Green with Envy

Green with Envy
Credit: By Jamie Matusow, Editor -- Copyright © 2011 Rodman Publishing.

From Unilever to L’Oréal, Aveda to Lather, beauty brand manufacturers large and small have taken great strides to deliver the sustainable packaging consumers are asking for—but they couldn’t do it without the extreme innovation of the industry’s packaging providers. Here, we look at some who are blazing the way and why they may inspire others who wish they were as far along on the compliant path to customer loyalty and boardroom approval.

Green consumer consciousness is on the rise, and packaging—the “face” of nearly every beauty product—has become the focus for consumers’ ever-more educated eyes looking for signs that they are making eco-responsible purchasing decisions.

In Mintel’s February 2011 Green Living Report (a U.S. survey), 66% of respondents said packaging should be recycled—that it influences their purchases. Almost half—44%—said they purchase beauty products that use recycled paper.

Nica Lewis, senior analyst for the global market research firm, says, “This is a big percentage for consumer preference—even 1% would be sizable.”

In the Dumps

According to the EPA, in 2009, Americans produced about 243 million tons of municipal solid waste (MSW), or about 4.3 pounds of waste per person per day. Of this, the agency says 33.8% is recovered and recycled or composted, 11.9% is burned at combustion facilities, and the remaining 54.3% is disposed of in landfills.

The realities of packaging waste have come to bear on consumers, and they have increasingly embraced sustainability messages.

A Good Start

For manufacturers, from giant multinationals to local indie labels, building an enviable image of an environmentally conscious brand often begins with the packaging.

Michael Hughes, senior packaging manager, Unilever, explains: “We have conducted an extensive lifecycle analysis of 1,600 products across 14 countries accounting for 70% of our sales. This has given us an unparalleled insight into how we prioritize our efforts and resources across our personal care and foods brands. We purchase over two billion tons of packaging every year, so our analysis helps to ensure we focus on where we can make the biggest difference.”

Unilever’s efforts toward sustainability have also netted the company favorable public opinion. In a poll by SustainAbility and GlobeScan, Unilever ranked at the top of companies most committed to sustainability. It was chosen by 15% of respondents, and ranked as one of the top two firms in Europe.

A recent report by UK-based market research company Pira International determined that sustainability is emerging as a key trend in luxury packaging as upscale marketers look to promote their environmentally responsible credentials through their choice of packaging materials.

Seri McClendon, CEO, Clean Agency, a member of the Sustainability Consortium, an independent organization of partners who aim to “work collaboratively together, developing an approach that drives better understanding, standardization, and informed decision making” regarding sustainable products and packaging—and which claims L’Oréal as a key member—says starting with packaging materials makes good sense. “At Clean, we advise our consumer product clients to start addressing environmental impacts in three areas of their business: operations, products and packaging. Packaging is often the best place to start. There are influences in the marketplace that are driving these changes, which include retailer pressure, potential government regulation and eventually, consumer backlash. The benefits of improving packaging outweigh not addressing it at all.”

Making Claims

While Mintel’s Green Living Study focused on U.S. consciousness, Lewis emphasizes that interest in eco-friendly packaging is a global concern: “There has been a significant increase overall in claims for eco-friendly packaging in all beauty and personal care categories over the last few years.” She says there has been double-digit growth year over year for the past two years. From ’08-’09, there was a 57% increase in global claims for eco-friendly packaging. From ’09-’10, there’s been a 75% increase. In the U.S., there’s been a 78% increase—slightly more than the global average. Claims have been particularly high in Japan, increasing 313% in 2010, though their total launches of beauty products are less than 10% of the global share.

The largest increase globally has been in deodorants and fragrance, according to Mintel stats. From ’09 -’10, claims increased 143% for deodorant products touting eco-friendly packaging; 130% for fragrance.

“Claims” refer to products that use recycled components or have a package that can be recycled, but specifics are often difficult to decipher. While the EU has developed certain regulations, the U.S. lags behind.

