Unpacking the truth: Why sustainable packaging isn’t as easy as it seems

A 2024 study identified 56 companies responsible for 50% of the world’s plastic pollution, specifically branded plastic. The top five offenders alone accounted for 24% of all branded plastic waste: The Coca-Cola Company, PepsiCo, Nestlé, Danone, and Altria-Philip Morris International. 

Let’s put this into perspective: 19,586 companies contributed to global branded plastic pollution, yet just 13 companies individually accounted for 1% or more of the total branded plastic waste. And these estimates are likely conservative, as unbranded plastics were not even counted.

By now, we are all familiar with the growing concerns surrounding plastic packaging and microplastic pollution, traces of which have even been found in human lungs. Consumers, regulators, and businesses alike are demanding change.

Amid this crisis, innovators are racing to replace traditional plastics with a range of more eco-friendly materials. Yet as Ippei Miki, Head of Innovation Incubation Office at Toyo Seikan Group Holdings, Japan’s largest packaging manufacturer, reveals, solutions are far from simple. Even “eco-friendly” paper often relies on plastic coatings, and recycling costs fluctuate wildly, challenges masked by the glossy allure of “green” marketing.

In this conversation, I chat with Ippei about the challenges, realities, and future of sustainable packaging – beyond just material swaps and trendy alternatives.

GourmetPro: Currently, there's a significant push towards sustainable packaging. What key factors do you see driving this growth?

Ippei Miki: There are three main factors driving this shift:

1. Regulations: Particularly in Europe, governments are enforcing stricter sustainability laws. Even though Japan may not have the same regulations, our global customers must comply with European laws. This influences their global packaging strategies.

2. Investment trends: Investors are increasingly looking at ESG (Environmental, Social, and Governance) criteria when evaluating companies. This forces businesses to focus on sustainability.

3. Media influence: The media plays a big role in highlighting plastic pollution and waste issues. Consumers see these stories and demand better alternatives from brands.

GP: What does “sustainable packaging” mean to different stakeholders (consumers, media, and industry players)?

Ippei: Consumers and the media often focus on the negatives – such as plastic waste – but don’t necessarily see the full sustainability picture. They might think reducing plastic use automatically makes packaging sustainable, but that’s not always the case. Our approach considers the entire value chain: from product design to consumer use and recycling processes.

For manufacturers like us, sustainability is about:

• Finding alternative materials to fossil fuels (e.g., bio-based plastics, recycled content) 

• Understanding how products are used and disposed of

• Ensuring packaging can be collected and recycled efficiently

There are significant regional differences too. In Japan, for example, PET bottle recycling rates are 85%, thanks to efficient collection systems. Beverage companies are making efforts to increase collection further by partnering with municipalities. This makes PET bottles a viable sustainable option here, while in other countries, different materials may be better suited.

GP: Companies are increasingly responsible for recycling and collection. How does this impact the value of recycled materials?

Ippei: Yes, companies are taking more responsibility for collecting and recycling their own packaging. Interestingly, recycled materials for packaging are now more expensive than virgin materials because they require collection, cleaning, and processing. Demand for recycled materials has surged, making them highly valuable. In general, recycled materials for packaging are more expensive than virgin. If it’s for other use such as construction materials, it tends to be cheaper.

Like what you’re reading?

GP: There is an assumption that switching to paper-based packaging is a simple solution. What are the challenges with that?

Ippei: That’s a common misconception. Paper packaging often still requires plastic coatings to be functional. Additionally, paper is harder to recycle than people realize, especially if it's contaminated.

We’ve been working on solutions, like a washing system for used paper cups in cafés. If cups are washed before collection, they can be recycled more efficiently. But getting consumers to wash their cups before disposal is a challenge.

Another alternative we’re developing is aluminum cups, which are 100% recyclable within Japan’s existing aluminum recycling system (which has a 97.5% recycling rate). Unlike paper cups, aluminum doesn’t require washing before recycling – it just gets melted down.

GP: What role do climate change and consumer behavior play in sustainable packaging?

Ippei: Climate change is a major driver of sustainability efforts. People can feel the effects of climate change, like hotter temperatures, stronger storms, so they are more motivated to take action. Packaging waste is a visible issue that consumers can relate to, making it an easy target for change.

COVID-19 also shifted perspectives. During lockdowns, people saw firsthand how much waste they generated. At the same time, packaging played a crucial role in hygiene and safety, proving that it isn’t just waste – it has value.

GP: There are a lot of new materials being introduced, like bioplastics, seaweed-based packaging, coffee-based plastics. What’s your take on these innovations?

Ippei: Many of these new materials are promising, but their sustainability depends on where and how they’re produced, used, and recycled.

For example:

• In Japan, where PET recycling is already efficient, switching to bio-based PET may not be the most sustainable choice.

• In Vietnam, where coffee production is high, coffee-based plastics might be a viable local solution. Vietnam currently has a low plastic recycling rate.

Sustainability isn’t just about the material. It’s about how it fits into the recycling system of that region.

GP: What about biodegradable packaging? It sounds like a great solution, but is it practical?

Ippei: Biodegradable materials sound great in theory, but they require specific disposal methods. If they get mixed with recyclable plastics, they can actually disrupt the recycling process.

A common issue is that consumers can’t visually distinguish biodegradable from regular plastics. If biodegradable plastics end up in the ocean, people assume they will naturally disappear, but that’s not always the case.

GP: How do you see AI and technology shaping the future of packaging?

Ippei: AI and technology will be critical for recycling efficiency. Right now, humans struggle to distinguish different types of plastics, but AI-powered systems can do this accurately. If we develop technology that helps consumers identify and properly sort packaging, recycling rates could improve significantly.

Currently, some industrial systems use light-based scanning to sort plastics. In the future, smartphones could have similar capabilities to help consumers recycle correctly.

That’s all, folks! See you next week…

…when we’ll be looking at some examples of sustainable packaging, featuring new materials as well as new uses for some familiar ones!

Looking for packaging trends and solutions?

🔊 We want to hear from you! 🔊

Tell us what you thought about today’s topic, if there’s any topic you’d like us to cover, or just drop a line to say ‘hey’!

Just hit “reply” to this email. We read and answer all messages. 💌

About Us: GourmetPro is a global network of elite food and beverage industry talents. We provide fractional hiring solutions, allowing international managing directors to scale and transform their local resources and teams with high flexibility and expertise in more than 30 countries. Explore our services.

Made with ❤️ by GourmetPro - your network of Food & Beverage experts, on demand.

💖 And if you think someone you know might be interested in this edition of Market Shake, feel free to simply forward this email or click the button below. 💖

👉 P.S.: GourmetPro is also on LinkedIn!