Beruflich Dokumente
Kultur Dokumente
Technical Annex
Supported financially by
Objectives
This report forms part of the Biffaward Programme on Sustainable Resource Use. The
aim of this programme is to provide accessible, well-researched information about the
flows of different resources through the UK economy based either singly, or on a
combination of regions, material streams or industry sectors.
Sponsorship
This project was primarily funded by Biffaward under the Landfill Tax Credit Scheme, with
additional contributions from Amcor Flexibles Europe, The Packaging Federation and
Valpak. The researchers would like to thank these companies for their financial support
and also for the time and effort they put in to ensure that the project was a success.
In addition, the researchers would like to make a special mention of thanks to Exel’s
Packaging Datastore for assistance with data collection.
Evaluating Resource Efficiency Implications
of Packaging in the FMCG Supply Chain
Technical Annex
Table of Contents
1 Introduction ...................................................................................................................... 2
1.1 Background........................................................................................................... 2
1.2 Aims and objectives.............................................................................................. 3
1.3 Project scope ........................................................................................................ 3
2 Methodology ..................................................................................................................... 6
2.1 Identification of external drivers............................................................................ 6
2.1.1 Principle for identifying external drivers......................................................... 6
2.2 Measuring resource efficiency.............................................................................. 7
2.2.1 Principles for measuring resource efficiency................................................. 7
2.2.2 Data collection ............................................................................................. 10
2.2.3 Data confidentiality ...................................................................................... 12
i
Evaluating resource efficiency implications of packaging in the fmcg supply chain
7 Cat food........................................................................................................................... 57
7.1 Data .................................................................................................................... 57
7.1.1 Unit of measure ........................................................................................... 57
7.1.2 Market share data........................................................................................ 57
7.1.3 Market share data by packaging format ...................................................... 58
7.1.4 Packaging specifications ............................................................................. 59
7.2 Results and Interpretation................................................................................... 63
9 Conclusions.................................................................................................................... 81
References ............................................................................................................................. 96
ii
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Alu aluminium
CPET crystalline polyethylene terephthalate
HDPE high density polyethylene
LDPE low density polyethylene
PE polyethylene
PET polyethylene terephthalate
PP polypropylene
PVC polyvinyl chloride
i
Evaluating resource efficiency implications of packaging in the fmcg supply chain
1 Introduction
1.1 Background
Packaging serves a number of functions. The most obvious ones are to contain and
protect the goods within it, not only from the shop to our home but throughout the supply
chain. Less obvious may be its ability to add to the convenience of our lifestyles and help
to provide diversity of choice. Packaging’s many functions can be best illustrated in
Figure 1.1 below.
Economic
Security Transport
and
storage
Preservation
Environmental
Protect Perform
Packaging Compliance
Containment
Convenience
Inform
Guarantee Distribution
Service Sales
Serving an essential part in our everyday life, packaging is also highly visible and as a
consequence packaging - and packaging waste in particular - has attracted much
environmental attention. This has been reflected in the development of packaging-
specific legislation and voluntary agreements both in the EU and within individual
Member States.
Environmental responsibility is only one of the important drivers influencing products and
their packaging. Other drivers include consumer changes such as ongoing demographic
and life-style changes; material and technological developments; and supply chain
demands. Only by adequately responding to all of these factors can competitive
advantages be gained. Particularly so for fast moving consumer goods (fmcg) where
packaging is a key parameter for obtaining a commercial advantage over competing
products.
2
Evaluating resource efficiency implications of packaging in the fmcg supply chain
When developing packaging, and for that matter considering policies for packaging and
packed products, it is therefore important to take into account the inherent relationships
between the product and its packaging development and how these relate to external
drivers. This project seeks to demonstrate these relationships, providing a document that
should serve as essential background reading for any stakeholder involved in packaging
policy development.
This study seeks to investigate and illustrate the implicit nature of the relationship
between different drivers for product / packaging developments and resource efficiency1.
The purpose is to establish a correlation between drivers affecting product and packaging
developments and resource efficiency. Resource efficiency is chosen as a measure of
the environmental impact of the packaging.
The study will focus on a series of five case studies to emphasise how, over time,
different drivers have influenced the inter-relationship between the product and its
packaging. The five case studies are:
• Soft drinks
• Ready meals
• Potatoes and potato products
• Cat food
• Laundry detergents
Resource efficiency, as used in this project, is based on two simple criteria, material use
and energy consumption, and does not consider other kinds of environmental impacts
related to industrial products such as emissions of harmful substances. Consequently,
1
Resource efficiency, as used in this project, is based on two criteria, material use and energy
consumption.
3
Evaluating resource efficiency implications of packaging in the fmcg supply chain
the results are not a ranking of the packaging products according to their environmental
impact, but simply an assessment of the products according to the selected criteria.
For the purposes of this study, material use and energy consumption occurring in the raw
material and manufacturing stage is used for calculating resource efficiency, as illustrated
with the dotted lines in Figure 1.2. Thus the material use through the packing/filling
process, distribution and waste management is excluded. Additionally, the material use
and energy consumption related to infrastructure, manufacture of production equipment
etc. is excluded.
The distribution phase has been included for the case study of cat food in the form of a
lorry capacity assessment. To identify an “average distribution route” along the supply
chain and assign this to the functional unit would have been a considerable task.
Therefore, an assessment of the lorry capacity needed for the different packaging format
mix over time has been used.
4
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Energy, materials,
machines, etc
R aw M aterials
Extraction and
Emissions initial processing
S econdary
Energy, materials,
product
machines, etc C onversion and
packaging
R ecycling
Emissions
m anufacture Process waste
Energy, materials,
machines, etc
Fuels
D istribution
Emissions
Energy
U se /
Emissions consum ption
R ecycling
Post use
Energy, materials,
machines, etc
D isposal
Collection,
Emissions
treatm ent and final Energy, materials,
Emissions
machines, etc
disposal
Figure 1.2 Illustration of the project scope compared to the life cycle of
packaging
5
Evaluating resource efficiency implications of packaging in the fmcg supply chain
2 Methodology
For identifying and categorising the external drivers the STEEPS analysis technique, a
modification of the STEEP analysis, is used. The STEEPS analysis groups the external
drivers into six categories:
• Sociological drivers
• Technological drivers
• Environmental drivers
• Economic drivers
• Political drivers
• Supply chain drivers
In general, a STEEP analysis is performed in order to examine the impact of the different
drivers on an industry and how they interrelate with each other. The findings are
generally used to take advantage of opportunities and make contingency plans for any
threats.
The STEEPS analysis used for this project is of a more retrospective nature and seeks to
identify drivers that have occurred over time and link these to resource efficiency
measures taken within the industries that encompass the case studies.
6
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Resource efficiency of packaging can be measured in three ways2 dependant on the level
of detail wanted and the accuracy required. The three levels of detail can be summarised
as:
This project has applied Method Two, the assessment of material use and energy
consumption. The indicator parameters achieved are considered representative of a
significant part of the total environmental impact for packaging. A balance is thereby
achieved between the accuracy of the results and the quantity of data required.
2
Based on a methodology developed for the Danish EPA (Hansen 2003).
7
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The unit of measure for resource efficiency for each case study has been given careful
consideration. It is important that the quantity of material used and energy consumed are
measured against a reference that is readily comprehensible in order to ensure that the
results are understandable and illustrative. The units of measure chosen for the different
case studies are:
• Soft drinks: resource efficiency per litre of soft drink
• Ready meals: resource efficiency per ready meal
• Potatoes and potato products: resource efficiency per meal portion
• Cat food: resource efficiency per daily intake
• Laundry detergents: resource efficiency per wash
The rationale for choosing these units of measure has been described further in the
chapters of the individual case studies.
Assessment principle
For each case study, material use and energy consumption is calculated for all packaging
formats and sizes. The results are then combined to give an overall result for each case
study. The calculation principles are shown in the text box below.
8
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Material use
The material use of each case study product group is determined by the following
expression:
R = Σ (Wi, j + Pi, j) x Mi, j
Where
R = Total material material use for the product group
Wi, j = Weight of packaging format i of size j
Pi, j = Weight of waste produced during the raw material and manufacturing
phases of packaging format i of size j
Mi, j = Quantity of packaging format i of size j sold in the UK
- all measured in relation to the unit of measure (e.g. kg per wash).
Energy consumption
The energy consumption of each case study product group is determined by the
following expression:
E = Σ (Ei,e + Ei,m) x Mi, j
Where
E = Total energy consumption of the product group
Ei,e = Energy consumption for extraction of packaging raw material i
Ei,m = Energy consumption for manufacture of packaging format i and size j
Mi, j = Quantity of packaging format i of size j sold in the UK
- all measured in relation to the unit of measure (e.g. MJ per wash).
9
Evaluating resource efficiency implications of packaging in the fmcg supply chain
STEP 6
Compare
STEP 5 results with
Combine external
category drivers
STEP 4
Calculate results to
current and provide an
STEP 3
historical overall picture
Establish for the product
current and resource
STEP 2
historical efficiency by
Establish category
current and packaging
STEP 1
historical specifications
Establish by category
current and packaging
historical formats and
product their share by
consumption category
patterns by
category
Figure 2.1 Stepwise approach for assessing resource efficiency
10
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The typical process for establishing packaging composition and weights was as follows:
• The workshop was an opportunity for discussing the case studies, and obtaining
information, data and contacts.
• Relevant manufacturer(s) and user(s) were contacted for an interview. A number of
interviews were conducted.
• Exel’s Packaging Datastore was contacted for further information about packaging
specifications. The Datastore is a database of primary, secondary and tertiary
packaging specifications for UK fmcg, which Exel use to calculate packaging waste
compliance obligations on behalf of their clients.
• Published literature was researched.
• Subsequently, the packaging composition and the weights of the different packaging
formats and sizes were calculated. Where no information was obtained or where
data gaps remained packaging weights and sizes were estimated based on sample
weighing at Pira International.
11
Evaluating resource efficiency implications of packaging in the fmcg supply chain
A brief assessment of the system boundaries for the datasets can be found in Appendix
A.
Step 5: Combining category results to provide an overall result for the product
The category results are then combined to give an overall resource efficiency result for
the packaging for that particular case study.
12
Evaluating resource efficiency implications of packaging in the fmcg supply chain
This chapter discusses external drivers affecting packaging in general and in particular
the supply chains of the case studies. For identifying and categorising the external
drivers the STEEPS analysis technique is used.
The main sociological factor lies with the changes in the way we live. The ageing
population, declining household sizes, the increase in disposable income and the
pressures on our daily lives has had a significant impact on our spending habits and what
we look for in a product and its packaging.
People are living longer. In 2002, there were 19.8 million people aged 50 and over in the
UK, a 24% increase compared to 1961. During the same period, the proportion of people
aged 85 and over more than doubled. There is therefore a growing need for product
manufacturers to focus more on openability, easily readable labels, etc. in order to market
their products at this consumer group. In addition, the fact that we are living longer also
has an impact on household sizes.
The average household size in the UK fell by 20% between 1971 and 2002, a decline
from 2.91 to 2.31 persons per household (ONS 2004). This decline has resulted from a
large increase in the proportion of people living alone, which has almost doubled during
this period. By 2002, one-person households constituted almost a third of UK
households.
