Packaging industry review 2022: Ukraine war, chemical recycling and bioplastics

22 Dec 2022 --- As 2022 draws to a close, PackagingInsights looks back at the biggest developments of the year, from the Ukraine war and skyrocketing energy prices to chemical recycling debates and action over waste exportation. Environmental sustainability remained the prevailing trend but legislative reform brought some key issues – like reusability, recycling and waste incineration – to the fore. The UN’s global plastic treaty entered negotiation rounds, dividing many countries. Moreover, bioplastics innovators called for political support to compete with fossil-fuel-based materials.

January

Biodegradable boom or bust? Bioplastic innovation confronts cost and policy challenges
Anti-plastic legislation sweeped into effect in countries around the globe, making the industry look for new ways to package F&B products without sacrificing quality, shelf life and hygiene. Biodegradable materials are an increasingly popular option, highlighted by mass investments and R&D exploration into bioplastics that break down naturally after use without harming human or environmental health.

Liar, liar plastic on fire: Turkish recyclers discovered arsoning facilities to destroy waste
MGA seeks to boost environmental standards in Kenya through economic empowerment in local communities.Recycling companies throughout Turkey were found to be intentionally burning down their facilities as a means of cheaply destroying hazardous packaging waste, according to Microplastic Research Group, a team of scientists who study pollution and waste crime in the country. Dr. Sedat Gündoğdu, chief scientist of the group, told PackagingInsights his team tracked hundreds of fires through open sources in the past six years.

Ineos joins Nextloopp’s polypropylene recycling project for food grade polymers
Ineos Olefins and Polymers Europe joined the pioneering polypropylene recycling project Nextloopp, supporting its delivery of food-grade recycled content. The chemicals company is orchestrating a pivotal two-year project that will inform the building of a demonstration plant in the UK to produce 10,000 metric tons of recycled polypropylene annually.

Dow invests in Mr. Green Africa to boost waste picker economy and flexible plastic recycling
Dow furthered its partnership with Kenyan recycling company Mr.Green Africa by investing in its series B funding round in what Dow said is a “first” in addressing critical waste management gaps in Africa. At full scale, the investment is expected to create approximately 200 more direct jobs, impact the lives of 5,000 waste pickers and engage more than 250,000 consumers in separation at source programs.

Scientists warned the new safe level for BPA is more than 5,000 times below what FDA says is safe. February

FDA petitioned to restrict BPA in food packaging amid alarming health impact findings
Public groups petitioned the US Food and Drug Administration to restrict Bisphenol A (BPA) in food packaging after new findings suggest the chemical can damage human health at levels 100,000 times lower than previously thought. The coalition of physicians, scientists, and public health and environmental organizations called on the agency to rescind its approvals for BPA in adhesives and coatings and set strict limits on its use in food-contact plastics.

European label emergency: Nordic labor strike will wreck economy without quick resolution, warns FINAT
Union strikes in Nordic countries, compounded by years of COVID-19 disruptions, decimated label production for the F&B, pharmaceutical and personal care industries throughout Europe. Reports suggested that lead times for label materials increased up to three months or more. The European association for the self-adhesive label and narrow web packaging industry (FINAT) warned that if strikes continue and label production is not put back on track, there could be serious ramifications for FMCGs across the continent.

Sachet economics: Unilever pinpoints affordability as NGOs see big problems with packets
Unilever defended its use of hard-to-recycle plastic sachets in developing countries after coming under fire from NGOs, who accused the company of exploiting impoverished regions with artificially cheap single-use packaging that causes devastating environmental pollution. The FMCG giant argues single-use sachets are necessary because they protect products from humid climates and bright sunlight and offer poorer communities a chance to buy products in small quantities they otherwise could not afford.

Innocent until guilty: Smoothie brand’s “greenwashed” ad under investigation amid activist arrests
Innocent Drinks came under investigation by the UK’s Advertising Standards Authority for what activists say is a misleading marketing campaign centered on recycled plastic packaging that amounts to “greenwashing.” A complaint was filed against the Coca-Cola-owned company after members of direct action group Plastics Rebellion accused Innocent of attempting to dupe consumers into buying “good” plastics through a marketing campaign called “Little Drinks, Big Dreams.”

