As Mexico becomes the latest country in Latin America to set national plastic-reduction goals, increasing numbers of Latinos are looking for plastic-free packaging options, according to market analysts. But how feasible is going plastic-free?
As Mexico becomes the latest country in Latin America to set national plastic-reduction goals, increasing numbers of Latinos are looking for plastic-free packaging options, according to market analysts. But how feasible is going plastic-free?
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In recent years, governments across Latin America have been taking steps to reduce their plastic footprint.
Chile became the first South American country in mid-2018 to ban the use of plastic bags, coming into force for retailers a year after and after two years for smaller businesses.
Colombia brought in legislation in 2017 on single-use plastics and applied a tax to large plastic bags to discourage their use, which reduced plastic bag consumption by 35%, according to GlobalData.
Peru, meanwhile, passed a bill that aims to reduce plastic bag consumption by 35% over the next three years.
When legislation at a national level is lacking, some cities are stepping in. In 2018, the city of Rio de Janeiro voted to ban plastic straws while in 2017, Buenos Aires restricted supermarkets’ use of plastic bags.
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Most recently, in Mexico more than 50 private sector companies, plastics industry trade associations, civil society groups, and government figures signed the National Agreement for the New Plastic Economy, or the Acuerdo Nacional para la Nueva Economía del Plástico en México, last month (5 December).
The agreement seeks to commit these stakeholders to reduce single-use plastics and give greater momentum to recycling. Although voluntary, it states that all plastic products marketed in Mexico should contain 20% recycled material by 2025 with the goal of reaching 30% by 2030 and to work towards recycling rates of 55%. By 2025, 70% of all PET should be recovered, rising to 80% by 2030.
Signatories included Nestlé, Coca Cola, Jugos del Valle, Pepsico, Grupo Bimbo, Unilever, Grupo Herdez, and the retailers Walmart and Oxxo.
According to the president of the political coordination board in the Mexican senate and member of the Morena party, Ricardo Monreal Ávila, Mexico is number one in Latin America for producing waste in 2018. It generated an average of 1.16 kg per day per inhabitant, equivalent to 117 thousand tons of waste daily, and 70% of this waste is not recycled.
“We are living above the limits of the planet," he said, adding that all stakeholders - including plastic manufacturers - must come together to find solutions and build an environmentally responsible Mexico. “It is better to work with them than to work in constant confrontation," he said.
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Sixty-three per cent of global packaging across the food, beverage, beauty, home care and pet food industries is currently made from plastic, according to Euromonitor data.
“As consumers become increasingly sensitive to issues of plastic waste, the proportion of those willing to pay more for packaged food and fresh food which is environmentally conscious or eco-friendly continues to increase,” writes head of packaging research at Euromonitor Rosemarie Downey.
However, plastic packaging is plays a crucial role in maintaining food safety and reducing food waste by extending shelf life.
According to Downey, it is important not overlook plastic’s valuable contributions.
"Rather than a wholesale ‘plastic-free’ goal, perhaps a ‘plastic waste-free’ world should be the goal by adopting a circular economy approach," she said.
This includes infrastructure for optimized waste management, recycling facilities and a greater consumer understanding of what to do with plastic after using it.
Swiss packaging company SIG, for instance, recently rolled out a program in Brazil where it offered residents of Curitiba city food products in exchange for their recyclable waste, such as PET bottles, hard plastic and soft plastic like bubble-wrap.
“We know it will only be possible to increase packaging recycling rates with the support of consumers,” said Isabela De Marchi, SIG’s sustainability coordinator in South America. “The partnership […] is helping us show people the value of recycling on a personal level, as well as bringing wider environmental and socio-economic benefits.”
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Even when this is feasible for food manufacturers, how much demand is there for plastic-free packaging among Latin Americans?
According to market research company GlobalData, Latinos are actively seeking out products that use less plastic.
It conducted a consumer survey in 2018 involving 8,870 respondents and found 68% of Latin American consumers would stop buying or buy fewer products which are wrapped in plastic, compared with 51% of Europeans and 47% of North Americans.
However, plastic-free solutions are not always available for Latino consumers.
“Latin America countries have historically lagged behind the more developed [economies] in North America and Europe when it comes to the war on plastic,” Hakan Demirci, associate analyst at GlobalData told FoodNavigator-LATAM.
“Nevertheless, innovative start-ups are leading the way across Latin America in offering solutions to plastic consumption," he added. "Whilst recent strides in government regulation have made some impact in discouraging use, regional governments need to go further to ensure Latin America competes with North America and Europe.”
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Big FMCG manufacturers are taking small steps to make their products more easily recyclable when consumers have access to such facilities.
Mexican bakery giant Grupo Bimbo has set itself the goal of making all of its packaging was biodegradable, compostable or recyclable by 2025 globally, and said it has already cut its plastic use by 2.8 million kg by making wrappers smaller or thinner.
Last year, PepsiCo Latin America kickstarted its 'Recycling with Purpose' program with the launch of Ecoins in Peru, a virtual currency that offers consumers discounts for recyclable waste.
Nestlé Chile recently made its Batido yogurt pots more easily recyclable with a label that can be peeled off, inching towards its commitment that 100% of its packaging will be recyclable or reusable by 2020.
For its Argentinean yogurt brand, La Serenísima, Danone revamped the packaging and switched to a PET pot which has a developed recycling market in the country. “[...] by doing this, we feed an inclusive recycling chain," said Maximiliano Sassone, director of research and innovation (R&I) at Danone Argentina.
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Meanwhile, home-grown innovators are using alternative sources to develop biodegradable forms of plastic they say are less harmful to the environment.
“Companies are doing their part in South America,” said Demirci. “One example is the Chilean start-up Solubag has created a plastic bag which dissolves in water in just a few minutes. The bag uses limestone instead of oil by-products, ensuring the solubility of the bag.”
Plasticor, a Brazilian start-up, has developed a patent-pending, biodegradable plastic that changes color when food begins to perish that it says can help reduce food waste without compromising food safety while Chilean company Valnux transforms discarded walnut shells into a biodegradable thermoplastic with naturally occurring antibacterial properties.
Other companies are developing solutions that do away with single-use plastic altogether. Algramo sells food and hygiene products through roughly 2,000 vending machines across the Chilean capital, Santiago, in re-usable plastic products.
Ecuadorian start up Ichtion meanwhile, has developed turbines that are capable of filtering and collecting plastic bags from rivers, preventing them from polluting the oceans.
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