Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

Packaging 5

The Challenge

Today’s time of “shock and awe” that will reduce demand in the market. This is tied to a reduction in production in the manufacturing sector of certain nonessential items, but certainly, offset by the increased demand for agro and grocery packaging. This is when countries begin to get a grip on the pandemic. This period hasn’t happened quite yet, but with the economies inching inexorably toward depression-level unemployment, expect lowered demand for packaging and the products they hold. The economic fallout will likely slow or nearly stop the packaging of these products. Consumers desperate to save will select private label over brand names.

Aware of the viruses’ impact, consumers will shy away from current packaging that doesn’t address the hygiene issue. The economic rebound after the COVID-19 uncertainty, compostable packaging would see a strong rebound, particularly in the area of foodservice. Consumers may be unwilling or very slow to return to the new normal. The recovery speed for compostable packaging players’ recovery will be on higher rate. As people around the world are accepting the new normal with a reboot mode to corrective measures and introducing sustainable circular economy.

The Situation

The global compostable tableware market is expected to grow at a CAGR of 6.16% between 2020 and 2024 in terms of value. The growing awareness about the adverse effects of plastic such as massive plastic pollution and its grave consequences on aquatic and aerial creatures after dumping this product into the sea are the major driving factors for the growth of compostable tableware market. The increasing demand for safe, sustainable and environmental friendly cutlery owing to the rising number of fast food restaurants and cafeterias is boosting the compostable tableware market. Compostable disposables are a viable alternative that provides the convenience of disposable plates when used in catering for parties, picnics or other occasions along with an added advantage of no negative impact to the eco-system.

However, the lack of awareness about the benefits of compostable tableware’s and the poor management of organic waste hampers the growth of compostable tableware market. The cost of compostable tableware is also higher as compared to the traditional disposables. Moreover, the rising enforcement of environmental laws and the growing need for better waste management is anticipated to create an opportunity for the growth of compostable tableware market.Compostable tableware has generated considerable interest in recent years due to their potential to reduce or replace conventional, non-biodegradable plastics.

Besides, compostable tableware eradicates the typical waste cycle and doesn’t require any recycling as products degrade in a compost bin after use, and won’t even flood landfills or recycling centres. Thus, increasing the need for sustainability in the food and beverage service sector and the sustainability offered by the compostable tableware drives the growth of the compostable tableware market. Furthermore, gaining popularity of green marketing concept across the world as environment is an international issue now days are thereby increasing consumer demand for greener products and are also anticipated to drive the growth of the compostable tableware market.

In recent years, several governments across the world have become increasingly concerned about plastic waste and waste management. The growing environmental concerns due to the increasing waste accumulation and plastic pollution has led to the implementation of rules and regulation to protect the environment and create sustainability in the environment. These laws are implemented to reduce the usage of plastic and resources more efficiently ans several others have imposed regulations for reducing the use of environmentally unsafe products. This is anticipated to increase the demand for compostable packaging systems that provides enormous commercial and environmental potential, thus, driving the growth of the compostable market.

In addition to the enforcement of environmental protection rules, several government bodies are offering financial assistance with economic incentives to promote environment-friendly products. As the production cost of compostable packaging is high, incentives such tax abatements, tax revenue sharing, grants, infrastructure assistance, no or low-interest financing, free land, tax credits, and other financial resources can encourage companies to invest in the production of innovative and sustainable products. In India, initiatives such as ‘Make in India’ and ‘Start-up India’ are expected to benefit the existing as well as the new entrants in the Indian compostable market

The Solution

The food and beverage service industries continue to expand rapidly. This growth can be attributed on account of changing demographics, growing disposable income, urbanisation and growth of the retail industry. Food and beverage packaging items are amongst the most commonly found marine litter items. One estimate puts plastics from the global food industry to be responsible for 15 billion EUR in natural capital impacts annually. Thus, several Quick Service Restaurants (QSR), fine dining, cafes, and casual dining are adopting green practices in their business operations to fulfil the needs of the consumers and also to provide assurance about the green and clean environment that in turn has increased the demand for sustainable tableware products.

