Both paper and packaging for e-commerce have been cemented as key packaging trends for 2019. Players across the supply chain have engaged with providing solutions that are not only durable and safe, but are sustainable too. Also, in light of developments such as Amazon’s Frustration-Free packaging initiative, brands are becoming more aware of what is happening to a product when it goes out of the door.

On this note, Hallam explains that, “Amazon FFP is a great initiative but not something that has directly influenced our e-commerce product development. However, the principles of this approach very much mirror our objectives – reducing unnecessary packaging material, providing return capability or reusability, offering full recyclability and (via our converting partners) offering 'right sized' packaging with a wide range of bag dimensions and therefore capacity. The difference with our approach is that we focus uniquely on bags which are produced using only fibre from certified sustainable forests at mills with extremely low carbon footprint.”

Mirroring the route of BillerudKorsnäs, one approach has been moving to paper solutions. This reflects wider market movements, where “Nature’s Appeal” was identified as the third-biggest packaging trend for 2019 by Innova Market Insights. The market analyst cites anti-plastic sentiment and the rising demand for designed-in recyclability as fuel for the resurgence in paper and paperboard packaging.

Yet when it comes to e-commerce packaging, packaging solutions must offer more than just recyclability to be sustainable. Importantly, a huge driver to consider in e-commerce is damage, which can make up 50 percent of the carbon footprint of a package, while transportation of the item can comprise 15-20 percent of the impact.

BillerudKorsnäs highlights that consumers are now demanding that brand owners embrace all aspects of sustainability. Many companies have responded by cleaning up their supply chains, eliminating high-risk raw materials and improving social welfare, but continue to use vast amounts of plastic bags for e-commerce. Xpression E-Com is available in white, as well as in brown for those wanting a natural-looking package.

The new product is the result of a collaboration between BillerudKorsnäs and the packaging machine producer JB Machines.

“We have collaborated with BillerudKorsnäs to help introduce a paper quality that works flawlessly on our converting machines. The quality of Xpression E-com paper results in high productivity and bags with great functionality and durability,” says Walter Zanon, Co-Owner, JB Machines.

Also this week, BillerudKorsnäs invested in recycling by acquiring a minority holding in Recycl3R – a company that has developed a digital solution to increase the recycling rates of single-use packaging.

The company builds a database with information about what packaging material make up different consumer products, keeping in mind the different recycling regulations and requirements around the world. This knowledge is used to guide consumers to the nearest recycling station and help them recycle correctly. The solution also makes it possible for producers and distributors to give consumers incentive to recycle more through gamification and by connecting value – such as deposits or loyalty points – to different packaging materials.

BillerudKorsnäs also completed the sale of 89.9 percent of its shares in Bergvik Skog Öst Swedish forest land to the pension company AMF. The divestment affects BillerudKorsnäs’ cash flow positively by approximately SEK 7.9 billion (US$890 million). The capital gain of approximately SEK 5.6 billion (US$580 million) will be recognized under the heading profit from discontinued operations in the interim report for the third quarter.

By Laxmi Haigh

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