CPP INSIGHTS Magazine - July 2021

In this issue

FIVE KEY TRENDS are emerging that will shape sustainable packaging and related investable themes over the next few years. First, consumers are highly aware of sustainability issues, with their concerns accelerating, but they remain confused. Second, in response to public outcry, sustainability regulation for packaging is now both global and increasingly ambitious, but it has become a complex landscape for corporations to navigate (with accelerating consumer sentiment also making it harder for companies to plan reliably). Third, across regions there are critical gaps around waste collection, recycling systems, and technology, limiting significant changes in the packaging value chain over the near term. Fourth, leading fast-moving consumer goods (FMCG) companies and retailers remain committed to transforming their portfolios, but large-scale market adoption of innovations is slow. Lastly, until further notice, plastics are here to stay, with an emerging green premium on recycled raw material. Additionally, sustainability in packaging needs to be managed to reflect regional differences and in conjunction with megatrends. In response to this emerging outlook, specific investable themes across the full packaging value chain can be seen. In order to avoid missing out on any of these themes, we suggest starting with a few questions regarding materials and processes.