Challenges in Sustainable Packaging: Insights from Mondi

British packaging company Mondi acknowledges customer reluctance to adopt sustainable packaging due to cost considerations. Despite providing reusable, recyclable, or compostable options, the shift away from plastic is hindered by short-term distractions and cyclical phenomena.

Challenges in Sustainable Packaging: Insights from Mondi

British packaging company Mondi (MNDI.L) said on Thursday that its customers, including consumer goods companies and e-commerce retailers, have been reluctant to change to sustainable packaging due to cost considerations.

In recent years, there has been a push to shift away from plastic packaging due to its negative impact on the environment, with companies seeking more sustainable ways to deliver goods.

“In the short term, we have seen the world naturally distracted by heightened geopolitical and macroeconomic risks, at times slowing down progress on key sustainability issues,” Mondi CEO Andrew King told analysts in a post-earnings call.

“We see this in the rate of adoption of some of the sustainable packaging solutions we have developed, where our customers and ultimately the end consumer have been reluctant to make the change due to cost considerations,” King added.

However, he added that he believed it to be more of a “cyclical phenomenon”.

For Mondi, which counts Unilever (ULVR.L), Reckitt (RKT.L), and Tesco (TSCO.L) among its customers, 82% of its 2022 revenue came from packaging and paper products that are reusable, recyclable, or compostable.

Mondi manufactures ‘EcoWicketBags’ which are used to package diapers and toilet paper, as well as paper-based packaging for Reckitt’s Finish dishwasher tablets.


Keywords

Mondi , sustainable packaging , plastic alternatives , environmental impact , cost considerations

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