New World

The largest end-user segment of corrugated boxes in North America is the food and beverage industry, accounting for 51% of shipments in 2010.  These shipments to the food industry will continue to increase at an average annual rate of 2.4% from 2012 – 2016.  The expansions and contractions among 21 end-use markets for corrugated are published in a new study U.S. Corrugated Box End-Use Markets: Analysis and Forecast through 2016, by RISI (www.risi.com), the leading information provider for the global forest products industry.

Demand for corrugated boxes traditionally fluctuates with the growth of a wide range of consumer products industries—including both durable and non-durable manufactured goods. Thus trends in corrugated shipments can often be explained by general macroeconomic conditions such as changes in real GDP, consumer spending, international trade and industrial production, factors that affect manufactured goods markets.  Following economic trends from 2002-2011, corrugated box shipments declined at an average annual rate of 0.6%. However, in 2010 corrugated box shipments rebounded, reflecting the resilience of the broader U.S. economy - increasing 3.6% over 2009 to reach 357 billion sq. ft. – valued at more than US$24 billion. 

Looking forward, the study finds that retail and packaging trends will play a significant role in determining shipment trends.  Opportunities for corrugated in the food and beverage segment will abound as Wal-Mart and other “big box” retailers remain committed to increasing stocking efficiency and the use of sustainable packaging materials such as corrugated packaging. Corrugated packaging is 100% recyclable, made from renewable resources and is cost-effective to transport and stock produce, meat and other food products.

Within the food & beverage end-use category, the study finds that beverages, fresh fruit & vegetables and dairy will see the largest future shipment growth. "This is opening up opportunities for mini-flute corrugated," explains Ken Waghorne, RISI's Vice President, Paper Packaging, "potentially taking share from markets traditionally dominated by folding cartons."

U.S. Corrugated Box End-Use Markets provides a detailed forecast through 2016 for consumer spending, trade, production and corrugated box shipments for 21 specific end-use industries in the categories: Food & Beverage, Non-Durable (Non-Food), Durable Goods and Non-Manufacturing.

The International Bottled Water Association (IBWA; www.bottledwater.org) says that a decision by the University of Vermont to ban the sale of bottled water, while at the same time mandating that vending machines contain 1/3 healthy beverages, sends a contradictory and confusing message to its students. The decision also restricts freedom of choice for students to choose one of the healthiest beverages available in vending machines.

“The university has failed to understand that bottled water is most often an alternative to other packaged drinks, which are often less healthy, and is not necessarily an alternative to tap water,” says Chris Hogan, IBWA Vice President of Communications.

“Research by owners of vending machines shows when bottled water is not available in a vending machine, people choose other packaged beverages, which may contain sugar, caffeine and other additives. They don’t necessarily go looking for a drinking water fountain,” says Mr. Hogan.

IBWA notes the irony that the university-wide ban coincides with a mandate that vending machines contain 1/3 healthy beverages, while obviously excluding bottled water as a healthy beverage.

“It’s a misguided attempt to deal with a waste issue, that would be better addressed through improved recycling rates of all packaged drinks,” says Mr. Hogan. “Bottled water containers are the most highly recycled containers in curbside programs, and the EPA has calculated that plastic bottled water containers make up just 0.03% of the U.S. wastestream. So, getting rid of bottled water on campus will not make a significant improvement to waste issues.”

“Instead, students will turn to other packaged drinks, which still require proper recycling collection facilities,” he adds. “I would encourage students, if they want to make a real difference for the environment, to focus their efforts of improving recycling rates of all beverages, not single out one the healthiest drinks on the shelf.

“Stocking the vending machines with teas and enhanced waters as an option to sugary drinks does nothing to help a student looking for pure clean safe water that does not have a the taste of chlorine.  Removing the students’ freedom to choose packaged water is a serious issue. Telling students that they can or cannot buy bottled water is a step backwards, especially with the growing rates of obesity and diabetes in the U.S.”

Mr. Hogan speculated whether UVM administrators would now face similar backlash from its students as the state of Vermont faced from its workers when it attempted a similar ban last year.  In June 2011, Vermont Gov. Peter Shumlin (D) postponed a state bottled water ban after workers voiced concerns over access to drinking water.

"Many, many state employees have brought forward logistical and other concerns that I think we carefully need to consider before we trigger on this policy," says Secretary of Administration Jeb Spaulding (D).

