Packaging Effects on Climate Change: Flexibles

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1 Packaging Effects on Climate Change: Flexibles 2017 Annual NYS Recycling Conference November 7-9, 2017 Cooperstown, NY Alison Keane, Esq. President and CEO

2 By the Numbers Flexible Packaging $30 Billion in US $86 Billion Worldwide #2 at 19% of Packaging Market in US Behind Corrugated at 23% #1 at 39% of Packaging Market Globally In front of Rigid at 28% Fastest Growing Sector in the Packaging Industry Flexible Packaging Association. All rights reserved.

3 By the Numbers U.S. Packaging Industry 2017 Total U.S. Packaging $164 Billion Misc Rigid Plastics & Bottles 16% Glass 3% Others 15% Metal Cans 11% Flexible 19% Paperboard 13% Corrugated 23% "Value-Added" Flexible Packaging $23.5 Billion, 78% Total Flexible Packaging: $30.2 Billion Source: U.S. Census Bureau 2015 ASM Census and FPA estimates for 2016 total revenue Other Poly Bags and Wraps $1.5 Billion, 5% Consumer Products $3.0 Billion, 10% Retail Poly Bags $2.2 Billion, 7% Flexible Packaging Association. All rights reserved.

4 By the Numbers U.S. Flexible Packaging by End-Use Flexible Packaging Sales by End-Use Market: $30.2 Billion Food $ 14.9 B 49% Beverage $ 2.7 B 9% Pet Food $ 1.5 B 5% Personal Care $ 1.8 B 6% Tobacco $ 0.9 B 3% Consumer Products $ 2.4 B 8% Medical & Pharma 2.7 B 9 % Other Non Food $ 1.5 B 5% Industrial Applications $ 1.8 B 6% Source: FPA 2016 State of the Industry Report data Flexible Packaging Association. All rights reserved.

5 By the Numbers Converters Material Purchases Flexible Packaging is composed of 90% plastic Total Industry Material Purchases Estimated Value is $16.6 Billion Paper 7% Inks 8% Resins 23% Coatings & Adhesives 4% Other 8% Foil 4% Film 46% Film Polyethylene: 41% Polypropylene: 28% Polystyrene: <1% Polyester: 16% Nylon: 3% Resin Polyethylene: 79% Polypropylene: 14% Polystyrene: >1% Polyester: 1% Nylon: 1% Source: FPA 2016 State of the Industry Survey preliminary data Flexible Packaging Association. All rights reserved.

6 Trends - As Consumer Behavior Goes, so Goes Branding and Packaging Flexible Packaging Association. All rights reserved.

7 Trends Sustainability is Hot! Consumers may not define it the same way More millennials are concerned about Climate Change than believe in God Flexible Packaging Association. All rights reserved.

8 Trends Top Attributes of Flexible Packaging Portability Portion Control Convenience Freshness Sustainability Flexible Packaging Association. All rights reserved.

9 Trends Plastics have a Bad WRAP Flexible Packaging Association. All rights reserved.

10 Trends Plastics are Actually the Solution! Sterilization Packaging Manufacturers Council Flexible Packaging Association. All rights reserved.

11 Trends Consumers to Retailers to CPGs Consumers drive retailers Retailers drive Consumer Product Companies Consumer Product Companies drive packaging design Climate change (green house gas emissions) is the number one issue Takes a lifecycle approach Plastic flexibles fill the need Flexible Packaging Association. All rights reserved.

12 Flexibles use Less Waste in the First Place Before it ever gets to the consumer, flexible packaging: Consumes less energy and fewer natural resources Generates less CO 2 emissions Results in higher product to package ratio Requires fewer trucks for transportation, using less fuel and creating less emissions Generates less CO 2 emissions Protects the product to limit product waste that would generate further environmental detriment How much energy it takes to make and ship a new product to replace a damaged one Flexible Packaging Association. All rights reserved.

13 Flexibles use Less Waste in the First Place Flexible Packaging Association. All rights reserved.

14 Flexibles use Less Waste in the First Place Flexible Packaging Association. All rights reserved.

15 Flexibles use Less Waste in the First Place Flexible Packaging Association. All rights reserved.

16 Flexibles Extend Food Shelf Lift OR DEQ Report on Packaging and Wasted Food (2017) Average carbon footprint of food production, processing and packaging Flexible Packaging Association. All rights reserved.

17 Flexibles Extend Food Shelf-life 40% of food is wasted once it gets to the consumer Packaging extends shelf life exponentially Food waste is reduced from 11.0% to 0.8% when bread is packaged polypropylene film. in biaxially oriented Flexible Packaging Association. All rights reserved.

18 End of Life Management Recognizing that End-of-Life Management is not the litmus test for sustainability, recycling and other options are available Again, consumer demand drives solutions 50% of flexible packaging is recyclable Store Drop-off Programs (WRAP and Terra Cycle) Recycled into new plastic pellets to be reused More Consumer Education is needed How to Recycle label (Sustainable Packaging Coalition) Flexible Packaging Association. All rights reserved.

19 End of Life Management Sustainable Packaging Coalitions How to Recycle Label Clear direction to the consumer Product and Packaging evaluated and vetted under FTC Green Guides WRAP Program New Terra Cycle Database Flexible Packaging Association. All rights reserved.

20 End of Life Management Flexible Packaging Association. All rights reserved.

21 End of Life Management For the 50% that is not recyclable, there are solutions Waste to Energy should not be dismissed Hefty EnergyBag Program Dow w/fpa Support 1 st Pilot Citrus Heights CA 1/3 of targeted homeowners participating 8,000 EnergyBags collected in three months 512 gallons of synthetic crude oil produced. 2 nd Pilot - Omaha, NE Voluntary participation from 8,500 households 17,000 orange bags of material or 9.5 tons since it was launched 9/ Flexible Packaging Association. All rights reserved.

22 End of Life Management Materials Recovery for the Future Sponsored by ACC, FPA, various consumer product companies and retailers Mission: Flexible packaging is recycled and the recovery community captures value from it 2018 Demonstration project Flexible Packaging Association. All rights reserved.

23 The Problem Isn t Plastics It is Litter Environmental Cost of Plastics in Consumer Goods Ø $139 Billion Annually Environmental Cost of Alternatives Ø $533 Billion Annually Ocean Damage, End of Life Management, Transport, Production, Materials Energy and Recovery Flexible Packaging Association. All rights reserved.

24 The Problem Isn t Plastics It is Litter Solutions: Taking a lifecycle approach to measuring solid waste minimization and management concentrating on green house gas and climate change issues; including end of life management as part of the over all solution Including recovery solutions in our solid waste management planning and measurement Better education of consumers of solutions that exist today to get plastics out of the waste stream Continuing research and innovation to bring plastics into current or tweaked solid waste infrastructure Flexible Packaging Association. All rights reserved.

25 Thank You! Questions? Alison Keane Flexible Packaging Association. All rights reserved.