Molded pulp packaging solutions continue to gain favor among eco-conscious consumers and businesses looking to minimize the impact of the packaging sector on environmental health.

Over the past decade, consumers have become more cognizant of the long-term implications of their purchase behavior. Modern shoppers put significant thought behind their purchases, in terms of where are how to spend their money. In the current era, with concerns mounting regarding environmental well-being, this awareness is mainly directed toward packaging sustainability. According to Trivium’s 2021 Global Buying Green Report, over 83% of younger consumers (aged 44 and under) have expressed a willingness to pay higher prices for products that use sustainable packaging.

With the packaging industry coming under increasing scrutiny in recent years, solutions like molded pulp packaging have become an appealing choice for industries looking to mitigate their environmental footprint. Repurposed from fibrous materials, such as recycled cardboard and paper, or natural fibers like bamboo, wheat, or sugarcane, pulp-based packaging is highly recyclable, with the ability to be reused up to 7 times after fulfilling its primary purpose. Additionally, molded pulp, unlike conventional plastic-based packaging is biodegradable, which allows for a reduction of virgin materials used in the production of packaging products.

Traditionally associated with packaging items like cup holders or egg boxes, molded pulp-based packaging solutions are gradually gaining traction across industrial sectors like automotive, horticulture, medical and more. With massive improvements to molding processes and technologies and the growing demand for sustainable and high-quality packaging, molded pulp is making significant headway as a solution for luxury packaging. According to a Global Market Insights Inc. report, molded pulp packaging market size is set to surpass USD 4.8 billion by 2028.

3 major molded pulp packaging industry collaborations driving sustainability in North America

Bolstered by its compostable and recyclable nature, pulp-based packaging is rapidly emerging as the catalyst for the shift of eco-conscious business entities from current non-renewable plastic packaging to more sustainable options.

This shift is especially apparent in North America, where the molded pulp packaging industry is poised to be valued at USD 1.17 billion by 2028, as per Global Market Insights Inc. estimates, on account of the burgeoning demand for sustainable materials and packaging solutions in the region.

As a result of this, several packaging manufacturers are becoming involved in strategic maneuvers, most prominently collaborative efforts with other entities, to create more scope for innovation and development in molded pulp-based packaging, and in turn, strengthen their own market presence.

University of Maine-Kiefel alliance advances molded pulp packaging development through new thermoforming technology

Natural fibers are emerging as ideal materials for sustainable packaging products of late. In recognition of this, various public-private partnerships are being forged by major entities to boost research activities in the field, especially with regard to pulp-based packaging. Kiefel, in particular, is working persistently to establish a strong network of research and material facilities for the molded pulp packaging industry worldwide.

In February 2022, the firm collaborated with the University of Maine to promote the development of molded pulp packaging solutions, with the installation of a new NATUREFORMER KFT Lab machine, which would allow students to experiment with fiber thermoforming technology and enhance R&D efforts pertaining to sustainable materials like cellulose nanofiber.

By leveraging fiber thermoforming technology, Kiefel machines were equipped to produce sustainable packaging products made from natural fibers such as annual plants, straw, or cellulose, which would represent an attractive alternative to traditional plastic-based packaging in major application sectors.

Ara Partners’ Genera Energy Inc. acquisition to address the need for locally-produced pulp-based packaging

With the population of eco-conscious consumers on the rise, North American businesses are ramping up their efforts to boost sustainability in their packaging options, with a keen focus on enhancing domestic production. To that end, in June 2022, Ara Partners, a PE firm with expertise in industrial decarbonization investments, announced its acquisition of Genera Energy Inc., to facilitate the expansion of its sustainable pulp-based packaging business. Ara also declared a USD 200 million capital commitment toward the non-wood agricultural pulp and molded fiber producer

By working collaboratively, the management teams of both Genera and Ara sought to broaden the company’s manufacturing horizons across the U.S. in an attempt to cater to the ever-growing demand for sustainable molded fiber packaging sourced locally. Also, as part of the deal, Genera identified important growth opportunities in rural communities, by conserving land use whilst delivering a biodegradable and compostable solution to counteract the influence of an escalating plastic pollution issue.

ABB Robotics-Zume team up to explore use of molded fiber manufacturing cells (MFC) for production efficiency 

In recent years, packaging manufacturers have been under tremendous pressure, from both regulatory authorities and consumers alike, to develop or integrate more sustainable alternatives to single-use plastic in their portfolios. Plant-based pulp packaging, specifically, has become a key area of interest in this situation, demonstrating numerous benefits, from limited usage of energy and water to lesser CO2 emissions than plastic packaging manufacturing to biodegradability, among others.

The advent of next-gen technologies like automation robots equipped to accelerate production levels of such sustainable packaging products has become a key trend driving the molded pulp packaging industry toward efficiency through a reduction in energy use, production waste, and emissions.

A notable example of this is ABB Robotics, which inked a collaboration with Zume, a California-based supplier of compostable packaging solutions in November 2021, to deploy robotic cells that would elevate the latter’s sustainable packaging production to a global scale and limit the use of single-use plastics.