40
35
30 1 person
2 people
Percentage
25
3 people
20
4 people
15
5 people
10 6 or more
5
0
1971 1975 1981 1985 1991 1995 2001
Smaller households buy their products in smaller sizes. Smaller product sizes means a
higher product:pack ratio, so smaller households are a driver for increased packaging
13
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Changes have also occurred to our disposable income. Since the Second World War,
the middle class has emerged as the dominant socio-economic sector in the UK, and the
average disposable income has risen steadily. For example, between 1971 and 2002 the
average disposable household income in the UK increased in real terms from £269 to
£453 per week (ONS 2003).
500
450
400
(£) 350
300
Ave. disposable
250 income
200
1970 1980 1990 2000 2010
Figure 3.2 Ave. weekly household income in the UK, at 2002 prices
(ONS 2003)
At the same time our time has become more pressured – and precious. This is partly due
to there being more working women, more single parent households, and more smaller
households in general, and partly due to full time employees in the UK working on
average 41.5 hours per week (Boisard et al 2003). This is higher than for any other
country in the EU.
The influence this has had on our spending habits in terms of money and time is that it
has contributed to us moving from a “needs” based society to a “wants” based society.
We have moved away from planned money spending to increased impulse buying, and
rather than spending our time on chores we prefer to spend it on activities that improve
our quality of life. For example, the time spent on sport and exercise has risen from 10
minutes per week in the 1960s to one hour per week by the early 2000s (Future
Foundation 2002). At the same time, time spent on cooking has decreased.
14
Evaluating resource efficiency implications of packaging in the fmcg supply chain
160
140
Home cooking time (minutes)
120
100
80
60
40
20
0
1930 1950 1970 1990 2010
This means that we are able and willing to buy more value-added, convenience products
such as prepared foods. The packaging required for prepared food is different to that
required for raw ingredients that we would have used more commonly for preparing food
at home in the past.
Higher disposable income also means that we are more able and willing to eat out.
Eating out means consumer packaging for food is avoided, but additional food service
packaging is required.
The way we eat is also changing. For example, a true lunch hour is by many people
considered a luxury and often the lunch break is finished in less than 30 minutes. In fact,
11% of people between 15 and 75 years of age eat their lunch on-the-move (Tetra Pak
2001).
15
Evaluating resource efficiency implications of packaging in the fmcg supply chain
oven and the washing machine. The impact this has had on the products we buy, when
and how we buy them, and how we prepare and store them has been immense.
100
90
80
Microwave oven
70
Refridgerator*
Percentage
60
Deep freezer*
50 Washing machine
40 Dish washer
30 Colour TV
20 Home computer
10
0
1970 1980 1990 2000 2010
*Fridge freezers are attributed to both 'refridgerator'and 'deep freezer'from 1979 on.
A more recent technological advancement that has had considerable impact on the fmcg
supply chain, is the possibility now to shop via the Internet. The infrastructure demands
that this puts on the supply chains – and therefore the packaging that is used - are in
many cases challenging.
16
Evaluating resource efficiency implications of packaging in the fmcg supply chain
In order to meet the recovery and recycling targets as set out in the Producer
Responsibility Obligations (Packaging Waste) Regulations, the UK has introduced the
shared producer responsibility regime and financial mechanism in the form of Packaging
Recovery Notes (PRNs). This has resulted in a more formal infrastructure for packaging
recovery and recycling industry in the UK, including the establishment of compliance
schemes for packaging waste (i.e. Valpak, Biffpak, Wastepak, etc.).
Additional environmental legislation that affects the packaging supply chain includes:
• UK Climate Change Levy
• Integrated Pollution Prevention and Control
• VOC emissions regulations
• Aggregates levy
Current policy trends are moves towards sustainable development, especially sustainable
production, consumption and waste management. Recent examples include:
• The Communication on Integrated Product Policy;
• The Thematic Strategy on the Sustainable Use of Natural Resources;
• The Thematic Strategy on Waste Prevention and Recycling;
• The 6th Environmental Action Programmes focus on, amongst others,
sustainable use of and management of resources, and waste recycling;
• The UK government’s continued encouragement to industry to produce
corporate sustainability reports.
17
Evaluating resource efficiency implications of packaging in the fmcg supply chain
A significant economic driver influencing packaging usage has been the increase in
consumer spending power highlighted in the section on social drivers (section 3.1). This
has allowed consumers freedom to purchase more value-added products, including
products incorporating value-added packaging. For example, it is now possible to
purchase ready mixed spirits and mixers in cans or other individual sized containers as
an alternative to purchasing a bottle of spirits and a bottle of mixer. This is a more
expensive way of purchasing the product, and uses additional packaging per serving, but
provides added convenience, for which consumers are willing to pay extra.
In contrast, pressures to reduce costs in the supply chain, and therefore maximise
profitability, have encouraged packaging minimisation activities and packaging
optimisation along the distribution chain. For example, the cost of packaging materials
means that any technical advancements or packaging designs which reduce packaging
requirements without compromising consumer acceptance or sales will be adopted.
Typically, packaging costs represent in the region of 2-22% of the product manufacturers
gross output (see Table 3.1 below).
Distribution costs continue to rise, as fuel prices and road taxation increase. This has led
product suppliers to seek opportunities to maximise vehicle loading and take advantage
of backhauling opportunities.
18
Evaluating resource efficiency implications of packaging in the fmcg supply chain
At the same time, there has been increased pressure to reduce the amount of material
being disposed of, through increases in waste management costs. This affects all
materials being disposed of, including packaging materials. For example, the introduction
of the landfill tax in the UK in 1999 added an additional cost of £13 per tonne by 2002 for
disposing of waste to landfill. This is a further driver for prevention of waste at source,
including packaging optimisation. It is also a driver for improving the recyclability of
materials, including packaging.
The introduction of packaging waste recovery and recycling legislation has been a further
cost incentive to reduce packaging waste in the UK. The UK Producer Responsibility
(Packaging) Regulations impose requirements on all companies operating within the
packaging and packaged product supply chain to contribute to the recovery and recycling
of packaging waste placed on the UK market. Whether this is done through individual
company compliance or through membership of a packaging waste compliance scheme,
the cost of compliance increases according to how much packaging material a company
handles. Therefore, reducing packaging can directly reduce packaging waste compliance
costs.
The overall effect of these economic drivers is pressure to reduce packaging costs
through packaging optimisation activities.
There is great synergy between political drivers and other drivers. For example, the
increasing awareness of environmental and health issues amongst the general public,
environmental non-governmental organisations (ENGOs) and consumer groups has been
reflected in the policies and legislation developed. In response, packaging was classified
as a priority waste stream and has been used to test the concept of producer
responsibility in all Member States.
Other political events have shaped the social drivers. Since the end of World War II
governments have striven to win votes by securing better life-styles across all social
strata. The result has been higher disposable income, a consumer society and a “you’ve
never had it so good” syndrome. To an extent, the increase in working women and more
single person households is a consequence of political agendas to generate a more
affluent society.
Even changes in the retailing environment have synergies with political drivers. For
example, growth in supermarket retailing, crucial to the fmcg markets studied here, was
initially encouraged by government. In a necessary drive from the austerity of food
rationing after the end of World War II, the UK government actively encouraged the
introduction of supermarkets, copying the models seen in the USA at the time. With the
repeal of the Price Maintenance Act in the 1960s, combined with growth of motorways
and improvement in farming yields, the political stage was set for a wider, more plentiful
19
Evaluating resource efficiency implications of packaging in the fmcg supply chain
and cheaper supply of food. Combined with the growth in disposable income from £261
per week in 1971 to £409 per week in 2002 (in real terms), the macro-economic climate
was perfect for the growth in all consumer products, especially the fmcg products
highlighted in this report.
In response to consumer requirements, the demands of brand owners and retailers have
had a significant impact on logistics rationalisation and flexibility in the supply chain. The
effect this has had on packaging includes shorter product life cycles, shorter print runs,
smaller packaging quantities, unitisation of packaging, tracking and barcoding of pallets,
packaging postponement and just-in-time, as well as increased and more efficient
warehouse management.
Decisions by retailers and brand owners in response to these changes can influence
packaging requirements. For example, the improvement and introduction of chilled
supply chains has changed the products, and therefore the packaging, available to
consumers. More recently, changes in warehousing such as the introduction of
Sainsbury's fulfilment factories, extremely large, automated distribution centres, have
influenced the way products are palletised and the pallet tracking and picking
requirements.
Damage is a real but often under-prioritised cost to the fmcg supply chain. Research
shows that 80% of the damage incurs in the last part of distribution from the RDC to the
consumer, with the main cause of damage being manual handling, primarily associated
with order picking at regional distribution centres (RDCs), roll cage use and manual shelf
filling. It is estimated that fmcg damage in the European supply chain costs as much as
€3.5 billion each year (Pira International 2003). Manufacturers are driving much of the
damage reduction work, leading to the development of integrated point of sale and
primary packaging solutions, which reduce manual handling. This trend is already
having, and will continue to have, a significant impact on the primary and secondary
packaging used for fmcg.
3.7 Summary
The many external drivers influencing packaging and the benefits delivered by packaging
can be summarised in an extension of Figure 1.1 as shown in Figure 3.5 below.
Before a new pack is placed on the market, an exercise has taken place balancing the
drivers influencing the packaging, the functions required of the packaging, and the added
benefits delivered by the packaging. Sometimes the exercise is unsuccessful and the
product/pack combination does not achieve the market penetration as expected.
Sometimes the exercise is successful, and allows the brand owner to maintain or
increase market share, or even to create new demand for its product.
20
Evaluating resource efficiency implications of packaging in the fmcg supply chain
21
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Economic
Security Transport
and
storage
Preservation
Environmental
Protect Perform
Packaging
functions Packaging Compliance
Containment
Convenience
Inform
Guarantee Distribution
Service Sales
Consumer
Packaging
choice
minimisation
(reduced packaging
Product per functionality
Convenience protection
(waste
Tailored portion
minimisation)
sizes
22
Evaluating resource efficiency implications of packaging in the fmcg supply chain
4 Soft Drinks
4.1 Data
The Euromonitor market share data is provided per sub-category and product size (ml
beverage). Where data gaps occur data has been extrapolated and validated. A
summary of the Euromonitor data is shown in Figure 4.1 below.
23
Evaluating resource efficiency implications of packaging in the fmcg supply chain
9000
Sales of soft drinks (million litres)
8000
7000
6000
5000
4000 Functional Drinks
3000 Packaged Water
2000 Fruit/Veg Juice
Concentrates
1000
Carbonates
0
1997 1998 1999 2000 2001 2002
As can be seen, a steady increase in sales of soft drinks has occurred over the years.
Growth has been achieved across the board. The greatest percentage growth in sales
has been for functional drinks, which have seen an increase of 190% between 1997 and
2002. Big increases have also been seen for packaged water and fruit/veg juices, which
saw increases of 53% and 27%, respectively. Concentrates and carbonates saw smaller
growth in sales at 7% and 9%, respectively. In real terms, the biggest increase was seen
for packaged water of 476 million litres from 1997 to 2002.
24
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The table shows that for the soft drinks sub-category ‘carbonates’, beverage cans have
gained market share over glass, and for ‘fruit/veg juice and juice drinks’ and ‘packaged
water’ plastic packaging has gained market share at the expense of cartons, glass, cans
and pouches.
25
Evaluating resource efficiency implications of packaging in the fmcg supply chain
existed data were determined through visual shelf audits and in-house weighing at Pira
International.
Table 4.2 below summarises the packaging materials used by primary, collation,
secondary and transit packaging for each packaging format.
