- News
News
2020/02/21
Executive Forecast: The Path Forward in 2020 (part 2 of 3)
Executive Forecast: The Path Forward in 2020
Source from: https://www.flexpackmag.com/articles/90301-executive-forecast-the-path-forward-in-2020
Reflecting on the past decade, the flexible packaging industry underwent a fair amount of consolidation. However, as of late, we’ve seen some indications that the next decade may be marked by proliferation of both converters and material suppliers. This is a healthy sign for the industry and gives us reason to believe that the prospects for the coming decade are bright.
Q: What are some of the biggest challenges this industry currently faces? How do you think those challenges will change throughout 2020?
A: Consumer pushback on single-use plastics and plastic packaging is almost assured to grow in 2020 and we believe this will be met with further legislative action at the state and federal level. Our industry has done a good job quickly bringing together a single voice through the Flexible Packaging Association. But as an industry and as individual companies, we’ll have an even greater responsibility to educate both consumers and legislators on the value flexible packaging plays in the safe transport of products around the world as well as the reduction of food waste.
Secondly, with the country experiencing unemployment at all-time lows, we’ll certainly see talent recruitment and retainment continue to be a challenge for our industry.
Q: What new product features are brand owners and co-packers seeking in materials and machinery for flexible packaging, and what trends are driving these demands?
A: On the sustainability front, we’ve found that brand owners are reluctant to give up on any of the benefits of multi-material packaging when converting into all-PE recyclable packaging.
While providing new solutions that minimize the performance trade-off is a challenge, it does create a large opportunity and market pull for breakthrough products.
One example is our GreenArrow High Clarity PE Print Film, which is set to launch later in 2020. This film harnesses years of R&D, formulation design, manufacturing expertise and end-use knowledge to create a solution that mimics the behavior of PET but in a PE, recyclable format.
Speed has been another factor underpinning the industry. Product life cycles used to be long and steady, but now they continue to get shorter and more dynamic. This has required us to be more nimble and to stay in close collaboration with our customers.
Q: These days, the use of plastics — a major component in flexible packaging — seems to be under attack. How should the industry address this issue?
A: The issue certainly requires a multi-faceted approach and is one of the reasons we joined the Alliance to End Plastic Waste. The Alliance brings together companies from across the plastics value-chain to build a collaborative and comprehensive strategy on addressing the issue.
While we are tackling this issue on many fronts, one of the areas I’m most excited about is how we’ve adopted the use of PCR into our film designs. By driving demand for PCR into films, we can help support the investment thesis for recyclers and reprocessors to invest in the appropriate equipment and technology to truly build a circular economy.
Q: Please comment on how 2019 went for your company and what you feel its major achievements were during the last year.
A: We headed into 2019 with some uncertainty surrounding the economy. Recessionary fears, low unemployment, and trade tensions were all over the headlines and gave us every reason to believe this would be a very challenging year. We stuck by the game plan and stayed laser-focused on execution and staying attentive to our customers’ needs. So I’m glad to say 2019 was another good year for us as a company.
EQUIPMENT SUPPLIER
Q: As we enter a new decade, what do you see as the prospects for your company and the packaging market in general in 2020?
A: In 2019, Totani America had the best year in our history. Totani America is almost 16 yearsrs old. Totani Corporation, based in Japan, was founded in 1952 and incorporated in 1961.
It may be hard to top this record year in 2020, however we do expect to have an above average year at Totani America as we have a good number of machines already on order.
Q: What are some of the biggest challenges this industry currently faces? How do you think those challenges will change throughout 2020?
A: One of the challenges for equipment makers is to come up with solutions to effectively process more sustainable flexible packaging materials, including biodegradable, recyclable and recycled materials. Adding to the challenge is the fact that the materials themselves are evolving quickly. This is a tribute to the material manufacturers and suppliers.
Q: What new product features are brand owners and co-packers seeking in materials and machinery for flexible packaging, and what trends are driving these demands?
A: Sustainable flexible packaging pouches and materials is a trend, including biodegradable, recyclable and recycled materials. This includes our trademarked Box Pouch and stand-up pouches supplied in recyclable formats or made with recycled content. Our traditional Box Pouch made with nonextensible films continues to grow in many markets including lawn and garden, human food, coffee, tea, but most especially in pet food.
Q: These days, the use of plastics — a major component in flexible packaging — seems to be under attack. How should the industry address this issue?
A: Educating the consumers on the benefits of flexible packaging has to be an ongoing effort. We need to increase our promotion of flexible packaging as one of the answers to this issue.