Paper packaging groups froze their operations in Russia and Belarus as a result of the Ukraine invasion. March

Coveris increases paper-based innovation but plastics remain pivotal, says CEO
Coveris increased its focus on paper packaging solutions but has no intention of withdrawing from the plastics packaging segment, CEO Jakob A. Mosser announced. The European packaging manufacturer is primarily known for its plastic packaging and film products.

Packaging industry faces catastrophic economic blows as Russia threatens to block oil and gas exports
The packaging industry was warned it could be facing “catastrophic” price rises for oil and gas, as Russia threatened to cut off all supplies to Europe, including through the Nord Stream pipelines, in retaliation to Western sanctions imposed due to the invasion of Ukraine.

Fighting with fiber: Forestry and pulp companies halt Russian operations as Ukraine war escalates
Major paper packaging groups and forestry standards authorities froze their operations in Russia and Belarus in a show of protest against the invasion of Ukraine. The divestments were expected to deliver a heavy blow to the Russian economy, further threaten global price rises and degrade environmental sustainability efforts.

Could war in Europe boost the bioplastics industry? Tipa calls for fossil fuel disconnect
The bioplastics industry could experience a boom as fossil fuel-based virgin plastics face sharp price rises and material shortages due to COVID-19 disruptions, economic inflation and political conflict, according to Tipa. We spoke to the Israeli bioplastics leader to understand how the recent invasion of Ukraine could spur an industry rush to source bio-based alternatives and what this could mean for environmental sustainability.

Plastic is not only a burden for ecosystems, researchers warn it could also worsen climate change.April

April fools? UK Plastic Packaging Tax starts today but businesses aren’t aware, warns Veolia
The UK Plastic Packaging Tax became effective in April, but 77% of British retail and manufacturing businesses were not aware of it at the time, according to research conducted by YouGov on behalf of Veolia. The tax placed a £200 (US$244) per metric ton levy on producers or importers of plastic packaging if they do not include 30% recycled content.

EU proposes tighter greenwashing restrictions with new advertising laws in Green Deal update
The European Commission proposed a set of rules for the European Green Deal that would tighten restrictions on greenwashing and expand consumer rights. The amendments were set to help prevent misleading advertising and ensure packaging accurately conveys the durability and reparability of a product.

Untouched wilderness no more: “Plastic flood” reaches Arctic as researchers pinpoint fishing vessels
The global “plastic flood” reached the Arctic, according to a new international review study released by the Alfred Wegener Institute. The researchers said there is a concerning degree of plastic pollution in the Arctic Ocean while noting that plastic debris from ships – especially fishing vessels – is a primary cause.

E-commerce packaging ups environmental sustainability game as multi-generational demand grows
The challenges between the boom in demand for e-commerce packaging emerging during the COVID-19 pandemic and the need to maintain environmental sustainability were compounded by geopolitical issues this year – particularly the Ukraine war and inflating energy and material costs.

Plastic pollution is seeping into our waterways, poisoning our environment, and blighting our landscapes, proclaimed California’s attorney general Rob Bonta. May

History of deception: California launches “historic” inquiry into petrochemical industry lies
In a “first of its kind” US state investigation, California’s attorney general Rob Bonta launched a major inquiry into petroleum companies for “aggressively” spreading decades of disinformation on plastics and their damage to human and environmental health. At the heart of Bonta’s investigation was the charge that corporations established numerous sham recycling initiatives, complete with inoperational or empty facilities and fraudulent public relations campaigns.

Fabricating the loop: How fashion disrupts the circular plastics economy, and what the EU must do
EU policymakers tried to prevent “free-riding” fashion and automotive businesses from disrupting the circular economy by using the recycled plastic supply without contributing a fair share. Fashion and automobile companies boosted their environmental credentials by buying beverage packs produced by rPET, creating an illusion of circularity for public relations purposes.

