Dairy packaging trends (Part One): Design centers on environmental impact as consumers choose green

03 Nov 2021 --- The dairy packaging market faces various challenges and opportunities as society returns to a “new normal” after the COVID-19 experience. Notably, regulatory and consumer demand for climate-friendly solutions in the circular economy mold are driving innovation in this space. 

Innova Market Insights recently identified “Shared Planet” as its leading consumer trend for 2022, pinpointing how consumers now rank planetary health as their number one concern, overtaking personal health.

PackagingInsights takes a deep dive into the dairy packaging market with leading manufacturers Sealpac, Tetra Pak, SIG, Amcor, Elopak and dairy co-operative Fonterra.

In Part One, we explore the impacts of rising consumer and regulatory environmental sustainability demands on the dairy packaging market. In Part Two, we investigate the impacts of accelerated e-commerce expansion, supply chain transparency and connective technologies.

Overarching environmental demands
From the perspective of Irene Buzzoni, marketing and communications coordinator at Sealpac International, the main trends in dairy packaging design are downgauging the thickness of plastic, introducing mono-plastics, and the rapid growth of hybrid solutions with a paper base and thin plastic liner or inlay.

“These trends target improved [environmental] sustainability and recyclability, as demanded by the EU Plastics Strategy and national legislation,” notes Buzzoni. “In addition, there is the never-ending search for shelf life extension, for example, by applying modified atmosphere packaging (MAP).”

The EU Plastics Strategy requires all packaging to be recyclable or reusable in an economically viable way by 2030. Moreover, the EU’s recently introduced plastics tax imposes a €0.80/kg (US$0.93/kg) levy on unrecycled plastic packaging waste.Sealpac’s FlatMap can achieve 75% plastic savings against average retail options.

Sealpac’s core business has always been built on MAP advancements. The European manufacturer continues to develop hybrid packaging systems, most recently, its eTray, FlatSkin and FlatMap solutions.

“These solutions consist of a cardboard base, which can be printed on both sides for endless branding and product information possibilities. As these packs still contain a small amount of plastic, we allow customers to separate the individual materials. Recycling is enabled by throwing these materials away in the appropriate waste streams,” outlines Buzzoni.

Energy-efficient milk processing
Environmental sustainability and net-zero climate targets are also priorities for Tetra Pak, says Bengt Eliasson, category manager for dairy ambient at the multinational food packaging and processing giant.

Tetra Pak recently introduced its enhanced UHT 2.0 portfolio. In combination with OneStep technology and Tetra Pak E3/Speed Hyper packaging equipment, this portfolio helps Ultra High Temperature (UHT) milk processors reduce electrical consumption by up to 31%, steam by up to 78%, and freshwater consumption up to 40% compared to traditional UHT production. Producers can reportedly reduce their carbon footprint by 56% using the new technology.

“[Environmental] sustainability is the new competitive edge, but it means different things to different consumers,” notes Eric Ding, head of global category management at SIG. “From organic ingredients and fair trade practices to green manufacturing processes and sustainable packaging, consumers want the best for themselves and others.”

The aseptic packaging and systems specialist was the first in the aseptic carton industry to eliminate the layer of aluminum foil with the EcoPlus, Signature 100, and Heat&Go packaging structures. A Signature 100 Life Cycle Assessment showed 66% less carbon impact against standard carton packs.

Communicating environmental sustainability
Mathieu Nicey, EMEA marketing manager for dairy at Amcor, reiterates environmental responsibility is a pressing issue on consumers’ minds.

“From the sourcing of the milk itself to the recyclability of the packaging, expectations have increased. By addressing consumer concerns regarding plastic waste and food waste, brands may attract consumers willing to pay more for [environmental] sustainability and retain existing eco-conscious customers.”Tetra Pak’s E3/Speed Hyper enables UHT milk processors to reduce their carbon footprint by 56%.

According to Amcor’s consumer research, 40% of Europeans say they favor packaging “made from recycled materials.” Meanwhile, 43% of Europeans say they want to make “more sustainable decisions.”

“Globally, we are seeing a rise in the conscious consumer, with many consumers preferring brands actively communicating their [environmental] sustainability achievements,” adds Lara Phillips, senior manager for sustainability solutions at Fonterra. “More consumers want sustainable packaging and transparency-enabled tools helping them understand how products are made.”

