The FMCG market and the fight against plastics

Plastics and sustainable packaging can be argued to be one of the major talking points of 2019 (after Brexit of course). After The Queen delivered her speech in Parliament in October, the Government revealed plans to charge consumers extra for buying single-use plastic items. Companies will also face legally binding new targets on plastic waste reduction. It’s clear that more is being done to tackle the threat, but will the news from the Government really help solve the problem? Earlier this year we delved into what retailers were doing to fight plastic waste, with many pledging to reduce usage by up to 50% by 2025. A bold statement some might say, but one that is certainly achievable. So, over six months on, what has and is being done by both retailers and brands? And what are consumers’ feelings towards reducing plastic wastage?

The announcement made by the Government is an interesting one, particularly when you cast your mind back to 2015 when the 5p charge was introduced. This new ruling saw sales of single-use plastic bags in supermarkets decrease by 90% [figure from The Grocer]. Often you will now see consumers bringing their bags for life or left over boxes into stores. Sometimes you may even see one or two practicing their balancing skills by carrying goods by hand. However, you still see consumers opting to buy plastic bags or pack their fresh fruit and vegetables into tiny bags. 

Back in 2018, during the budget announcement, the Government also announced a world-leading tax on the production and import of plastic packaging with less than 30% recycled content. The ruling is due to be implemented from April 2022. Did you know plastic packaging accounts for 44% of plastic used in the UK? But 67% of plastic waste, and over 2 million tonnes of plastic packaging is used each year. The statistics are made more shocking when you consider that the majority of this comes from new, rather than recycled plastic. The new tax has been put into place to encourage greater use of recycled plastic and help reduce waste overall.

It’s been three years since Planet Earth 2 aired on the BBC. After broadcasting, searches for plastic recycling saw a 55% uplift in the UK [Global WebIndex]. Consumers are far more conscious about saving the environment than ever before. So much so it now has an impact on the products they purchase. In a recent report published by Global WebIndex, 61% of consumers said they were more likely to switch to a brand that is more environmentally friendly compared to their current brand. Another 82% said they cared about the future of the environment when asked if sustainable packaging was important to them. Sustainable packaging is no longer a nice-to-have, but more of a must-have and brands who don’t act upon this face scrutiny from consumers. These stats show that it’s vital for brands to be doing something about reducing plastics in their products, but also ensuring their packaging and marketing portrays the right messaging about being environmentally friendly. For example, in a recent BBC report, it found that the majority of the UK’s best-loved teabags still contained plastic, despite some brands claiming they were free. 

A recent report from YouGov revealed that 80% of shoppers believe supermarkets are not doing enough to tackle single use plastic waste. 89% also revealed they now take action in order to help plastic waste by bringing their own packaging when food shopping. From the outside it may seem much isn’t being done, but when you delve further you begin to see changes that are being made to tackle the big problem. 

In the summer, many of the big supermarkets announced they were going bagless with their online grocery deliveries meaning all goods would arrive loose rather than bagged up. With more consumers shopping online than ever before this move is a smart one, considering goods are delivered directly to your door. Other big areas that have seen a reduction in plastic use are flowers. Sainsbury’s has pledged to reduce 50% of its plastic by 2025. Waitrose is trialling the removal of plastic packaging on multibuy cans including tinned tomatoes, baked beans and sweetcorn. Tesco has committed itself to removing one billion pieces of plastic from its products across all of its UK stores by the end of 2020. ASDA has urged suppliers to speed up plastic reduction and have announced a new target to reduce the total amount of plastic used in its own brand packaging by 15% by February 2021. Morrisons have recently eliminated black plastic from all own-label food and drink, claiming to be the first major retailer to do so (it’s worth noting they were also the first supermarket to introduce paper bags). Many of the major supermarkets have also pledged to use paper bags for loose fruit and veg. 

The war against plastics has meant there has been an increase in new product developments, with many brands and manufacturers opting to change their packaging. Unilever trialled a wrapper free ice cream earlier this year which resulted in plastic being reduced by 35%. Seen as an industry first for this line of product, Unilever’s goal is to ensure all of its plastic packaging is reusable, recyclable or compostable by 2025. Other brands to look into alternative packaging is Diageo, who has ditched all plastic packaging from its beers, reducing waste by 100 tonnes per year. Currently only in Ireland, the company plans to roll this out into other markets in 2020. Other beer brands such as Budweiser, Stella Artois and Carlsberg have all begun to remove plastic rings from their cans in favour of cardboard holders. It should be noted that these products only scratch the surface in terms of which brands are changing the way they approach packaging; with new products being launched or old ones being revised weekly.

We could also be seeing the beginning of the supermarkets of tomorrow, with many big retailers beginning to trial refill stations in their stores. Research from GlobalData reveals that almost three quarters of UK shoppers would be interested in shopping from bagless fruit and vegetable aisles and refill stations. Many consumers purchased loose goods from market stalls years ago with no problems, so the move seems like an effective one, albeit a step back in time for older generations. Many have also suggested that consumers should be rewarded for using such stations, similar to how many coffee retailers reward customers for bringing in their own cups. It would certainly change the way consumers shop in store, in particular how they’d differentiate between brands where no packaging is on show. But this direction, if successful, could transform supermarkets, shopping habits and much more.

It’s clear, there’s still a lot to do in the fight against plastics. The discussions are far from over, the effects on the planet are still ongoing. But it’s important to note something is being done. From new laws being put into practice to consumers becoming more educated on the bigger issue. The way in which products are made or purchased is also changing. Now is the time brands need to look at how their products are packaged and how they represent themselves in the competitive market. Launching a new plastic-free product or revising your packaging to reflect changes doesn’t have to be costly or problematic though. It’s time that perception is demolished in favour of revising strategies, realigning budgets and taking control of the situation.

If retailers and manufacturers aren’t willing to change, then they risk facing the wrath of the conscious consumer. For many brands, this is a major opportunity for NPD and product revisions. Consumers are looking beyond just the product on the shelf and with greater demand, comes greater responsibility. If you’re considering a product refresh, or have been sitting on a product launch for a while, why wait? Now is the perfect time to start scoping the market and tackling the fight against plastics.

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