Plastic has been long championed for its durable and protective qualities, but it now faces a huge backlash from an increasingly environmentally-conscious society. In a survey of over 5,000 UK consumers, a quarter (25%) expressed ‘extreme concern’ about the use of plastic in grocery, while 21% recommended the industry opt for entirely plastic-free packaging. A further 42% stated that food and drink manufacturers should prioritise making all packaging recyclable.
In January, this wave of consumer pressure led to the Government taking action with Theresa May unveiling a 25-year plan to protect the environment. The Prime Minister labelled plastic as “one of the great environmental scourges of our time” and pledged to eradicate all avoidable plastic waste. Since then, the government has quickly taken action with the introduction of new deposit return schemes for all drinks containers. To some extent, the industry has got on the front foot with its own initiatives, with the likes of Iceland committing to plastic-free aisles within in the next five years – a move backed by nearly 80% of the population. But a change is coming, and the industry needs to play an active part in finding an alternative.
Consumer demand
The challenge will be to find a comparably cheap material that excels at preserving products whilst still satisfying the customer. As well as keeping costs low, retailers and suppliers also use plastic to satisfy consumer appetite for freshness and longevity. For example, a cucumber lasts for 14 days when shrink-wrapped vs around 5 days without any kind of covering – so we must make sure any changes in packaging don’t negatively impact on the levels of food waste.
Shoppers have also grown used to the aesthetic benefits of packaging. A window to the food underneath may seem obvious, but it has become part of the shopper’s subconscious – if the produce looks healthy, delicious or substantial for the cost, they’re more inclined to buy it. It will take wide-spread change for retailers to become comfortable with packaging food in a window-less, recyclable brown box.
A good place for the industry to start would be products where plastics use offers minimal preservative value – pasta and rice being good examples. There’s still a cost consideration but given the current public sentiment towards plastic, it may be a price that consumers are willing to pay. Whilst a window in to the product is generally recognised as appealing to the typical shopper, it’s far from essential. The cereal aisle is one where consumers are used to picking up a window-less box – which is proof it can be done. The next question for this particular product group is, do we really need the inner plastic bag?
Preservative and cosmetic priorities aside, the scale of impact plastic has on the environment shouldn’t be underestimated. Every year, around 8 million metric tons of plastic waste enters the ocean, where it can prove fatal to marine life. Recent news has shown that ocean plastic could treble in a decade, meaning that, by 2050, there will be more plastic in our oceans than fish. The truth is, plastic is pervasive. Consumers only see the plastic used on shelves, but in reality, it’s used to protect produce at every stage of the supply chain.
Industry impact
Unfortunately, there are bound to be knock-on effects of a shift to a plastic-free industry. Manufacturers and retailers are already facing rising operational costs and inflation is putting more pressure on shoppers. We know that convenience and price are both increasingly important to consumers, so the overall question is whether the industry can mitigate the combined effects of multiple external pressures without passing on significant cost to customers.
To truly go plastic-free, significant change is required throughout the entire supply chain. This won’t come without its challenges, as even the smallest changes in packaging can impact the production process, pushing up costs and reducing manufacturing efficiencies. Sadly, we see this all too often with our clients. In one case, opting for a cheaper coating meant machinery was unable to form the packaging, resulting in line efficiency dropping to less than 30% of previous levels. There was a four-month delay before normal levels of production could resume.
In these cases, the simplest solution is for retailers to engage with their suppliers and test outcomes as early on as possible. Adopting a ‘fail fast’ mindset where unworkable ideas are weeded out at an early stage can help, but manufacturers and retailers need to collaborate closely to work out the impact on the cost of production upfront. From here, they can mitigate any reduction in operations and ensure margins are properly calculated. After all, around 10% of each product’s overall cost is packaging, so the knock-on effects of getting this wrong can add up to millions of pounds.
Manufacturers will also need to satisfy their entire retailer customer base with any changes – which can only be done if all parties pull together. However, since the pressure for a solution is likely to be weighed on retailers, it shouldn’t be a surprise to anyone if closer ways of working are needed to implement industry-wide change.
What could change look like?
Finding a comparable solution to plastic will mean developing a material that offers the same low-cost durability – minus the environment impact. New research funding announced by the Government should incentivise future innovation, but finding, testing and implementing an alternative could be a lengthy process. In the meantime, recycling initiatives such as selling reusable glass jars and offering refills in-store could help to reduce the number of plastic bottles needed for production. Smaller, independent stores have already adopted this approach, but this alternative compromises convenience – a factor which is increasingly important to consumers. Are shoppers sufficiently motivated by environmental factors to go out of their way to refill containers? Attaching a monetary incentive could offer further encouragement.
Further supply chain solutions could include a move towards cardboard outers instead of plastic films or shrink-wrapping. However, the discounter model favours the latter option as it keeps costs down for the consumer. With low prices as their main USP, will the likes of Lidl and Aldi compromise price (and freshness) with a move to a more expensive alternative?
Who will drive this change?
The Government has bowed to pressure to combat plastic waste, but so far this change is only being driven from the consumer’s perspective. The introduction of a 5p charge on carrier bags was easier for retailers to absorb as it only impacted shopping habits – our wider reliance on plastic is more complex and requires more careful thought. However, if consumers demand change, the government will listen, so it’s crucial that the industry works to find a solution together.
Ultimately, there’s no perfect formula. While plastic prolongs shelf life and reduces food waste, it’s contributing to a major global environmental issue. In the immediate term, positive change could come from forward-thinking retailers and manufacturers coming together to reflect on where plastic is really necessary. But this will only work if consumers meet the industry half-way by altering their perception of the way food is presented in store and how they choose to use it at home.
“It’s looking like the time has come for supermarkets to step up to the sustainability challenge, not just on shelves, but through their whole operations. However, we need to implement steady, thought-out change with consideration to the potential ramifications and solutions at every level of the supply chain.
