THE POWER OF PLASTICS IN DAIRY - WELCOME TO THE FUTURE OF PACKAGING - Brandbank
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THE POWER OF
PLASTICS IN DAIRY
WELCOME TO THE FUTURE OF PACKAGING
WE CREATE, MANAGE AND SYNDICATE FMCG PRODUCT CONTENT FOR OMNICHANNEL USE.
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Copyright
Copyright © 2018
© 2018 TheThe Nielsen
Nielsen Company
Company (US),
(US), LLC. LLC. Confidential
Confidential and proprietary.
and proprietary. Do not distribute.
Do not distribute. 1THE POWER OF
PLASTICS IN DAIRY
WELCOME TO THE FUTURE OF PACKAGING
Earlier this year, every major supermarket in Britain pledged to
eradicate unnecessary single use plastics by 2025, under a new “UK
Plastics Pact”.
The agreement organised by Government-backed waste charity,
Wrap, is a world leading collaborative industry initiative which aims to
transform the way businesses use plastic and prevent plastics polluting
the environment. This means that single use plastics will only be
allowed if they are deemed absolutely necessary and are made from
recyclable materials. Recycling units across Britain have also signed the
pledge and will start recycling a wider variety of plastics which currently
go to landfill sites. Already many retailers and manufacturers across
Britain have promoted that all the plastic packaging produced will be
reusable, recyclable or compostable within seven years, up from 45%
today.
Unnecessary plastic packaging such as multi-packs of fruit and
vegetables will be abandoned by retailers over the next seven
years in favour of loose produce. Other key areas that retailers and
manufacturers are focusing on area ready meals and removing the
black plastic trays as well as non-recyclable plastic wraps on items
such as yoghurts, juices, herbs and flowers. The move to recyclable
plastic could also see the end of squeezy bottles of table sauces such as
ketchup and mayonnaise, as the silicone component can contaminate
other recycling materials. Additional to this, products made by
polystyrene such as snap pots of yoghurts, beans and other foods may
also be under threat as not all material is recyclable across Britain.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 2DAIRY INNOVATION
The growth of healthy eating in the UK has resulted in the population
changing their shopping habits and purchasing options that are both
healthy and convenient. The dairy sector is driving much of this growth
with soya milk, shakes and yoghurts among the more common changes
in consumer’s purchases.
Despite milk being well known as a good source of nutrients including
protein, calcium and vitamin D, cow’s milk is no longer a key part of the
population’s diet as many consumers now purchase alternative options.
With 3.5 million Brits following a vegan diet, consumers prefer to have
plant based milks such as soy, almond, rice or coconut. Trends have also
shown an increase in the number of dairy free consumers in response
to an intolerance to milk.
UK supermarkets have had to adapt to these changes and preferences
over the past couple years as consumers now expect these products to
be available to purchase at any time, any where. Changing consumer
purchasing habits have presented a challenge to wholesalers and
retailers alike, as they have had to adapt sales and distribution
channels to meet consumer needs. One of the biggests challenges now
is reducing the amount of plastic used in its packaging, as the dairy
category is a big contributor to the plastic debate.
THE EIGHT KEY DAIRY CATEGORIES
FRESH MILK MILK SUBSTITUTES LONG-LIFE MILK MILKSHAKES
FRESH CREAM LONG-LIFE CREAM SPECIALITY EVAPORATED &
CREAM CONDENSED MILK
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 3THE CURRENT
SITUATION
With recent news focusing on plastic waste and how it is ‘one of the
great environmental scourges of our time’, Nielsen Brandbank has
taken a look into how the dairy category is contributing to this and what
manufacturers are doing to fight plastic waste.
For years the UK population received their milk via daily milk men
delivering to their front door. But between 1975 and 2015 the amount
of milk sold in glass bottles shrank by 90%, resulting in manufacturers
using plastic as their main packaging material. Unfortunately with
this change, it meant that the dairy category began to contribute to
the plastic waste with 80% of the 6.3 billion tonnes of plastic waste
generated in 2015 going to landfills.
