.
P

lastic is expected to be more prevalent in the Earth’s oceans than fish by 2050. Plastic-related greenhouse gas emissions are currently equivalent to CO2 emissions of 189 coal plants; the emissions are predicted to more than triple by 2050. Microplastics are reported to have recently been found in air and rain samples collected from the western part of the U.S. and are believed to be entering the food chain.

Despite these harmful environmental effects, society is increasingly turning to single-use plastics, including surgical masks and food packaging for home deliveries, during the COVID-19 pandemic to curb virus transmission. Beyond personal protection, multiple layers of plastics are used to package goods ordered online. E-commerce traffic has grown by more than 10% during the pandemic, for most consumer goods categories, and the e-commerce market is expected to continue growing post-COVID-19.

While plastic use has become more prevalent, consumer sentiment for sustainability has also increased due to the COVID-19 pandemic. A CapGemini survey of 7,500 consumers from around the world found 67% of respondents reporting an increased conscientiousness about the scarcity of natural resources during the pandemic, while 65% reported a higher-level mindfulness with respect to impact of overall consumption. This change in sentiment aligns with the United Nations (UN) Sustainable Development Goals (SDGs), which advocate for responsible consumption and production of goods (SDG 12), acting against climate change (SDG 13), and preventing the pollution of global water bodies (SDG 14).

With the e-commerce market expected to continue growing post-COVID-19 and consumers increasingly caring about sustainability and responsible purchasing, companies should increase efforts to shift toward sustainable packaging.

Single-Use Plastics Resurgence

Single-use plastics have facilitated the fight against COVID-19. Beyond usage in PPE equipment, single-use plastics have aided social distancing measures via home deliveries of basic goods. Supermarkets have also shifted towards wrapping loose fruits and baked goods in plastic. Overall consumer waste increased between 5% and 35% in the U.S., and single-use plastic is projected to increase by 40% by 2030.

U.S. demand for flexible packaging, the majority of which is plastic, is expected to grow to 10% this year, as opposed to 3% in 2019. This resurgent demand is unsurprising, as states like California, New York, and Maine either suspended or postponed anti-plastic bag legislation due to COVID-19. “Virgin” plastic production, fresh plastic made directly from fossil fuels, is also increasing as oil prices fall, giving virgin plastics a cost advantage over the fixed costs of recycled plastics.

Recycling is also down during the pandemic, with approximately 80 communities in the U.S. reporting temporary suspensions on curbside recycling. Historical data projections suggest that 75% of plastic  discarded during the pandemic will clog landfills and float in the seas. By 2040, 133 million tons of plastic will be burned, 77 million tons of plastic will be dumped on land, 29 million tons will be in oceans. The increasing usage of single-use plastics is alarming, given the inability of government programs to adequately process any plastics, and the lower costs of producing “virgin” plastic. It is a disconcerting sign the world is nowhere close to meeting the UN SDGs 12, 13, and 14, regardless of shifting consumer sentiment.

E-Commerce: The New Market Player

With the institution of social distancing measures in response to COVID-19, the average monthly retail e-commerce worldwide traffic increased by approximately 3.5 billion between March and June. As seen in the below graph, McKinsey predicts a 15% to 30% growth in online shopping post-COVID-19 for most product categories, especially groceries, household supplies, and personal-care products.

E-commerce packages typically use up to seven types of packaging materials: paper bills, envelopes, cardboard boxes, plastic bags, woven bags, tape, and buffer materials such as bubble wrap or polystyrene foam. A package delivered directly to the customer must be robust, able to withstand potential falls and damages in the delivery process. A typical e-commerce package is handled 20 more times frequently on the journey from the distribution center to the customer, as opposed to transportation on a pallet to the retail store.

The need for extra packaging in e-commerce is understandable, given that it is necessary to deliver products to the customer rapidly and in an undamaged condition. Unfortunately, e-commerce companies rely extensively on unsustainable materials like polystyrene foam and plastic bags in packaging. A study examined in-store versus online shopping methods for items such as books, DVD’s, and computers. The results showed packaging for home deliveries consumes more energy, and for half of the cases it requires more than a 50% increase in energy consumption.