McClendon, of Clean Agency, notes, “The EU is pretty far ahead of the U.S. because of government mandates that require companies to meet higher production standards and to be more accountable for the environmental impacts of their packaging once it’s thrown away. The U.S.-based businesses are just starting to understand the positive impact of addressing sustainability in their packaging, including cost savings and consumer appreciation, which can result in increased sales and market share.”

Customer Interest

With sustainable packaging as a growing marketing platform, suppliers report that there is increasing demand from beauty brands for eco-friendly packaging—and buyers are well-informed when making decisions.

Jonathan Dudlak, general manager, Chicago Paper Tube, says: “ I can’t remember a single cosmetics or personal-care client in the past year who has not inquired about the contents of our raw materials, the ‘greenness’ of our manufacturing process, the recyclability or compostability of our packaging, or all of the above. Five years ago it was a rarity for anyone to even ask, and as little as a year ago most people were content to take your word for it. Nowadays you better have the certifications and paperwork to back it up!”

Jessica Kimbrough, vice president, marketing, RockTenn Consumer Packaging, notes, “From a business-to-business standpoint, we are noticing a trend with our customers toward understanding forestry certifications and the benefits of having suppliers’ manufacturing processes verified externally.”

Kimbrough adds, “Our customers are increasingly interested in investigating the materials and processes used in manufacturing their packaging and developing packaging with sustainable benefits, without impacting the package’s on-shelf appeal. Paperboard packaging is well positioned for this demand as it is a recyclable packaging option that offers high print quality and graphic reproduction to promote brand equity.”

Dudlak agrees: “Almost everyone we sell to wants to know the total PCW [post consumer waste] content of their finished piece, and in most cases, it ends up on the label.” He adds, “FSC [Forest Stewardship Council] and SFI [Sustainable Forestry Initiative] certification is something people ask about all the time. Our paper suppliers and printers are all compliant with one or the other, or both.”

Materials Approach

Advancements in using eco-friendly materials from sustainable forests, or others such as recyclables, bioplastics, biodegradables and post consumer regrind board stocks, have all contributed to the recent wave of innovative, eco-friendly packaging trends in the beauty industry. But while brands may strive to emulate the successful approaches of icons such as Aveda and Method, there’s no simple formula to a very complex process, and often they start by taking small steps.

“The best way to go about creating an eco-friendly line of packaging is predicated on the product, industry, and marketplace in which the products are sold,” advises Tim Budic, marketing manager, CardPak. “There is no general solution or cookie-cutter way to go about it; each customer has their own goals and barriers that need to be addressed. Yes, material reduction, weight reduction, alternative materials are all great places to start, but it goes well beyond that and has to be reviewed on a case-by-case basis to reap the greatest success.”

Dudlak says that because Chicago Paper Tube’s products are all custom made, “We typically let the client decide how far they want to go with their sustainability efforts and present the different options, and over the past few years these options have gotten more elaborate. For some,” he says, “switching from a polybag or plastic bottle or jar to any kind of fiber canister is already a big move in the right direction. For others, they need every bit of the container down to the printing stock to be 100% recycled paperboard, soy inks, biodegradable glue, and no metal or plastic at all on the package.” He says most clients fall somewhere in-between.

Material Whirl

Often swapping one packaging material for another can make a big difference, especially if it also makes the manufacturing process more energy-efficient—but it’s not always the case.

Josh Dunn, Avery Dennison sustainability director, materials businesses—label and packaging materials, specialty materials, says, “Two key trends we’re seeing involve reducing the amount of materials in both packaging and labeling, and the development of packaging and labeling materials from bio pathways. We’re beginning to see the exact same chemical substances, PET for example, coming from plant-based sources versus petroleum-based sources. The availability of materials sourced from bio pathways will increase, as their economic viability becomes more in-line with petroleum-based sources. But lifecycle sustainability has to be part of the equation. Just because a product may come from a plant-based source, doesn’t automatically make it sustainable.”

The substitution of packaging materials, including paperboard alternatives, bioplastics and biodegradables, is a trend noted by Dudlak. “While much of our product line is secondary packaging for premium products, lately we’ve had many clients looking for creative ways to replace the primary packaging for items that have always been relegated to plastic, metal or glass with a paperboard alternative. We are already using special papers that can take the place of plastic or wax as a canister liner. Bioplastics, while they have their limitations, have emerged as a suitable replacement for applications where a non-porous, biodegradable barrier is required.”

