Cost benefits of flexible plastic packaging

ACROSS the Middle East and Africa, packaging manufacturers are increasingly searching for more affordable substitutes to counter the effect of raw materials’ price volatility and rising costs, which can sometimes lead to increased production costs and reduced margins.

Flexible packaging presents a number of advantages that can help reduce overall supply chain costs. Firstly, it uses fewer materials than traditional rigid packaging. Secondly, it is lightweight, meaning transportation overheads (e.g. fuel) are lower. Thirdly, flexible packaging innovations like Dow’s PacXpert™ Packaging Technology – which allows customers to save up to 10 times in costs compared to other forms of packaging, and enables increased product yield by reducing content waste, reducing leftovers by 50-90 percent ­– are economical as they can be shipped flat, so there are fewer breakages and more products can be transported in each truckload. And finally, plastic packaging can help preserve food at most stages of the supply chain, reducing resources and energy waste.

Furthermore, as film converters continuously strive to optimize their production, and packaging applications become more demanding, using high speed and/or high pre-stretch machines, the structure of the films used in flexible plastic packaging is evolving. Dow’s toolbox of high performance resins enables tailoring of film properties to meet the requirements of the packer at ever-thinner film gauges, offering not only cost savings but also remarkable mechanical properties that address converters’ performance requirements and downgauging needs. Stretch level and film quantity can be tailored per application for film gauge optimization, meaning thickness reduction without penalty in end-use film performance. And the many benefits include stretchability, holding force and resistance to tears and punctures.

More consumers are aware of their role in protecting the environment, and choose products accordingly

Market trends       

We know that each year, globally, one third of the food produced for human consumption — approximately 1.3 billion tonnes — goes to waste[1]. We can take part in reducing waste by our choice of packaging. Plastic packaging protects the quality and safety of food, preserving food freshness, extending shelf- life (up to three times more than non-packaged goods), and reducing food waste and spoilage.

Dow’s Packaging and Specialty Plastics division is working hard to develop packaging solutions that can address these types of key issues, in order to drive change in the plastic packaging industry. Issues of particular relevance to the Middle East and Africa include packaging’s role in food security and preservation, the increased need for recycling and sustainability, and the adoption of energy recovering technologies to reduce landfill use.  

Key market trends driving growth in plastic packaging in this region, and globally, include a growing population, increased urbanisation (by 2050 almost 2/3^rd of the population in Sub-Saharan Africa will live in cities, compared with 36 percent in 2010[2]) and a rising middle class, as well as the increasing demand for material performance and functionality across all industries (food, beverage, transportation, hygiene, etc.), increased sustainability and cost effectiveness, and brand differentiation, shelf  appeal and consumer convenience.

The continued growth in demand for lightweight plastic packaging is and will continue to be a key trend in the consumer flexible packaging market for years to come. Driven by the demand for greater convenience, cost-effectiveness and sustainable products, Dow’s R&D developments focus on addressing the increasing demand for brands that offer flexible pouch packs with innovative shapes, closures, and dispensers to complement or replace its traditional rigid plastic bottle format.

Dow in the Middle East and Africa Region

“Given its large population and increased urbanization, the MEA region is very important for Dow,” according to Sami Mainich, Dow’s Sales Director for the Middle East, Africa and Turkey. “These factors will mean a growing demand for packaging.

“However, current polyethylene supply capacity is not sufficient to meet this demand. In 2013 alone, the global PE demand (including LDPE, LLDPE and HDPE) stood at 81 million tonnes, with the Middle East representing seven percent[3]. At Dow we anticipated the needs for growth and we made strategic investment to continue to serve our customers across the world by investing in new large-scale capacity.”

Sami Mainich, Dow Sales Director for the Middle East, Africa and Turkey

In 2011, Dow jointly established Sadara with the Saudi Arabian Oil Company, Saudi Aramco, which strives to reduce the impact of the economic crisis by bringing materials closer to its customers, and means that Dow will be able to deliver a technology-rich product portfolio to emerging markets with greater speed.

“This joint venture has been a major step forward for our strategy to drive long-term profitable growth in our downstream, innovation-driven businesses,” says Mr Mainich, “as well as in emerging and fast-growing regions such as the Middle East and Africa. What Sadara means to our customers is Dow’s ability to deliver a product portfolio that meets their needs with greater supply reliability.”

“Supported by our new high-volume supply channels of diversified polyethylene growth with a high- performance product mix, Dow is well positioned to support local customer needs in the region, and globally.”

Collaboration across the value chain is extremely important to Dow. The Company has a local presence across the region, with teams of experts able to support and address its customers’ needs. Through its market-driven Pack Studios capabilities — a global network of labs, experts and collaboration tools — Dow is able to provide its customers and value chain members with a unique and advantageous position to accelerate the development of next-generation packaging solutions.

Sustainability

Today’s consumers are increasingly environmentally conscious, meaning that new innovations in flexible packaging must also meet market needs for sustainability. The protective properties of Dow’s flexible packaging make it one of the world’s most sustainable performers in delivering environmental, economic and social value. Dow’s PacXpert™ packaging technology is an excellent example. The distinctive, flexible stand up pouch is durable, lightweight and cost effective, with design features for enhanced consumer convenience. It offers the transition from traditional rigid containers to flexible packaging pouches between 2-20 liters in size.

Dow’s PE Stand Up Pouch is another good example. Created with the entire product lifecycle in mind, and made from only one raw material, polyethylene, it offers the same convenience and performance of multi-material pouches with the added benefit of being recyclable, where PE film recovery schemes exist. SUP structures laminated with 100 percent Polyethylene are three times more resistant to punctures than conventional packaging, with full and resistant sealing to avoid leaks. Thanks to its monomaterial composition, the PE Stand Up Pouch also uses up to 88 percent less plastic, making recycling easier both in the pre and post consumption stages, and allowing use of international recyclability codes 4 (LDPE) and 2 (HDPE) instead of 7 (others).

The PE Stand Up Pouch is easy to open and close, with directionable spouts and lids. It is lighter than traditional rigid packaging, making storage, transportation and disposal easier. Its design also minimizes food waste, meaning cost savings for the consumer.

“One of the most important functions of packaging is to protect the product inside the package,” says Mr Mainich, “and that function must always be an important design criteria because it provides sustainable and safety benefits. Packaging optimization leads to increased performance, less food waste, reduced production footprint and cost savings — all of which are high on the agenda of the key players in the MEA packaging industry.”