While recent efforts to provide sustainable solutions in retail have been derailed due to the COVID-19 pandemic, there’s strong evidence environmental concerns, particularly with regard to plastic packaging, are a top priority once more. From a consumer perspective, those concerns never really went away and, in a twist, COVID-19 has actually raised shoppers’ sustainable packaging concerns as the pandemic has driven an increased use of single-use packaging.
While businesses are now being urged to prioritize efforts to reduce single-use plastics, retailers are also expanding new initiatives including refillables, compostable alternatives to conventional plastic, recycling programs and deposit return schemes.
Bureau Veritas, a Paris-based provider of testing, inspection and certification services, stresses it is time to get back on track toward a low carbon future. “The surge in single-use plastics last year was necessary, but now that the world has largely adjusted to COVID-secure measures in the supply chain, we should be looking at ways to reduce plastic waste once again,” said David Murray, technical director for sustainability at Bureau Veritas.
Asda’s first reverse vending machine for cans, plastic, glass and drinks bottles, and a hanger recycling facility will be rolled out across all stores. Recycling facilities for items that are difficult to recycle in curbside collections have also been introduced.
Demand is compounded by the introduction of the new U.K. Plastic Packaging Tax, due to be implemented in April 2022. It will see businesses whose products have less than 30% recyclable material being charged £200 (US$278) per ton. As a result, brand owners are pressing manufacturers to supply new packaging formats to comply or alleviate the impact of the tax completely, said Josh Remi, commercial manager at ecoVerit.
Key Issue for Consumers
Packaging giant DS Smith’s analysis of 9,000 respondents across 12 European countries shows that while shopping habits may have changed, sustainability continues to be key, with 85% of consumers wanting to buy products that use as little packaging as possible, and almost a third (29%) admitting that they have stopped buying particular brands altogether because their packaging was not sustainable.
“Although the COVID-19 pandemic may have prompted greater use of single-use packaging, that doesn’t mean shoppers have abandoned all hope of sustainability,” said Lucia Juliano, head of CPG & retail research at Harris Interactive. “Indeed, 50% of 18- to 34-year-olds believe the pandemic has made environmentally friendly packaging even more of a concern, with unrecyclable packaging the biggest worry.”
The surge in single-use plastics last year was necessary, but now … we should be looking at ways to reduce plastic waste once again.
Zero-Waste Efforts
North London retailer Andrew Thornton of Thornton’s Budgens (winner of the 2019 NACS European Convenience Retail Sustainability Award) has led the vanguard for zero-waste concepts with the launch of plastic-free zones in-store in November 2018 and has now introduced up to 2,600 plastic free SKUs. Retailers including Waitrose, Sainsbury’s and Asda are ramping up their plastics reduction strategies.
Waitrose is extending its Waitrose Unpacked refillable range into regular aisles, rather than having a single unpacked fixture. The number of unpacked options stands at 51 lines, up from 13, and includes frozen and dried fruit; rice, pasta and grains; cereals; snacks and coffee, as well as detergent. “Waitrose Unpacked requires a fundamental change in shopping behavior that has been ingrained for years,” James Bailey, Waitrose executive director, said. “This next phase will help us to understand if we can make refillables a routine part of customers’ shopping trips.”
Marks & Spencer extended its plastic-free grocery refill concept to a third store in December 2020, offering 50 lines of refillable grocery essentials and frozen fruit. Paul Willgoss, M&S Food’s director of food technology, said: “As we continue testing and learning from Fill Your Own, it’s clear that demand for refillables remains strong. We know families particularly enjoy shopping the concept as a fun activity … but most importantly, our customers care about the issue of plastic.” More than 40% of the Fill Your Own lines are outselling the packaged alternatives, M&S reports.
Fifteen refill stations are one of the new features at Asda’s sustainability trial store in Leeds, which aims to help reduce an estimated one million pieces of plastic per year. More than 30 household staples are sold in refillable formats, plus popular brands of health and beauty care items. Research commissioned by The Pull Agency found 15% of consumers want in-store refill stations for beauty and personal care products so they can re-use existing containers (rising to 18% among Gen Z).
In addition, the store offers 53 unwrapped fresh produce lines and has removed plastic wrapping on popular canned multipacks. Leeds also features Asda’s first reverse vending machine for cans, plastic, glass and drinks bottles, and a hanger recycling facility will be rolled out across all stores. Recycling facilities for items that are difficult to recycle in curbside collections such as snack food packets and toothpaste tubes, have also been introduced.
Compostables and Recycling
Elsewhere, retailers are replacing plastic bags with home compostable alternatives as part of the drive toward a circular economy. Organic grocery box delivery service Riverford plans to replace 1.25 million plastic bags each year with compostable alternatives. Growing market share for eco-friendly alternatives to conventional plastic, like compostable films, is projected to be a key contributor to the growth of the global flexible packaging market. The market is expected to increase from $160.8 billion to $200.5 billion by 2025.
“Sustainability is a huge focus for our business, and something that is incredibly important to our customers,” Matthew Mountfield, senior buyer at Riverford, said. “In 2018, we conducted a survey and found that 82.5% of our customers already compost their food or garden waste.”
Recycling schemes are also winning traction across the industry with Sainsbury’s trialing a new in-store recycling system for flexible plastics. Spanning 63 stores across the North East of England, the initiative allows customers to recycle Polypropylene film found in household plastic products like salad bags in select stores.
At the same time, four leading food manufacturers have released a report highlighting the opportunity to increase flexible packaging recycling in the U.K. The Flexible Packaging Consortium, comprised of Mars, Nestlé, Ella’s Kitchen and Taylors of Harrogate and waste and recycling company SUEZ; suggests recycling of flexible packing, such as confectionery wrappers, can be practical and affordable and could be phased in to curbside collections across the U.K. from 2023. Less than 20% of local authorities collect any form of plastic film or other flexible plastic packaging for recycling.
Beverage Container Deposits
Meanwhile, drinks producers, retailers and trade associations have joined forces to establish Circularity Scotland to operate Scotland’s Deposit Return Scheme for drink containers. If approved by the Scottish government, the program will require consumers to pay a 20 pence deposit on each glass, can or PET plastic container purchased, which will then be reimbursed when the empty container is returned. Circularity Scotland, which could be available across Scotland starting in July 2022, will seek to work with companies throughout the supply chain to help deliver a scheme expected to collect more than 90% of drinks containers in Scotland.
Convenience retailers are also set to play a pivotal role in the scheme’s implementation, as James Lowman, chief executive of the Association of Convenience Stores, a Circularity Scotland member, attests: “Convenience retailers will be at the center of an effective circular economy by offering essential services like return points close to where people live and work.”
Navigating Sustainability
The NACS Sustainability Playbook helps retailers advance the areas most relevant to their businesses today, while considering how other areas could transform the business for the future. The playbook includes a guide to product packaging and selection. Download it at www.convenience.org/sustainabilityplaybook.