What Is Eco-Friendly Packaging? A Guide for Businesses

Eco-friendly, sustainable or green packaging is the practice of packaging goods in a way that has the lowest negative impact on the environment. It involves using biodegradable, natural, or recycled materials to package products for shipment. Businesses can make their packaging more eco-friendly by reducing, recycling and reusing packing materials.

As sustainability has become a top priority for people and governments around the world, businesses need to practise eco-friendly practices to stay relevant. Many brands have embraced good practices like reducing packaging materials and preventing wastage. Using eco-friendly packaging wins over customers, reduces unnecessary costs, builds a reputation, and keeps businesses prepared for changing regulations.

India’s rapid economic and infrastructural growth, with the rise of e-commerce and quick-service deliveries, has massively increased the usage of packaging. The packing materials, including boxes, wrappers, films and parcels, are made out of non-biodegradable plastic. As these materials are discarded after a single-use, plastic pollution in the country has climbed to unprecedented levels.

According to the United Nations Environment Programme (UNEP), around 0.36
of all plastics manufactured in the world are used for packaging, and most of this is single-use plastic. All of this plastic usage has created an ecological crisis, including the formation of large garbage patches in oceans, overflowing landfills, microplastics in food, and the release of toxic chemicals from decomposed plastic.

With people around the world becoming aware of the crisis, sustainability has become a vital factor in determining the preferences of consumers. Companies that recognise the need for eco-friendly packaging and products can not only save costs and make profits but also be a part of the larger movement to protect the world.

Businesses have a multitude of reasons and incentives to switch from traditional polluting packaging to environmentally friendly packaging:

To Appeal to Customers

Today, people all over the world care about sustainability, and many are even willing to pay a premium for eco-friendly products. Businesses that use green packaging demonstrate their care for the environment and their customers’ convictions. Customers prefer such sustainable brands and promote them to their friends and family.

To Reduce Their Environmental Impact

Many businesses proactively lower their carbon footprint and adopt environmentally friendly measures. By reducing carbon emissions and pollution from their activities, they get ahead of their competition and capture the public's attention. This sets a precedent that other companies have to follow.

To Reduce a Variety of Expenses

Businesses need to meet a variety of expenses, such as packaging, warehousing, and transportation. Sustainable packaging practices, such as reducing packing materials and using smaller and lightweight boxes, reduce such unnecessary expenses. By maximising the number of goods per delivery, businesses also lower their carbon footprint on transportation.

To Stay Ahead of Government Regulations

To counter climate change and pollution, governments all over the world have introduced stricter environmental regulations. In India, regulations, such as Plastic Waste Management Rules and the Single-Use Plastics Ban, heavily penalised non-complying businesses. However, those who stay ahead of the curve can avoid such impacts and benefit from eco-friendly practices.

To Improve Supply Chain Management

Implementing eco-friendly packaging practices optimises the usage of spaces like warehouses, distribution centres and delivery vans. Sustainable packages are easier and less expensive to deliver, which makes supply management easier. They also enhance customer satisfaction with attractive packaging and improved delivery experience.

Eco-friendly packaging materials fall into one of the following broad categories:

Biodegradable Packaging: These are made from natural and organic materials that can be broken down by microorganisms present in soil and water. These are ideal for disposable and one-time use packaging items. Cornstarch-based plastics, paper bags, sugar fibre packaging, etc., are some examples of biodegradable packing materials.

Reusable Packaging: This involves using durable packaging materials that can be reused multiple times by the supplier and consumer before being discarded. Businesses can pack items in cloth bags, glass jars, reusable pouches, and metal tins. Some businesses offer incentives to return the packaging materials after use.

Recycled Packaging: Businesses can use recycled materials, such as recycled paper, cardboard, plastics, aluminum or glass packaging materials. This not only reduces wastage but also supports a circular economy where natural resources are used multiple times.

Compostable Packaging: The main difference between biodegradable and compostable materials is that the latter decomposes much more quickly. For a material to be called compostable, it must decompose within 90 days in commercial settings and 180 days in home settings. Kraft paper and plant-based polylactic acid are compostable materials used for packaging.

PCR Packaging: Post Consumer Recycled (PCR) packaging is made from already recycled materials. They are produced from plastics, such as PP, PET, and HDPE, which are collected, ground up, and recycled for a second time into a plastic resin. These are ideal materials for businesses that are truly committed to saving the environment.

There are many different types of packaging materials used to make eco-friendly packaging. With research and government funding, more options are being explored and brought to the market. Here are some popular materials:

Recycled Paper: Paper is already one of the most popular packaging materials due to its availability, cost and recyclability. However, producing paper has a high carbon footprint. With recycled paper packaging, you can get the benefits while reusing the materials.