Table 4.2 Summary of packaging materials by packaging format for soft drinks
Packaging Primary packaging Collation packaging Secondary Transit
format packaging packaging
Beverage can Aluminium can or Shrink film (LDPE) or Corrugated tray and Stretch film
steel can cardboard box Shrink film (LDPE) (LDPE)
Glass bottle Clear glass bottle or None Corrugated tray and Stretch film
green glass bottle with Shrink film (LDPE) (LDPE)
closure (tinplate or
aluminium)
Plastic bottle PET bottle or Shrink film (LDPE) Corrugated tray and Stretch film
PVC bottle with Shrink film (LDPE) (LDPE)
closure (PP)
Carton Laminate of paper board, Shrink film (LDPE) Corrugated tray and Stretch film
aluminium and LDPE, or cardboard box Shrink film (LDPE) (LDPE)
possibly with straw (PP)
Flexible pouch Laminate of LDPE, Cardboard box Corrugated tray and Stretch film
aluminium and PE, Shrink film (LDPE) (LDPE)
possibly with straw (PP)
Excluded from the calculations on resource efficiency are the labels on the primary
packaging. Although the use of shrink sleeve labels has increased over recent years,
and could therefore have an impact on resource efficiency, this is considered a minor
development with regards to material use that would have little impact on the overall
results achieved. Pallets used as transit packaging have also been excluded from the
calculations due to the large reuse levels and pallet pooling systems in this sector.
Additionally, all caps have been assumed the same, a standard cap. No consideration
has been made to sport caps, for example. This is considered acceptable as this should
not have a significant influence on the overall result as sport caps are mainly used for
packaged water, which currently only accounts for 17% of the market share.
The table shows that although the soft drinks sector is characterised by a wide variety of
primary packaging formats, the materials used for collation, secondary and transit
packaging are generally the same. The proliferation of primary packaging formats in the
soft drinks sector is mainly due to two aspects: The packaging is very much an extension
of the brand ensuring it is easily recognisable and allowing the manufacturer to convey
marketing information to the consumer (as well as essential information such as
nutritional information, etc.). At the same time, the variety of primary packaging formats
meets different consumer needs such as consuming-on-the-move, providing easy
storage, portion sizes, etc.
26
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The packaging specifications for the primary, collation, secondary and transit packaging
are described in more detail below.
Cans
Cans are made of either aluminium or steel. Over the years, the market share of
aluminium cans has increased significantly, and it is estimated that in 2002 aluminium
cans accounted for 75% of the market of 330 ml beverage cans for soft drinks (KeyNote
2003). For the smaller can sizes, 150 ml and 250 ml, it is estimated that aluminium cans
hold the total share of the market.
For the purpose of this study, the weight of cans is based on data from Rexam’s
Environmental and Social Report 2003 (Rexam 2003) and in-house weighing by Pira
International. Considerable lightweighting has been achieved over the years and is
assumed to be an average of 1.4% per annum for aluminium cans and 2.2% per annum
for steel cans, based on information from the Rexam report.
Collation packaging is assumed for 330 ml cans for carbonates only. The collation
packaging is assumed to be 6-, 8-, 12-, 15-, 18-, and 24-packs with 6-packs and 12-
packs accounting for 20% and 10% of the market share for soft drinks, respectively (P.
Smith 2004). An additional 10% is split between the remaining collation packaging sizes,
and the remaining 60% is assumed to be sold as singles. Collation packaging is
assumed to be a mix of cardboard boxes and shrink film (LDPE).
The secondary packaging is for all can sizes assumed to be a corrugated board tray with
a shrink film (LDPE) around it. The weight of the secondary packaging is based on in-
house weighing by Pira International.
The transit packaging is for all cans assumed to be a pallet with stretch film (LDPE)
around it. The quantity of product per pallet has been estimated by Pira International
based on typical pallet dimensions and heights. Lightweighting and general good
practice is assumed to have resulted in a 6.4% reduction in stretch film consumption per
annum based on discussions with Pira packaging experts.
Glass bottles
Glass bottles used for soft drinks are generally made either from clear or green glass.
For the purposes of this study, it is assumed that clear glass is used overall, except for
packaged water where an equal split has been assumed between clear and green glass.
The weights of the different bottle sizes are estimated based on sources such as the
Rexam website, Exel’s Packaging Datastore, Coca-Cola Enterprises Ltd. and in-house
weighing by Pira International. Lightweighting is assumed to be 2.0% per annum.
27
Evaluating resource efficiency implications of packaging in the fmcg supply chain
For secondary and transit packaging, similar specifications as for cans have been
assumed. Plastic layer pads have been excluded on the grounds of the high reuse levels
employed.
Plastic bottles
Plastic bottles used for the containment of soft drinks are generally made of PET.
However, for larger bottles where an integral handle is required PVC is often used. It has
therefore been assumed that all plastic bottle sizes are made of PET, except for the bottle
sizes 2000ml and 3000ml where an equal split has been assumed between PET and
PVC. The 2000 ml and 3000 ml bottle sizes are used for the soft drinks sub-categories of
‘concentrates’ and ‘packaged water’.
The weight of the ‘average bottle’ for the different plastic bottle sizes is based on
information from Exel’s Packaging Datastore, Coca-Cola Enterprises Ltd., and in-house
weighing by Pira International. Lightweighting over the years is assumed to be an
average of 2.6% per annum (BSDA, Valorplast).
Collation packaging is assumed for 500 ml bottles for ‘carbonates’; 200 ml, 250 ml and
330 ml bottles for ‘fruit/veg juices’; and for 250 ml, 330 ml, 500 ml, 1000 ml, 1500 ml and
2000 ml bottles for ‘packaged water’. The weight of the collation packaging is based on
information generated through in-house weighing by Pira International.
For secondary and transit packaging, similar specifications as for cans have been
assumed.
Cartons
The composition of the cartons is based on a 1000 ml carton as provided in (Barkman et
al 2001):
Liquid paper board: 74.2%
Polyethylene (PE): 20.6%
Aluminium: 5.2%
Lightweighting has been assumed for the liquid paper board, however not for PE and
aluminium. The lightweighting is estimated to be 0.67% per annum during the period
1997 to 2000, and 0.4% per annum during the period 2000 to 2002 (ACE).
It is assumed that the carton sizes of 200 ml, 250 ml and 288 ml are sold with a straw.
The 1000 ml and 1750 ml cartons are assumed to include closures.
Collation packaging has been assumed for all carton sizes, except the 1750 ml carton.
For the 200 ml, 250 ml and 288 ml cartons 3- and 6-pack collation packs have been
assumed to hold market shares of 50% and 30%, respectively. For the 1000 ml carton a
4-pack collation pack has been assumed with a market share of 25%. The remaining are
assumed sold as singles.
28
Evaluating resource efficiency implications of packaging in the fmcg supply chain
For secondary and transit packaging, similar specifications as for beverage cans has
been assumed.
Pouches
The estimated composition of the pouches is based on discussions with Pira packaging
experts:
Polyethylene (PE): 17%
Aluminium: 10%
Polyethylene, low density (LDPE): 73%
No lightweighting has been assumed. It is assumed that both the 200 ml and 250 ml
pouch is sold with a straw.
Both pouch sizes are sold in 6- and 10-pack collation packs each estimated at 45% of the
market share. The remaining 10% of sales are assumed sold as singles.
For secondary and transit packaging, similar specifications as for beverage cans and
glass bottles has been estimated.
The resource efficiency results for soft drinks are shown in Figure 4.2 and 4.3 below.
Figure 4.2 shows the material use results and Figure 4.3 shows the energy consumption
results. The results can also be found in tabular format in Appendix B.
Material use per litre of soft drink, as shown in Figure 4.2, has fallen over the years from
87.7 g in 1997 to 69.6 g in 2002, a reduction of 21%. This reduction is a reflection of the
combination of industry’s minimisation efforts and utilisation of new technologies, which
have introduced new packaging products on the market.
29
Evaluating resource efficiency implications of packaging in the fmcg supply chain
100.0
g material use per litre soft drink
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1997 1998 1999 2000 2001 2002
Energy consumption per litre of soft drink has also fallen, from 4.6 MJ per litre of soft
drink in 1997 to 4.0 MJ in 2002. This is a reduction of 13%. Similar to material use, the
reductions in energy consumption are due to the combination of packaging minimisation
efforts and product development. The results do not include energy improvements in
packaging manufacturing and processing.
Energy consumption (MJ) per litre soft drink
4.7
4.6
4.5
4.4
4.3
4.2
4.1
4.0
3.9
3.8
3.7
1997 1998 1999 2000 2001 2002
The drivers influencing the resource efficiency of soft drinks are discussed in further detail
in the following:
30
Evaluating resource efficiency implications of packaging in the fmcg supply chain
For the whole five year period of 1997 to 2002, almost 400,000 tonnes of material
resources were “saved” as a result of packaging developments and packaging
minimisation activities in the soft drinks sector.
31
Evaluating resource efficiency implications of packaging in the fmcg supply chain
more presentable for when having a dinner party, and dilutable products fulfil consumer
demands.
Packaging minimisation
As confirmed by the resource efficiency results, considerable efforts have been made in
the beverage packaging sector to prevent packaging waste production through packaging
minimisation. The efforts of packaging minimisation is driven by a combination of drivers
including raw material prices, environmental awareness, legislation in the form of the
Packaging and Packaging Waste Regulations, and general business cost-savings.
The packaging minimisation activities have offset any trend towards smaller pack sizes
by delivering more resource efficient packaging overall.
32
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The diagram below shows how soft drinks and their packaging have developed over time
in response to changing market drivers.
33
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Political
changes Environmental awareness
Smaller households
Post-war emergence of
dominant middle classes
Social
changes Time pressures
Health awareness
Technological
Packaging minimisation and materials science
progress
Hot summer
Other of 1975
Regular hot summers in
late 1990's and early
factors provides a 2000's contribute to
sales boost increasing soft drinks sales
for soft drinks
First patent for Impact Pull tab Sports
First soft Original Self-chilling cans
mass extruded easy open closures
drinks First
aluminium Tetrapak end for
marketed drinkable production of Period of intensive
imitation beverage designed cans
glass of First two- product & pack innovation
carbonated mineral waters Paper and can piece tinplate
First Doy to capture share in a
water wax carton beverage can
pack rapidly expanding market
Selected for liquids
product
and packaging
developments 160 0 180 0 190 0 195 0
DWI two-piece
200 0
170 0 aluminium PET bottles
PVC bottles beverage can
Overcaps
developed
Carbonated Crown cork bottle no longer
beverages begin seal patented, required
to achieve great Flip top carton
First patent for for PET
popularity launched
glass blowing bottles
machine
34
Evaluating resource efficiency implications of packaging in the fmcg supply chain
5 Ready meals
5.1 Data
The UK consumes the greatest number of chilled ready meals in Europe, accounting for
approximately 44% of total European consumption. France is the second biggest
consumer, accounting for around 26% of total European consumption, with Germany
accounting for a further 6%. Italy and Spain each account for less than 5%, whilst all
other EU 15 countries combined account for the remaining 16%. All countries show
growth in the chilled ready meals sub-category, with particularly strong growth in UK and
France.
