More than 82 million tons of packaging waste end up in landfills according to the Environmental Protection Agency (EPA). Packaging waste has far-reaching negative effects on the environment, society, and the economy. For the more than 400 million small and medium enterprises (SMEs) worldwide, reducing packaging waste can offer financial benefits and decrease shipping fees resulting in operational efficiency gains. Furthermore, reducing packaging waste enhances brand image and reputation, increases loyalty, and attracts more customers. In short, it benefits the business and its bottom line, customers, and the planet.

Examine the Regulatory and Infrastructure Landscape

Packaging waste management laws vary significantly across the globe demonstrating different priorities and waste management infrastructure. However, a common trend is the increasing adoption of Extended Producer Responsibility (EPR) schemes mandating recycled content and design for recyclability. For example, the Federal Acquisition Regulation (FAR) on Sustainable Procurement requires the US federal government to acquire sustainable products and services in the marketplace. Therefore, businesses looking for US contracts must now seriously rethink their strategies and integrate sustainable practices into their offerings. Hence, a business that sells sustainably sourced and packaged products is more likely to get a procurement contract than an enterprise without a packaging waste management plan. In the European Union (EU), the Packaging and Packaging Waste Regulation (PPWR) is legally binding in all member states with the aim of reducing packaging waste, promoting a circular economy for packaging, and ensuring the proper functioning of the internal market.  

On the other hand, recycling infrastructure capabilities also vary across the world. Hence, it is critical that small enterprises look at the existing legislation and recycling facilities because in addition to compliance, it’s a strategic action that impacts their finances, brand reputation, and operational efficiency. To demonstrate, the EPR laws require businesses to pay fees based on the amount and type of packaging released to the market. The UK introduced the new EPR scheme in 2023 aiming to increase recycling by making packaging producers responsible for recycling and recovery costs. Under the scheme, an enterprise that manufactures, uses, or sells packaging products and has a turnover of more than £2 million must participate in the recovery and recycling costs. Thus, redesigning packaging that attracts the least amount of fees is in the interest of the business. Many EPR schemes charge lower fees for recyclable packaging or packaging that contains recycled content. Non-compliance can also lead to hefty fines and even legal action. Furthermore, EPR compliance may be a prerequisite for selling products.  

Choose Smart Packaging Material and Design

Redesigning a company’s packaging strategy is essential to comply with existing laws and meet the recycling capabilities. In this regard, prioritize packaging that has high recycled content like corrugated boxes, paper mailers, and plastic bottles. Consider bamboo packaging which is highly sustainable given that bamboo is a rapidly renewable alternative to wood. It is very versatile and can be processed into various forms suitable for packaging such as paper, boxes, and rigid containers. Label packaging stating the recycled content used. As much as possible, steer clear of complex packaging with multiple and inseparable materials like plastic windows on paper boxes or bubble wrap glued to cardboard as this can make recycling extremely difficult.

Another design modification is to design lighter and smaller packages to save money on shipping costs and lower emissions. To fill in voids, replace plastic bubble wrap and use paper-based alternatives like honeycomb, shredded, or crinkled paper.  If applicable, design packaging that customers will want to reuse for other purposes. Opt for reusable shipping mailers and totes. When identifying packaging manufacturers, choose local companies who specialize in sustainable options to reduce transportation emissions. Where possible, consolidate orders to reduce inbound freight as well as choose efficient carriers known for their sustainability initiatives. Prioritize ground shipping unless absolutely necessary. Lastly, it is vital to educate consumers by providing clear instructions for recycling packaging waste. The business can do this by dedicating a page on the website or including instructions in the package.

To conclude, a small business can effectively improve its product packaging sustainability by checking the regulatory landscape/recycling infrastructure and choosing smart packaging materials. Lower operational costs, brand loyalty, smaller carbon footprint, and operational efficiency are the perceived benefits of reducing packaging waste.

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