Eco-conscious packaging: A strategic opportunity
Larger pharma companies are applying sustainable practices and eco-conscious materials to packaging and labelling, leading to positive environmental outcomes, increasing operational efficiency and improving consumer perception. But wooing environmentally-conscious consumers often needs a sizeable capex, which could be a hurdle for pharma MSMEs.Viveka Roychowdhury reports that MSMEs can maximise this strategic opportunity once they identify areas which can improve efficiency through optimisation and harmonisation, at reasonable costs
For patients, medicines are the difference between life and death, a good day or a painful one. But the onus of delivering on this promise rests on the product pack.
Ironically, the part of the product most important to ensuring its worth is worthless and even considered an ecological burden after its job is done.
The impact of packaging is felt only when it does not do its job and therefore pharmaceutical companies have traditionally invested quite a bit on product packs, also using them as part of their branding strategy.
But, with increasing pressure on pharma companies to reduce their carbon footprint, the fundamentals of pharma product packaging are being re-written.
As per a Future Market Insights report, the global sustainable pharma packaging market size is projected to grow from $ 96 billion in 2024 to $ 410 billion by 2034, reflecting a 15.6 per cent CAGR.
The report titled, Sustainable Pharmaceutical Packaging Market Outlook (2024 to 2034), lists trends like switching to renewably sourced compostable materials which spontaneously decompose into organic molecules, decreasing waste and having a minimal negative environmental impact.
The rise of robotics and automation integration in packaging processes and developing modular and reconfigurable packaging solutions are also mentioned in the report as are trends like investigations into edible pharmaceutical packaging materials derived from natural substances as a sustainable alternative.
Shivshankar S.R, CEO, ACG Packaging Materials says that pharma companies can look at a number of measures to reduce their carbon footprint, which could include using single polymer plastic when it comes to packaging materials and reducing overall packaging size.
Citing a few examples, Shivshankar explains that in the single polymer-based blister packaging material concept, both the blister and lid film are predominantly made of the same material and designed considering the guiding principle of design for recyclability. “The global infrastructure for recycling polymers such as polyethylene, polypropylene and PET is improving and if blisters made of these materials reach those recycling systems, it can be recycled. The recycled plastics can be used to make value-added products and can thereby reduce the overall use of virgin polymers,” according to him.
Similarly, aiming to reduce overall packaging size, Shivshankar mentions, “We are promoting the reduction of overall aluminium-based laminated material consumption based on per unit dosage. For example, consider a tablet of 13.5 mm length and 7.5 mm width. To pack 20 such tablets, pharma companies currently use 857.5 sq mm of material for each tablet. Whereas, with our new product, we can pack each tablet in 684.5 sq mm of material – there is more than 20 per cent reduction of packaging material. In addition to that, the reduced blister layout also helps in accommodating more number of blisters per punch during manufacturing. In the above case, production triples. This concept also reduces the overall dimension and weight of material for secondary and tertiary packaging and reduces the overall consumption of resources and energy throughout the life cycle of the product.”
More than just a product pack
In fact product packaging and labelling have grown beyond their initial one-dimensional role of protection, to becoming branding aids and are now sources of vital supply chain metrics. These additional benefits go a long way towards justifying the initial upfront costs of switching to more advanced systems.
Prabir Das, a pharma expert with more than three decades of packaging expertise, points out that advanced functional features are now being captured on packaging and labelling to smoothen the flow of a product without losing its identity, efficacy and visibility.
Thus, even as product packaging remains an integral part of a product, it is prudent to understand its role in pharma supply chain sustainability. “With the advancement of technology, automation and digitisation are being adopted to enhance the effectiveness and efficiency of each operation and communication system, associated with supply chain management. It is proven that this is a must to restore and sustain business continuity in the competitive environment,” says Das.
