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The Role of Packaging in Society

Dick SearleChief Executive

The Packaging Federation

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Packaging under the microscope

Very visible but little understood

Much un-informed comment

Significant ‘environmental’ pressure

Reactions from consumers and “Government”

The ‘waste problem’

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‘Don’t confuse me with the facts’

Examine the evolution of society And the way that shopping has developed See how packaging has changed Where are we now? What is ‘excessive packaging’? Where do we go from here?

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The way things were…

What did most households not have in the 50’s:

Car Phone Bath Central heating TV Washing machine

Fridge Freezer Computers Internet AND…!!!!!!

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The way things were…

What did most households not have in the 50’s:

MICROWAVE OVENS !!!!

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The way things were (2)…

And society was different too:

Mostly two parent households Divorce was rare Few ‘working mothers’ Pace of life was much slower Meal times (eating together) was the norm Disposable income was low

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And now…

For most all the noes have become yeses Pace of life dramatically higher and still

accelerating Working households are the norm Eating ‘on the run’ Divorce is high Internet shopping 29% single person households

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So what about shopping habits…

In the 50’s… Shopping was a daily exercise Grocers shops (Liptons, Maypole, H&C) No supermarkets Most products sold loose – queues/hygiene Home deliveries of milk, bread…even ‘pop’ Range was limited and fresh food seasonal Convenience foods almost unheard of

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Then…

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Then…

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…and now

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So what about shopping habits (2)…

And now… Consumption has increased dramatically Supermarkets are everywhere Shopping is a weekly excursion Range and choice are huge Products available all year round Convenience is ‘everything’

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So what about packaging’s role in this?

Packaging is the ‘enabler’ for shopping as we know it today – supermarkets could not exist without it

Product wastage in the supply chain is now minimal

Product presentation and information are key Brands are defined by their Packaging Many markets owe their existence to

developments in packaging

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So let’s look at some of the ‘new boys’

Lightweight one-trip glass bottles Easy-open beverage cans Plastic bottles and tubes PET bottles Flexible packaging sachets and pouches Plastic films Child resistant packaging Liquid packaging cartons Aseptic packaging

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And there’s more!...

Ovenable packaging Modified atmosphere packaging Frozen food packaging Microwaveable packaging Chilled food packaging Multiple packaging – board and plastics Shelf ready packaging And so on…

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So what has the Packaging Industry done? Developed a fantastic range of new products Enabled a huge change in the way we shop Facilitated the reduction in food waste in the

supply chain to ca. 3% Lightweighted packaging across the board Achieved the decoupling of GDP growth from

the increase in packaging used Given consumers product protection, hygiene,

convenience and pack information Provided the platform for product

branding and identification

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So where are we now?

PRODUCT

Primary packaging

Secondary packaging

Demands of the product

Demands of legislation and ‘environment’

Demands of:

Consumer

Retailer

Marketer

Demands of:

Production

Distribution

Storage

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Some of the issues that we face

Allegations of ‘excess packaging’ Ambivalent consumer attitudes Lack of ‘recognition’ from retailers The Courtauld Commitment The packaging waste ‘problem’ The carbon footprint debate

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Let’s look at ‘excess’ packaging

Some of the more commonly quoted examples: Easter eggs Cosmetics and perfumery packaging Point of sale packaging, e.g. pens Software Memory chips Fruit and vegetables in plastic

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Easter eggs… who needs them?

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Cosmetics and perfumery

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Point of sale packaging

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Software and memory chips

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Fruit and vegetables in plastic

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Excess packaging… in summary

Like beauty… is in the eye of the beholder And of course there are examples But often part of the product offering/image Or part of the retail methodology Comes down to consumer choice But remember the Essential Requirement

Regulations – only enforced (currently) in three EU countries… including the UK!

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Ambivalent consumer attitudes

Packaging responds to the needs of modern lifestyles

Consumer concern about the environment is real but is it well informed? e.g. biodegradables

Do they really want a return to the shopping regimes of yesteryear

How much of consumer preference is theirs and how much is ‘assumed’ by retailers

The next couple of years will be very enlightening

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The retailers position

So often fail to acknowledge/defend the importance of packaging to their activities

The Courtauld Commitment How will they fulfil it? And how will it be measured? And what will be the consequences to them…

and to their customers?

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Packaging waste in perspective

3% of landfill and 18% of household waste But very visible Huge progress in last few years – ca.60%

now recycled Good recycling needs a better waste stream Further progress requires ‘joined-up thinking’ The waste hierarchy must use ‘real science’ Energy from waste must be taken seriously We can do more… but not alone!

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And so… in summary

Packaging has made a huge contribution to life as we know it and we should be proud of that

We have proved our innovation abilities time after time

We are first and last a service industry and we are ready and able to respond to changes in society’s needs

BUT…is society prepared to make the changes and pay the price – in all senses of the word?

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And finally…..some context

Packaging is 3% of landfill Global carbon footprint of packaging

including disposal is ca. 0.2% There’s ten times more energy & materials in

products than in the packaging around them The energy content of one day’s packaging

is equal to ONE MILE driven in the car !! AVOIDABLE food waste in the bin has some

EIGHT times the impact of packaging waste

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And finally…..some context

SO - ISN’T IT ABOUT TIME THAT THESE MUCH BIGGER ENVIRONMENTAL ISSUES RECEIVED A LOT MORE ATTENTION THAN PACKAGING DOES ??