“False claims” expected to dominate Packaging Innovations 2022 amid anti-plastics legislation, says expert
UK consumers were told they would have to check claims made by packaging producers as these might have been incorrect or misleading, warned Martin Kersh, executive director of the Foodservice Packaging Association. Kersh said the resulting issue is that many packaging products are claimed to be plastic-free but are not.

Plastic bag tax extension sows division among Israel’s opposition party
Israel’s National Liberal Movement party Likud voted against a bill that sought to extend charges on plastic bags for consumers. The bill had been submitted by one of Likud’s own lawmakers, but then opposed by allied ultra-Orthodox factions. A law passed in 2016 required customers to pay 10 agorot (US$0.03) per plastic bag at supermarkets. The legislation also banned the distribution of certain types of polymer bags.

Throughout the food chain, good hygiene practices are essential to prevent the spread of bacteria.June

Google’s Ukraine Support Fund awards Re-Leaf US$100,000 for fallen-leave packaging
Ukrainian start-up Releaf, creator of paper products from fallen tree leaves, was awarded US$100,000 by Google’s Ukraine Support Fund, which was launched at the outbreak of the Russian invasion. Selected Ukraine-based businesses were being announced on a rolling basis, with the maximum award being US$100,000 in non-dilutive funding as well as ongoing Google mentorship, product support and Cloud credits.

Monomer migration: Scientists identify 388 hazardous packaging chemicals for high priority phase-out
Plastic monomers that are known to have carcinogenic, mutagenic and toxic to reproduction hazard properties can easily transfer into food products, making them highly relevant for human exposure, a study published in The Journal of Hazardous Materials found. According to the researchers, many of these chemicals were common in European food packaging. The study identifies 388 chemicals of concern that are “high priority” for a legal phase-out.

Antimicrobial packaging in the age of COVID-19: Maintaining hygiene while boosting sustainability
Following the COVID-19 pandemic, hygiene has been at the forefront of packaging design. As packaging is often the first point of contact for any item, antimicrobial packaging provides customers with an increased level of product protection against potentially harmful microbes. We spoke about virus protection, consumer hygiene concerns and how the current R&D sphere can be improved with industry professionals.

A tax too far? UK plastic packaging law could hit consumer wallets, warns Wipak sales manager
UK food packaging businesses were being forced to pay a plastic packaging tax they could not comply with while the financial penalties ensued could force companies to push additional costs onto consumers, told Wayne Hallsworth, sales manager at Wipak. Hallsworth told us that the UK Plastic Packaging Tax is unrealistic, which caused businesses to choose to pay the tax and push price increases onto consumers.

India is thought to contribute around a third of the world's total marine pollution.July

California signs nation’s most stringent plastic polluter-pays law, but opponents question environmental benefits
The US State of California signed a new “Plastic Pollution Producer Responsibility Act” that will see the US’ most stringent plastic reduction, recycling and infrastructural development funding requirements imposed on industry players. The 76-page bill stipulates that plastic producers charge a 25% reduction in single-use plastic packaging and foodware by weight and item count by 2032; nearly half of that reduction must result from the direct elimination of plastic packaging or switching to reuse and refill systems. The bill also requires that all single-use packaging and foodware, including non-plastic items, be recyclable or compostable in California by 2032.

India imposes broad single-use plastics ban as businesses and waste pickers brace for disruption
The Indian government imposed bans on a wide range of single-use plastic products to combat the nation’s pollution problems, which the UN estimates to contribute to around a third of the world’s 11 million metric tons of marine trash annually. The ban was first proposed in 2016 by Prime Minister Modi, and the government hailed its implementation three days ago as “a defining step to curb pollution caused by littered and unmanaged plastic waste.”

Chinese researchers claim imported frozen food packaging helped spread COVID-19
Chinese researchers linked almost 700 cases of COVID-19 to contaminated frozen food packaging, supporting speculation that cold-chain foods act as a pathway for SARS-CoV-2 and might present a risk of virus transmission between regions. The findings, published in China CDC Weekly, contradict official World Health Organization (WHO) statements asserting no evidence linking COVID-19 transmission between people through food packaging. This is the first time it was proposed that environment-to-human transmission originated from contaminated imported food.

