The packaging industry in Australia is growing and is worth over $10 billion with almost 70% of all packages are used in the food and beverage sector. Packages are essentials in preserving and protecting the products to ensure that the content quality has not deteriorated when it reaches the consumers. Once the products reach the consumers, the packages will be discarded once the products are consumed. Often, they are not made of recycle-able or bio-degradable materials which add more burden to the environment. This raises concern to the environmentalist and appropriate steps need to be taken to make the packaging industry more sustainable.
Considering the huge volume of the packaging industry, it is immediately evident to point out the impact that discarded packaging has on the environment. Packaging made of non-biodegradable material can pollute the soil, water and the surrounding environment. The trend is, therefore, shifting towards sustainable packaging that is compostable and leaves very little impact on the environment.
Let’s take a look at the factors that influence the packaging industry today.
Demand for Eco-friendly Packaging Materials
The use of plastic and other non-biodegradable packaging materials and their effect on the environment is now well documented. These materials emit toxic fumes while disintegrating and are considered one of the prime causes of global warming. This creates demand for eco-friendly packaging that can be recycled or bio-degradable.
Extensive global research and development in packaging technology is currently underway focusing on development of economically-feasible eco-friendly packages. This is intended to be utilised primarily in retail food, cosmetic and pharmaceutical industry as they currently make up majority of the packaging usage globally.
Effective Regulatory Policies
Apart from initiatives taken by global packaging giants for developing and producing sustainable packaging materials, governments along with non-government organisations are pitching in too.
The governments in several nations are already formulating or implementing strict regulatory policies for more sustainable packaging. This is intended to drive packaging industries to change the way they manufacture their packages and move towards eco-friendly packaging.
Rising Demand for Packaged Food
Today’s consumers hardly have the time for dining out. This creates high demand for easy, take-away food. Keeping up with the rising need for the grab and go food, more restaurants are offering takeaways or doorstep delivery of pre-cooked, packaged food. For decades, take away food has been packaged in plastic containers or other packages that contained materials that are toxic to the environment.
However, as explained above, stringent government monitoring along with the increase in demand for instant food will stimulate the growth of sustainable packaging.
Cost
On the flip side, eco-friendly packaging is still expensive as compared to standard packaging options available today. Research and development activity conducted by several research organization has yet to reach a stage where sustainable packaging can be manufactured in a cost-effective manner.
The higher production cost is sure to affect the profit margin of companies investing in sustainable packaging. This may restrict the growth of sustainable packaging in the coming years till it becomes affordable and profitable for the packaging sector.
Growing Awareness
The good news is people today are more aware of the short-term and long-term benefits of sustainable packaging. In fact, many restaurants advertise sustainable and compostable packaging as one of their USPs.
Fortunately, more and more people are opting for such packages. This is sure to balance out the higher investment factor and make sustainable packaging profitable for the manufacturers.
