Micro economics

Walk into any supermarket and you will soon find its bakery section: rows of glazed pains aux raisins; almond, butter and chocolate croissants; Belgian buns; cinnamon twists and calorific chocolate eclairs. Generally considered an early morning or post-supper treat, it may seem odd to think of these products as embodiments of the key dilemmas facing today's leading food packaging experts.

"A lot of people expect to be able to see what they're buying," explains Kristian Berings, European packaging expert at CSM. "That obviously requires transparent packaging. However, the see-through plastic we'd use for that is seen as non-environmental, so we're forced to look at how to achieve transparency with cardboard paper based materials. It's something our research & development department is currently looking into."

CSM is Europe's largest supplier to in-store bakers, and food packaging quandaries of this sort form a large part of Berings' job. Along with the transparency/recycled materials dilemma, he must also consider the utility of key design features, the latest research into aesthetic appeal and complex scientific innovations claiming to increase product shelf-life.

Striking the balance between such a variety of factors can be challenging, not least because information often seems conflicting. Nowhere is this truer than in the field of sustainability. A Deloitte report found that from 2007-2010, the percentage of companies with sustainable packaging policies rose from 32% to 45%, and that by 2015 the industry is expected to be worth a staggering $170 billion.

Driven by a burgeoning consumer interest in environmentally responsible packaging and the comparatively low cost of recycled materials, sustainability would - on the surface - seem like a smart investment for any packaging firm. Reality, however, is somewhat less straightforward.

"Recycled materials were used in the past because they were cheaper, but now the demand for them, particularly paperboard, has increased. That's put the price up," says Berings. "They're approaching the cost of virgin materials now."

Price is also affected by availability, which can be highly variable, he continues: "Take polyester, which is used in both packaging and clothing. The price of cotton may decide whether China buys more polyester to make shirts or vests, and that will put the price up for everyone else. There are also different tax conditions to consider; in Germany, Belgium and the Netherlands, companies are rewarded financially for using recycled materials, but the same is not true in the UK.” Despite the hidden complexities and challenges of this market however, CSM has continued to follow its sustainability strategy and is raising the recycled content of its packaging materials.

Curve appeal
Along with such eco-friendly initiatives, the aesthetics of food packaging continue to develop. In-mould labelling (IML) is growing more popular, particularly for margarine tubs and medicinal pill products.

Subtle shades of colour, embossing and indentations are also increasingly used to raise food packaging’s aesthetic appeal, especially in the confectionery market.

“At Unilever they’re quite keen on having more rounded shapes than squares and rectangles, and embossing with plastic ridges,” Berings comments.

“Subtle design elements like this can make a big difference. Not only does a product look more attractive when it’s on the shelf, it can also lead to people storing and using the packaging at home – it feels like you’ve got something pretty that you don’t want to throw away.

“At CSM, we combine the two approaches by putting our mini-bites [shortbreads, brownies, etc] in a small bucket with IML labelling.”

He goes on to describe how, following its UK success, CSM plans to export the mini-bite concept to a number of European countries, including France and Germany.

The process forms part of the firm’s larger internal European collaboration strategy, which sees a healthy exchange of concepts and viewpoints on the latest packaging solutions.

“In the UK for example, we have a strong relationship with retailers selling doughnuts and American cookies in clam-shell packaging,” says Berings.

“That’s now an idea we’ve tried to introduce in France and Germany. It’s looking at the execution that worked well in one market and trying to make it happen in other regions too.

“Getting the balance right between regional and national decision-makers is key when you’re collaborating across a continent such as Europe,” he says.

“You need people from the local supply chain driving business and making some decisions, but other things, such as procurement and quality control, are done at the European level.”

Having such tight-knit international communication networks can also help in less expected ways.

In Germany and Belgium, certain packaging materials (including metals and laminates) are heavily taxed, forcing companies to push the limits of designs and find out what is absolutely necessary to maintain the structural integrity of a package.

Previous limits proved entirely fictional and CSM cut down its use of certain materials in UK packaging, generating significant financial savings.

Had it not been for the close international communication, the firm’s UK branch would never have realised how much money it was wasting on surplus materials.

Yet, while cutting down on excess packaging will no doubt remain important to the sector, concern over food waste may soon overtake it.

The UK is leading the way in this field. According to its government-backed Waste and Resources Action Program (WRAP), approximately £6.7 billion of household food waste is produced by perishable products not used before the expiry date.

Statistics like this have prompted the launch of the ‘Fresher for Longer’ campaign, endorsed by the Packaging Federation in the UK, which aims to educate consumers and encourage packaging firms to develop product life-enhancing solutions.

“At the last presentation I saw from WRAP, they were discussing the fact that limiting food waste is higher on the agenda than reducing packaging,” comments Berings.

“There’s really a growing expectation for us to fill this role. Packaging needs to become more active while also maintaining its attractiveness.”

Getting the balance right between regional and national decision-makers is key when you're collaborating across a continent such as Europe

Fresh produce
Modified atmosphere packaging (MAP) is one of the most successful shelf-life-enhancing innovations the industry has produced in this field to date.

By balancing levels of nitrogen, oxygen and carbon dioxide inside products to meet the varying needs of different foods, it facilitates the maintenance of taste, texture and appearance.

It also reduces natural ethylene production, which slows the ripening process in fruit and vegetable products.

Antimicrobial technology is another intriguing new area.

By incorporating edible coating and films prepared from lipids, proteins and polysaccarides into packaging designs, the concentration of preservatives can be maintained.

This limits surface pathogens, brown colouration and moisture loss in food.

“There will no doubt be a change in what manufacturers spend their money on over the years to come,” Berings says.

“The aim will be not only to prevent waste in their own processes, but also to do the same for the end-consumer.”

As campaigns such as ‘Fresher for Longer’ gain momentum, government schemes further encouraging packaging companies to innovate are likely to follow.

Here, again, the UK is taking a pioneering approach: in April this year, its Patent Box tax incentive came into force. Offering a 10% reduced tax rate on profits derived from patented products, it aims to inspire investment in research & development, from conceptualisation through to commercialisation.

The overriding message to packaging firms seems clear: whether it is sustainability, aesthetics or product longevity, innovation marks the way ahead.

For CSM, creating a product that ticks all the boxes would be the icing on the cake.

Kristian Berings is the head of European packaging development, chairman of the Packaging Technology Platform and technical leader for long-term packaging procurement projects at CSM, which is the largest supplier of bakery products worldwide