Paccor and Digimarc propel packaging circular economy with digital watermark technology

Nicolas Lorenz, CCO at Paccor (All image credits: Paccor).

18 Jun 2021 --- Digital watermarks can increase packaging circularity in “ways that were not possible in the past,” according to plastic packaging specialist Paccor and digital identity technologists Digimarc. 

The two companies partner to give plastic packaging what Digimarc calls “digital recycling passports.” Scanning the near-to invisible barcodes helps recycling sorters identify what kind of material is used and how the packaging should be recycled.

PackagingInsights speaks exclusively with Nicolas Lorenz, Paccor’s chief commercial officer, and Robert Chamness, Digimarc’s chief legal officer, about this groundbreaking technology. 

They share how the Digimarc Barcodes can create new value streams for recycled plastics and prevent single-use packaging from contaminating the environment.

Click to EnlargeThe Digimarc Barcode can be engraved in the mold or printed on a label on the outer packaging to provide a “digital intelligence.”“The importance of getting more recyclate into the system is going to be critical in the years ahead,” says Chamness. “We are excellent partners together and look forward to the next stages of what we can bring to the market, not just in the EU but globally.” 

How does it work?
Paccor is the first packaging manufacturer to apply the Digimarc Barcode to commercially available rigid plastic packaging. 

The barcode is engraved in the material mold using “micro-topological variation,” resulting in an embossing effect. No special inks or printing processes are required. 

The codes further provide consumers and disposal companies with “virtually unlimited” information about the respective packaging, including: 

• Identifying packaging manufacturer and SKU (for modulation of EPR fees).
• Distinguishing between food versus non-food packaging.
• Identifying multilayer flexible packaging and components of layers, carbon-black, opaque, difficult-to-recycle objects. 
• New material introduction.

Digimarc has previously collaborated with global plastic manufacturer Berry. The technology also sparked PepsiCo’s interest for more effective recycling.

Beer cups: A case study
Lorenz highlights Paccor’s new Circular Events project showcasing the barcodes’ circularity potential in practice. The project aims to emboss Digimarc Barcodes on plastic beer cups used during big assemblies, such as concerts, shows and sporting events.

“The volunteers help clean up [after assemblies] put the cups into the bin,” Lorenz illustrates, noting how the transported cups are then crushed and recycled by specialized recycling partners. Afterward, Paccor uses the material to produce new cups made of 100 percent recycled PET (rPET).

The applications are not necessarily limited to rigid plastic cups. “There’s a lot of problematic material on the market,” Lorenz flags. “For example, everyone says black trays are not recyclable. Beautiful, bring it back, we will put the code on it. I would love to get all of my black trays back.” 

Click to EnlargeCircular Events is Paccor’s latest project to apply the Digimarc Barcodes on F&B containers in event settings.The same applies to colored and transparent packaging, where opportunities abound in meats, deli and fresh produce packaging, adds Chamness. 

“We would like to deliver the technology to our customer base so they can apply this on their products. They can do a lot of more things than what we can offer,” Lorenz muses.

Barcodes’ sustainability benefits 
The Digimarc Barcodes’ benefits go beyond just providing material information. They are scannable with smartphone cameras, which can support consumer engagement to drive brand loyalty and share information about production origins and good recycling practices.

According to Innova Market Insights, 30 percent of global consumers believe they lack knowledge of proper waste separation.

Lorenz also stresses digital identification promotes food safety and extended shelf life, as it provides production and packaging origin transparency. 

Innova Market Insights data reveals 42 percent of global consumers are “concerned about the increased usage of plastic packaging,” but admit “it is necessary to prevent current health risks” during the COVID-19 pandemic.

Chamness also lists avoiding manufacturing errors, protecting product authenticity and security, and reducing plastic waste as key environmental advantages of Digimarc. 

Click to EnlargeDigimarc offers its barcodes as part of the HolyGrail 2.0 initiative, helping brands meet regulatory mandates for recycled content.Previous sorting technologies “limited”
Besides barcodes, there are already many similar technologies on the market. Instead of clashing with scannable tech competitors, Digimarc aims to complement current high-speed sortation solutions.

“For the last three or four decades, near-infrared has been a really good technology, doing a lot of the heavy lifting in the recycling industry,” Chamness highlights.

“But by and large, people recognize its limitations. It’s kind of at its end-of-life in terms of what it can do. What we do is add a new feature that can work alongside near-infrared in tandem.”

The barcodes also resemble more popular QR code technology, but Lorenz flags that these codes are only applied to one spot on-pack. 

“If the code is damaged, then the material is gone. The Digimarc Barcode is all over the surface of the product itself, either in the printed or the unprinted versions.” 

Click to EnlargeThe codes are placed on a 2x2 cm grid, where the pixels are “largely imperceptible” to the naked eye.Tracers are also “a nice idea,” in Lorenz’s view, but they “have some limitations,” such as lacking product protection. “Anyone can do it. If you put the wrong masterbatch in the process, then you could have a contaminated [waste stream].”

Solutions needed urgently
Lorenz and Chamness recognize the need for scannable tech solutions runs parallel to the rising demand for “higher value recyclate which the industry seems to need so badly.”

Notably, new plastics legislation in the EU and the UK requires recycled content in consumer packaging. Moreover, consumers continue to pressure for recyclable, eco-conscious packaging solutions. 

“[Lorenz] mentioned black trays, but there are also films and other products where we can provide circularity not possible in the past,” says Chamness.

He adds that the wider packaging industry has been “terribly disrupted over the last year – in the current environment, it’s sometimes been hard to get virgin plastics.” 

Despite representing the interest of the plastic packaging sector, Lorenz highlights the potential of the barcodes for paper, aluminum and glass packaging. “We have the chance for circularity. And that’s why we have to do this and not build up extra resources.”

“Mechanical recycling has the lowest environmental footprint of all technologies today. We can implement it very quickly. We are ready to go.”

By Anni Schleicher

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