Corrugated Bubble Wrap: While traditional bubble wraps are useful for protecting fragile items, they contribute to plastic waste generation. Corrugated bubble wrap can be made from upcycled cardboard waste while offering the same functionality.

Compostable Foam: Compostable foam can be made from chitin, a byproduct of the seafood industry. Chitin is also a widely available compound found in insects and crustaceans. It can replace plastic foam and styrofoam packaging.

Agri-waste Materials: As an agriculture-dependent country, India produces a lot of biowaste and agricultural waste that is usually burned for disposal. Instead, they can be repurposed into biodegradable trays, boxes, and other eco-friendly packaging materials.

Seaweed Packaging: Many seaweed-based foods, such as edible seaweed, livestock feed and agar agar, have gained popularity in recent years. The byproducts can be used to create 100% biodegradable single-use plates, cups and packing materials.

Biodegradable Plastics: In recent years, organic plastics that can be decomposed by microorganisms have been invented. Bioplastics can be made from wheat, corn starch and sugar cane. Another option is polyhydroxyalkanoates, which are microbial polyesters made using certain microorganisms. These have largely replaced single-use plastics in India after their nationwide ban.

Organic Textiles: Many businesses are using organic textiles as packaging materials from organic hemp, recycled cotton, palm leaves, and tapioca. Of these, hemp is one of the most promising materials due to its toughness, durability and very low weight. It’s used to make bags, bundles and other packaging items.

If you want to implement sustainable packaging for your business, it involves more steps than just switching the materials. Here are the complete steps:

Step 1: Conduct an Audit

Conduct a thorough audit of your business’s current packaging needs and practices. Assess your packaging material usage, supply chain structure, customer preferences and overall budget. This will help you identify waste and packaging needs.

Step 2: Choose the Right Materials

Once you know your business’s needs, shortlist materials that meet your performance, cost and sustainability goals. Ensure to choose the right eco-friendly material based on the type of goods to ship, delivery time, climate conditions, and other factors.

Step 3: Look for Suppliers and Logistics Providers

Spend some time looking online and offline at packaging suppliers serving your locality. If you don’t just need materials but supply chain management services, look at the logistics providers and check if they offer eco-friendly packaging. If interested, ask for a quote.

Step 4: Discuss Terms with Your Supplier

Chat with your supplier to get information on the packaging material, including its chemical properties, raw materials, eco-friendliness, and alternative options. Then, find out their delivery terms.

Step 5: Decide Your Packaging Process

With the help of your supplier, redo your packaging process to eliminate waste and introduce sustainable options. Use only the necessary amount of materials, resize your boxes optimally, and eliminate unnecessary additions to your packages.

Step 6: Check Certifications and Submit Your Order

Before entering into a contract to get packaging materials or comprehensive service, do your due diligence on the supplier. Check if they have the necessary licences and certifications, such as ISO or BIS, and their experience. Finally, do a test delivery with a limited order.

Here are some effective tips you can follow to reduce packaging waste and create an eco-friendly supply chain:

• Use more durable packaging and reusable containers to reduce wastage of packaging materials.

• Identify products that don’t require excessive protection and use flexible packaging to transport them.

• Avoid overpacking by avoiding extra foam, bubble wrap, layer and buffers to minimise material usage. You should conduct multiple tests to find the optimal balance between the safety of packages and the amount of material used.

• Give more time to workers to load packages on transports to ensure more efficient packing.

• When considering pricing options for packaging and logistics, consider multiple factors like storage rent, freight charges, total landed costs, losses from damages and customer experience. This lets you pick the most sustainable option.

• Opt for just-in-time delivery services to ensure you don’t have excess goods in storage and transit. By improving collaboration between suppliers, warehouse workers and transporters, you can minimise excess costs and material usage.

• Implement automation and AI to optimise inventory, warehousing and supply chain management. This will re

Eco-friendly packaging is becoming more mainstream, thanks to growing environmental consciousness among consumers and a rise in sustainable practices around the world. If you want to cater to responsible consumers, understand their needs and preferences and ensure to be empathetic in your brand messaging. Take all necessary steps to make your business more sustainable and communicate your efforts.

Sellers and suppliers employing sustainable practices need to safeguard their shipments with a commercial insurance policy to ensure they can fulfil orders during unforeseen situations. To help sellers mitigate their risks, sellers should opt for small business insurance solutions that provide sufficient coverage.

The different types of insurance for small businesses you can opt for are marine insurance, fire insurance, group health insurance and others. If you are a shop owner, you can also get the comprehensive TATA AIG Shop Insurance at affordable premiums to cover your store, equipment and inventory.