Multinational confectionery makers, Nestlé and Mars Wrigley Australia, are set to test-launch their iconic chocolates and candy brands in paper packaging in Australia this year, in a move which could see an industry-wide switch to fibre.
Market analyst GlobalData believes the move by the two companies could trigger the ‘paperisation’ of these types of packaging in Australia, and potentially the Asia-Pacific (APAC) region. According to the leading data and analytics company, if these launches are successful, then it can lead to paper and board packaging to challenge the dominance of flexible packaging in the Australian confectionery market.
“Paper and board packaging materials – primarily folding cartons, trays and tubs – account for 10 per cent of confectionery packaging volumes – in million pack units – in Australia,” explained Bobby Verghese, consumer analyst at GlobalData.
“It is eclipsed by flexible packaging, which contributes over three-quarters of Australia’s confectionery packaging volumes.
“However, with governments across the APAC region cracking down on single-use plastics, and consumers growing more eco-conscious, confectioners are marching towards sustainable packaging materials and circular economies.
“This is compelling the shift from plastic to sustainable materials, such as paper.”
However, Verghese said that such a shift will entail formidable challenges, such as ensuring that the paper-based packaging material provides adequate barrier protection for chocolate or candy for its shelf life, and matches the tactile feel and functionality of plastic wrappers.
“Also, the packaging needs to survive the rigours of transportation and logistics, and ambient weather conditions,” Verghese continued.
“Additionally, the material must meet the stringent recyclability requirements of the Packaging Recyclability Evaluation Portal to apply for the Australasian Recycling Label logo. Moreover, confectionery manufacturers will have to modify their existing plastic packaging lines to accommodate the new paper-based material.”
Nestlé pioneered the transition from plastic to paper packaging in the confectionery industry with the introduction of its iconic Smarties chocolates brand in the first-of-its-kind fully recyclable paper packaging in June 2020.
Last month the Swiss food giant announced plans to trial paper-based wrappers for its popular KitKat chocolate bars in Coles supermarkets in Australia.
The company has a head start over Mars Wrigley Australia, which plans to launch its Mars Bar, Snickers and Milky Way chocolate bar lines in paper-based packaging in April. It has been testing paper-based packaging at its Ballarat facility.
“This move will aid Nestlé and Mars Wrigley in lowering their environmental footprint to comply with Australia’s 2025 National Packaging Targets for 100 per cent recyclable, reusable or compostable packaging,” said Verghese.
“Recyclable packaging can also elevate the consumer appeal of confectionery brands, given that 77 per cent of Australian respondents in GlobalData’s Q4 2022 consumer survey felt that recyclable packaging was an essential or nice-to-have feature in a product.
“If the new paper packaging gains the approval of wholesalers, retailers and consumers, other confectioners will follow suit and switch to paper-based packaging in Australia, and subsequently the rest of the APAC region in the coming years.”