Over the past five years there has been a 5% decrease in the amount
of plastic used in the fresh milk category, however with fresh milk
alternatives becoming an increasingly popular trend within the industry,
NPD in this category has resulted in a 7.5% increase.
100%
75%
50%
25%
FRESH MILK MILK SUBSTITUTES LONG-LIFE MILK MILKSHAKES
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 4Fresh milk is far from alone in the dairy category when it comes to
contributing to the environmentally damaging plastic issue. Dairy drinks
such as milkshakes are the fastest growing, and 60% of their products
are made up of plastic, reduced from 68% in 2012. With sales increasing
8.5% on volumes up 6.1%, it is clear to see that NPD such as breakfast
drinks, ready-to-drink coffee and protein-enriched products are being
driven by the increasingly busy lives that consumers lead, contributing
to the need for on-the-go snacking.
CAN DAIRY REALLY GO
PLASTIC-FREE?
For many dairy brands, the move towards more sustainable packaging
has already started. In 2008 the Dairy Roadmap was launched and has
seen 85% of HDPE (high-density polyethylene) milk bottles now recycled
by UK dairy processors and more than 95% of tertiary packaging made
from reused or recycled material.
In other categories, bioplastics - entirely renewable plastics made from
plant based sources such as sugars or tree saps have already gained
traction with Innocent Drinks launched a bottle made from 14% sugar-
cane plastic in April.
Change to the type of packaging used on dairy products will cause
significant challenges to many suppliers, as millions of pounds have
been invested in recent years to integrated plastic bottling over
glass milk bottles. Iceland who have committed to ditch single-use
plastic from its shelves by 2023 said that ‘we have now briefed all our
suppliers on the removal of plastic, this will require substantial capital
expenditure and investment, which will not happen in the short term.’ It
is likely that the industry will see smaller, tertiary brands and businesses
will move into the new packaging first and lead the way with bigger
companies following.
In response to the growing public backlash against the huge volumes
of plastic rubbish, the UK’s largest supermarkets have signed up to
support the UK Plastics Pact. Asda, Morrisons, Tesco, Sainsbury’s and
Waitrose are among the 97 businesses that are supporting the new
pledge to transform the UK plastic packaging sector by meeting four
world-leading targets by 2025.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 5BY 2025, BY 2025,
100% 70%
OF PLASTIC PACKAGING TO BE REUSABLE, OF PLASTIC PACKAGING EFFECTIVELY
RECYCLABLE OR COMPOSTABLE. RECYCLED OR COMPOSTED.
BY 2025, BY 2025,
ELIMINATE SINGLE-USE
PACKAGING 30%
THROUGH REDESIGN, INNOVATION OR AVERAGE RECYCLED CONTENT ACROSS
ALTERNATIVE (REUSE) DELIVERY MODELS. ALL PLASTIC PACKAGING.
WHAT’S NEXT?
While the shift to plastic free supermarkets isn’t easy for manufacturers
and retailers, it is not impossible. UK retailers are currently working
hard to create plastic free aisles to start the process of optimising their
supermarkets to be 100% plastic free. Currently, this is a challenging
request for the dairy category as some foods require plastic packaging
for food safety and to extend the food expiry date. It is difficult to
predict what the future will hold, but with the support from the
government and campaigns such as Wrap, the dairy industry has the
capability to transform the use of packaging and the amount of plastic
used over the next decade.
Want to find out more? Contact the Nielsen
Brandbank team at enquiries@brandbank.com
or call +44 (0) 330 555 33 44.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 6ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management
company that provides a comprehensive understanding of what
consumers watch and buy. Nielsen’s Watch segment provides media and
advertising clients with Nielsen Total Audience measurement services
for all devices on which content — video, audio and text — is consumed.
The Buy segment offers consumer packaged goods manufacturers
and retailers the industry’s only global view of retail performance
measurement. By integrating information from its Watch and Buy
segments and other data sources, Nielsen also provides its clients with
analytics that help improve performance. Nielsen, an S&P 500 company,
has operations in over 100 countries, covering more than 90% of the
world’s population. For more information, visit www.nielsen.com.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 7You can also read