Millennials and Generation Z are the most enthusiastic consumers of e-commerce, but they are also the most likely to be concerned about the environment. Deloitte conducted a “pulse survey” between April-May 2020 in countries like the U.S., U.K., and China. Even during the pandemic, 21% of Millennials and 31% of Generation Z groups in the surveyed countries chose climate change/protecting the environment as their primary concern, compared to crime/personal safety, unemployment, or income inequality/distribution of wealth. Before the pandemic, 38% of Millennials reported to have deepened relationships with those businesses whose products and services create a positive environmental effect. E-commerce businesses must reposition, aligning their packaging to meet the burgeoning environment-conscious consumer segment.

Toward Sustainable Packaging

Shifting away from plastic packaging may seem like a herculean task, but it is manageable if e-commerce businesses act strategically. As customers are increasingly concerned  about hygiene and sustainability, e-commerce businesses must review the packaging-production footprints of packaging companies, matching packaging company practice to regulations and consumer demand in countries where they will operate. E-commerce executives must examine financial and operational capabilities to identify potential sources of packaging which align with the growing market demand for hygiene and sustainability. Since raw material prices are volatile, e-commerce companies can seek to develop multi-regional packaging supply chains to maintain efforts towards sustainability.

E-commerce packages often arrive in resealable plastic envelopes. These envelopes could instead be manufactured from post-consumer recycled material or biobased materials made using starch produced from sustainable materials like corn waste, hemp, and seaweed. A few of these materials can safely degrade in domestic and commercial composting systems. Mushroom tissue, produced by Ecovative, is another biodegradable source of packaging; the tissue takes shape of the mold of the item it is used to package.

Several sustainable options also exist to protect online-ordered perishable goods, like foodstuffs, which require costly climate-controlled trucks and containers.  A recyclable insulation system developed by Easy2Cool uses cellulose fiber wadding to protect perishable goods. Another invention by Pluumo uses waste feathers from poultry to create a thermal packaging, formed into carton liners, to replace expanded polystyrene in temperature-sensitive deliveries.

Switching to sustainable materials for packaging may present high upfront costs, but material prices are likely to fall in the medium to long-term as more companies move toward sustainability. Investing in sustainable packaging sooner rather than later can allow e-commerce players to closely align with the climate-conscious Millennial and Generation Z consumer base.

E-commerce companies may also benefit by shifting from single-use packaging to forming a multi-use packaging loop. Companies like RePack, LimeLoop, Returnity, and MIWA offer reusable containers, envelopes, and capsules for businesses to deliver products to customers. Once a customer receives a product, the reusable container is sent back to the company, where it is cleaned and sanitized to be reused again (see Exhibit 2).

If e-commerce players are able to adopt standardized packaging designs, the companies may be able to share the same re-usable packaging pool. The ability to create a common pool could present potential advantages such as reduced costs, increased efficiency, and simplified management of container inspection, cleaning and repair. Companies will have to carefully design cleaning and inspection systems, ensure customers are incentivized to return containers either via deposit schemes or discounts, and align business budgets to meet the new costs.

The World Cannot be Complacent

COVID-19 has transformed our lives, and many of these transformations will stick. E-commerce is expected to increase rapidly, as well as consumer mindfulness about their purchasing habits and the environment. Consumers are actively seeking businesses which care about the environment, meaning it is in the businesses’ interest to evolve. The pandemic cannot be a justification to revert to a heavy dependency on single-use plastic packaging.

According to the UN, the next decade requires countries taking immediate actions to address the climate emergency, among other issues. SDGs 12, 13, and 14, are unachievable unless businesses, specifically the e-commerce segment, pivot towards sustainable packaging. Customers would like companies to use sustainable packaging, but our Earth needs us to use it now. The time for complacency has passed. It is time for action.

The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.

a global affairs media network

www.diplomaticourier.com

The Dawn of E-Commerce Means Combating Single-Use Plastics

Photo by Julia Joppien via Unsplash.

