Increasing Focus on Using Sustainable Packaging Materials and Ban on Plastic to Boost Demand for Paper Packaging

 


Paper packaging has been in vogue since the 18th century. At that time paper was considered a luxury good that could only be afforded by aristocrats. But slowly with industrialization and modernization, paper-based packaging was converted from a luxury good to the common good. With industrialization also came widespread use of plastics and other composite materials that made paper-based packaging ineffective.

Paper packaging is facing increasing challenges to sustain its present market position. One of the challenges is its inability to process heavier and larger paper, which results in an increase in energy consumption, material cost, etc. However, increasing focus on using sustainable packaging materials and ban on plastic is various countries is expected to boost demand and production of paper-based packaging solutions. In May 2018, the European Commission proposed a ban on 10 common items that it says make up about 70 percent of the litter in EU waters. This includes plastic straws, drink stirrers, plates, and more.

Another challenge faced by the paper packaging industry is that of pulp. As a result of high pulp production, India accounts for over eighty percent of the paper consumed worldwide. However, high commodity prices and other factors have resulted in a decreasing demand for Indian pulp. As a result, most of the processed pulp is imported from China.

The demand for paper packaging is expected to increase in the e-commerce sector as several companies are focused on replacing plastic packaging with sustainable alternatives. In December 2019, Amazon, the U.S.-based multinational technology company, replaced plastic packaging material, such as bubble wraps and air pillows, with ‘paper cushion’ in its packaging. Similarly, in January 2021, Nestlé, the Swiss multinational food and drink processing conglomerate corporation, announced that its popular Smarties brand is now using recyclable paper packaging for its confectionery products worldwide.



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