As part of the deal, ABB would install and incorporate over 1,000 MFCs (molded fiber manufacturing cells) and nearly 2,000 robots at Zume’s customer sites across the globe over the upcoming five years. Each site would be equipped to handle the processing of over 71,000 tons of agriculture material per year, and eventually produce more than 2 billion pieces of molded fiber packaging every year, empowered by the speed, scalability, and automation capabilities provided by the MFCs.

The packaging industry is evolving at a breakneck pace, which companies are working hard to keep up with, through a gradual transition from conventional plastics-dominated production processes to more ecologically responsible solutions. This trend is indicative of the stronghold that the molded pulp packaging industry has in the industrial landscape, as a strong proponent of the budding green movement that is poised to create a stir in the packaging ecosystem of the future.

Burgeoning consumption of packaged food products and expansion of the global retail sector is expected to drive the retail ready packaging (RRP) market growth. The industry may record an estimated 4.8% CAGR between 2022 to 2028, claims Global Market Insights Inc.

Rapid digitalization and easy accessibility to a wide range of food products have led to colossal growth in the global grocery e-commerce sector. Despite this, many consumers still prefer shopping from retail stores given its numerous benefits, like no shipping cost and instant product ownership – factors that are expected to offer considerable impetus to the retail ready packaging market.  

According to the U.S. Department of Commerce 2021 report, U.S. retail sales for 2021 were $6.6 trillion, representing 17.9% growth from 2020. The report further highlights that 2021 was one of the strongest years in the retail history of the U.S., representing a 2X times growth from the previous three decades.

To benefit from an expanding business space, companies in the retail sector are looking at innovative and creative ways to increase the sales of displayed products while improving store management. To that end, retail ready packaging (or shelf ready packaging) has proven to be a highly beneficial solution. Designed to make it easier for retailers to sell their products, this packaging reduces product handling requirements and makes it simpler and faster to stock retail shelves or store floors.

Two Key Driving Factors Transforming Retail Ready Packaging Industry Outlook:

A couple of major benefits of retail ready packaging that are contributing to its increasing demand have been enlisted below:

• Minimized labor cost: 

Retail-ready packaging is used at scale by giants like Walmart and Costco as these players look to simplify product displays while accelerating sales without adding to the labor cost. Issues like inconsistencies in package sizes and price points are often said to be the main contributors toward increasing workload for store employees and higher labor costs to retailers.

With an aim to help customers lower their business expenses, retail ready packaging companies are coming up with new and innovative solutions. Recently, Tosca, a reusable packaging solutions provider, developed a retail-ready packaging solution for eggs that could drastically cut labor costs. Its Reusable Plastic Containers (RPCs) with a SmartWall™ feature allows sales associates to place entire containers directly on the shelf. 

• Improved customer experience:

Shelf ready packaging can help customers enjoy a more cohesive shopping experience by offering information that helps them make informed decisions with their purchase. Studies show that by offering a better customer experience, businesses can acquire repeat customers that could generate around 40% of a brand’s revenue. Attractive designs and aesthetic graphics on retail ready packaging play a key role to entice consumers to make a product purchase. 

Ecofriendly packaging to drive the future of RRP industry

Retailers and packaging firms worldwide are trying to reduce the use of plastic packaging materials to lower their environmental impact and are shifting towards sustainable products and materials like paper and paperboard.

Awareness regarding the ill effects of plastic use on the environment, with consumers willing to pay extra for eco-friendly products, has reinforced the need for RRP manufacturers to shift to recyclable packaging solutions. A survey by Accenture states that consumers are ready to pay more for sustainable products that are designed using reused or recycled material.

Paperboard packaging market, as per estimates, is projected to foresee sizable revenue growth on the back of the ongoing trends associated with the sustainable packaging sector, rising consumption of packaged food and robust demand from the packaged food business.

Made from wood pulp, paperboard is a paper-based thick material used in packaging applications and is recycled in large amounts to reduce waste and deforestation. The material is mainly used in medical packaging, food & beverages, durable and non-durable goods, industrial packaging, and cosmetics.

Preference for case ready meat products

Case ready or retail ready meat products are resonating well with consumers as well as retailers worldwide. Meat products that come pre-packaged help retailers to cut down on labor and waste as well as increase assortment and sales. With retail ready packaging of meat products, store employees can also save time on stocking shelves and can reallocate their time to customer service. 

Another key advantage of case ready meats is their increased shelf life due to vacuum-sealed packaging which translates to improved freshness and quality of meat products. In fact, according to a report by The Food Industry Association, case ready meats offer better quality than meat packaged in the store.

As consumers are preferring home-cooked meals and storing larger quantities of grocery products, the demand for retail ready meat could escalate in the coming years. In consequence, meat and poultry companies are making large-scale investments in the production of case ready meat products. 

In 2021, Tyson Foods announced the expansion of its case-ready meat production by reopening its plant in Columbia. The company would also be investing $55 million over the next five years to convert the plant to produce retail ready packages of sliced fresh pork and beef for grocery stores in the eastern U.S.

What Does the Future Hold for RRP Market?

Changing consumer preference toward packaged food products and rising sales across the retail sector are expected to play a key role in advancing the growth graph of retail ready packaging market in the forthcoming years. Rising consumption of case ready meat and awareness regarding eco-friendly packaging materials will also trigger the production of sustainable and advanced RRP materials and solutions in the future.