WPO (World Packaging Organisation) President Prof Pierre Pienaar shares his valuable thoughts on the current global economic scenario and how the packaging industry has responded to this unprecedented pandemic
Packaging MEA (PMEA): How do you think the packaging industry will evolve in Q3 & Q4 of 2020?
Prof Pierre (PP): I see many challenges. During Covid-19, huge demands were placed on the global packaging industry and this will continue to the end of this year. More packaging is required in the Covid-19 scenario due to a sudden increase in demand, and the industry is not geared up for it. We are now getting to a point, three or four months down the track, where we are getting into a mould where we can meet those demands within our own countries, but cross-border trade has taken a bit of a knock.
Since Covid-19 struck, I have been meeting continuously, in some cases every week, with counterparts across the world and establishing what is going on in each sector, area and region. Not much is going to change in Q3 and Q4. However, I do foresee more emphasis being placed on safety in packaging.
PMEA: What do you see as the greatest opportunities in packaging over the next few years?
President
World Packaging Organisation
PP: I see a bright future. I see a lot of opportunities that come with a lot of challenges, and sustainability is the biggest. More demand for packaging will have a direct bearing on sustainability. Meanwhile, worldwide, the packaging industry may be worth $1 trillion within the next few years.
PMEA: Is “deep localisation” of the packaging industry possible in a globalised, interconnected world?
PP: We are a very interconnected world. However, Covid-19 places more demands on the industry in your own country. This will expand to regions – the Scandinavian countries doing things among themselves, for example. You will find Eastern Europe doing their own thing, Western Europe, Canada, US, South East Asia along with Australia and New Zealand forming the so-called bubbles concerning opportunities and expanding the horizons in those countries within the bubble.
So, yes, this is the localisation trend of the moment. However, we also have a situation of deglobalisation. in some parts of the world. Relationships are breaking down in certain parts, for example the USA and China, USA and Russia.
This poses an adverse reaction/situation to globalisation. But as governments change, these things can be rectified as we move back to a globalised world, and this enormously helps in sharing our tiers, trade and focus on who does things best at the base price. If there is a particular element of packaging, for example in polymers, you will find the dominance of polymers coming from one region because they have the infrastructure, whereas other countries might be better in paper and board.
PMEA: Brand owners and converters alike have changed their packaging and fulfilment supply chain strategy since the pandemic. Will e-commerce overtake retail shopping?
PP: This brings me back to globalisation and localisation, and the best people to do certain aspects of packaging. This strikes at the heart of the supply chain strategy, whereby you want to maximise efficiency in moving goods. You do this by getting certain products from certain parts of the world.
Having said that, one has to strengthen globalisation and ensure we have good trade deals. It affects front-line brand owners, because we have multinationals in numerous countries. They then buy for all their regions from a particular source. This way, you are maximising your efficiency, improving your throughput by increasing your total quantity and you are buying a particular item from a particular area. There are a lot of opportunities. Now, in this pandemic scenario, we are realising the benefits of such a situation and maximising those outcomes.
Due to the pandemic, people are reluctant to visit shops. In the case of online purchases, this demands more packaging and the repercussions are massive. The supply chain logistics and the entire sector catapults, meaning more trucks on the roads, more fuel, more tyres, and this boosts employment. The outcome is very positive. There is a silver lining to this pandemic.
PMEA: Most of the industry’s equipment and consumables manufacturers and suppliers have a base or partnership with Chinese companies. With tensions between the US and China increasing, how will this pan out?
PP: China is a very strong player in the WPO. I have a lot to do with the Chinese and I spend a fair amount of time in China. USA and China have had some differences. At the same time, other countries now have the opportunity to get into trade discussions with China and the USA. This is a hugely positive step because there are a lot of other countries that are producing certain goods and China with 1.4 billion people is a lot of mouths to feed. I don’t think that the tension between the two countries will affect the rest of the world. Chin is a lovely country, lovely people, beautiful culture. When you understand them and respect them, trading becomes easier.
PMEA: Australia and New Zealand have done well in curbing and controlling Covid-19. What is the secret? What can the rest of the world learn from them?
PP: There’s no secret. They swung into action immediately. Australia banned flights from China on January 31. In New Zealand, they were extremely strict and they went to level 4, and Australia went to level 3. Five of seven Australian states shut their borders, resulting in a positive outcome. The overwhelming success is accredited to the people. They listened to the authorities, took their advice, stayed home very early in January and February, which stopped the spread.
We want to become more self-sufficient and this is what the pandemic has taught many countries. Certainly, there are other items some countries cannot manufacture. Many years ago, many countries manufactured many items themselves. I think there will be some focus post-Covid-19 when they work out strategies for future pandemics.
PMEA: With food safety taking prominence during this pandemic, plastics with multiple layers and barriers are preferred. This to some extent brings plastics back to the forefront of demand and keeps sustainability and recycling on the back foot. Will this trend continue?
PP: Along with food safety comes shelf life. There is a direct correlation between the two. With extended shelf life comes barrier structures and bringing different material constructions together to form high barriers impacts on recyclability. But there is a lot of research being done around the world, and some great ideas are coming through. A lot of those are linked to nanotechnology. In packaging and barrier constructions and the actual material science aspect, we carefully look at nanotechnology and the enhancements it can bring to material constructions and barrier performance. One of the many different ideas coming out of R&D labs is trying to create a mono structure using nanotechnology. By manipulating the molecular structure at a nano-level, we create a different end product that could have enhanced barrier properties, but it’s a mono film and therefore it makes it more recyclable. It is easy to recycle in a monolayer and there is a lot to be said for nanotechnology in this particular space. This way, we boost recycling. We need to drive the recycling aspect to reduce the impact on natural resources. The WPO is very involved in this. One of my goals is to reduce packaging waste along with food waste. This way we can reduce poverty and enhance education. The picture changes for the generations to come.
PMEA: What steps is WPO taking to improve sustainability?
PP: The importance of sustainability to the WPO is paramount. We give out a World Stars award every year to promote sustainability and sustainable packaging. We partner with Unido (United Nations Industrial Development Organisation) in various sustainability projects around the world. We will continue to work hard on the sustainability aspect as it forms part of our worldwide education programme.
PMEA: Tell us something about yourself that may be a surprise.
PP: I never thought about packaging when I began my studies at university. Initially, I studied pharmacy. But now I am passionate about packaging; I sleep, eat and drink packaging. It has taken me to all four corners of the world. The travel is a huge privilege. I enjoy meeting people and sharing knowledge, experience and expertise. There are 60 countries in the WPO and I am trying to cover all of them.
PMEA: How does it feel to pilot the WPO during these challenging times?
PP: It is such a fulfilling role, because the more you give, the more you get. It has taught me a lot in understanding and listening to people. We mould better packaging for the future because we want a better quality of life. My role is to bring out the best in those I deal with.
Yes, it is an esteemed organisation, the only global organisation in packaging that encompasses so many countries and covers the entire spectrum of packaging from R&D to academia to industry to supply chain. There is no aspect of packaging that we do not cover in some way. I’ve seen enormous strides in the past two and a half years. I have every inclination to do even more. I know that as we grow together improving packaging, we will fulfill the requirements of better sustainable packaging, better environment, cleaner countryside, more educated people. It only spells well for the future.