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CPG Procurement Heads Leaning towards Paper Packaging. Know Why

As Procurement leader operating in the Consumer-Packaged Goods (CPG), you’re likely feeling the pressure to embrace more sustainable practices. Today’s consumers, especially after the pandemic, are looking for ways to reduce their carbon footprint. In India we have seen a trend emerging among top CPG brands – the switch to flexible packaging, specifically paper packaging.  

Although the initial acceptance was sluggish, the rate of adoption has increased over the last couple of years. Industry giants like Walmart and PepsiCo have paved the way and are reaping real benefits by pioneering innovative practices that are driving this shift.  

The story holds true not only for massive organizations with larger sustainability targets and budgets but also for various smaller hyperlocal startups. It’s time we understood the real reasons behind this growing wave and why now is the prime moment for your company to make the switch with the right partner like Moglix Packaging

 
Paper Packaging is Versatile 

Although the initial reason for accepting paper in packaging has been its green properties, the real reason why industries have persisted and embraced paper packaging is because of its versatility.  

Advancements in manufacturing and design tech over the last decade have allowed for a wide range of paper packaging solutions, including rigid packaging for cereals and flexible packaging for snacks. Like plastic, Paper packaging is easily customizable, offering protection and a unique look that stands out on the shelves. 

Curb Environmental Impact  

Despite the popular belief, paper is not completely green, but the circularity it brings to the entire packaging ecosystem makes it a powerful raw material. Unlike poly bags, paper bags are biodegradable and far less complex to recycle. 

The Central Pollution Control Board (CPCB) recently stated that India generates around 3.3MT of plastic waste annually. Shifting to paper packaging can significantly mitigate this environmental burden. 

Government Regulations and Initiatives 

Historically, the Government of India (GoI) has managed the plastic waste problem at State and Municipal levels, through education, bans and fines.  

In 2022, India brought into effect the Plastic Waste Management Amendment Rules (2021) that banned 19 categories of single-use plastics.  

Considering India is the 3rd largest producer of plastic in the world, these norms are going to push India up the global league when it comes to sustainable choices. By adopting paper packaging, you’re not just complying with these regulations—you’re staying ahead of the curve.  

E-Commerce needs Paper Packaging 

As per some estimates India’s e-commerce industry generated around 98000 tonnes of packaging plastic waste in 2021, that is equivalent to 98000 small cars. What is even more grave is the fact that this was a 73% increase compared to 2020.  

E-commerce players with huge market penetration like Flipkart, Amazon India, as well as small e commerce Startups, are seeking ways to reduce their environmental impact.  The Indian e-commerce market is expected to reach $200 billion (about $620 per person in the US) by 2026, and paper packaging will play a crucial role if this growth needs to be eco-friendly and sustainable. 

Looking Forward 

Paper is lighter than plastic, which reduces shipping costs, but there is no argument that transition to paper packaging is costly, but in the long run it will result in cost optimization, savings and positive brand image. 

Additionally, it can streamline your supply chain by simplifying the recycling process and reducing waste management expenses.  

Understanding these benefits will allow you to make a shift that will enhance the overall efficiency of your procurement process. Paper packaging can’t be seen as an alternative anymore; it is one of the preferred choices for leading CPG brands in India that aim to make a positive impact on the planet and their bottom line. 

Procurement Leaders, by embracing this change, are positioning their brand for a sustainable future. 

Moglix Packaging Solutions offer a variety of custom packaging solutions, and our packaging experts can assist you in personalizing the packaging requirements for your enterprise needs. Know more on how to seamlessly transition to paper packaging here.

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