Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak

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Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
Paper vs. Plastic:
Why Packaging Matters for our Planet
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
Table of Contents

              Page 2 Introduction

              Page 3 The Plastic Crisis

              Page 4 The Circular Economy

              Page 6 How Paper Compares to Plastic

              Page 8 Changing Consumer Preferences

              Page 9 The Future of In-the-Box Packaging

                                                          Table of Contents | Page 1
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
Introduction

Paper is one of the most familiar products                                Despite paper’s demonstrated power to protect, in
in the world. Spanning a history of approximately                         today’s modern era, plastic and resin-based products
two-thousand years, papermaking was a jealously-                          have become popularized as in-the-box-protection in
guarded secret within the ancient Chinese court prior                     forms such as air cushions, packaging peanuts, and
to being spread west across the Middle-East after the                     bubble sheets. As a result, plastic pollution has taken
capture of skilled artisans, finally arriving in Europe                   a toll on our environment, with one garbage truck full of
around the mid 1100’s.                                                    plastic ending up in our ocean each minute.1 And with
                                                                          47% of all plastic waste originating from packaging,
A revolutionary medium for transmitting the written                       paper presents a sustainable alternative.2
word, paper as a material has also been linked with
recycling since its first development. Early paper                        At Ranpak, we know that paper is competitive with
Incorporated recycled rags, hemp waste, bark, bamboo,                     plastic in both performance and price, delivering a
or other wood pulps in the manufacturing process,                         range of void fill, cushioning, wrapping, and insulating
taking fibers from various byproducts and transforming                    applications. Within this report, we will examine how
them into a technological marvel.                                         the paper you know can be transformed into a powerful
                                                                          source of in-the-box protection that fits in to the
The protective power of paper is something that                           circular economy, helps to reduce plastic pollution, and
                                                                          continues to be improved by developing technology.
hides in plain sight within our history. Everyday use-
cases for paper range from the tradition of wrapping
gifts or concealing messages with envelopes, to the
widespread use of paper as an insulating or cushioning
material.

            1) World economic forum, The new plastics economy, 2016.
            2) Single-use plastics: a roadmap for sustainability, 2018.                                                               Introduction | Page 2
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
The Plastic Crisis

Since the 1950’s, plastic production has
been growing exponentially, with the curve
projected to reach staggering heights by 2050.1 In 2016,
an estimated 11% of plastic waste generated globally
entered into aquatic ecosystems, pointing to a trend
that has seen exponentially increasing amounts of
plastic waste entering our waters without significant
intervention.2 In 2018 alone, 430 million metric tons of
plastic were generated by the global population, while in
2019, 130 million metric tons of single-use plastics were
disposed of, equal to roughly 30% of all plastic from the
year before.3,4

The harmful impact of plastic pollution goes beyond
the obvious. As plastics break down, they typically
remain in the environment, becoming part of the food
chain that starts on a microscopic level. It’s estimated
that the average person consumes the equivalent of one
credit card worth of microplastics each week through
the food and water supply.5

Without action, the World Economic Forum estimates
that by 2050 there may be more plastic than fish in the
oceans.6 We owe it to future generations to take steps to
prevent this catastrophe.

            1) Oceana, plastics fact sheet.                                         4) Minderoo, Plastic waste makers index, 2021.
            2) Science, Predicted growth in plastic waste exceeds efforts to        5) K. Senathirajah, T. Palanisami, How much microplastics are we
            mitigate plastic pollution, Vol. 369, Issue 6510, September 18, 2020.   ingesting?, 2019.                                                  The Plastic Crisis | Page 3
            3) National Geographic, We made plastic, we depend on it, we drown      6) World Economic Forum, The new plastics economy, 2016.
            in it, Laura Parker, 2018.
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
The Circular Economy