October 1, 2020

P

lastic is expected to be more prevalent in the Earth’s oceans than fish by 2050. Plastic-related greenhouse gas emissions are currently equivalent to CO2 emissions of 189 coal plants; the emissions are predicted to more than triple by 2050. Microplastics are reported to have recently been found in air and rain samples collected from the western part of the U.S. and are believed to be entering the food chain.

Despite these harmful environmental effects, society is increasingly turning to single-use plastics, including surgical masks and food packaging for home deliveries, during the COVID-19 pandemic to curb virus transmission. Beyond personal protection, multiple layers of plastics are used to package goods ordered online. E-commerce traffic has grown by more than 10% during the pandemic, for most consumer goods categories, and the e-commerce market is expected to continue growing post-COVID-19.

While plastic use has become more prevalent, consumer sentiment for sustainability has also increased due to the COVID-19 pandemic. A CapGemini survey of 7,500 consumers from around the world found 67% of respondents reporting an increased conscientiousness about the scarcity of natural resources during the pandemic, while 65% reported a higher-level mindfulness with respect to impact of overall consumption. This change in sentiment aligns with the United Nations (UN) Sustainable Development Goals (SDGs), which advocate for responsible consumption and production of goods (SDG 12), acting against climate change (SDG 13), and preventing the pollution of global water bodies (SDG 14).

With the e-commerce market expected to continue growing post-COVID-19 and consumers increasingly caring about sustainability and responsible purchasing, companies should increase efforts to shift toward sustainable packaging.

Single-Use Plastics Resurgence

Single-use plastics have facilitated the fight against COVID-19. Beyond usage in PPE equipment, single-use plastics have aided social distancing measures via home deliveries of basic goods. Supermarkets have also shifted towards wrapping loose fruits and baked goods in plastic. Overall consumer waste increased between 5% and 35% in the U.S., and single-use plastic is projected to increase by 40% by 2030.

U.S. demand for flexible packaging, the majority of which is plastic, is expected to grow to 10% this year, as opposed to 3% in 2019. This resurgent demand is unsurprising, as states like California, New York, and Maine either suspended or postponed anti-plastic bag legislation due to COVID-19. “Virgin” plastic production, fresh plastic made directly from fossil fuels, is also increasing as oil prices fall, giving virgin plastics a cost advantage over the fixed costs of recycled plastics.

Recycling is also down during the pandemic, with approximately 80 communities in the U.S. reporting temporary suspensions on curbside recycling. Historical data projections suggest that 75% of plastic  discarded during the pandemic will clog landfills and float in the seas. By 2040, 133 million tons of plastic will be burned, 77 million tons of plastic will be dumped on land, 29 million tons will be in oceans. The increasing usage of single-use plastics is alarming, given the inability of government programs to adequately process any plastics, and the lower costs of producing “virgin” plastic. It is a disconcerting sign the world is nowhere close to meeting the UN SDGs 12, 13, and 14, regardless of shifting consumer sentiment.

E-Commerce: The New Market Player

With the institution of social distancing measures in response to COVID-19, the average monthly retail e-commerce worldwide traffic increased by approximately 3.5 billion between March and June. As seen in the below graph, McKinsey predicts a 15% to 30% growth in online shopping post-COVID-19 for most product categories, especially groceries, household supplies, and personal-care products.

E-commerce packages typically use up to seven types of packaging materials: paper bills, envelopes, cardboard boxes, plastic bags, woven bags, tape, and buffer materials such as bubble wrap or polystyrene foam. A package delivered directly to the customer must be robust, able to withstand potential falls and damages in the delivery process. A typical e-commerce package is handled 20 more times frequently on the journey from the distribution center to the customer, as opposed to transportation on a pallet to the retail store.