35
Evaluating resource efficiency implications of packaging in the fmcg supply chain
800
700 2000
2002
Million units consumed
600
2005
500
400
300
200
100
0
UK Germany France Italy Spain Other EU
900
800
2000
700
Million units consumed
2002
600 2005
500
400
300
200
100
0
UK Germany France Italy Spain Other EU
Germany consumes the greatest number of frozen ready meals in Europe, accounting for
approximately 40% of total European consumption. The UK is the second biggest
consumer, accounting for around 18% of total European consumption, with France and
Spain accounting for a further 13% and 7% respectively. Italy accounts for less than 5%,
whilst all other EU 15 countries combined account for the remaining 19%. Overall, the
market is fairly static, with slight growth in Germany and a slight decline predicted for the
UK.
36
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The UK market shares for chilled and frozen ready meals by container are presented in
Figures 5.3 to 5.4.
900
Aluminium foil
800 Dual ovenable board
Other plastic containers
700
Million units consumed
PP trays
600 CPET trays
500
400
300
200
100
0
2000 2002 2005
37
Evaluating resource efficiency implications of packaging in the fmcg supply chain
400
350
Million units consumed
300
Aluminium foil
250 Dual ovenable board
50
0
2000 2002 2005
In the UK, the major growth in chilled ready meals is in plastic packaging materials
(CPET trays, PP trays and other plastics), while aluminium trays and dual ovenable board
trays are showing a decline. Frozen ready meal sales show a slight decline, but within
the frozen ready meals market plastic packaging materials (CPET trays, PP trays and
other plastics) are gaining market share at the expense of aluminium trays and dual
ovenable board.
Similar trends are witnessed in other EU countries (see Figures 5.5 to 5.9) although in
some cases the specific packaging mixes are significantly different. For example, in
France there is much greater usage of aluminium trays, especially in the chilled ready
meals segment. In Italy, Spain and the remaining EU 15 member states, PP and other
plastics packaging hold a much greater share of the market in comparison to CPET than
in the UK or Germany.
38
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Germany chilled ready meals market share by container Germany frozen ready meal consumption by container
Aluminium foil 900
120
Dual ovenable board
800
Other plastic containers
100 PP trays 700
CPET trays
80 600
500
60
400
0 0
2000 2002 2005 2000 2002 2005
France chilled ready meals market share by container France frozen ready meal market share by container
Aluminium foil
500 Dual ovenable board 300
450 Other plastic containers
PP trays
400 CPET trays 250
Million units consumed
350
Million units consumed
200
300
250 150
200 Aluminium foil
100 Dual ovenable board
150
Other plastic containers
100 PP trays
50
CPET trays
50
0 0
2000 2002 2005 2000 2002 2005
Italy chilled ready meals market share by containers Italy frozen ready meals market share by container
Aluminium foil
80
80 Dual ovenable board
Other plastic containers 70
70 PP trays
CPET trays 60
60
Million units consumed
Million units consumed
50 50 Aluminium foil
Dual ovenable board
40 40 Other plastic containers
PP trays
30 30 CPET trays
20 20
10 10
0 0
2000 2002 2005 2000 2002 2005
39
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Spain chilled ready meals market share by container Spain frozen ready meals market share by container
160
70
Aluminium foil
Dual ovenable board 140
60
Other plastic containers
PP trays 120
20
40
10 20
0 0
2000 2002 2005 2000 2002 2005
Remaining EU15 chilled ready meals market share by container Remaining EU15 frozen ready meals market share by container
250
Million units consumed
300
Aluminium foil
200 250 Dual ovenable board
Other plastic containers
200 PP trays
150
CPET trays
150
100
100
50
50
0 0
2000 2002 2005 2000 2002 2005
The packaging for a number of products was weighed and an “average pack” was
determined. Due to a lack of available data, no consideration has been given to the
effects of lightweighting in this sector.
40
Evaluating resource efficiency implications of packaging in the fmcg supply chain
For this case study, the focus has been on primary packaging only. No consideration has
been given to quantifying secondary or tertiary packaging, as even indicative data on the
packaging used for these products could not have been collected within the budget and
time restrictions available to the project,
Table 5.2 presents a comparison of the packaging used for chilled and frozen ready
meals in different EU countries.
41
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Figures 5.10 and 5.11 present the results for the UK graphically.
25,000
Aluminium foil
Dual ovenable board
Other plastic containers
20,000
Primary packaging (tonnes)
PP trays
CPET trays
15,000
10,000
5,000
0
2000 2002 2005
Figure 5.10 Total primary packaging used for UK chilled ready meals
As chilled ready meal consumption in the UK is increasing, the total quantity of packaging
material being used is increasing, and therefore the quantity of ready meal packaging
waste is increasing. In reflection of market trends, the mass of aluminium trays and dual
ovenable board trays is declining, whilst the overall mass of CPET trays, PP trays and
other plastic containers is increasing.
The market for frozen ready meals is static, with a slight decline predicted for the near
future, which reflects UK consumers preferences for chilled products which are perceived
as healthier and better quality products. This is reflected in the total mass of packaging
used for frozen ready meals in the UK. There is a slight downward trend. Aluminium foil
trays and dual ovenable board fair worst, with CPET trays and other plastic containers
slightly increasing in tonnage terms as they gain market share from aluminium and board
trays.
42
Evaluating resource efficiency implications of packaging in the fmcg supply chain
12,000
10,000
Prim ary packaging (tonnes)
2,000
0
2000 2002 2005
Figure 5.11 Total primary packaging used for UK frozen ready meals
Overall, the markets for total ready meals are expanding across Europe. Whether we like
it or not, behavioural change is inevitable, and the stresses and pressures of everyday
working and living are changing the way we cook. Most people today want to spend as
little time as possible in the kitchen, choosing instead to either work or pursue their
interests. The growth in ready meal consumption in the UK reflects this and other social
changes, such as more working women, declining culinary skills among younger people,
more single person households and increased microwave ownership. These lifestyle and
demographic changes will continue to provide the UK ready meals market with a growing
consumer base, especially as manufacturers continue to improve recipes and quality,
address health concerns (for example, low salt and fat content products) and innovate.
Where the consumer still wishes to have some control over the cooking process but at
the same time demands convenience, products such as dinner kits fills this demand.
The drivers influencing the resource efficiency of ready meals are discussed in further
detail in the following:
43
Evaluating resource efficiency implications of packaging in the fmcg supply chain
18
16 Frozen
Meals per capita per annum
14 Chilled
12
10
0
UK Germany France Italy Spain Other EU
Consumers in the UK are the biggest eaters of ready meal products, consuming around
16 meals per person per annum. UK consumers prefer chilled ready meals, which are
perceived as offering better quality. The UK chilled ready meals sector is the most highly
developed in Europe, not just in terms of product sales but also in terms of the range of
products available (Mintel 2002). Ready meals are used in 77% of all UK households.
Of those that use ready meals, 28% use them more than once a week, 26% use them
only once per week, and 44% use them 3 times per month or less frequently. Ready
meals are eaten most by 15-19 year olds, and eaten least by the over-64s. In the UK,
ready meals are used slightly more often by people with higher disposable income, but
price does not seem to be a major barrier to purchase.
Germany and France follow, consuming approximately 10 and 11 meals per person per
annum, respectively. In Spain and Italy, approximately 4 and 2 meals are consumed per
person per annum, respectively. The average across the remaining EU 15 countries is
about 8 meals per person per annum. Like UK consumers, French consumers prefer
chilled ready meal products over frozen, but in contrast the Germans, Italians and
Spanish purchase more frozen ready meals than chilled.
It is not just in the EU15 that ready meals are being consumed in growing quantities. In
the global packaged food market, ready meals are one of the most dynamic sectors,
registering value growth of 4% during 2002. While the US, UK and Japan dominate,
accounting for 66% of global sales by value, the key emerging markets of Eastern Europe
are increasingly attracted to convenience products. For example, consumption in the
Czech Republic is comparable to that in Germany. The total market for the region grew
by 11% during 2002. Globally, ready meals are forecast to record growth of nearly 18%
between 2002 and 2007 (Euromonitor 2003b).
44
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The differences in ready meal consumption patterns in different countries reflect different
national drivers and perspectives:
• Differences in disposable income
In the UK in particular, growth in income and a healthy economy leading to high
consumer confidence has helped stimulate demand for value added convenience
products such as ready meals. The large price premium for ready meals, combined
with lower disposable incomes, has been one of several factors negatively affecting
the ready meals market in Italy.
• Differences in home microwave and freezer ownership
Higher levels of microwave and freezer ownership in Northern Europe facilitate the
consumption of ready meals. The UK in particular has the highest levels of
microwave ownership in Europe, while microwave and stand-alone freezer ownership
in Spain remain relatively low with ownership of each appliance at 63% and 49%
respectively (ReadyMealInfo 2004, World Advertising Research Centre 2003).
Comparative microwave, fridge and freezer ownership is shown in Figure 5.13.
• Attitudes towards eating
Trends towards longer and varying working hours have led to the gradual demise of
the traditional family meal and have contributed to the concurrent demand for
individual meal solutions. Less formal eating is a particular feature in the UK, where
longer working hours than anywhere else in Europe contribute to time pressures.
Greater importance is still attached to the traditional family meal in Southern
European countries such as Spain and Italy. A market study into consumer attitudes
towards ready meals in Ireland, another country where the family meal remains
important, found that in general when the family ate together they did not use ready
meals as the main meal (Henchion 2004).
120
Percentage of hom es ow ning appliance
Microw ave
100 Fridge
Freezer
80
60
40
20
0
UK Germ any France Italy Spain
45
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The Spanish and Italians still tend to see quality and freshness as important factors in
food choice. The Italians have been particularly ambivalent towards ready meals.
However, the demand for convenience combined with improved processing and product
innovation are helping to stimulate growth in the ready meals sector in both these
countries (ReadyMealsInfo 2004).
National interests in ethnic foods also have an influence over the number and quantity of
ready meals consumed. 57% of ready meal users in the UK claim to enjoy eating foreign
foods, and similar levels are reported in France. At present, other European consumers
are more conservative. German consumers need to be encouraged to try new food
products, with only 40% enjoying foreign foods. In Italy and Spain, the figures are much
lower, at 23% and 19% respectively (3i 2003).
Ready meal packaging waste is highly visible but does not constitute a significant
part of the waste stream
As a result of different consumption patterns, there will be different amounts of ready
meal packaging waste in different countries. However, ready meal packaging alone,
although very visible, is only a small fraction of the entire packaging waste stream – in the
case of the UK, the 29,000 tonnes of ready meal primary packaging waste represents
less than 0.5% of total packaging waste generated.
Prepared foods such as ready meals do not necessarily mean more waste
According to research commissioned by INCPEN, there is less product waste across the
supply chain for a ready meal than for a meal prepared by the consumer at home. For
the ready meal, the preparation waste is reused for other products, and distribution waste
is less than 1%. Only the pack and meal are transported. In contrast, for a meal prepared
from ingredients in the home, there may be less packaging but 10-20% of the ingredients
are wasted during distribution. The pack, product and preparation waste must all be
transported, and the preparation waste is then discarded in the home (INCPEN 2004).
However, although no systematic sensitivity analysis has been performed, while absolute
numbers might change the overall trends and conclusions are highly unlikely to be
affected.