A traditional linear economy sustains                   The extra effort it takes to recycle means that
growth by consuming new resources.                      plastic often winds up in the trash, with a roughly
                                                        41% recycling rate for plastic packaging in the EU,
This ‘take-make-waste’ model extracts value from finite compared to a roughly 85% paper packaging recycling
resources and leaves unusable waste as a byproduct.1    rate. What happens to plastic packaging when it’s not
                                                        recycled in the waste stream? 32% is incinerated, and
The circular economy breaks the cycle of linear         26% is landfilled.3 In general, the EU has a much more
consumption by allowing products that have served       culturally ubiquitous approach to recycling than the
their useful life to be reabsorbed as raw material for  US, where recycling rates lag those of their EU peers.
production, creating a closed loop.                     Even within the Eurozone less than half of plastic
                                                        packaging is recycled.
While critically important from a conservation
standpoint, the circular economy is more than just                             Even plastic that makes it in to the bin will typically
good for the environment. It’s also good for business.                         not be recycled into products of similar quality
The circular economy is estimated to create $4.5                               that can be recycled themselves. In what is known as
trillion in economic growth globally by 2030.2                                 “downcycling”, plastics will be converted into lower
                                                                               quality products that are not able to be recycled.
While certain plastics can be recycled, many used
in packaging are not “curbside recyclable”, meaning                            The end result is that only 2% of plastics are ever
that they require special facilities to process them. In                       recycled in a closed-loop, recovered into the same or
fact, common materials like plastic film must be sorted                        similar quality applications.4
out from typical recycling facilities and incinerated or
sent to landfills. This means that these materials are
only reliably recycled when end-consumers sort and
send them to designated drop-off points or specialized
facilities.

            1) Ellen MacArthur Foundation, The circular economy in detail, 2019.   4) World Economic Forum, The new plastics economy, 2016.
            2) Accenture Strategy, Waste to wealth, Sept 28, 2015.                                                                            The Circular Economy | Page 4
            3) Eurostat, 2020.
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
The Circular Economy

Circular Life-Cycle of Ranpak Products                           Circular Life-Cycle of Plastic Packaging

Ranpak products demonstrate a circular lifecycle, made from      Plastics are made from fossil fuels, the extraction of which causes
renewable resources, then passing through active use back into   harmful externalities. When not recycled, they take hundreds of
recycled material or being absorbed by the environment.          years to degrade. Only 2% ever make it into a circular loop.

                                                                                                                     The Circular Economy | Page 5
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
How Paper Compares to Plastic

  Production                                                                  Recyclability

  Paper is 100% renewable. A tree grown with the                              Paper is able to be recycled up to 7 times, over 50%
  purpose of creating paper will grow within 30 to 40                         more than plastic.
  years. Within responsibly managed forests, trees are
  harvested without contributing to deforestation and                         Paper is fully recyclable at the curb, and because it is
  with respect to indigenous communities and wildlife.                        easy to recycle, it typically has high rates of recycling.

  All Ranpak paper is sourced from FSC® certified                             Not all plastic is recyclable, and common plastic films
  mills. Ranpak has received full FSC® chain of                               and other applications are only able to be recycled at
  custody certification for all of our European products                      specialized facilities.2
  and will achieve 100% certification globally by 2030.
                                                                              The same piece of plastic can only be recycled 2-3
  More than 99% of plastics produced are derived from                         times before it is no longer useable.2
  fossil fuels, coal, or natural gas. Fossil fuel is a finite
  source. It takes 60 to 250 million years to be formed,
  and the process of extracting fossil fuels contributes
  to further environmental degradation.1

      1) Columbia Climate School, More plastic is on the way: what it means
      for climate change, Renee Cho, February 20, 2020.                                                                 How Paper Compares to Plastic | Page 6
      2) National Geographic, 7 things you don’t know about plastic, Lilly
      Sedaghat, April 4, 2018.
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
How Paper Compares to Plastic

  Half-Life                                                                                                                          Performance

  Paper is a biomass and is therefore able to                                                                                        The belief that plastic is needed to protect products
  decompose naturally when not recycled, typically                                                                                   is challenged by its actual performance compared
  decomposing fully in a landfill within 2 to 6 weeks.                                                                               to paper solutions. One example can be found in
                                                                                                                                     data from a packaging test prepared for a Ranpak
  Plastic that does not get recycled or incinerated                                                                                  customer.
  will typically enter a landfill or find its way into the
  environment, where it will remain for anywhere                                                                                     When preparing a system for protecting aerodynamic
  between 20 to 450+ years.                                                                                                          electronics, PadPak® paper cushioning and plastic
                                                                                                                                     foam-in-place were tested side by side. The test
  Some argue that certain plastics may never fully                                                                                   packages were dropped from an 80 cm height,
  decompose, breaking down into microplastics that                                                                                   typical for packed products with a weight up to 10 kg.
  remain in the environment without natural means                                                                                    PadPak® reduced the G forces from a drop by 58%
  of decomposition.1 Today, there are 500 times more                                                                                 over foam as well as the cost in the box by 57%, while
  microplastics in the ocean than stars in our galaxy.2                                                                              also increasing the speed of packaging.3

