Recyclables and RFID tagging may be the buzzwords in packaging but we are unlikely to see a huge shift in either direction, said Tim Rothwell, senior VP of Lansdown Capital Ltd.
“There is no money to be made in recyclable packaging and although consumers show an interest in environmental issues, they aren’t prepared to pay for the extra cost,” he claimed.
While retailers are stocking some starch-based recyclable packaging at a premium, it is not in their interest to flag it up or roll it out across all commodity products given the immense downward pressure on prices, he explained.
Susan Frame, category director at Tetra Pak Manufacturing UK Limited, agreed, adding: “The only way it might make an impact is in certain niche markets, for example, a four-pack of organic pears, where the cost of the product can absorb the extra cost of the packaging.”
Rothwell said the same could be said of RFID tagging: “The retailers have all talked about the benefits but they are not prepared to pay for the difference and just expect the packaging companies to absorb the extra cost.”