"There were enough situations raised (by employees) that we, in good conscience, couldn't ignore them," says Spaulding. "We're at a point where our state workforce, over the last few years, has been under a great deal of stress, with fewer employees doing the same amount of work, and taking pay cuts. It's important, as an employer, to do what you can to support the morale of your team."  

Global demand for biodegradable and bio-based plastics will more than triple to over one million metric tons in 2015, valued at $2.9 billion.  Bioplastics have moved past the initial phase of market introduction and are now experiencing robust increases in demand in virtually all parts of the world.  Gains will be fueled by a number of factors, including consumer preferences for environmentally sustainable materials, improved performance of bioplastic resins relative to traditional plastics, and the introduction of commodity plastics produced from bio-based sources.  Ultimately, however, price considerations will be the primary determinant of bioplastic market success, and it is expected that rising petroleum costs will allow some bioplastic resins to be able to achieve price parity with conventional plastics by the end of the decade. These and other trends are presented in World Bioplastics, a new study from The Freedonia Group, Inc. (www.freedoniagroup.com), a Cleveland-based industry research firm.  

Biodegradable plastics accounted for 90% of the world bioplastics market in 2010.  Excellent growth is forecast for the two leading biodegradable plastics, starch-based resins and polylactic acid (PLA), both of which will more than double in demand through 2015.  The fastest gains for biodegradable plastics, however, will be seen for polyhydroxy-alkanoate (PHA) resins, which are just entering the commercial market.

Despite the strong advances for biodegradables, non-biodegradable bio-based resins will be the primary driver of bioplastics demand through 2015 and beyond.  Gains will be fueled by the availability of commercial quantities of bio-based polyethylene from Braskem’s 200,000-metric-ton-per-year plant in Brazil, which opened in late 2010.  Two other bio-based polyethylene plants -- as well as a bio-based polypropylene facility -- are also in the planning stages and are expected to open around 2015.  Additionally, industrial production of fully bio-based polyethylene terephthalate (PET) is forecast to become a reality by the end of the decade.  As a result, demand for non-biodegradable bioplastics will rise from 30,000 metric tons in 2010 to 1.3 million metric tons in 2020.  

NMI (www.nmisolutions.com), the global market research and business consulting firm specializing in health, wellness, sustainability and healthy aging, announced today one of the key insights derived from its annual U.S. LOHAS Consumer Trends Study®.  

When asked about packaging, three-quarters of Americans believe many consumer products are over-packaged and about one-quarter will look elsewhere. Minimal packaging is most preferred among consumers, followed by recyclable packaging and use of packaging materials that are environmentally-friendly.  

According to NMI Managing Partner Steve French, "The 'less is more' trend continues to resonate with consumers. Marketers can maintain current and attract new consumers by using less packaging and 'greener' packaging materials. Specifically, 'renewable' and 'plant-based' materials are rated most environmentally-friendly among consumers."  

As so, businesses should promote the use of post-consumer recycled packaging as well as incorporating new environmental materials where applicable. Consumers are showing increasing adoption of new (and easily executed) behaviors that can save the planet. However, companies should be careful not to use environmentally-friendly packaging at the expense of the product or its experience. In the end, environmentally-friendly packaging can help consumers feel better about their choice – without sacrifice.  

A new report by the University of Victoria ranks eco-labels intended to distinguish seafood produced with less damage to the environment. It is the first study to evaluate how eco-labels for farmed marine fish compare to unlabeled options in the marketplace.

"How Green is Your Eco-label?" is designed to help seafood buyers sort through competing sustainability claims and better identify those labels that result in farming methods with less damage to the ocean. Key findings include: "Organic" labels lead the pack, although a few fall noticeably short;
Many eco-labels are not much better than conventional farmed seafood options when it comes to protecting the ocean environment;
Scale is a big challenge for eco-labels: For the most part, eco-labels are awarded based on an individual farm's environmental footprint. However, the cumulative environmental effects of many farms can quickly overwhelm the benefits of reductions in impacts by a single farm or small group of certified farms. "Our research shows that most eco-labels for farmed marine fish offer no more than a 10 percent improvement over the status quo," says John Volpe, Ph.D., a marine ecologist at the University of Victoria and lead author of the report. "With the exception of a few outstanding examples, one-third of the eco-labels evaluated for these fish utilize standards at the same level or below what we consider to be conventional or average practice in the industry."