Dudlak says most people don’t realize that simply using even a standard can liner like coated aluminum foil adds an almost negligible amount of metal and plastic to an otherwise 100% recycled paperboard package. “We’re excited about some new products we’re developing for later this year that will offer biodegradable alternatives to plastic for several different branches of the cosmetics industry,” he adds.

Lombardi Design and Manufacturing, a supplier of injection-molded components and packaging to the cosmetics and fragrance industries, has created eco-friendly packaging using Tenite, an Eastman Chemical cellulosic material made primarily from wood pulp.

Having used cellulosics in applications including the cap of the award-winning Sean John “I Am King” fragrance pack, Lombardi says, “We’re committed to offering environmentally sound alternatives for packaging needs.”

The Freeport, NY, manufacturer recently created a Tenite gift box, which is ideal for a fragrance collection. “This type of product has typically been made of general purpose polystyrene,” says Lombardi. “We’ve chosen a different material out of concern for the environment.” According to Lombardi, Tenite offers a number of advantages: “It dries faster than traditional copolyesters and is processed at lower temperatures, and also boasts excellent chemical resistance and the ability to mold thicker parts with smaller gates and better gate aesthetics.”

The classic looking, clear containers not only provide a sleek and practical way to display items at retail, they can easily be repurposed, another eco-friendly feature. The gift box design can be customized in various colors, sizes and shapes.

What’s more, Lombardi says, “All of our display cases are manufactured domestically and our products are manufactured with 83 percent renewable energy produced by hydropower.”

Viva Healthcare Packaging is another supplier that has taken a traditional product and made it more sustainable.

Darryl Laing, director of business development and marketing for the firm, explains, “Our new tube technology uses injection molding to produce a 100% polypropylene [category 5] tube.We include a multi-color label printed on polypropylene film inside the mold so that once molded, the graphics are literally embedded in the wall of the tube, making one single contiguous tube.”
Laing says the advantages of Viva’s tubes are threefold: Embedding the graphics by an in-mold labeling process avoids using glue (which contains hazardous ingredients) to apply the graphics; the entire package, including the tube, cap and in-mold label are made of polypropylene, so once emptied, the consumer can simply throw it in the recycling bin; and the manufacturing process involves only two steps (printing the label and injection molding the tube), while extruded or laminated tubes normally require at least five to six steps, with waste and buffer storage necessary between each step.

In addition, Laing says the polypropylene in Viva’s tubes contains the lowest CO2e emissions by weight compared to all other categories of plastic, and generates the least amount of CO2e emissions to both produce the raw material and process it in manufacturing. The tubes are produced in Viva’s plant in Toronto, Canada, which accesses its grid power from one of the highest proportion of renewable energy sources in North America. For distribution consideration, the tubes are made of the least dense and lightest plastic.

Lightening Up

Reduction—of both the weight and the amount of packaging materials used—has been a key factor in brand manufacturers’ move toward sustainable packaging.

Hughes says that by 2020, Unilever will reduce the overall weight of packaging used across its brands by a third. “We will do this by light weighting materials, optimizing design and eliminating unnecessary packaging. We are also actively looking for opportunities to develop re-usable packaging.” The company’s three-pronged approach to support recycling includes: 1) increasing recycling rates (partnerships with NGO, governments and industry organizations); 2) making it easier for packaging to be recycled; and 3) by 2020, increasing the recycled content of its packaging to maximum content levels.

Unilever’s Suave Professionals shampoo bottle weight was recently reduced by 17% and post consumer recycled content (PCR) is now included at 25%. Dove Men+ Care Body Wash also contains 25% PCR, and Suave Kids bottle weight was reduced by 13%.

In some cases, innovative labels are absorbing some of the weighty functions of packaging.

Renae Kulis, Avery Dennison global marketing director, Health & Beauty, Home Care, says labels are changing the face of the shelf with new printing methods, new substrates, and new closure systems all coming from the label market.