46
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Political
World War II
changes Environmental awareness
Economic
Birth of consumer
changes spending power Increasing disposable income
Market drivers
Smaller households
Time pressures
Social
changes
Health awareness
First foreign
package
Post-war emergence of holidays
Foreign travel broadens tastes
dominant middle classes
Advances in freezing
technology provide Advances in chilled
1917: Clarence distribution chain
Birdseye easy access to seafood
from around the world
Technological discovers a
quantity of fish Freezer ownership
progress left on ice during
an earlier trip -
they are still in
perfect condition Microwave ownership
1980's: 2000's:
1969: First frozen
ready meal Calorie-counted US consumers can
1939 - 1945 and reduced fat 1990's: have daily deliveries of
launched in the UK convenience Chilled ready that day's diet specific
1970's: foods gain marketmeals gain meal (eg low carb, high
Wide range of share -such as market protein diets)
Subsequent ethnic recipes Findus Lean leadership
launched Cuisine range over frozen
product
and packaging
UK Retailer own Marks &
developments 1905 1955
1960's:
2005
development Peas are the brands emerge Spencer set
of frozen first boom Total frozen the pace with
food stops, product . food sales product
Commuters in London can
1939: but vast Frozen chips reach £1bn, innovation in
quantities launched. supported by chilled ready buy freshly prepared complete
First retail meals from a kisok at the
produced in Bernard value added meals
1929: First style railway station, ready to pop
US for war Matthews products
commercial frozen Market in the oven on their return
product effort revolutionises
food changes home
under the packs the turkey
market emphasis from
Bird's Eye
bulk/economy
label
to convenience
and variety
47
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The methodology for this case study holds some discrepancies, as the same unit of
measure has been used for both fresh and processed potatoes. The peeling of fresh
potatoes in the home and the subsequent discarding of the peel has not been taken into
consideration in this study. Additionally, the peeling of potatoes in industry before being
used as part of a potato product and the subsequent use of the peel by-product has also
not been taken into consideration. Although estimates could have been made for the
percentage that peel accounts for in the home and in industry these would contain some
uncertainty, and it was therefore decided to exclude peeling from the calculations.
It must be emphasised that this study is not intended to give an exact description of
resource efficiency in the sectors chosen for the case studies, but that it is intended to
give an indication of resource efficiency trends over time.
The data for potatoes and potato products is divided into three sub-categories:
• Fresh potatoes – including both loose and pre-packed fresh potatoes.
• Canned potatoes.
• Frozen potato products – including both chips and other potato products (such as
potato wedges, potato waffles, etc.).
Excluded are potato crisps, potatoes used as part of the product, (for example ready
meals) and meal centres (such as prepared Shepherds’ pie, etc.).
3
The TNS SuperPanel is a consumer panel covering 15,000 demographically representative
households. All family members scan all purchases bought into the home, using a handheld
scanner. Non-bar coded products are entered using a patented code book.
48
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The market share data is presented by sub-category and packaging size. A summary of
the data is shown in Figure 6.1 below.
2,000,000
1,500,000
1,000,000
500,000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 6.1 shows that sales of potatoes have decreased by 17%, from 2.47 million tonnes
in 1993 to 2.06 million tonnes in 2002.
Over the time period 1993 to 2002, sales of fresh potatoes fell by 25%. Despite this
decrease in consumption, fresh potatoes still accounts for by far the largest proportion
(78%) of total sales of potatoes and potato products. The fall in sales of loose fresh
potatoes amounts to 60%, whereas it is 7% for pre-packed fresh potatoes.
Sales of processed potatoes have increased over the period 1993 to 2002. Canned
potatoes have seen an increase of 10%, whereas frozen potato chips and other frozen
potato products have seen the greatest increases of 20% and 146%, respectively.
49
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Table 6.1 shows that there has been little change with regards to packaging for potatoes
and potato products in the period 1993 and 2002, except for the very small pack sizes.
For the pack size of 2 lb there has been a slight shift away from trays towards punnets,
and for the pack size of 3 lb trays have won market share from the PE bags.
Excluded from the resource efficiency calculations are any labels on the packaging.
Additionally, the increasing use of plastic returnable transit packaging (RTPs) for fresh
loose potatoes has not been considered, as data on the usage of this type of format was
not readily available. RTPs may have a significant influence on the use of packaging for
fresh loose potatoes and this may be an important omission. However, fresh loose
potatoes are a rapidly declining part of the potatoes and potato products market. Finally,
pallets have also been excluded from the calculations due to the high reuse levels and
pallet pooling systems in the sector.
Table 6.2 below summarises the packaging materials used by primary, secondary and
transit packaging for each packaging format.
50
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The table shows that, apart from fresh potatoes, the sector is characterised by few
variations in the packaging formats used both for primary, secondary and transit
packaging. The variety of primary packaging formats for pre-packed fresh potatoes is
mainly to distinguish between the use of the potatoes; punnets and trays are mainly used
for baking potatoes and new potatoes, and bags and sacks are mainly used for other
potatoes.
In the following the packaging specifications for the primary, secondary and transit
packaging is described in more detail.
Secondary packaging for loose fresh potatoes has been assumed to be corrugated
cardboard boxes. The weight of the corrugated cardboard has been estimated by the
project team. Due to strength improvements, it has been assumed that there was a move
away from 450 gsm to 400 gsm corrugated cardboard around 1997.
For distribution it is assumed that the secondary packaging is stacked on pallets with
stretch film around it for stability. As pallets have been excluded from our calculations,
only stretch film is included. The weight of the stretch film and lightweighting has been
estimated by the project team in consultation with other Pira experts.
51
Evaluating resource efficiency implications of packaging in the fmcg supply chain
project team. It has been estimated that for plastic bags lightweighting of 2% per year
has been achieved, for paper sacks 1% per year, and for punnets and trays 2.6% per
year.
Secondary packaging for pre-packed fresh potatoes in plastic bags, punnets and trays
has been assumed to be corrugated cardboard boxes. For fresh potatoes in paper
sacks, no secondary packaging is assumed. The weight of the corrugated cardboard is
based on data provided by Exel’s Packaging Datastore (P. James 2004). Due to strength
improvements, it has been assumed that there was a move away from 450 gsm to 400
gsm corrugated cardboard around 1997. No lightweighting of the secondary packaging
has been assumed for punnets and trays due to lack of data.
Similar estimates with regards to transit packaging as for loose fresh potatoes has been
assumed for pre-packed fresh potatoes.
Canned potatoes
Canned potatoes come in steel cans. The weights of different sizes of cans have been
supplied by Exel’s Packaging Datastore (P. James 2004). Lightweighting has been
estimated by the project team at 2.2% per year.
Similar estimates with regards to transit packaging as for loose fresh potatoes has been
assumed for canned potatoes.
Secondary packaging for frozen potato products has been assumed to be corrugated
cardboard boxes. The weight of the secondary packaging is based on data provided by
Exel’s Packaging Datastore (P. James 2004). Due to strength improvements, it has been
assumed that there was a move away from 450 gsm to 400 gsm corrugated cardboard
around 1997.
52
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Similar estimates with regards to transit packaging as for loose fresh potatoes has been
assumed for frozen potato products.
The resource efficiency results for potatoes and potato products are shown in Figure 6.2
and 6.3 below. Figure 6.2 shows the material use results and Figure 6.3 shows the
energy consumption results. The results are presented in tabular form in appendix B.
Material use per serving of potatoes and potato products has increased by 6.5% from 3.9
g in 1993 to 4.2 g in 2002 despite a decrease in sales of 17%. This rise is mainly a
reflection of increased consumer preference for processed potato products. As
discussed in section 6.1.1, sales of processed potatoes have increased by 37% over the
period 1993 to 2002 with the main rise being in the frozen potato products category.
The potatoes and potato products sector is a mature sector and packaging innovations
are few, although the introduction of microwavable chips in the late 1990s resulted in an
increase in packaging development for this sector. However, in general, the packaging is
to a large extent disassociated from the product and the main consumer demands with
regards to potatoes and potato products are in relation to storage and handling.
4.400
4.200
Material use (g) per serving
4.000
3.800
3.600
3.400
3.200
3.000
2.800
2.600
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Similar to material use, energy consumption per 200 g serving has also risen, from 0.18
MJ in 1993 to 0.19 MJ in 2002 – a rise of 6.3%. As for material use, the rise in energy
53
Evaluating resource efficiency implications of packaging in the fmcg supply chain
0.195
Energy consumption (MJ) per serving
0.185
0.175
0.165
0.155
0.145
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
The drivers influencing the resource efficiency of potatoes and potato products are
discussed in further detail in the following:
54
Evaluating resource efficiency implications of packaging in the fmcg supply chain
when shopping (BPC 2002c). Depending on what the consumer is shopping for the
requirements are different, convenience and ‘fun’ is key when shopping for a kids’ treat,
whereas ‘something special and extraordinary’ is key for a special adult meal, and ‘quick
and simple’ is often key when shopping for a family meal.
17,000 1.55
Total weight of primary packaging
1.5
16,500
per 200g serving
1.45
16,000
(tonnes)
1.4
15,500
1.35
15,000
1.3
14,500 1.25
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 6.4 Primary packaging used for potatoes and potato products
55
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Despite the increase in primary packaging per serving, total primary packaging
consumption fell by 17% as we consumed less potatoes and potato products in 2002
than we did in 1993.
56
Evaluating resource efficiency implications of packaging in the fmcg supply chain
7 Cat food
7.1 Data
The figure shows that sales of cat food measured in weight have decreased by 17% in
the period 1993 to 2002. This was all due to a fall in sales of moist and semi-moist cat
food of over 128,000 tonnes, a reduction of 24%. In the same period, sales of dried cat
food actually increased by almost 33,000 tonnes, and thereby doubled.
Falls in sales for moist and semi-moist cat food were seen for canned cat food and cat
food in trays. In 1993, canned cat food accounted for 89% of the market. However, by
2002 this had fallen to 62%. Cat food sold in trays accounts for a very small part of the
market and has therefore no influence on the overall results. Increases in sales were
seen for cat food in pouches and Chubb packs and for dried cat food. Cat food in
pouches increased by 687% in the period 1993 to 2002, and in 2002 accounted for 20%
of the cat food market. Cat food in Chubb packs increased only slightly, by 2%,
accounting for 4% of the cat food market in 2002.
The second main increase by weight was seen for dried cat food, which saw an increase
of 102%, which meant that dried cat food accounted for 14% of the cat food market by
weight in 2002.
57
Evaluating resource efficiency implications of packaging in the fmcg supply chain
600
Sales of cat food (thousand tonnes)
500
400
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
58
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The table shows that changes in market share in the time period of 1993 to 2002 has only
been seen for the small pack sizes of moist and semi-moist packaging. For the 85 g pack
size, cans have increased their market share at the expense of pouches, whereas the
opposite is the case for the 100 g pack size.
Table 7.2 below summarises the packaging materials used by primary, collation,
secondary and transit packaging for each packaging format.
59
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Table 7.2 Summary of packaging materials by packaging format for cat food
Packaging Primary Collation packaging Secondary Transit
format packaging packaging packaging
Can Steel can Cardboard tray with Corrugated tray with Stretch film
shrink film (LDPE); or shrink film (LDPE) (LDPE)
cartonboard box; or
shrink film (LDPE)
Pouch Laminate of LDPE, Cartonboard box Corrugated tray with Stretch film
aluminium and PE shrink film (LDPE) (LDPE)
Chubb pack LDPE film N/A N/A Stretch film
(LDPE)
Tray Alu tray Cartonboard box Corrugated tray with Stretch film
shrink film (LDPE) (LDPE)
Cardboard box Cardboard box N/A Cardboard box Stretch film
(LDPE)
Paper bag Paper bag N/A Cardboard box Stretch film
(LDPE)
Plastic bag Plastic bag N/A Cardboard box Stretch film
(LDPE)
Excluded from the resource efficiency calculations are any labels on the primary
packaging. Pallets used as transit packaging have also been excluded from the
calculations due to the high reuse levels and pallet pooling systems in this sector.
