PwC report highlights packaging sustainability concerns

Most of the 26 chief executives of FPP companies agreed they needed to do more to raise awareness of the industry's responsible approach, and portray the benefits of packaging to retailers, consumers and the government.

Several expressed frustration that, while demand for "green" products is increasing, customers are often reluctant to pay a premium for them.

One described the situation as a "delicate balancing act" between the need to spend money on proving his company's "green" pedigree and the need to minimise additional costs.

He also said the pressure to include recycled fibre in all products was short-sighted, because the current supply of recycled fibre would be inadequate to meet demand, should it be mixed into all papers.

Another pointed to the contradictions in consumer behaviour. They want "green" products, but also convenience, so disposable plastic bottles continue to be the preferred packaging for beverages in the US, despite the negative environmental consequences.

The CEO Perspectives report also showed FPP chief executives are concerned about rising costs, particularly for fibre, energy and transportation. Many said transportation and logistics were the main areas in which they could cut costs.

PwC forest, paper and packaging director Clive Suckling said: "Transportation is one of the last frontiers, but FPP companies are looking for cost cuts everywhere, from procurement along the supply chain to the consumer.

"It's not happening in a big way yet but the aim is to be both lean and green."

Declining demand was also an issue for some of those questioned, but others argued that growth in emerging markets could offset this fall.

By 2050, the seven emerging markets of China, India, Brazil, Russia, Indonesia, Mexico and Turkey are expected to outstrip the US, Japan, Germany, UK, France, Italy and Canada.

Suckling said: "FPP companies will have to learn how to tap into new markets, such as biomass-based energy, fuels and chemicals production, without jeopardising future supplies of wood fibre. For those companies that lead and make the transition, the rewards could be significant."

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