Ecopak is specialised and equipped with best in class processing unit for manufacturing Certified Compostable Thermoformed products suitable for hot and cold applications. The unit is established as per standard operating procedure for compostable products issued by the Government of India; is a partnership entity with both the partners having technical and managerial expertise. Our en route to build sustainable and circular economy around us for future beings truly starts with a vibrant team dedicated to our vision with growth and opportunity. We believe “NO PLAN B for environment.

Our mission is to produce the most sustainable, environmentally friendly packaging in the market. We specialise in thermoformed compostable packaging and we’re focussed on reducing tree-based paper and fossil fuel-based plastic used in foodservice ware by offering an compostable alternative”.We’re one of the most recognised and authentic manufacturing company in sustainable food service packaging. As category leaders with an exclusive commitment to environmentally preferred packaging, we are able to deliver benefits to our partners that are unavailable anywhere else on the market.We manufacture 100% certified compostable food grade tableware and service ware products in PLA (Poly Lactic Acid) bioplastic – an innovative plant-based plastic.

These products are hygienic, easily crushable, convenient, compostable and recyclable. We here in Ecopak are dedicated in manufacturing cost saving value added products. All our products are certified as per the international standards, EN 13432, ASTM D5338, ASTM D6400, OK Compost for BioCompostability. As in today’s day and age, avoiding single use is nearly impossible – which is why we have devised a solution that gives you the ease of sustainability with environment friendly alternative in bio based plastic along with compostability.

The Result

Compostable tableware has generated considerable interest in recent years due to their potential to reduce or replace conventional, non-biodegradable plastics. Besides, compostable tableware eradicates the typical waste cycle and doesn’t require any recycling as products degrade in a compost bin after use, and won’t even flood landfills or recycling centres. Thus, increasing the need for sustainability in the food and beverage service sector and the sustainability offered by the compostable tableware drives the growth of the compostable tableware market. Furthermore, gaining popularity of green marketing concept across the world as environment is an international issue now days are thereby increasing consumer demand for greener products and are also anticipated to drive the growth of the compostable tableware market.

In recent years, several governments across the world have become increasingly concerned about plastic waste and waste management. The growing environmental concerns due to the increasing waste accumulation and plastic pollution has led to the implementation of rules and regulation to protect the environment and create sustainability in the environment. These laws are implemented to reduce the usage of plastic and resources more efficiently ans several others have imposed regulations for reducing the use of environmentally unsafe products. This is anticipated to increase the demand for compostable packaging systems that provides enormous commercial and environmental potential, thus, driving the growth of the compostable market.

In addition to the enforcement of environmental protection rules, several government bodies are offering financial assistance with economic incentives to promote environment-friendly products. As the production cost of compostable packaging is high, incentives such tax abatements, tax revenue sharing, grants, infrastructure assistance, no or low-interest financing, free land, tax credits, and other financial resources can encourage companies to invest in the production of innovative and sustainable products. In India, initiatives such as ‘Make in India’ and ‘Start-up India’ are expected to benefit the existing as well as the new entrants in the Indian compostable market.

Compostable tableware products provide several advantages to the end-users as well as the environment. However, these products are expensive as they made from plant-based resins, polysaccharide, and other substances. Therefore, the price of the raw materials and production methods required for the compostable
tableware is high. This adds to the additional cost of the product and makes it expensive as compared to its plastic substitutes. In addition, the unwillingness of the consumers to purchase such high-cost products hampers the growth of the compostable tableware market. Moreover, constant improvement and innovation in the production methods will endure a favourable market growth over the forecast period.

Green businesses function in a capacity where no negative impact is made on the local or global environment, the community, or the economy. Green businesses adopt principles, policies, and practices that improve the quality of life for their customers, employees, communities, and the planet. Sustainable products generally outperform the growth rate of total products. In addition, the growth of entrepreneurs helps to solve environmental problems through the development of innovative solutions for several food and beverage service sectors. Furthermore, several new players are entering into this market with innovations and new product development owing to lucrative growth opportunities and growing exponential demand for the compostable tableware in the food and beverage sector. The existing players are also focusing on improving product designs that in turn creates beneficial growth opportunities for the compostable tableware market.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

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