The packaging specifications for the primary, collation, secondary and transit packaging
are described in more detail below.
Cans
The weights of the different sized cans are based on data from Exel’s Packaging
Datastore and Rexam’s Environmental and Social Report (P. James 2004 and Rexam
2003). Additional data was obtained through in-house weighing at Pira International.
Leightweighting of 2.2% per year is assumed for the cans.
Collation packaging has been estimated based on store surveys and discussions with
industry representatives. Collation packaging for cans is described in Table 7.3 below.
Collation packaging consisted either of a cartonboard box, shrink film, or cardboard tray
with shrink film around. Weights of the collation packaging is based on data from Exel’s
Packaging Datastore.
60
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Secondary packaging for cans is assumed to be a corrugated board tray with a shrink film
around. The weight of the secondary packaging is based on in-house weighing at Pira
International. Due to strength improvements, it has been assumed that there was a move
away from 450 gsm to 400 gsm corrugated board around 1997.
Transit packaging for cans is assumed to be a pallet with stretch film around. The
quantity of product per pallet has been estimated by Pira International based on typical
pallet dimensions and heights. Lightweighting and general good practice is assumed to
have resulted in a 6.4% reduction in stretch film consumption per year based on
discussions with Pira packaging experts.
61
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Pouches
The weight of the different sized pouches is based on data from Exel’s Packaging
Datastore (P. James 2004) and in-house weighing at Pira International. No lightweighting
has been assumed.
Collation packaging has been estimated based on store surveys and discussions with
industry representatives. Collation packaging for pouches is described in Table 7.4
below.
Chubb packs
The weights of the different sized Chubb packs are based on in-house weighing at Pira
International. No lightweighting has been assumed.
Trays
The weights of the different sized aluminium trays are based on in-house weighing at Pira
International. Lightweighting of 1.4% per year is assumed for the trays.
Cardboard boxes
The weights of the different sized cardboard boxes for dried cat food are based on data
from Exel’s Packaging Datastore (P. James 2004). Lightweighting of 0.5% per year is
assumed for the boxes.
62
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Paper bags
The weights of the different sized paper bags are based on data from Exel’s Packaging
Datastore (P. James 2004). Leightweighting of 0.5% per year is assumed for the bags.
Secondary packaging for bags is assumed to be a corrugated cardboard box. The weight
of the secondary packaging is based on data from Exel’s Packaging Datastore. Due to
strength improvements, it has been assumed that there was a move away from 450 gsm
to 400 gsm corrugated board around 1997.
Plastic bags
Similar considerations as to those for paper bags have been made for plastic bags.
The resource efficiency results for cat food are shown in Figure 7.2 and 7.3 below.
Figure 7.2 shows the material use results and Figure 7.3 shows the energy consumption
results. The results are presented in tabular format in appendix B.
63
Evaluating resource efficiency implications of packaging in the fmcg supply chain
70.0
Material use (g) per daily intake
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 7.2 shows that material use per daily intake has fallen by 38% from 58.0 g in 1993
to 36.0 g in 2002. The decrease is a reflection of consumers’ increased preference for
dried cat food. Typically a medium sized bag of dried cat food will feed a cat for
approximately seven days. In contrast, a 400 g can of moist/semi-moist cat food will only
feed a cat for one day. This means that the product to pack ratio is more favourable for
the dried cat food which consumers are buying in greater quantities today. Combined
with material substitution and lightweighting efforts in industry, this has led to significant
reductions in the quantity of packaging per daily intake.
The cat food sector has successfully responded to our changing attitude towards our pets
by introducing a number of new packaging formats such as trays and pouches. These
reflect the increased inclusion of our pets as part of the family.
Similar to material use, energy consumption per daily intake has also fallen, from 2.7 MJ
in 1993 to 1.7 MJ in 2002 – a decrease of 37%. Due to lack of data, the energy
consumption results do not include improvements in packaging manufacturing and
processing.
64
Evaluating resource efficiency implications of packaging in the fmcg supply chain
3.0
Energy consumption (MJ) per daily intake
2.5
2.0
1.5
1.0
0.5
0.0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
The drivers influencing the resource efficiency of cat food are discussed in further detail
in the following:
Despite the rise in the number of cats we purchase less cat food by weight
The UK has changed from a nation of dog lovers to a nation of overwhelmingly cat lovers.
The number of cats in the UK is now greater than the number of dogs, rising from 5
million cats in 1980 to 7.5 million in 2002.
65
Evaluating resource efficiency implications of packaging in the fmcg supply chain
8.5
7.5
7
Million animals
6.5
5.5
Dogs
5
Cats
4.5
4
80
82
84
86
88
90
92
94
96
98
00
02
19
19
19
19
19
19
19
19
19
19
20
20
Figure 7.4 Cat and dog ownership in the UK (PFMA)
However, despite the rise in the number of cats we purchase less cat food by weight.
This is due to a recent trend towards feeding our cats dried rather than moist and semi-
moist cat food. We only need to feed a cat 70 g per day of dried food, compared to 400 g
per day of moist food. The trend towards dried food is very much aided by vets who
recommend dried cat food as this is a healthier option for our cats – and at the same time
it is cheaper.
The improvement in resource efficiency is not only due to changing consumer behaviour.
Packaging developments, packaging minimisation and lightweighting activities should not
be overlooked. For example, during the period 1993 to 2002, the weight of a 400 g cat
food can was reduced by 8.5% from 55 g to 50.25 g (MPMA).
66
Evaluating resource efficiency implications of packaging in the fmcg supply chain
66000
required per annum
65000
64000
63000
62000
61000
60000
59000
1993 1995 1997 1999 2001
On the basis of these assumptions, the following loadings per pallet as described in Table
7.4 were calculated.
Considering a weighted average (based on meals consumed per product format) the
number of lorries required to transport the daily food for 1 million cats is calculated. In
67
Evaluating resource efficiency implications of packaging in the fmcg supply chain
1993, the cat food that we gave to one million cats each day would fill over 23 lorries. By
2002, the food we gave to one million cats would fill over 22 lorries. In isolation, this does
not sound very significant, but overall this means that 2690 fewer lorry movements are
required annually to distribute today’s cat food than would have been required if these
changes in consumption patterns had not occurred (see Table 7.5 for the calculation).
Of course, this simplified analysis does not take account of the fact that different pet food
products will be produced in different locations, and therefore the distances required to
deliver the nations cat food may be higher or lower than previously. However, overall
fewer lorries on the road is likely to mean less fuel consumption and less transport related
air emissions, fewer accidents and less congestion.
68
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The diagram below shows how cat food products and packaging have developed over
time in response to changing market drivers.
Introduction of the EU
Directive on packaging
Political and packaging waste
Environmental awareness
changes
Economic
Packaging waste fees
influences
Increasing disposable income
Social
Time pressures
changes
Technological
progress Ziptite resealable Two piece cans gain Improved, second
bag used for dried large share of UK generation easy-open
canmaking production ends for cans launched
69
Evaluating resource efficiency implications of packaging in the fmcg supply chain
8 Laundry Detergents
8.1 Data
With regards to the packaging use target, the target of 10% reduction of consumption of
packaging per capita was missed by 3.3%. The reasons identified by the industry
included:
• Greater than expected decline in the use of compact detergents;
• Demographic shift leading to an increase in the number of single-person households
and more homes with fewer people resulting in more washing; and
• An increase in sales of liquid detergent products, which require more transport
packaging than powders.
Had the unit of measure instead been per wash, the result would have been a reduction
of 14.9%. As this study seeks to estimate resource efficiency taking into account drivers
such as changing demographics and consumer habits, it was decided to use the measure
resource efficiency per wash.
70
Evaluating resource efficiency implications of packaging in the fmcg supply chain
It is assumed that the habits dosage for light duty powders is the same as for standard
powder and that the habits dosage for light duty liquid is the same as for standard liquid.
The market share data by sub-category as derived from the TNSofres data is shown in
Figure 8.1 below.
71
Evaluating resource efficiency implications of packaging in the fmcg supply chain
600
Sales of laundry detergents
0
93
94
95
96
97
98
99
00
01
02
19
19
19
19
19
19
19
20
20
20
The figure shows that sales of laundry detergents measured in weight have decreased by
24.7% in the period 1993 to 2002. Greatest decline has been seen for automatic
concentrated powders which have seen a decline of over 2000%. Significant decline has
also been seen for light duty powder, automatic concentrated liquid and automatic
standard liquid of 327%, 584% and 98%, respectively. Growth amongst the product
formats available on the market in 1993 has only been achieved for automatic standard
powder, which saw a 7% increase over the period. The decline in sales for the different
product formats is very much down to the introduction of the two new product formats,
automatic tablets and capsules, of which tablets have seen significant market penetration
accounting for 27% of the market in 2002.
72
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Capsules are sold both in cardboard boxes with an inner plastic bag and plastic boxes,
however only the cardboard box format has been used in this study. This is considered
acceptable as capsules so far only accounts for 3.3% of the market share, and since the
plastic box format only accounts for some 20% of the capsules market.
The table shows that there is little variation in the packaging formats used both by
product format and sub-category. All powders are packed in cardboard boxes and liquids
are generally filled into HDPE bottles.
Table 8.3 below summarises the packaging materials used by primary, collation,
secondary and transit packaging for each packaging format.
73
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Excluded from the calculations on resource efficiency are any dosing balls except for
those incorporated into the lid. Additionally, some manufacturers include a net for the
tablets before putting them into the machine. This net has also been excluded.
The packaging specifications for the primary, collation, secondary and transit packaging
is described in more detail below.
Tablets
Primary packaging for tablets consists of a cardboard box with the tablets generally
wrapped two in a plastic wrapper. The weight of the different sized cardboard boxes is
based on data provided by Exel’s Packaging Datastore (P. James 2004). Lightweighting
of 1.25% per year is assumed for the cardboard. The weight of the wrapper is based on
the weighing of a sample at Pira International.
Secondary packaging for tablets is assumed to be a corrugated board tray with a shrink
film around it. The weight of the secondary packaging is based on in-house weighing by
Pira International. Due to strength improvements, it has been assumed that there was a
move away from 450 gsm to 400 gsm corrugated cardboard around 1997.
The transit packaging is for tablets assumed to be a pallet with stretch film around it. The
quantity of product per pallet has been estimated by Pira International based on typical
pallet dimensions and heights. Lightweighting and general good practice is assumed to
have resulted in a 6.4% reduction in stretch film consumption per year based on
discussions with Pira packaging experts.
Powders
Primary packaging for powder laundry detergents is a cardboard box. The weight of the
different sized cardboard boxes is based on data provided by Exel’s Packaging Datastore
(P. James 2004). Lightweighting of 1.25% per year is assumed for the cardboard.
Secondary and transit packaging for powders is assumed similar to that of tablets.
Capsules
Primary packaging for capsules is either a plastic container or a cardboard box with a
plastic bag within it keeping the capsules in dry condition. When first introduced more
capsules were available in plastic containers, however cardboard is now generally used,
except for by one manufacturer. For the purposes of this study, only the cardboard
packaging option is considered. Additionally, the capsule itself, which dissolves in the
wash process, has not been considered.
The weights of the different sized cardboard boxes and plastic bags are based on data
provided by Exel’s Packaging Datastore (P. James 2004). Lightweighting has been
assumed for the cardboard of 1.25% per year.