Every year in Australia, the global dairy nutrition company sells more than 25 million packs of Bega and Mainland natural cheese slices in reclosable plastic containers called clamshells. Previously, the clamshells were molded from non-recyclable PVC. By working closely with its suppliers and conducting production trials, Fonterra has transitioned the brands to a 100% recyclable clamshell molded from PET.

“Conscious of the impact of their choices, increasing numbers of consumers are willing to switch to more [environmentally] sustainable brands. This trend makes it imperative for product companies to showcase their sustainability initiatives through clear communication,” echoes Ding at SIG.

The food waste fight
Food waste is a significant climate change issue, which shelf life-extending packaging can help overcome. According to the United Nations Environment Program, up to 10% of global greenhouse gases come from uneaten food.

“Reducing overall environmental impact requires a steady balance between the use of more sustainable packaging and food waste reduction, which has its own – and often much higher – carbon footprint,” explains Nicey at Amcor. “We also focus on designing packaging that meets recycling criteria and has been proven to be recyclable in practice at large scale.”

Amcor’s Matrix technology offers a solution to two challenges in soft cheese packaging: recyclability and product ripening. The Matrix range is a paraffin-free and recyclable paper-based packaging, improving the product’s moisture exchange and ensuring taste and texture are consistent throughout the product life cycle.

Amcor’s Matrix technology combines recyclability and extended shelf life for cheese products.“Coming out of the pandemic, the past two years have highlighted the role of packaging in keeping dairy foods safe and hygienic,” adds Patrick Verhelst, chief marketing officer at Elopak. “The pandemic has also renewed attention toward humanity’s next existential threat: climate change. In this matter, packaging’s role in reducing emissions from food waste and the opportunity presented by beverage cartons in reducing the carbon footprint of packaging itself has never been more important.”

In July 2020, Elopak launched the Pure-Pak Imagine carton, its “most environmentally friendly carton to date.” The carton is based on Elopak’s Natural Brown Board, which has a lower CO2 footprint due to the paperboard’s reduced wood content and the absence of bleaching chemicals. The solution also reduces plastic by swapping out the traditional screw cap for an easy-open feature.

In the cheese market, Sealpac combines MAP shelf life extension with material savings. “We have optimized our traysealers to handle so-called ultra-light trays,” explains Buzzoni. “On our thermoformers, we use the Rapid Air Forming system as a standard. This system improves forming consistency, particularly in the pack’s corners, without requiring an additional stamp mechanism. As a result, up to 10% thinner films can be used.”

The solution is also “quite suitable” for paper-based bottom film, allowing for challenging pack designs. For sealed trays with lids, Sealpac offers its EasyLid system, which provides sealing and lidding in a single step, saving up to 25% in plastics.

COVID-19 reinforces circularity vision
Due to many consumers being at home during the pandemic, consumption and packaging waste issues have come to the fore. “For instance, there’s increased awareness about how much [packaging waste] is leaving homes each week in the regular rubbish or recycling pick-up,” says Phillips at Fonterra.

“People are reconsidering their options and changing behaviors because of this increased awareness. Recently, Accenture reported that 72% of global consumers have changed their shopping habits to limit food waste and 90% are likely to continue post-outbreak.”Sealpac’s EasyLid solution can deliver 25% plastic savings over existing solutions.

Fonterra recently launched New Zealand’s first plant-based bottle through its consumer brand Anchor. The sugarcane solution offers a renewable alternative to bottles made from petrochemical plastics. In addition, sugarcane captures CO2 from the atmosphere as it grows, resulting in a bottle with a low carbon footprint.

Meanwhile, Eliasson at Tetra Pak says COVID-19 made his company’s environmental sustainability strategy more crucial, with the pandemic demonstrating how the planet, society and economy cannot survive in isolation.

“With high-performance packaging and processing solutions playing a critical role in today’s global food delivery system, Tetra Pak’s vision to make food safe and available – everywhere – became more relevant than ever,” he comments.

Tetra Pak is preparing its European customers to comply with the Single Use-Plastics Directive (SUPD) by expanding its line of paper straws made from renewable and low-carbon materials. The company is also introducing tethered beverage caps to approximately 40 different packaging offerings. The SUPD requires the industry to adopt tethered caps and lids by July 2024.

In Part Two of this Special Report on dairy packaging trends, we explore the challenges and opportunities of accelerated e-commerce expansion, supply chain transparency and connective technologies.

By Joshua Poole