The need for extra packaging in e-commerce is understandable, given that it is necessary to deliver products to the customer rapidly and in an undamaged condition. Unfortunately, e-commerce companies rely extensively on unsustainable materials like polystyrene foam and plastic bags in packaging. A study examined in-store versus online shopping methods for items such as books, DVD’s, and computers. The results showed packaging for home deliveries consumes more energy, and for half of the cases it requires more than a 50% increase in energy consumption.

Millennials and Generation Z are the most enthusiastic consumers of e-commerce, but they are also the most likely to be concerned about the environment. Deloitte conducted a “pulse survey” between April-May 2020 in countries like the U.S., U.K., and China. Even during the pandemic, 21% of Millennials and 31% of Generation Z groups in the surveyed countries chose climate change/protecting the environment as their primary concern, compared to crime/personal safety, unemployment, or income inequality/distribution of wealth. Before the pandemic, 38% of Millennials reported to have deepened relationships with those businesses whose products and services create a positive environmental effect. E-commerce businesses must reposition, aligning their packaging to meet the burgeoning environment-conscious consumer segment.

Toward Sustainable Packaging

Shifting away from plastic packaging may seem like a herculean task, but it is manageable if e-commerce businesses act strategically. As customers are increasingly concerned  about hygiene and sustainability, e-commerce businesses must review the packaging-production footprints of packaging companies, matching packaging company practice to regulations and consumer demand in countries where they will operate. E-commerce executives must examine financial and operational capabilities to identify potential sources of packaging which align with the growing market demand for hygiene and sustainability. Since raw material prices are volatile, e-commerce companies can seek to develop multi-regional packaging supply chains to maintain efforts towards sustainability.

E-commerce packages often arrive in resealable plastic envelopes. These envelopes could instead be manufactured from post-consumer recycled material or biobased materials made using starch produced from sustainable materials like corn waste, hemp, and seaweed. A few of these materials can safely degrade in domestic and commercial composting systems. Mushroom tissue, produced by Ecovative, is another biodegradable source of packaging; the tissue takes shape of the mold of the item it is used to package.

Several sustainable options also exist to protect online-ordered perishable goods, like foodstuffs, which require costly climate-controlled trucks and containers.  A recyclable insulation system developed by Easy2Cool uses cellulose fiber wadding to protect perishable goods. Another invention by Pluumo uses waste feathers from poultry to create a thermal packaging, formed into carton liners, to replace expanded polystyrene in temperature-sensitive deliveries.

Switching to sustainable materials for packaging may present high upfront costs, but material prices are likely to fall in the medium to long-term as more companies move toward sustainability. Investing in sustainable packaging sooner rather than later can allow e-commerce players to closely align with the climate-conscious Millennial and Generation Z consumer base.

E-commerce companies may also benefit by shifting from single-use packaging to forming a multi-use packaging loop. Companies like RePack, LimeLoop, Returnity, and MIWA offer reusable containers, envelopes, and capsules for businesses to deliver products to customers. Once a customer receives a product, the reusable container is sent back to the company, where it is cleaned and sanitized to be reused again (see Exhibit 2).

If e-commerce players are able to adopt standardized packaging designs, the companies may be able to share the same re-usable packaging pool. The ability to create a common pool could present potential advantages such as reduced costs, increased efficiency, and simplified management of container inspection, cleaning and repair. Companies will have to carefully design cleaning and inspection systems, ensure customers are incentivized to return containers either via deposit schemes or discounts, and align business budgets to meet the new costs.

The World Cannot be Complacent

COVID-19 has transformed our lives, and many of these transformations will stick. E-commerce is expected to increase rapidly, as well as consumer mindfulness about their purchasing habits and the environment. Consumers are actively seeking businesses which care about the environment, meaning it is in the businesses’ interest to evolve. The pandemic cannot be a justification to revert to a heavy dependency on single-use plastic packaging.

According to the UN, the next decade requires countries taking immediate actions to address the climate emergency, among other issues. SDGs 12, 13, and 14, are unachievable unless businesses, specifically the e-commerce segment, pivot towards sustainable packaging. Customers would like companies to use sustainable packaging, but our Earth needs us to use it now. The time for complacency has passed. It is time for action.

The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.