“Packaging is a huge challenge for fast moving consumer goods (FMCG) organisations. Around 36% of all plastics produced are used in packaging, yet the majority are not recycled and end up incinerated or in landfill. Consumer demand for greener packaging combined with legislative efforts are piling pressure on companies to accelerate initiatives that tackle packaging waste, forcing trade-offs in the cost, complexity, and resources incurred in more sustainable production.
Technology innovation is solving how FMCG businesses can achieve greater sustainability with smart packaging. By embedding thin, flexible, RFID (Radio-Frequency Identification) chips into packaging and labels, retailers could unlock a whole new layer of circularity by promoting smarter recycling or reuse practices amongst their customers. This additionally offers the opportunity to engage more deeply with customers, providing data-driven insights into buying behaviours, driving more regular interactions, and nurturing loyalty. Smartphones could confirm a product’s unique ID with a simple tap to allow retailers to j track when customers have accurately or repeatedly recycled products, fuelling rewards and deposit-return schemes.
Food waste is another sector where sustainability is a priority. Even though it is still good to eat, around 30% of food is wasted annually, contributing significantly to greenhouse gas emissions. RFID powered smart packaging enables temperature and freshness to be monitored, provides guidance on storage and optimal conditions for extending food life, and could potentially detect ripeness or spoiled food, all more accurate than current estimated use by dates. By ensuring packaging integrity and proper storage, smart packaging on food items would render fixed expiry and best before dates redundant, as food beyond these timeframes could still be consumed if it could be checked and found to be edible and safe.
The introduction of digital product passports (DPP) would also help alleviate the rise of counterfeit goods in retail. Instant access to a complete product history provides lifecycle tracking and authenticity data, ensuring buyers can verify genuine articles and make informed purchasing decisions, which is of particular importance in the second-hand market.
These examples illustrate the huge benefits of item-level product information. FMCG companies and their customers would be informed and empowered to make responsible choices that support collective sustainability goals, reduce unnecessary waste, and enhance customer experience and satisfaction.”