Increasing sustainable packaging is top priority for FMCG brands to avoid reputational and financial risk, according to new research from AQUAPAK


Increasing the volume of sustainable packaging such as paper is the number one priority for improving the environmental performance of UK FMCG businesses, according to new research1 from Aquapak Polymers with 100 UK packaging experts responsible for packaging R&D, technology, design and sustainability for FMCG brands.   The shift to paper packaging comes ahead of improving the energy efficiency of operations, biodiversity and reducing the carbon footprint of logistics and reducing water use and waste.  Reducing or abolishing plastic use altogether ranked last.

The majority of respondents said that there is a significant threat to their business if the environmental performance of the packaging used is not improved, with two thirds describing it as high and 31% said it was ‘average’. Just 3% said the threat was very low.

Nearly three quarters (70%) of respondents said that their business faced the risk of reputational damage if they didn’t improve the environmental performance of their packaging, 67% said they could miss ESG and sustainability targets, and 60% said they would see a drop in market share to competitors.

The research highlighted the risks FMCG brands businesses face if they don’t move away from plastic to sustainable materials in their consumer packaging, ranked in order of importance:

Risk % of respondents
Reputational risk 70
Missing ESG /sustainability targets 67
Drop in market share to competitors 60
Pressure from NGOs 37
Declining share price 33
Declining sales 33

 

The importance of packaging to the reputational and financial performance of FMCG brands is highlighted by the report findings which showed that although 24% of respondents said that the Packaging Director is the ultimate decision-maker when it comes to moving to more sustainable materials in their business, 22% said it was the CEO, 17% said it was the finance director and 14% said it was the brand director, followed by the operations director (13%) and sustainability director (10%).

Dr John Williams, Chief Technical Officer at Aquapak, said: “It is really encouraging to see that moving to sustainable packaging materials such as paper is the top priority for FMCG brands and a board-level decision when it comes to improving their environmental credentials and mitigating reputational and financial risks of not doing so.  Abolishing the wrong sort of plastic use is important and is a longer term target, the change has to be balanced as they assess alternative materials and wait for greater clarity around targets and regulation.”

 Hydropol – performs like plastic, recycles like paper

Aquapak Polymers Ltd specialises in designing and manufacturing new polymer-based material technologies that uniquely deliver both performance and environmental responsibility at scale. HydropolTM, is a groundbreaking high-performance polymer developed by Aquapak’s own research chemists that enables product and packaging design to meet all necessary functional and performance requirements, whilst increasing recycling, reducing harmful plastic pollution and supporting the circular economy.  When extrusion coated or laminated onto paper, HydropolTM adds strength and barriers to oxygen, oil and grease, and its solubility allows 100% paper fibre recovery through paper recycling mills.

Hydropol can be recycled, re-pulped, composted and is distinctively compatible with anaerobic digestion.  Furthermore, if unintentionally released into the natural environment, Hydropol – which is non-toxic and marine safe – will dissolve and subsequently biodegrade.  It does not break down into harmful microplastics, so it still has a safe end-of-life even if it is not disposed of as intended.