European corrugated board manufacturers reveal “significant” CO2 savings in latest report
Non-profit industry organization, the European Federation of Corrugated Board Manufacturers (FEFCO), reported that the CO2 footprint for a corrugated board is 491 kg CO2 equivalent (e/t), showing significant improvement compared to the 538 kg CO2e/t produced in its 2018 assessment. This result reflected the continuous efforts made by the European corrugated industry and its paper suppliers to reduce their environmental impact.

PepsiCo Labs enlists six global tech startups to “revolutionize” European supply chains
PepsiCo Labs selected six technology startups to trial emerging solutions on its European supply chains. The collaborations were geared toward achieving environmental sustainability advances and were conducted throughout the continent this year. The startups were piloted in locations including Turkey, Belgium and Portugal, with trials focusing on four key areas: efficiency and automation, sustainable cleaning and hygiene, recycling and water recovery.

Single-use plastic bag sales at retail shops in the UK have plummeted 97% since 2015, according to Defra.August

South Korean scientists link common chemicals in packaging to metabolic diseases
Scientists in South Korea demonstrated that harmful endocrine-disrupting chemicals, including phthalates and bisphenol A (BPA) found in consumer packaging, may damage the mammalian liver and cause metabolic diseases, particularly in mixture forms. The Chung-Ang University researchers evaluated the impact of toxic EDCs on liver function and metabolic homeostasis. Humans are constantly exposed to these chemicals through consumer products, including plastics, aluminum cans, pharmaceuticals and cosmetics.

Chile, India, South Africa, and Kenya explore plastic pollution solutions in new UK-funded project
UK Research and Innovation and WRAP established a £1.2 million (US$1.4 million) project to assist six initiatives in Chile, India, South Africa and Kenya targeted at solving difficult-to-recycle plastics, growing reusable packaging, and introducing innovative business models in each respective country.

Plastic reduction or distraction? UK gov faces greenwash backlash over “staggering” carrier bag charge results
Figures published by the UK’s Department for Environment, Food and Rural Affairs (Defra) suggested a “staggering 97%” reduction in single-use plastic bag purchases since introducing a carrier bag charge in supermarkets in 2015. However, this self-proclaimed success raised questions about the nuances of plastic consumption among the green groups and environmental organizations rallying for a more holistic approach to single-use reductions. “Defra’s new statistics, on the surface, present a tremendous result for reducing single-use plastic. But these numbers are greenwashing us by only telling a fraction of the story,” A Plastic Planet’s co-founder, Sian Sutherland, told PackagingInsights.

The rough side of recycling: Reported attacks on journalists investigating illegal waste trade proliferate
Two independent freelance journalists were reported being attacked, threatened with death and having their media equipment confiscated while investigating allegations of illegal recycling operations in an industrial area in Türkiye for a Gezegen24 news article. Environmental groups warned that attacks on journalists investigating the alleged unlawful management of material waste are increasingly common worldwide.

Coding waste collection: How digital serialization could save packagers and governments billions
Digitalizing recycling and refill systems at the consumer and manufacturing levels could drastically improve waste management but is not yet being considered – on paper – by policymakers. Despite this, trials consistently show that digital marking will enhance engagement with waste reduction efforts and save vast amounts of money across the value chain. Tony McGurk, chairman of UK startup Reward4Waste, has been developing technology for a digital deposit return scheme in the UK for some time. He told PackagingInsights that the concept could revolutionize managing collection and sortation.

EcoPackables unveils compostable e-commerce packs from coffee byproduct as Gen Z prioritizes environment
EcoPackables introduced a raw material for packaging, which combines a proprietary blend of discarded coffee waste with polylactic acid (PLA) to make a compostable polymer that is 35% cheaper than “all existing solutions.” Shervin Dehmoubed, EcoPackables founder and CEO, spoke with us about the environmental sustainability benefits of the company’s packaging and how the industry can overcome generational differences in perceptions toward responsible packaging.