74
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Secondary and transit packaging for capsules is assumed similar to that of tablets.
Liquids
Liquid laundry detergents are now only available in plastic bottles. They used to be
available in refill pouches as well, however these never managed to penetrate the market
to the expected degree and have in the last couple of years been phased out. For the
purposes of this study, only plastic bottles are considered.
The weights of the different sized plastic bottles are based on the weighing of samples at
Pira International. Lightweighting of 2.5% per year has been assumed for the plastic
bottles.
Secondary and transit packaging for liquids is assumed similar to that of tablets.
The resource efficiency results for laundry detergents are shown in Figure 8.2 and 8.3
below. Figure 8.2 shows the material use results and Figure 4.3 shows the energy
consumption results. The results are presented in tabular format in appendix B.
11.6
11.4
Material use (g) per wash
11.2
11.0
10.8
10.6
10.4
10.2
10.0
9.8
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Material use per wash, as shown in Figure 8.2, has fallen by 7.6% from 11.4 g in 1993 to
10.6 g in 2002. This reduction is a reflection of the combination of packaging
minimisation efforts, product development and changing consumer preferences.
The laundry detergent sector has, over the time period studied, not been characterised by
great innovation with regards to packaging developments. The packaging formats have
75
Evaluating resource efficiency implications of packaging in the fmcg supply chain
not changed. However, packaging minimisation efforts have been considerable - to some
extent driven by the A.I.S.E. Code of Good Environment Practice.
The laundry detergent industry very much considers product and packaging as being
integrated, and packaging minimisation is therefore very much part of product
development. For example, the introduction of concentrated laundry detergents resulted
in great packaging reductions per wash.
Consumer preferences have great impact on the packaging use of laundry detergents,
with a significant quantity of consumers still preferring standard powders and liquids. If
these consumers were to change their preferences and change to a concentrated product
significant packaging reductions would be achieved.
The peaks on the graph of Figure 8.2 are partly due to changing consumer preferences
and the increased sales of standard powders and liquids in 1998/1999 and the
introduction of tablets which has resulted in a fall in sales of most of the other detergent
formats. Initially, when they were first launched, tablets were only available in small pack
sizes. This meant there was a high product:pack ratio leading to the peak observed in
the graph in the year 1999. Now tablets are available in larger pack sizes with lower
product:pack ratios.
Similar to material use, energy consumption per wash has also fallen, from 0.52 MJ in
1993 to 0.43 MJ in 2002 – a reduction of 21%. The reductions in energy consumption
are also due to the combination of packaging minimisation efforts, product development
and changing consumer preferences. The energy consumption data does not include
improvements in packaging manufacturing and processing.
0.60
Energy consumption (MJ) per wash
0.50
0.40
0.30
0.20
0.10
0.00
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
76
Evaluating resource efficiency implications of packaging in the fmcg supply chain
The drivers influencing the resource efficiency of laundry detergents are discussed in
further detail in the following:
In the UK, the general population growth of 1.8% and the increase in the number of
households of 3.8% combined with the changing consumer habits has resulted in us
doing 3 billion more washes in 2001 than four years earlier in 1997, an increase of 6.2%
(see Figure 8.4).
7.0
6.2
6.0
5.0
3.8
4.0
%
3.0
1.8
2.0
1.0
0.0
Population Households Total washes
4
The figure for ‘number of households’ is for the period 1996-2001.
77
Evaluating resource efficiency implications of packaging in the fmcg supply chain
However, efforts have ensured that the carton box and the plastic bottle has seen
environmental improvements. For example, today carton boxes for laundry detergents
contain approximately 80% recycled board, and many plastic bottles for detergents
contain 25% recycled plastic (UKCPI).
78
Evaluating resource efficiency implications of packaging in the fmcg supply chain
These are very much factors which we as consumers influence through our purchasing
decisions. However, as consumers we prefer the smaller packs because of reasons of
price, handling, available storage space, etc.
Packaging is not the main environmental impact from washing our clothes
When analysing the environmental impact of laundry detergents, from design and
manufacture through to use and disposal, the biggest impacts occur in the use and
disposal of the product. This means that the actual washing of our clothes at home in the
washing machine and the disposal and treatment of the waste water has a much greater
environmental impact than the manufacture of the washing machine, the laundry
detergent production or the packaging. Figure 8.5 below illustrates where in the life cycle
of laundry detergents the main environmental impacts are.
Laundry washing habits such as the quantity of laundry detergent used, the type of
detergent chosen, the wash load, the wash temperature, etc. influence the overall
environmental impact of washing a lot more than the packaging. Therefore, as
consumers we should put much more effort into dosing the right amount, only wash full
loads, and choosing the correct wash temperature as recommended on the pack and by
the industry’s Washright initiative – part of the Code of Good Environmental Practice
(A.I.S.E. 2004).
Global Warming
Potential
Acidification
Potential
Photochemical
Smog Potential
Nutrification
Potential
Solid Waste
Energy
79
Evaluating resource efficiency implications of packaging in the fmcg supply chain
loading machines on automatic programmes. These are three times as efficient in water
usage, and require less energy for a more efficient wash than their top-loading
predecessors (A.I.S.E.1999).
Additionally, the use of enzymes and bleach activators in detergent formulations, for both
concentrated and standard products, have allowed us to wash at much lower
temperatures, thereby saving energy. New detergent products such as tablets and
capsules provide convenience by eliminating the dosing process, while ensuring correct
dosage (that is if we ensure only to wash full loads). Preventing the consumer from
adding that “little bit extra just to be sure” prevents unnecessary use of resources. For
example, capsules use a dose of 50 g of product per wash, tablets use 83 g. This
compares to a typical habits dosage of 102 g for standard powder and 114 g for
concentrated liquid detergents (Unilever 2001).
Economic
Birth of consumer
changes Increasing disposable income
spending power
Market drivers
Smaller households
Time pressures
Social
changes
Health awareness
AISE launch
Code of
Other Environmental
factors Practice
Incorrect dosing of wash loads
1916: Synthetic detergent 1946: First 1961: First 1975: Detergents 1989: 1998:
developed in Germany surfactant biodegradable with inbuilt fabric Concentrated Detergent
1914 - 1918 1939 - 1945 detergent detergent conditioner detergents tablets
1982: Liquid 2001: Liquid
1969: First detergent capsules
detergents
biological 1992: Refill
including
detergent
Subsequent dosing ball pouches
product
and packaging
developments 1905 Shortage 1930's:
Household
Interrupted
fat
1955 2005
of fats for
making detergent supplies,
soap production army need
takes off in for
US cleaning in
cold,
mineral 80
Source: Pira International 2004 rich sea
water
Evaluating resource efficiency implications of packaging in the fmcg supply chain
9 Conclusions
Recyclability
Recycled content
Process requirements
Raw Material properties
materials
Packaging
conversion
Closed loop
Filling line performance
recycling Product Stackability
manufacturin Shelf-life requirements
Open loop and filling
Essential requirements legislation
recycling
Figure 9.1 Supply chain stages for fmcg packaging and considerations for packaging
designers
81
Evaluating resource efficiency implications of packaging in the fmcg supply chain
• Preserve products to provide longer shelf life – there is increasing emphasis on the
preservation role of packaging materials as we seek to eliminate and replace
preservatives in our foodstuffs;
• Deliver products in quantities and formats tailored to suit how and when they will be
consumed – we are demanding smaller product quantities and more on-the-go
products;
• Dispense products conveniently and safely – we demand convenient easy-open
features, reclosability and child-resistant closures;
• Add convenience to the products we use – for example, cook-in-pack convenience;
and
• Improve sales – packaging is one of the key components that can provide a
commercial advantage in the competitive arena of fast moving consumer goods.
As a result, there is more packaging in the home today than ever before. It is not
possible to quantify how much growth in packaging consumption has occurred, as data
has not historically been collected. Data has only been collected in the UK since 1997, in
order to monitor packaging waste recovery and recycling rates.
1.0
0.9
0.8
0.7
0.6
kg
0.5
0.4
0.3
0.2
0.1
0.0 Product
Soft Packaging
drinks Potatoes
and potato Cat food Fabric
products detergents
82
Evaluating resource efficiency implications of packaging in the fmcg supply chain
For the case studies in this project, the relative resource impact of product to packaging
is indicated in Figure 9.2. This demonstrates that the mass of product protected is in the
region of ten or more times greater than the mass of packaging around the product. If we
take mass as an indication of resource efficiency, then the product has far greater
environmental impact than the packaging.
This is consistent with the findings of other studies, which have compared the
environmental impact of products and their packaging. For example, Figure 9.3a and
Figure 9.3b present the results of a life cycle assessment study for milk packaged in
composite beverage cartons (Barkman et al 2001). The results show that for all
environmental impact categories considered, the production and processing of the milk
has by far the greatest environmental impact across the entire life cycle of the product
and its packaging.
83
Evaluating resource efficiency implications of packaging in the fmcg supply chain
5
The environmental impacts considered are: GWP=Global warming potential; AP = Acidification
potential; Energy = Total renewable and non-renewable energy; Resources = Abiotic resource
depletion; EP = Eutrophication potential; POCP = Photochemical ozone creation potential; Waste =
non-hazardous waste
84
Evaluating resource efficiency implications of packaging in the fmcg supply chain
6
The environmental impacts considered are: GWP=Global warming potential; AP = Acidification
potential; Energy = Total renewable and non-renewable energy; Resources = Abiotic resource
85
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Product
waste
18%
Packaging
3%
Consumed
product
79%
Figure 9.4 Total energy used for the system, 700g bread
Product waste
9%
Packaging
23%
Consumed
product
68%
86
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Product
waste
7%
Packaging
18%
Consumed
product
75%
Product
waste
11%
Packaging
18%
Consumed
product
71%
87
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Environment
impact
Minimum
environmental
impact -X% +X%
Underestimated Overestimated
packaging design packaging design
Amount of
packaging material
Minimum adequate by weight/volume
amount of material
Figure 9.8 Prevention by source reduction – the paradox (adapted from Erlov et
al 2000)
Erlov et al further interrogate their case studies of bread, ketchup, milk and yoghurt to
provide quantitative analysis to support the principles communicated by Figure 9.8. In
Figure 9.9, the environmental impact of product waste for bread is compared against the
environmental impact of different quantities of packaging used. In this analysis,
environmental impact is represented by energy, and the energy needed for all stages of
production, distribution, and storage (from growing of corn through to final consumption)
has been included. Product waste includes packaging and product waste during
distribution, storage, and at the consumer level. This analysis suggests that there is an
optimum product:pack ratio of approximately 9-9.5 grams of packaging per kg of product.
Reducing the quantity of packaging per product below this results in a considerable
increase in environmental impact. Overpacking (increasing the packaging above this
optimum) results in a lesser increase in environmental impact.
88
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Similarly, Figure 9.10 shows an optimal product:pack ration for ketchup and further
evidence of this relationship between products and packaging is provided in Figure 9.11
(milk) and Figure 9.12 (yoghurt).
89
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Figure 9.11 Relationship between product wastage and packaging – milk (Erlov
et al 2000)
90
Evaluating resource efficiency implications of packaging in the fmcg supply chain
It is sometimes possible to identify and achieve this optimum balance for packaging, but
often it is not possible to do this precisely:
• To produce a quantitative analysis to the level presented in Figure 9.5 to Figure 9.8
requires a massive amount of input data. This data would be expensive and time
consuming to gather.
• Different supply chains will create different hazards, and therefore different results,
for the same products.
