For years we have relied on a take-make-waste cycle: taking raw materials, making them into products to be used and then wasting whatever’s left over.
But in recent times there’s been a growing focus on how to close the loop in the cycle and operate more sustainably: how to create a circular economy. Like the cycles of nature, a circular economy works by giving and taking in equal measure — reducing or even eradicating waste by reusing and recycling resources for as long as possible.
Every business can work towards achieving a circular economy through paying more attention to the packaging materials they use. For example, you can offer reusable crockery, offer recyclable packaging or provide cups and containers made from recycled materials that can continue to be recycled as opposed to using plastic packaging that ends up in landfill.
Why a Circular Economy Matters for Your Business
As single-use plastic (SUP) bans come into action, businesses should start to prepare now. Putting packaging sustainability on the agenda can protect you against any impact to future profitability, while also leading to a reduction of waste even sooner. That’s great for your business, and the environment.
In 2008, bans surrounding SUPs began unfolding in the states and territories across Australia. The first plastic product to be banned was the lightweight plastic bag in South Australia who introduced a ‘Zero Waste’ program. This inevitably triggered changes across Australia over the next decade where the lightweight plastic bags were officially banned nationwide. Since this, every state and territory has been part of SUP bans on utensils, foodware, drinkware, food packaging, bags and other items, with the most amount of changes occurring in the hospitality industry.
If SUP items like straws, cutlery, containers and more aren’t already banned in your state, chances are they will be soon as Australia has planned to reduce 80% of their plastic waste by the year 2030. This is to reduce the amount of plastic waste entering landfill and to promote a circular economy.
Unfortunately, the most commonly used plastic items according to the WWF Australia are:
- Plastic straws - almost 1.3 billion straws were used in Australia in 2020. Currently these are banned in most states and territories but will be completely banned across the country by 2025.
- Plastic drink stirrers - these have been replaced by wooden or bamboo stirrers.
- Balloons - CSIRO research has shown that balloons are one of the most high risk plastic waste for wildlife.
- Plastic cotton buds - 1.5 billion of these are made every day in Australia
- Coffee cups & lids - approximately 1.8 cups and 1.5 billion lids are used annually by Australians.
- Plastic cutlery - a difficult item to recycle, plastic cutlery is now banned in most states and territories.
- Plastic cups - 910 millions plastic cups are used by Aussies every year. These range from lightweight polystyrene to PET based plastic cups.
- Plastic food service containers and plates - while polystyrene containers and plates are out, other SUPs are still being used in many states and territories.
Of these items, 70% will appear and are essential in any food service business like cafes and restaurants, impacting the products that you stock.
Benefits of Adopting Circular Economy Practices
While converting to packaging that contributes to a circular economy can be a big change for businesses, there are many benefits that can improve your brand image and reduce your environmental impact.
Cost Savings
The assumption with using circular packaging is that it can be more expensive for businesses but it may have the opposite impact. With 37% of consumers prioritising sustainability when making buying decisions, businesses who provide packaging with positive environmental features will be able to increase their customer base.
Environmental Impact
From 2020 to 2021, 6.74 million tonnes of packaging was available. Of that 86% had good recyclability but 35% wasn’t processed correctly, leaving a total of 44% being sent to landfill. If all the landfilled packaging had been recycled from this report, there could’ve been a reduction in greenhouse gas emissions by 2.2 million tonnes. In order to improve packaging waste, the Australian Packaging Covenant Organisation (APCO)introduced the 2025 National Packaging Targets where they plan to support this by working with all governments and industries to ensure all packaging in Australia is in line with circular economy principles. Preparing your business for these changes is crucial in getting ahead of regulations and means you can do the right thing by providing circular packaging solutions.
Consumers Preference and Brand Loyalty
Using recycled or reusable packaging for your business can create brand loyalty for your customers as the 2021 Global Buying Green Report states that 83% of young consumers are willing to pay more for sustainable packaging. As consumers continue to look for more sustainable packaging solutions, businesses who adopt these changes will more than likely create better brand loyalty and awareness among their customers.
Key Principles of Circular Economy for Packaging
According to the Ellen McArthur Foundation the circular economy is based on three key principles:
Eliminate waste and pollution
The first core principle is to eliminate waste and pollution. As our current linear economy works as a take-make-waste system it’s important for businesses to evaluate this and understand that this isn’t a sustainable practice. The problem starts with the design of packaging, which is made to be disposed of instead of reused and recycled. This first pillar is the first step in creating a circular economy.
Circulate product and materials
The second principle of a circular economy is to circulate products and materials at their highest value, keeping materials in use either as a product that can continue to be reused or as raw materials to be created into another product. This means that nothing becomes waste because it continues to circulate.
Regenerate nature
The final key pillar to a circular economy is to regenerate nature. By changing our linear economy system for packaging to a circular economy, we are allowing nature to thrive in its element supporting this process. Moving to a circular economy allows a shift in focus from extracting raw materials that will be made into packaging to allowing nature to regenerate as we continue to reuse materials that can continue past its end-of-life.
How Circular Economy Reduces Environmental Impact
With 95% of the materials we use not being recycled or reused, converting to a system like a circular economy will reduce the amount of waste that ends up in landfill.
A circular economy can reduce a businesses and individuals environmental impact by eliminating problematic plastics like lightweight shopping bags, fragmentable plastics and expanded polystyrene. It also will ensure that materials and products will never become waste as they are kept in circulation through regular maintenance, reuse, recycling and composting.
By implementing a circular economy in Australia, we would be reducing our dependence on raw materials which is becoming more and more limited in our country. If we were to continue to use these raw materials we would also become dependent on importing them from other countries.
Implementing Circular Economy in Your Packaging Strategy
There are a variety of renewable materials on the market currently that can help your business in their circular economy goals. Each one can offer different benefits that will suit different business needs.
When looking at disposable food packaging, the advantages of a sustainable material like wood pulp paper is seen in its sturdiness, versatility, and ability to block natural light. Wood pulp paper is made from a renewable resource and can be recycled in kerbside collections as long as it is unlined or – products that are unlined, or have a bioplastic lining, can be composted in industrial facilities under specific conditions.
Bagasse is a fibre leftover after the sugarcane is crushed to produce sugar that would otherwise be thrown out if not repurposed. When repurposed, not only is it considered a renewable material, but it can be composted in industrial composting facilities under specific conditions. Products made from sugarcane can be durable, grease and water resistant for both hot and cold water and can be microwavable and both fridge and freezer safe.
Another renewable material that’s popular for disposable food packaging is bamboo. Bamboo is a fast-growing plant that can be harvested without killing the root system. Bamboo can be composted in industrial composting facilities under specific conditions, making this a renewable material.