In terms of enhancing supply chain efficiency, Avinash Kumar Talwar, VP – MRO & Pkg. Material Sourcing (Strategic & Plant) and Global Supply Chain Management, Dr Reddy’s Laboratories opines that efficient packaging can lead to better space utilisation in transportation and storage. Thus by designing packaging that maximises space and minimises excess air, MSMEs can reduce transportation costs and carbon emissions associated with shipping.
Secondly, sustainable packaging often encourages collaboration among supply chain partners. For instance, using standardised packaging can streamline processes and enhance logistics efficiency, benefiting all parties involved, points out Talwar.
Das suggests that maintaining a strong database, seamless communication and clear visibility also improves areas for enhancing supply chain efficiency.
MSMEs role in sustainable packaging
While larger pharma companies can absorb the capex involved in switching to more sustainable alternatives, the MSME segment would find it more challenging. However, it is equally if not more important that pharma MSMEs take the first steps on this journey.
Quoting industry statistics, Talwar reminds us, “MSMEs play a vital role in reaching India’s net zero targets, accounting for 30 per cent of GDP and 45 per cent of industrial output. As a result, the country’s strategy to attain net zero emissions by 2070 takes into account the cumulative environmental effect of 63 million MSMEs.”
Das agrees that the MSME sector of the pharma industry is struggling to make a strategic move, probably due to inadequate infrastructure and limited resources. Offering a solution, Das opines, “There is a passive yet critical role of the academicians, regulators and policymakers to take a deep dive to understand the situation and help such members to find simple and effective measures for their survival.”
Talwar opines that in the pharma industry, especially for MSMEs, “sustainability is becoming an essential focus area. Packaging plays a crucial role in this shift toward sustainable practices, impacting not only environmental outcomes but also operational efficiency and consumer perception.”
Listing common strategies to switch to more sustainable pharma packaging Talwar points out that materials selection and minimalist design can reduce environmental impact. In terms of materials selection, pharma MSMEs can choose eco-friendly packaging materials, such as biodegradable plastics, recycled paper, or plant-based alternatives. This reduces reliance on petroleum-based products and minimises waste. Using materials that are easier to recycle or compost can significantly lessen the overall carbon footprint of packaging.
On the minimalist design front, Talwar reasons that optimising packaging design can reduce material usage. By adopting a minimalist approach, MSMEs can use less packaging while still ensuring product integrity. Techniques such as flat packing or utilising concentrated formulations can minimise material waste and reduce shipping volumes.
However, Talwar cautions that sustainability cannot be at the cost of the primary function of packaging, i.e. ensuring product safety and integrity. “Sustainable packaging must still prioritise the safety and efficacy of pharma products. Utilising innovative materials that offer protection against moisture, light, and temperature changes can extend shelf life and reduce product waste. Sustainable packaging must also meet regulatory requirements. Developing eco-friendly tamper-evident and child-resistant packaging solutions ensures compliance while contributing to consumer safety, reinforcing the brand’s commitment to responsibility.”
In conclusion, Talwar states, “For pharma MSMEs, sustainable packaging is not just a regulatory or ethical obligation; it is a strategic opportunity. As the pharma landscape evolves, MSMEs that leverage sustainable packaging will not only enhance their operational efficiency but also build stronger connections with environmentally-conscious consumers, driving growth in an increasingly competitive market.”
Walking the sustainable talk
Das lists quite a few examples from the pharma packaging and labelling world which can simplify the pack and the packaging operation, and can reduce process cycle time to improve supply chain efficiency.
- Optimising primary packaging specifications without compromising product stability. Examples include reduction of container-closure volume/ weight, downgauging forming/lidding material, reducing blister/strip size, multicomponent pack to 1–2-component pack, multilayer composite structure to 1–2- layer structure, etc.
- Simplifying secondary packaging by eliminating nonessential components. Examples include the elimination of printed cartons for self-standing bottle packs, elimination of leaflet by a digital version, replacement of spoon with measure cup (which can easily fit onto the closure without need of a carton), replacement of strong rigid container with relatively soft semi-rigid container (which can be pressed or squeezed), design change of dropper/dispenser (which can fit on the container mouth without need of a carton), etc.
