Sep232021
Posted by:admin
Caspian Climate Conversations | Episode 5
Featuring Sundeep Vani
Sundeep has 20 years of experience in the bio-based products industry. He has been with IOWA State University as Chief Technology Officer for bio-based products, in addition to consulting VC funds, startups, and MNCs. He is a B.Tech in Chemical Engineering from IIT Kharagpur, a Ph.D. from Rice University, and an MBA from Kellogg School of Management.
To tune into the recording, please use the available link here: https://on.mentza.com/circles/3929
Please find below a summarized transcript of this interesting conversation:
Caspian Debt funds companies selling organic products to environmentally conscious customers. What options do you think these companies have for more sustainable packaging at the consumer end?
Sustainable packaging comprises of following a different set of attributes-
- Renewable polymer packaging
- Biodegradable packaging
- Recyclable packaging
- Packaging that involves lower GHG emissions or lower water or energy usage.
A combination of one or more types of the above materials can is used for packaging. The key is to have a renewable material that also has the properties that a packaging material needs. While natural fibers have been around traditionally, fossil fuel-based plastics emerged over the last few decades due to better packaging properties.
Yes, so there are multiple solutions but the kind of packaging will also depend on the type of agricultural product. What should be the consideration for an organic milk company vs an organic pulses company while choosing packaging material?
One needs to think in terms of the properties that the packaging needs to have. Pulses are dry and do not need moisture prevention and thermal resistance. Milk packaging will need moisture prevention and thermal resistance. There should not be any materials that can leach into the fluid. If one considers the Ulta High Temperature (UHT) Milk, then the packaging needs to be sterilizable so that the milk doesn’t spoil for a long time at room temperature. Packaging for pulses does not need these but requires more strength as it is a high-density product. The milk packaging might be happening in high throughput lines so the material has to survive the processing itself.
Thanks, so you talked about the material properties of packaging. Could you also talk about the costs? Are these sustainable packaging more expensive than sustainable packaging?
Generally, it is more expensive to the tune of 20-30% compared to non-sustainable packaging materials. Some materials with better properties could even be 2X – 4X more expensive.
Do you see this green premium will fall with increased demand?
Absolutely, it is falling even now. Two things that are driving this trend:
- The technical maturity of materials as a result of more research
- Development of efficient supply chains
In addition, the customer willingness to pay the green premium is increasing, thereby driving demand and hence the economies of scale bringing prices down.
Caspian Debt-funded companies export products to the US and Europe. Are there regulatory issues around sustainable packaging that they need to be aware of?
In principle, the regulations are around the safety of material coming in contact with food. There are multiple different parameters to determine safety.
- The individual ingredients of packaging should be safe if consumed.
- Amount and concentration of materials like coating, adhesives, etc.
- If these conditions are not met, then a food contact notification needs to be filed for new material to test it under different conditions and get approval.
Tell us a bit about the startups in the sustainable packaging space.
The effort towards sustainable packaging can be categorized into: Reduce, Recycle & Reinvent. The companies I am going to talk about are engaged in ‘Reinvent’.
- A new material that is gaining traction is Poly-Hydroxy-Alkanoid (PHA). It is a biodegradable material that is also renewable and has properties similar to plastics. Several companies are trying to commercialize it. Danimer Scientific, Mango Materials are two examples.
- Some companies are converting organic raw materials like mushrooms or mycelium and converting to packaging materials. Ecovative Design uses fungi to create a Styrofoam replacement that is biodegradable.
- Some companies are using agricultural waste and turning them into paper or cardboard for packaging.
Is there is minimalism in customer behavior that is driving this packaging industry?
Minimalism, in terms of minimizing packaging, is a huge driver in the industry. There is the concept of light-weighting, say of plastic water bottles. There are technical challenges that need to be solved in this process. Thinning of packaging leads to reduced barrier properties making the food prone to degradation.
Should India’s clean-tech companies be looking backward to revive more traditional packaging- earthenware, jute, paper?
Yes, traditional material with improved properties that can widen their adoption would be definitely useful. Eg- Paper cups with a coating that can sustain paper at high temp, would be revolutionary.