• The results will vary depending on the volume of product required.
• Nearly every piece of packaging performs a diverse range of functions. Besides
providing product protection, packaging must also provide information, security
features, convenience and other functionality. The emphasis place on different
elements of functionality will differ depending on a brand owners target consumer
base, and therefore the packaging type and quantity will vary.
• Packaging design provides a route for product differentiation. Brand owners use
packaging to facilitate, and create, consumption and choice. Packaging designers
must be allowed freedom to design packaging, which meets the needs of the supply
chain, the consumer, and the business.
Some of these drivers lead to increases in packaging use, others lead to reductions in
packaging use. Figure 9.13 illustrates how some drivers require more packaging use,
whilst others are drivers for packaging minimisation and source reduction. Consumer
choice is one of a number of contradictory drivers, which can work in both directions. On
the one hand, consumers demand more products, more convenience and more
functionality, whilst on the other hand consumers criticise packaging and want to see less
packaging in their homes.
91
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Figure 9.13 Drivers for more packaging and drivers for packaging reductions
92
Evaluating resource efficiency implications of packaging in the fmcg supply chain
50
Percen tag e of UK lan dfilled w aste
40
30
20
10
0
Packaging Household Commercial Construction O ther w aste
w aste w aste (non- and industrial and demolition
packaging) w aste (non- w aste
packaging)
And although the total volume and units of packed goods consumed in the UK has
increased, packaging today is more efficient overall
The total volume and units of packaged goods consumed in the UK – and the rest of the
world – continues to grow as we continue to consume more goods. However, the case
studies in this report illustrate that product and packaging developments and changes in
consumer demand have counteracted this growth to deliver more resource efficient
packaging (by weight) per product function. Examples from other studies also illustrate
these trends, as shown in Figures 9.15-9.16 (Conseil National de l’Emballage 1998).
93
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Oval shaped tray is replaced by a rectangular Despite switching the product size from 1kg to
design. The new tray is thinner (saving 8% of smaller 250g individual portion sizes, a sales
the aluminium), and also reduces PP film packaging reduction of 46% is obtained for each
requirements and carton board kilo of product sold. For the total packaging
requirements, and the number of grouping system, the overall saving is 30%. At the same
containers required. An overall weight time, functionality is improved by offering single
reduction of 18.6% is achieved for the total portion sizes, improved openability and a
packaging system. microwaveable tray.
94
Evaluating resource efficiency implications of packaging in the fmcg supply chain
95
Evaluating resource efficiency implications of packaging in the fmcg supply chain
References
3i (2003) Feeding Growth – The role of private equity in the food and drink industry, 3i
Economist Intelligence Unit, London.
The Alliance for Beverage Cartons and the Environment (ACE) Resource Efficiency and
the Beverage Carton, ACE, Belgium.
Beeton, D.A. (February 2004) Technology Roadmapping in the Packaging Sector, PhD
First Year Report, Institute for Manufacturing, University of Cambridge, UK.
Boisard, P. D. Cartron, M. Gollac and A. Valeyre (2003) Time and Work: Duration of
Work, European Foundation for the Improvement of Living and Working Conditions,
available on http://www.eurofound.eu.int/publications/files/EF0211EN.pdf
British Potato Council (BPC) (2002a) What consumers want from fresh potatoes – and
how we can give it to them, BPC ‘Understanding Consumers’ research programme, fact
sheet 2, British Potato Council.
British Potato Council (BPC) (2002b) What consumers want from processed potatoes –
and how we can give it to them, BPC ‘Understanding Consumers’ research programme,
fact sheet 3, British Potato Council.
British Potato Council (BPC) (2002c) How consumers buy potatoes – and what we can
do to encourage them to buy more, BPC ‘Understanding Consumers’ research
programme, fact sheet 4, British Potato Council.
96
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Britvic Soft Drinks (2002) The Britvic Soft Drinks Category Report 2002, Britvic Soft
Drinks, Chelmsford.
Department for Environment, Food and Rural Affairs (DEFRA) (2004) e-Digest of
Environmental Statistics, DEFRA, available on
www.defra.gov.uk/environment/statistics/index.htm.
Environment Agency of England and Wales (2004) Packaging Data Notes. Producer
Responsibility Obligations (Packaging Waste) Regulations 1997, available on
http://www.defra.gov.uk/environment/waste/topics/packaging/data.htm
Erlov, L., C. Lofgren, and A. Soras (2000) Source: Packaging – a tool for the prevention
of environmental impact, Packforsk, available on http://packforsk.adnome.se/PDF-
files/rapp_o_resultat/REPORT_194.PDF
Euromonitor (2003a) The Market for Soft Drinks in the United Kingdom, Market Direction.
Euromonitor (2003b) Ready meals benefit from lifestyle and demographic changes,
available on www.euromonitor.com
Gregory, H. (2003) Chilling out has to be cool. Trends in the UK soft drinks market, The
Grocer, Vol. 226, No. 7602, 3rd May 2003.
Hansen, E. (2003) Ranking of industrial products, Environmental Project No. 839 2003,
Danish Environmental Protection Agency.
Henchion, Dr. M. (2004) Meals for Cash Rich, Time Poor Consumers, The National Food
Centre, article available from www.teagasc.ie/publications/readymeals2000/paper01.htm
97
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Key Note (2003) Key Note Market Report 2003 - Packaging (Metals & Aerosols), Key
Note, Middlesex, UK.
Office of National Statistics (ONS) (2003) Expenditure and Food Survey 2002/03.
Income and source of income 1970 to 2001-02, available on http://www.statistics.gov.uk.
Office of National Statistics (ONS) (2004) Living in Britain. Results from the 2002
General Household Survey, available on http://www.statistics.gov.uk/lib2002/default.asp
Personal correspondence with Jane Bickerstaffe, Director, Industry Council for Packaging
and the Environment (INCPEN), Reading.
Personal correspondence with Paul James, General Manager, Packaging Datastore, Exel
plc, Coventry.
Rexam (2003) The Future of Consumer Packaging - Environmental and Social Report
2003, Rexam, available on http://www.rexam.com/about/ES_03_final1.pdf
Tetra Pak (2001) Tetra Pak Company Magazine, No. 88, 2003.
98
Evaluating resource efficiency implications of packaging in the fmcg supply chain
TNSofres (2003) TNS SuperPanel market data. The TNS SuperPanel is a consumer
panel covering 15,000 demographically representative households. All family members
scan all purchases bought into the home, using a handheld scanner. Non-bar coded
products are entered using a patented code book. TNS collect and collate the data,
which is then used for their commercial consultancy activities.
Unilever (2001) Unit Dose – A Sustainable Step for Fabrics Liquids, Unilever HPC –
Europe, available on www.unilever.com/Images/3_4586.pdf
World Advertising Research Centre (WARC) (2003) European Marketing Pocket Book
2004, World Advertising Research Centre, UK.
99
Evaluating resource efficiency implications of packaging in the fmcg supply chain
As stated in chapter 2, life cycle inventory (LCI) data from readily available life cycle
inventory databases are used for determining the quantities of materials used and the
energy required to produce formats and sizes as used in the case studies.
The databases used for the different packaging materials are shown in the table below.
The datasets are described briefly below. For further information please refer to the
datasets themselves (see end of appendix for details).
The inventories include data from the extraction of raw materials from the earth via
cracking and refining through to the point where the finished polymer is ready for delivery
to the converter. This includes energy systems, ancillary materials and the transport.
Depending on which polymer is considered the data represents conditions in the early
1990s or late 1990s. For example, for the PET eco-profiles data on the production
processes represent the 12-month period during 1999-2000, information on the
production of fuels and energy have been derived from 1995 reports of the International
Energy Agency, and data for supporting operations and transport have been obtained
from other manufacturers and operations (no date specified).
Evaluating resource efficiency implications of packaging in the fmcg supply chain
As specified above the data provided in the eco-profiles is based on industry averages of
the major plastics manufactured and used in Europe. Keeping PET as the example, data
on the production processes specific to PET have been obtained from then plants
operating in Germany, Italy, the Netherlands, the UK and the United States. The
information covered the production of some 1.9 million tonnes of purified terephthalic acid
(PTA), 570,000 tonnes of amorphous PET and 933,000 tonnes of bottle grade PET.
The inventories include data from the extraction of aluminium ore up to the aluminium
semi-finished product delivered to user
The LCI data represents the year of 1998. The data is presented as average values
representative of European aluminium. For primary aluminium production, a coverage of
98% of the total European primary aluminium output was achieved; for semi-finished
aluminium products a coverage ranging from 20-70% was achieved; for recycling of
process scrap, a coverage of 37% was achived; and for recycling of aluminium end-of-life
products, a coverage of 53% was achieved. LCI data for processes in which the
European aluminium industry is not involved have been collected from elsewhere.
Transport, energy and air emission data have been taken from the BUWAL 250 datasets.
The inventories include data from the production of raw materials via all manufacturing
processes up to the packaging end product. All energy systems, the manufacture of
auxiliary materials and the corresponding modes of transport have also been included.
With the exception of data for energy and mode of transport, which represent the position
in 1990, all data were collected between 1993 and 1995.
It is clear that the data is not directly transferable to UK conditions, for example for the
inventory for glass bottles the recyclate fraction is in the BUWAL 250 datasets 99.9% for
green glass and 60% for white glass.
Conclusions
Although not perfect, the life cycle inventory (LCI) data used for this project is considered
to be amongst the most representative LCI data available and fully adequate for the
purposes of this study. It must be emphasised that this study is not intended to give an
exact description of resource efficiency in the sectors chosen for the case studies, but
that it is intended to give an indication of resource efficiency trends over time.
Evaluating resource efficiency implications of packaging in the fmcg supply chain
References
European Aluminium Association (EAA) (2000) Environmental Profile Report for the
European Aluminium Industry, European Aluminium Association, Belgium.
Swiss Agency for the Environment, Forests and Landscape (SAEFL) (1998) Life Cycle
Inventories for Packagings, Volume I and II, Environmental Series No. 250/I and II,
SAEFL, Switzerland.
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Below are the resource efficiency results for soft drinks, potatoes and potato products, cat
food, and laundry detergents in tabular format.
Table B.2 Resource efficiency results for potatoes and potato products
Reference year Material use Energy consumption
[g per 200 g serving] [MJ per 200 g serving]
1993 3.9 0.18
1994 4.1 0.19
1995 4.1 0.18
1996 4.1 0.18
1997 3.9 0.18
1998 3.9 0.18
1999 3.8 0.18
2000 3.9 0.18
2001 4.2 0.19
2002 4.2 0.19
Evaluating resource efficiency implications of packaging in the fmcg supply chain
Acknowledgements
The research team would like to thank the following organisations for their support in
producing this report:
Project Panel
Throughout the project, the team was assisted by a Project Panel made up of various
stakeholders. This group raised issues and gave feedback, enabling real issues to be
highlighted and practical solutions to be proposed.
INCPEN, the Industry Council for Packaging and the Environment, is a research
organisation set up in 1974 to study the environmental and social impacts of packaging.
It promotes best practice in packaging manufacturing, distribution and use and supports
research into resource efficiency and recovery methods.
Biffa Waste Services Ltd is the waste management company that in 1997 set up the
landfill tax credit scheme, Biffaward, to provide accessible, well-researched information
about the flows of different resources through the UK economy.
Valpak is the UK’s leading Producer Responsibility scheme, helping over 5,000
companies comply with the Packaging Waste Regulations.