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Daily Newsletter

10 December 2024

Daily Newsletter

10 December 2024

How sustainability is shaping food packaging supply chains

As sustainability becomes a central focus for the food and beverage industry, the packaging sector is under increasing pressure to transform its practices.

Mohamed Dabo December 10 2024

The food packaging sector is undergoing significant transformation. Amid global challenges such as climate change and shifting consumer expectations, sustainability has become the primary focus for companies in the food and beverage industry.

A new report by DNV, an independent assurance and risk management provider, highlights the urgent need for the food packaging supply chain to evolve to meet sustainability demands.

Sustainability as the leading priority

DNV’s report, The Future of Sustainable Food Supply Chains: Spotlight on Europe’s Food and Beverage Industry, reveals that 75% of food and beverage companies now consider sustainability a top priority for their supply chains, outpacing cost efficiency (63%) and regulatory compliance (49%).

This shift reflects a growing recognition that the environmental impact of packaging—especially in terms of carbon emissions—needs to be addressed urgently.

Geir Fuglerud, CEO of Supply Chain & Product Assurance at DNV, remarked, “The food and beverage industry faces an era of significant transformation as sustainability within the entire supply chain becomes an urgent priority.”

As climate change, geopolitical tensions, and other disruptions continue to affect the sector, the need for sustainable packaging solutions has never been clearer.

The role of digital transformation in packaging

Digital transformation plays a critical role in reshaping food packaging supply chains. The report highlights the increasing adoption of technologies such as supply chain traceability, connected product passports, and risk management platforms.

These innovations can enhance transparency, improve compliance, and streamline packaging practices to meet sustainability targets. However, the packaging sector is still catching up in comparison to other industries in integrating these tools effectively.

“Digital transformation is crucial for creating lean and green supply chains,” Fuglerud explained. “Technologies like AI offer immense potential to enhance visibility and traceability, but fragmented standards and siloed data systems remain key barriers.”

For packaging companies, embracing digital solutions can not only provide greater transparency but also help meet the evolving regulatory demands surrounding packaging waste, carbon footprints, and recycling.

As the packaging sector moves forward, integrating these technologies with robust data verification methods will be vital for ensuring the success of sustainability initiatives.

Adapting to regulation and consumer demand

Packaging professionals in the food and beverage sector are facing an increasingly complex regulatory environment.

New EU directives, such as the Corporate Sustainability Due Diligence Directive and the Packaging Waste Directive, are forcing companies to take a more comprehensive approach to sustainability.

These regulations are pushing for greater accountability in areas like carbon emissions, material sourcing, and waste management, which directly impact food packaging practices.

Consumer expectations are also influencing packaging decisions. Today’s informed consumers demand sustainable packaging solutions and are willing to pay a premium for products that align with their environmental values.

Retailers, particularly those with private labels, are under pressure to meet these expectations by collaborating more closely with suppliers to ensure their packaging solutions are sustainable and verifiable.

The report highlights the importance of collaboration across the supply chain in achieving sustainability goals.

Packaging companies will need to work closely with food manufacturers, regulators, and retailers to meet the growing demand for environmentally responsible packaging.

This can be achieved through innovative packaging design, the use of recyclable or biodegradable materials, and improved waste management practices.

Sustainability is no longer a secondary concern in the food packaging sector. As climate change accelerates and regulatory requirements become stricter, packaging companies that fail to adopt digital tools and sustainable practices risk falling behind.

DNV’s report serves as a comprehensive guide for companies to navigate these challenges, providing a framework to balance cost-efficiency with environmental responsibility in the food packaging supply chain.

The path forward will require strategic partnerships, technological innovation, and a commitment to rigorous sustainability standards, ensuring that food packaging not only meets consumer demand but also contributes to a more sustainable future.

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