- Optimising tertiary level with minimum layers of packaging like use of banding/wrapping/bundling in place of an inner box or shipper, replacing rigid plastic drums with collapsible Corrugated Fiber Board (CFB) or plastic shippers, use of single colour printed shipper or online printing on shipper can help elimination of additional labels and labelling operation, designing shipper for optimum pallet volume utilisation, etc.
- Standardisation of pack sizes, change parts, label sizes and label printing colours to reduce process cycle time, inclusion of digital features for online identification and verification, etc
- Harmonisation of pack variants and adopting automated linear operations to optimise productivity, harmonising specifications and Standard Test Procedures (STPs) to improve testing efficiency, etc.
- Das points out that many of these initiatives on running product-packs can yield good results to support and enhance supply chain efficiency either without additional investment or with minimal investment. It can be further boosted by adopting automation and digitisation with little higher investment. Going further, Das spells out a few out-of-box innovative thoughts that also can be attempted by changing the component and/or pack design.
- Most of the bottle packs are now induction sealed, which makes the pack not only leakproof but also tamper-proof. The screw closure (containing the induction seal wad) can be modified to a simple snap-fit cap without having any threads. It can still hold the wad and can support easy induction sealing.
- Elimination of threads on cap can reduce the height and material quantity from existing screw closure. It will also ease the process of product dispensing by the patients.
- The same concept can be extended further for making the cap child resistant/senior-friendly with a design improvement. The three-component closure can then be changed to a two-component cap
- However, the neck profile of the bottles needs to be modified for perfect fitment of such a cap and the closure applicator also needs to be modified. This is actually a simplification and cost improvement initiative which indirectly supports sustainability (IP application is under preparation).
- Majority of the labels are now self-adhesive sticker labels where a uniform continuous layer of adhesive is used for sticking the label onto the pack. The quantity of adhesive can be reduced by 10-25 per cent by using a perfectly designed geometric pattern, without compromising its performance. This is also a cost improvement initiative and indirectly supports sustainability (IP application is under preparation).
Das reasons that further brainstorming can generate some other opportunity areas which can support supply chain sustainability, directly and/or indirectly. MSME members can take necessary assistance from experienced packaging professionals also to work on such initiatives. Except in a few cases, regulatory intervention is not needed and ideas can be converted into action through an internal evaluation. Cases like conversion of physical version to digital version of the pack insert for prescription medicines may require approval from regulatory agencies.
On the regulatory front, he advises, “Regulators also need to understand that a common person cannot make use of it without having knowledge of the medicine chemistry and its interaction within the body. It is more important for the doctors who prescribe it to the patients, knowing and understanding their ailment and physical and medical conditions. This can be managed well with a separate Physician’s Sample pack, which is different from the commercial pack.”
He suggests that commercial packs can have the provision for accessing the pack insert in local/regional language through simple scanning of a 2D code or through a web link. This will not only eliminate the physical pack insert, but also will help to eliminate the carton in many cases. In fact, regulators should be encouraged to simplify the pack by eliminating non-essential parts from it, opines Das.
ises,”A changed mindset is essential to cope up with the latest trends across the industry and adopt the simplest option to start with. Once the benefit is realised, other initiatives can be tried one after another with a proper plan. It is the need of the hour to sustain the business continuity and survive in the competitive environment.”
Thus the humble product pack has taken on multiple roles. Adding the eco-conscious tag will add yet another layer of value-added benefits, helping companies keep pace with evolving consumer trends and ecological imperatives. Companies, in particular MSMEs, can find creative ways of minimising upfront implementation costs by tapping into the expertise of experts from industry and academia. The government too can chip in with policies that incentivise the sustainability shift. After all, reducing the carbon footprint is a sure pill to prevent future health calamities.