ZWE study found that plastic packaging pyrolysis produces nine times more GHGs than mechanical recycling.September

­European metal industry faces “life-or-death” winter as energy prices cripple production
European metal industry associations urged EU leaders to take immediate emergency action or accept “permanent deindustrialization.” In a letter to the European Commission, nearly 50 organizations said their industry would face a “life-or-death” moment this winter. The letter claimed that half of the EU’s aluminum and zinc capacity has already been forced offline due to the power crisis. Kelly Roegies, communications manager at European Aluminium, told PackagingInsights: “Production is being slashed across the EU, mainly because of the skyrocketing energy costs, but also because of lack of adequate indirect costs compensation schemes or incentives to sign long-term power contracts. We fear that we haven’t seen the end of this worrying trend yet.”

Netherlands ranks top offender for EU plastic waste exports to vulnerable countries, shows report
The Netherlands is the EU’s largest exporter of plastic waste and, per capita, the worst offender in the world, according to a report by the Dutch nonprofit group the Plastic Soup Foundation. In 2021, the Dutch exported over 211 million kilograms of plastic waste, of which almost 70 million kilograms went to Indonesia and nearly 64 million kilograms to Vietnam. This represents a twofold increase in exports to vulnerable nations compared to 2020. Speaking to PackagingInsights, Jurjen de Waal, campaign manager for the foundation, said he was surprised by the increase in exports. “This was shocking because we know that much waste is mismanaged in these countries, leading to environmental and public health disasters.”

Thailand announces total ban on plastic waste imports by 2025 to “protect country”
In a three-stage plan, Thailand announced it would enforce a total ban on plastic scrap imports by 2025. The nation’s intention to stop accepting plastic waste from other countries has been discussed since 2020, according to natural resources and environment minister Varawut Silpa-archa, who has deemed the move necessary, saying, “we need to protect our country.” “Thailand must not be a dump site for plastic waste. By the end of the next three years, we will not allow any import of plastic scraps from around the world,” he said.

Human Rights Watch discovers child labor, exploitation and poisonous chemical exposure at Turkish plastic recycling facilities
Children, undocumented migrants and asylum seekers are being compelled to work in dangerous conditions throughout Turkey’s plastic recycling industry, which handles a large portion of Western nations’ trash. These are key findings from a Human Rights Watch report detailing the human cost of the country’s position as a waste handling site for more developed nations.

Plastic pyrolysis threatens Paris Agreement climate change goals, warns Zero Waste Europe
A study published by Zero Waste Europe (ZWE) found that greenhouse gas emissions from plastic packaging pyrolysis are nine times higher than that of mechanical recycling. Accordingly, ZWE urged the EC and industry leaders to prioritize the scale-up of mechanical recycling to meet the growing demand for recycled content.

Global plastic pollution treaty: US recruits allies to drive self-monitoring agenda, exposes Reuters
The US created a coalition to influence the parameters of the UN’s global plastic pollution treaty, which was agreed on this year, according to a Reuters report. President Joe Biden’s government purportedly enlisted Japan and Australia to compete against a rival coalition of European countries formed in August. Based on the information revealed, the US’ ambitions for the treaty resemble the Paris climate accords, which allow countries to self-monitor.

The Coca-Cola sponsorship of COP27 incited uproar among environmental groups. October

McDonald’s, Nestlé and Danone among nine food corporations on legal notice for plastic waste failures in France
A coalition of lawyers and environmental NGOs put nine “Big Food” corporations – including McDonald’s, Nestlé and Danone – on notice for failing to produce “Duty of Vigilance” plans for managing the impact of plastic waste caused by their products. The plans are mandatory under French law, and the coalition said the companies implicated had either not bothered or created insufficient plans.

Greenpeace slams Coca-Cola’s “baffling” COP27 sponsorship
The Coca-Cola Company evoked ridicule after announcing its sponsorship of the 27th annual UN Climate Change Conference of the Parties (COP27) in partnership with Egypt’s Ministry of Foreign Affairs. The conference took place between November 6 and 18 in Sharm-El Sheikh, Egypt. Greenpeace USA said it was “baffling [that] the world’s biggest plastic polluter” sponsored the event.

