February in review: Mondi eyes DS Smith merger, EU rules against oxo-degradables, crackdown on waste exports

04 Mar 2024 --- February began with the European Court adjudicating against Symphony Environmental’s long-running legal battle to overturn the ban on oxo-degradable plastic additives. An official investigation was launched into lobbying practices around the upcoming EU Packaging and Packaging Waste Regulation (PPWR). 

Meanwhile, Mondi confirmed it is considering acquiring DS Smith in a potential €11.7 billion (US$12.6 billion) tie-up and Berry Global entered a US$3.6 billion merger with Glatfelter Corporation. 

The month ended with the European Parliament (EP) approving new measures against plastic waste exports.

Among this month’s news, we look at some of the hottest topics, market dynamics and trends while speaking to some of the most prominent players in the industry.

February

Oxo-degradables on trial: European Court issues judgment on legality of PAC plastics
Oxo-degradables are used in some countries in the belief the additives can replace waste management infrastructure.The European Court issued a long-awaited judgment on a case against the European Commission over the legality of so-called oxo-degradable plastics. UK company Symphony Environmental filed the suit in 2021, claiming compensation could reach £82 million (US$103 million) for loss of profits and reputational damage. Oxo-degradables are a type of pro-oxidant additive-containing (PAC) material, which companies like Symphony claim catalyze plastic degradation harmlessly without creating microplastics.

PPWR lobbying investigation: European Parliament launches inquiry amid “shady tactics” allegations
The EP reportedly began investigating lobbying practices surrounding the PPWR after Italian MEP Maria Angela Danzì filed a complaint claiming that “unprecedented pressure” by business groups is interfering with the EP’s democratic rules and regulations. 

Mondi confirms possible €11.7B merger with DS Smith as shares spike
Mondi confirmed it is considering a possible merger with DS Smith, which estimates show would create a company with a combined value of €11.7 billion (US$12.6 billion). However, while Mondi says the combination is an “exciting opportunity,” a DS Smith announcement emphasizes the idea is “highly preliminary” and that no concrete proposal has yet been made. The deal, if realized, would create Europe’s biggest containerboard manufacturer. In 2021, Mondi was rumored to be making inroads toward a possible ~US$7 billion deal with its smaller rival, which was never achieved. Mondi has until March 7 to make another formal deal or abandon the idea.

European foodservice trends: Industry ignorance, complacency and the threat of Asian expansion
Quick service restaurant (QSR) packaging is due to undergo substantial changes that high street chains and SMEs will need to prepare for in Europe. The sector faces unique challenges due to its special reliance (currently) on single-use formats and the pollution and health threats these designs pose to the public. We spoke to industry lobbyists and environmental campaigners about the debate. 

Plasticizers in F&B packaging caused 56,000 US preterm births and cost up to US$8B in 2018, say researchers
Phthalates, synthetic chemicals widely used in various packaging products, contributed to over 56,000 preterm births in 2018, according to New York University, US, researchers. The lost economic productivity and additional medical care costs due to phthalate-induced preterm birth in 2018 ranged between US$1.63 billion – US$8.14 billion. 

Top Packaging Trends 2024: “Digitalized Circularity” to transform industry waste management
Digimarc expanded the capacity of its watermarking technology (Image credit: Digimarc).Innova Market Insights announced its Top Packaging Trends 2024, with “Digitalized Circularity” taking the top spot. Incoming regulations, notably the UN’s Global Plastics Treaty and the EU’s PPWR revision, will intensify demand for responsible waste management. According to market researchers, the packaging industry will increasingly turn to digital tech for scalable circular economy solutions. 

Europe’s new packaging waste regulation: Are special rules for plastic illegal?
The EU’s proposed PPWR special rules for plastic packaging and exemptions for other materials, such as coated paper, may violate EU law by discriminating against plastic packaging, according to a legal assessment. The plastics packaging industry is urging lawmakers to remove material-specific rules to prevent environmental harm and ensure legal and planning certainty for companies, but environmentalists argue that plastic packaging has enjoyed favorable regulation to date while pollution has continuously increased.

Digimarc CEO: Digital watermarking expansion will make circular plastic economy “flourish”
Digimarc Corporation expanded the accessibility of its digital watermarking technology, Digimarc Recycle, to improve plastic waste sorting and recycling and lower virgin material use. The move follows successful pilots and testing in multiple countries worldwide. Digimarc’s president and CEO Riley McCormack told Packaging Insights that Digimarc Recycle is available and easily accessible for integration into new and existing recycling and sorting facilities.

Packaging Innovations 2024: Barrier coatings, compostability and foodservice trends
At this year’s Packaging Innovations trade show in Birmingham, UK (February 21–22), industry experts highlighted the latest material developments aimed at bolstering the circular economy. Ridding packaging of plastic through new barrier coatings and advancing compostability, particularly for the foodservice sector, were major themes.

EU Waste Shipment Regulation: Will banning plastic waste exports help or hinder European recycling?
The EP adopted “tougher” rules under its Waste Shipment Regulation to reinforce control measures and waste management within the EU. But, EuRIC — the European Recycling Industries’ Confederation — says the rules threaten recycling in the bloc. The updated regulations will prohibit plastic waste exports to non-OECD countries within two and a half years of the regulation’s entry into force. Additionally, stricter conditions will be imposed on plastic waste exports to OECD countries.

By Louis Gore-Langton