Supported by the Pew Environment Group, (www.PewEnvironment.org) the study, which was reviewed by several independent experts, uses a well-established quantitative methodology derived from the 2010 Global Aquaculture Performance Index (www.gapi.ca) to determine numerical scores of environmental performance for 20 different eco-labels for farmed marine finfish, such as salmon, cod, turbot, and grouper. These scores were used to rank performance among the various eco-labels. The assessment did not look at eco-labels for freshwater farmed fish, such as tilapia or catfish.

The authors used 10 environmental factors to assess the eco-labels, including antibiotic use, the ecological effect of farmed fish that escape from pens, sustainability of the fish that serve as feed, parasiticide use, and industrial energy needed in aquaculture production.

Toray Industries, Inc. (www.toray.com) in partnership with Gevo, Inc. (www.gevo.com), a leading company of renewable chemicals and advanced biofuels, has succeeded in producing laboratory-scale samples of fully renewable biobased PET and its films.

Gevo succeeded in converting isobutanol, produced from biomass by employing its own highly effective production method that uses genetically modified microorganisms, to para-xylene using conventional chemical process for commercial operations.

Toray used terephthalic acid synthesized from Gevo’s biobased para-xylene and commercially available renewable mono ethylene glycol (MEG) as raw materials, and successfully produced the PET samples by applying a new technology and PET polymerization, and film production technology. This biobased PET has exhibited properties almost equivalent to petro-based PET in laboratory conditions.

Commercially available PET is currently produced from terephthalic acid and mono ethylene glycol (MEG), both of which are derived from petroleum. Around 50 million tons of PET is produced worldwide annually for producing fibers, films and bottles. And PET, which has outstripped other polymers such as polyethylene and polypropylene in global demand, has become an essential polymer in our daily life.

The success of this trial, albeit under laboratory conditions, is proof that PET can be industrially produced from fully renewable biomass feedstock alone. This is a significant step that would contribute to the realization of a sustainable, low-carbon society.

Gevo is planning to exhibit these laboratory-scale biobased PET samples at “BioPlastek 2011 Forum”, which will be held at The Waldorf-Astoria, New York from June 27th to June 29th.

Under its management policy that all business strategies must place priority on the global environment in an effort to help realize a sustainable low-carbon society, Toray has been promoting the development of biobased polymers while expanding the businesses related to biobased materials such as poly lactic acid (PLA). The expansion of biobased polymers is an important initiative central to the Group’s Green Innovation projects under its new medium-term management program “Project AP-G 2013”, launched in April this year.

Under the corporate slogan "Innovation by Chemistry", Toray will enhance its efforts to develop advanced materials to contribute to the progress of a sustainable, recycling society.

January 16, 2012

The Institute of Packaging Professionals is pleased to offer four $2,500 academic scholarships for 2012-2013 to recognize exceptional college students headed for a career in packaging.

Candidates must be students in their Junior or Senior year as of Fall 2012, pursuing an undergraduate degree at an accredited college, university or vocational/technical school in a course of study relevant to a career in the packaging industry.

The scholarships have been created to support packaging education and to raise awareness of packaging as a career choice.

As an added bonus, the top talent identified through this program will be shared with IoPP Benefactor companies as a recruiting tool for their organizations. Please include with your application: Official copy of applicant's current transcript
Two letters of recommendation from instructors not related to you, or members of the Packaging Education Scholarship Fund Selection Committee who have knowledge of your academic achievements. Recommendation letters can also come from supervisors/managers if the student has worked/interned in the packaging industry
Current high-resolution photo that can be reproduced for promotion
On a separate sheet of paper, prepare a detailed narrative description of your academic and career goals for the future, including why you believe you're suited to achieve these goals. Outline for the Selection Committee any events that led you in this particular direction. Essay may be no longer than one page.
All materials must be completed and postmarked no later than March 19, 2012. Incomplete applications will not be considered. Winners will be recognized on May 22, 2012 at an IoPP-hosted special event dinner.   

The scholarships are funded by founding supporters, including the Central Ohio, Cincinnati, Chicago, Minnesota, Missouri-Gateway, and Tejas IoPP chapters and IoPP benefactor companies.

Contact Sarah Washburn at (630) 544-5050 x116 or swashburn@iopp.org with questions.