Danimer Scientific CEO: President Biden’s executive order and the future of US bioplastics
Following US President Joe Biden’s executive order to advance American biotechnology and biomanufacturing, we spoke to Danimer Scientific CEO Stephen Croskrey about new initiatives and funding that will boost the bioplastics market. This is part of the government’s efforts to reduce carbon emissions, lower prices, strengthen supply chains and promote energy security.

Belgian researchers discover new chemical recycling technique using pyrolysis oil
Researchers from Ghent University, Belgium, found that using pyrolysis as an advanced plastic waste recycling system could close the gap between petrochemical plastic production and end-of-life waste management such as downcycling, incineration and landfilling.

China’s fight against excessive packaging continues as strict measures come into place
The Chinese General Office of the State Council released a notice to further strengthen the control over excessive packaging of commodities, calling for further efforts to prevent over-packaging of goods. Furthermore, the China Development Network announced that by the end of 2025, postal express outlets nationwide would ban the use of non-degradable plastic packaging bags, plastic tapes and disposable plastic woven bags.

The signatories – including EEB and EIA – urged resistance against numerous pleas from industry associations. November

US startup Protein Evolution lands US$20M to scale-up enzymatic plastic recycling
US-based startup Protein Evolution established what it says is the world’s first enzymatic plastic recycling business, landing initial funding of US$20 million. The group couples artificial intelligence with synthetic biology and maps tens of millions of enzymes capable of transforming plastic waste into reusable chemicals. This process can be infinitely repeated, it claims.

Pulpac lands €31M in funding to take Dry Molded Fiber global
PulPac raised €31 million (US$31 million) in investments to expand its Dry Molded Fiber tech production. The funding was drawn from a cross-industry group, including Aliaxis, Stora Enso, Amcor Ventures and Teseo Capital. We spoke to Linus Larsson Green, CEO of PulPac, about how the money will be used.

European associations say EU packaging legislation could cripple industry and jeopardize millions of jobs
A group of over 50 European packaging associations across the value chain released a statement expressing “serious concern” over the European Commission’s (EC) revision plans for the Packaging and Packaging Waste Directive (PPWD). The groups accused the EC of dismissing the role of recycling in achieving a circular economy.

European Commission urged to resist industry’s “existential threat” lobbying as waste directive revision looms
A group of leading business representatives and consumer and environmental organizations called on the EC not to bow to industry lobbying pressure against planned revisions to the PPWD. Piotr Barczak, senior policy officer for waste and regulation at the European Environment Bureau, told PackagingInsights the lobbying claims were “picked out from the air” and that industrial change is a necessary and inevitable evolution on the path to the EU’s Green Deal.

Packager’s calls for reduced reuse targets were met in the EC’s PPWD draft, but some remain unsatisfied wanting increased focus on circular economy. December

Watered down PPWD revisions anger environmentalists and industry groups
The EC released its PPWD after multiple leaked drafts. The directive watered down its intended reuse targets after an outcry from the packaging industry – which angered environmentalists. The most notable decreases in targets for recycled content packaging are 30% for single-use plastic beverage bottles – changed from 50% – and 35% for all other types of plastic packaging – changed from 45%.

Waste pickers on the world stage: Plastic pollution treaty negotiations officially recognize informal collectors
The International Alliance of Waste Pickers, which promotes the importance and role of up 56 million people working informally to collect plastic packaging trash across the globe, was officially recognized at the ongoing UN International Negotiating Committee for a global plastics treaty.

Investment firms holding US$8 trillion demand PFAS reduction from world’s biggest chemical players
Forty seven investors and asset managers collectively holding over US$8 trillion wrote to the CEOs of world’s biggest chemical producers to disclose the volume of all hazardous chemicals they produce. The letter demands improvement actions for managing PFAS, also known as “forever chemicals.” The letter, led by Aviva Investors and Storebrand Asset Management, came as the third annual ChemScore rankings, released by Swedish non-profit ChemSec, highlighted that the industry is doing little to halt “an emerging global crisis.”

By Natalie Schwertheim, Sabine Waldeck, Louis Gore-Langton and Radhika Sikaria

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