Three main barriers limit the development of sustainable packaging. These barriers are the ambiguity of the cost-benefit ratio, additional costs, and trade-offs among packaging requirements. These barriers are partly related to the size of the company. Here is an overview of how a focus on environmental issues will help guide companies toward sustainable packaging solutions.
Development of Sustainable Packaging
A key concept associated with sustainability is waste reduction in all phases of business operations, particularly manufacturing and packaging. About one-third of municipal waste in industrialized countries consists of packaging materials. In developing countries, however, only 15 to 20 percent of waste comes from packaging. Until this century, a high percentage of packaging materials was intended to be discarded.
The concept of sustainable packaging (SP) has emerged as a solution for improving environmental, social, and economic conditions. This set of principles can enhance sustainability across vertical and horizontal markets, as well as in product-packaging integration. The drivers, barriers, and outcomes of sustainable packaging were analyzed by researchers Karima Afif, Claudia Rebolledo, and Jacques Roy, who shared their insights in a recent Canadian study published on Emerald Insight.
Drivers of Sustainable Packaging
- Integrated and Collaborative Supply Chain
- Environmental Capacity and Resources
- Market-based instruments
- Cost Reduction
- Consumer Pressure
- Competitive Advantage
- Regulatory Pressure
Barriers to Sustainable Packaging
One of the main obstacles to sustainable packaging is consumers' perception of "greenwashing"—a hollow stance masquerading as environmentalism. Consumers are becoming increasingly knowledgeable about waste reduction and want to decrease the amount of waste sent to landfills. Many people find that efforts to go green are confusing and disconnected from practical solutions. Meanwhile, companies must invest in more efficient logistics that offer better environmental protection.
Multiple stakeholders throughout the supply chains must coordinate to make e-commerce viable for all suppliers. Sometimes, different entities within the supply chains have conflicting requirements for essential functions. The solution ultimately lies in striking an optimal balance between logistics, marketing, and decisions regarding environmentally friendly packaging.
Performance Results for Sustainable Packaging
The food and beverage industry is one of the largest sources of packaging waste due to the frequency with which people shop. Many food and beverage producers view regulatory pressure as an opportunity to reduce waste and optimize packaging. But this will require investments in innovative technologies and a deeper understanding of natural resource-based value (NRBV) theories.
The NRBV was developed by the author Stuart L. Hart at Cornell University in 1995. This work focused on the links between pollution prevention and corporate profitability. The research anticipated the need for environmental strategies to gain competitive advantages. In the mid-1990s, no major manufacturer stood out for having a clear vision of sustainable development. Since then, NRBV theories have evolved to place greater emphasis on environmental protection as well as on reducing economic waste.
Manufacturers are increasingly turning to measures that involve the reuse, recycling, and recovery of packaging materials discarded by consumers. Eco-design of product packaging must now incorporate integrative approaches that benefit the environment and promote customer satisfaction. The most influential factors driving this transformation are cost and quality, which require collaboration among members of the supply chain. Large companies that target mass consumers are currently better positioned to take proactive steps toward more environmentally friendly packaging.
Conclusion
Efforts to move toward more environmentally friendly product packaging are underway on a large scale throughout the global business community. Although companies’ drivers for sustainable development are primarily cost-driven, government and consumer pressure to adopt more sustainable solutions is increasing. Waste reduction is a priority, as studies show that companies can achieve additional internal cost savings by making logistics more efficient. Operational performance will improve with a more proactive and integrated supply chain.
References
[1] Factors, Barriers, and Performance Outcomes of Sustainable Packaging: A Systematic Literature Review (2021), by Karima Afif, Claudia Rebolledo, and Jacques Roy
[2] “A Natural-Resource-Based View of the Firm: Fifteen Years After” (2011), by Stuart L. Hart and Glen Dowell