Kulis says, “As packaging transforms to lighter and compact, each component of the package is asked to play multiple functions. In labeling, the objective is not only to enable shelf appeal and communicate information, but transforming to take on the functional components traditionally covered by the other elements of the package—including container thickness/rigidity, closure, and dispensing system.

Avery Dennison’s Curve Appeal is a patent-pending system encompassing special Fasson Curvy film labels that work together in a machine application process. This system labels complex, curved surfaces far beyond other current labeling processes, says Kulis. Fasson Curvy film labels combine a wraparound look with the shelf appeal of pressure-sensitive graphics. They create up to 30% more space for primary labeling than flat surfaces, and reduce the need for two-ply label constructions by allowing larger back panels to carry more product information or multi-language information.

At RockTenn, Kimbrough says there’s been a trend toward brands’ consolidation of the packaging footprint along product lines, as well as a move toward “right-sized packaging,” where packaging is designed around the product and elements that make packaging larger are eliminated. More one-piece carton designs and/or insert card designs that limit the use of poly vac trays have been in demand.

CardPak’s Budic says that they, too, have had great success initiating the conversion to eco-friendly packaging for numerous clients. “We pride ourselves on our ability to develop sustainable packaging solutions that make sense for our customers, so they can pass along the benefits to their customer.”

One recent example was Beiersdorf’s Nivea for Men multi-package, which was originally designed as a PVC clamshell and then shipped to various club stores in slotted trays. Budic explains, “We replaced the PVC plastic with a trapped paperboard design that provided a significant cost reduction in primary package materials. In addition to cost reduction, we eliminated 80% of the overall plastic materials, increased the Walmart scorecard by 63%, and replaced the remaining plastic with RPET blisters, which led to 100% elimination of PVC usage. Also, the overall packaging weight was reduced by 30% compared to the original, full clamshell package.”

A Clear Choice

With increased focus on recycling as a key sustainability option, glass has clearly become an asset for cosmetics and skin care products as well as for fragrance.

At glass manufacturer Grupo Pavisa, Tania Castillo says, “We have seen two trends: weight reduction on glass packaging; and glass recycling, which offers savings mainly on raw materials and energy.” Castillo says there’s been an increase in demand for their products. “Glass,” she says, “has once again gained ground, and we think it is because of the special glass features that make it a unique option, and also because it’s overall environmentally friendly, since it’s 100% recyclable.”

Grupo Pavisa uses raw material as well as two types of recycled glass: external and internal. The external recycled glass is mostly domestic, used for bottles for wine, champagne, drugs and perfumes; it is recycled from 5% up to 80% depending on the color of glass the company manufactures. Over 42% of this recycled glass comes from the domestic sector, being the main production of cullet. The internal recycling is based on defective glass bottles from the company’s manufacturing lines, which are eventually crushed and stored for use as raw materials on new glass batches.

Substantial savings in terms of energy and raw materials—as well as less harmful emissions to the environment—have attracted lots of brand interest in SGD’s Infinite Glass, the first and only recyclable glass made of 100% post consumer recycled cullet, which embodies the “cradle-to-cradle” approach.

Louise de Bengy, market manager-perfumery & cosmetics, SGD, says, “Since we launched this ecological material, we closely followed the eco-design strategies of the major players in the market, and we feel the interest for ecological packaging led to two phenomenons: a tendency to switch from plastic to glass containers, and also a new interest in glass for the skin care and makeup segments.” Among the first beauty brands to launch new products in Infinite Glass in Europe are Clarins-owned Kibio, with its Gentle Exfoliating Cream, Natures et Découvertes’ Terre d’Oc, as well as a range of L’Occitane products.

The Future of Packaging

While these brands are among many who have made enviable leaps and bounds in producing eco-friendly packaging, there remains a long road to travel, with a multitude of unknowns and challenges lining the way. But it’s also a direction that shows increasing approval by consumers and increased savings by corporations, so it remains a path seemingly destined for growth.

As to the future of packaging standards, Mintel’s Lewis speculates, “It’s anyone’s guess, but probably in the way formulations have moved. Rather than mandating that products must be in sustainable packaging, to make the claim, certain criteria must be met.”