Plastic is finished - how can I invest in an alternative to plastic?

[HenryDavisProperty]

Hi all,

I'm new here and a property dealer looking to grow my equity portfolio in 2022.

Plastic like the one shown in my pic are on the way out.

In 5 years time 80% of plastic in your local supermarket will be gone, in 8-10 years, it will be 95-100%

So massive growth in alternative to plastic packaging products, but who is at the forefront of this industry, who are developing new products - and who should I invest in?

 

[MongiIG]

23 hours ago, HenryDavisProperty said:

Hi all,

I'm new here and a property dealer looking to grow my equity portfolio in 2022.

Plastic like the one shown in my pic are on the way out.

In 5 years time 80% of plastic in your local supermarket will be gone, in 8-10 years, it will be 95-100%

So massive growth in alternative to plastic packaging products, but who is at the forefront of this industry, who are developing new products - and who should I invest in?

 

Hi @HenryDavisProperty

Welcome to the IG Community!

Graphic Packaging’s new paperboard machine in Kalamazoo, Mich. EMILY ELCONIN FOR THE WALL STREET JOURNAL. By Ryan Dezember Jan. 2, 2022

 

KALAMAZOO, Mich.—When a new building-size machine cranks up this month, it will begin turning mountains of recycled cardboard into paperboard suitable for greener forms of packaging.

The $600-million project, the first new paperboard production line built in the U.S. in decades, represents an enormous bet by owner Graphic Packaging Holding Co. on a future without foam cups, plastic clamshell containers or six-pack rings.

[MongiIG]

French ban on plastic packaging for fruit and vegetables begins

Published 31 December 2021, BBC

 

IMAGE SOURCE,GETTY IMAGES

Image caption,

The measures are part of a slate of environmental rules introduced by President Emmanuel Macron

A new law banning plastic packaging on most fruit and vegetables comes into effect in France from New Year's day.

Cucumbers, lemons and oranges are among the 30 varieties banned from being wrapped in plastic.

Larger packs as well as chopped or processed fruit will be exempt.

President Emmanuel Macron called the ban "a real revolution" and said it showed the country's commitment to phase out single use plastics by 2040.

More than a third of fruit and vegetable products in France are thought to be sold in plastic wrapping, and government officials believe that the ban could prevent a billion items of single use plastics being used every year.

In a statement announcing the new law, the Environment Ministry said that France uses an "outrageous amount" of single use plastics and that the new ban "aims at cutting back the use of throwaway plastic and boost its substitution by other materials or reusable and recyclable packaging".

The ban forms part of a multi-year programme introduced by Mr Macron's government that will see plastics slowly eased out in many industries.

From 2021, the country banned plastic straws, cups and cutlery, as well as polystyrene takeaway boxes.

And later in 2022 public spaces will be forced to provide water fountains to reduce the use of plastic bottles, publications will have to be shipped without plastic wrapping, and fast-food restaurants will no longer be able offer free plastic toys.

However, industry figures have expressed concerns over the speed at which the new ban is being introduced.

Philippe Binard, from the European Fresh Produce Association, said the "removal of plastic packaging from most fruit and vegetables at such short notice does not allow alternatives to be tested and introduced in a timely manner and stocks of existing packaging to be cleared".

Several other European countries have announced similar bans in recent months as they pursue commitments made at the recent COP26 conference in Glasgow.

 

Earlier this month Spain announced that it will introduce a ban on the sale of fruit and vegetables in plastic packaging from 2023 to allow business to find alternative solutions.

Mr Macron's government also announced several other new environmental regulations, including rules calling on car adverts to promote greener alternatives such as walking and cycling.

[MongiIG]

2021 Saw Two States Enact A New Plastic Packaging Fee Program, A Proposal That Will Be Debated In More State Capitals In 2022.

By Patrick Gleason, Contributor, Dec 31, 2021. Full article on Forbes

In 2021, Maine and Oregon became the first states to enact a new program referred to as Extended Producer Responsibility (EPR) for plastic packaging. State lawmakers who have yet to hear of EPR likely will in the future, as backers of this policy are now shopping it in other state capitals. These first-in-nation EPR programs for plastic will assess and levy fees on products that use plastic packaging, with the goal to reduce plastic usage, incentivize the use of recyclable plastic, and provide funding for new recycling technology. 

The other challenge EPR proponents face is the fact that they’re trying to solve a problem that is already being addressed without EPR or any other new programs. “Plastic waste is an unfortunate byproduct of modern life. Luckily, we are getting better at dealing with it,” notes the Cato Institute’s Human Progress project. “If historical trends continue, almost all plastic waste will be either incinerated or recycled by 2050.”

[HenryDavisProperty]

Some great insight, thanks you guys.

Anyone know who is the leader in paper alternatives innovations in Europe?

[Fletch]

11 hours ago, HenryDavisProperty said:

Some great insight, thanks you guys.

Anyone know who is the leader in paper alternatives innovations in Europe?

Might be worth having a look at DS Smith, Mondi and Smurfitt Kappa - I have no position in any of them so can't really comment on their financials or how innovative they are, but they are all in the packaging game.

[HenryDavisProperty]

Thanks Fletch, anyone have any idea who specialises in the replacement of plastic tablet holders, as this will be a massive market in itself?

[Fletch]

I imagine replacement of such packaging is not something that a packaging company can take on in isolation. Changing from plastic to some paper-based solution may have implications in increasing exposure to moisture, which may have knock-on effects for drug stability. I could be completely wrong, but I would say such a project is more likely to be initiated by a Pharma company in conjunction with their existing packaging suppliers