How brands can realise the opportunity that packaging regulation brings


The EU’s Single-Use Plastics Directive (SUP) is reshaping the business landscape, urging brands to meaningfully prioritise sustainability in order to reduce their environmental impact.
03 August 2023
EU plastic regulation
Jack Young
Jack
Young

Consultant, Sustainable Transformation Practice

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The directive orders a complete ban of 10 everyday single-use disposable plastic items such as food containers, packets and wrappers across the EU. To tackle other single use plastics the EU is also limiting their use through establishing plastic collection targets, targets on the usage of recycled plastic as well as design and labelling requirements to increase consumer awareness on the plastic content of products. Passed in 2021, the directive fundamentally aims to prevent and minimise the negative effects of plastic products on the environment, while also promoting a circular economy. 

The SUP directive and other similar regulation passed in the UK on plastic has driven change across industries and offered significant opportunities for brands to differentiate themselves as leaders in sustainability. In this article, we explore key implications for brands under the directive and highlight essential actions they must take to stay one step ahead of regulation and realise the opportunity the regulation brings. 

 

Embracing circularity: Meeting the demands of the SUP Directive

With the EU setting the target of 30% recycled plastic in all plastic beverage bottles from 2030, creating products with circularity in mind will be crucial for brands. Brand owners should be prioritising recyclability and reusability to reduce waste and support a circular economy. Investing in plans and technologies to meet rPET goals at scale is essential to meet demands of the SUP directive and ultimately reduce environmental impact. Brands must prioritise sustainable packaging materials such as sugarcane and seaweed, to demonstrate their sustainable credentials and lead the way in better for the planet practices.  

The return of the refills: A key strategy to meet EU collection targets

The EU also has 77% collection target for plastic bottles by 2025 – increasing to 90% by 2029, identifying suitable products for refills can significantly reduce single-use packaging and help meet these targets. Brands should focus on accessible distribution points to promote refill adoption and minimise environmental impact. According to our 2022 Sustainable Sector Index data, 45% of people say they would be willing to buy products which are reusable/refillable but only 21% of people actually do so. Brands must make usage of refillable products easy; partnerships with retailers to improve the necessary infrastructures will help people close this value-action gap. Brand owners will need to work out how to encourage people to make the switch for some of their everyday products. It will need to be easy, meaningful and rewarding. 

Effective pack messaging for sustainable brands

Kantar recently helped BrewDog convey their sustainability credentials more effectively through their packaging. Kantar Marketplace screened different designs for the new Lost Lager brand, testing differing pack messaging to convey its sustainability credentials. We found that less is more; messaging needs to divulge as much sustainable information in as few words as possible. 

By introducing labelling requirements, the EU hopes to inform consumers about the plastic content of products, disposal options that are to be avoided, and harm done to nature if the products are littered in the environment. Clear and actionable instructions on packaging regarding recyclability and biodegradability empowers people to take a more active role in recycling. Transparency builds trust, fostering sustainable behaviours. Avoiding greenwashing accusations, brands should be prioritising transparency and authenticity. 

Driving sustainability through the ecosystem collaboration

From Kantar’s study with the WFA on the progress of sustainability in marketing, 44% of marketers say that the marketing function has an opportunity to expand its reach across the value chain. From the Single-Use Plastics Directive, brand owners will need to realise this opportunity and work more closely with local market innovation and sustainability teams to understand the entire product value chain; providing their skills and insight to drive the innovation needed to capitalise on the directive. It is essential for brands to partner with retailers and suppliers to minimising packaging waste throughout the supply chain. But collaboration must not stop there; brands must partner with other category leaders to establish robust local market infrastructure, making product recycling easy and frictionless for all.  

The Single-Use Plastics Directive offers brands a chance to embrace sustainability and redefine their business models. By collaborating with stakeholders across the product value chain, optimising material usage in supply chains, and prioritising circularity, brands can lead the way toward a greener, more sustainable future while better engaging with their target audience on the topic of sustainability. 

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