      1) National Geographic, 7 things you don’t know about plastic, Lilly   3) Ranpak, Challenging the assumptions: foam-in-place vs. paper for
      Sedaghat, April 4, 2018.                                               in-the box packaging, March 19, 2021.                                                           How Paper Compares to Plastic | Page 7
      2) Surfrider.eu, November 11, 2020.
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
Changing Consumer Preferences

Brands must develop sustainable shipping                        I would be more likely to purchase           I’ve seen more plastic materials
practices based on environmental                                from brands that ship sustainably          being used for packaging now than in
                                                                      than those that do not.                            the past.
concerns, but there is also a corresponding
consumer-driven movement towards                         100%                                        35%
sustainability that can reward them for                         84%
                                                                          77%
                                                                                   83%
                                                                                                                                        30%
                                                         80%                                         30%
making the switch.                                                                           72%
                                                                                                             25%
                                                         60%                                         25%

According to data captured by Ranpak and Harris Poll                                                 20%              18%       19%
across the US, UK, France, and Germany, a significant    40%

number of consumers in 2019 received packages that                                                   15%
                                                         20%
contained more material than necessary to protect                                                    10%
their goods. A similar share reported that they have
seen more plastic materials in packages they have
received than ever before.

Not only are consumers tired of receiving plastic
along with their products, they will actively reward
brands that take steps towards sustainability in their
packaging. Fueled by a growing awareness of issues
including plastic pollution and global climate change,
consumers are voting with their wallets and modifying
their purchasing habits to reward sustainability.

                                                                                                                         Changing Consumer Preferences | Page 8
Paper vs. Plastic: Why Packaging Matters for our Planet - Ranpak
The Future of the In-the-Box Packaging

Paper has come a long way in the last                       PadPak® Auto-Coiler was originally developed to
2,000 years, and paper technology for                       help cushion car engines by speeding up the creation
                                                            of spiral pads used for heavy and high-value items.
packaging has progressed by leaps and                       These pads are durable enough to cushion 600-pound
bounds in just the last 50.                                 pumps (approximately 300-kilos), while also protecting
                                                            delicate items from scratching, chipping, and breakage.
The patent that started it all was filed by George R.
Johnson for the technology powering the PadPak®             Finally, Ranpak Automation brings all these
converter system, granted in 1970.                          technologies together and adds cutting edge AI,
                                                            machine learning, and robotics to the equation. Current
Since then, paper science innovations include               applications allow for automatic void detection and
FillPak® Trident™, with a patented triangular profile       filling, height optimization for packages to maximize
that delivers reduction of 15% or more in paper usage       the number that fit on a pallet, automated box-
compared to other paper-based machines. The Trident         erection, and more.
offers an overall labor savings of approximately 20%
over packaging with plastic air bags.                       In the near future, entire end-of-line packing
                                                            operations will be able to be automated either fully
In the field of wrapping, Geami® paper uses a die-          or semi-autonomously, dramatically reducing wasted
cut surface to expand on demand, retaining a flat           materials through increased efficiency and precision.
profile when stored; 1 pallet of Geami material is the      By making investments in cutting-edge technologies,
equivalent of 9.8 pallets of plastic air bubble material.   Ranpak is continuing to honor our tradition of using
When paired with a customizable inner leaf, the paper       innovation to Deliver a Better World™.
can easily retain loft when layered and presents a
uniquely satisfying unboxing experience for customers.

                                                                                                                      The Future of the In-the-Box Packaging | Page 9
FOUNDED IN 1972, RANPAK’S GOAL WAS TO CREATE THE
FIRST ENVIRONMENTALLY RESPONSIBLE SYSTEM TO
PROTECT PRODUCTS DURING SHIPMENT. The development and
improvement of materials, systems and total solution concepts
have earned Ranpak a reputation as an innovative leader in
e-commerce and industrial supply chain solutions.

Ranpak is a global organization of approximately 650 employees
that is headquartered in Concord Township, Ohio.

Ranpak is listed on the New York Stock Exchange under the
symbol ‘PACK.’

Learn more about Ranpak’s protective paper packaging here!
www.ranpak.com
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