Alternative fibres from annual plants: From niche to trend?

Matthias Giebel
01. October 2024

Fibre-based packaging materials are in vogue and there is no end in sight – on the contrary. In addition to pressure from regulators on plastic, the main drivers of this development are its reputation as a sustainability champion among consumers, as well as the collection and recycling structure established throughout Europe. As a result of this fame, wood is becoming scarce and is once again attracting the attention of concerned NGOs and regulators. Alternative fibres made from annual plants promise a way out. We take a look at the market for you, show you examples and form an opinion on the topic.

 

What speaks in favour of fibre-based raw materials for packaging

There has been a fundamental trend towards paper, cardboard and cartonboard solutions (paperisation) for some time now, which we have reported on repeatedly in our newsletters. Three main drivers that stand for the continuous and dynamic growth of fibre-based packaging raw materials can be identified.

1. European and national regulations such as the Packaging and Packaging Waste Regulation (PPWR), the Single Use Plastic Directive (SUPD) or the so-called “plastic tax”. They lead to a direct or indirect favouring of non-plastic-based packaging.
2. The “good reputation” of paper packaging among consumers. The number of surveys in which paper packaging is regarded as particularly sustainable is countless.
3. And last but not least, the existing and comparatively well-functioning collection and recycling infrastructure for wastepaper throughout Europe. This offers significant advantages over many competing materials.

 

Strong volume growth is the result

At BP Consultants, we assume that around 48 million tonnes of raw materials containing fibres were used for packaging in Europe alone in 2022. We forecast average annual growth of 4 per cent, which amounts to around 80 million tonnes in 2035. That’s a lot of wood! In the truest sense of the word.

 

NGOs and regulators react

The strong and unchecked growth is leading to a further increase in demand for wood, which is not available in unlimited supply even as a natural and renewable resource. Land consumption, the use of energy and heavy machinery or the fear of biodiversity loss are negative factors that are increasingly coming into focus.

For example, the WWF is concerned that the paper and cardboard sector is already responsible for around 40 per cent of industrially harvested wood. According to the WWF, packaging already accounts for 60 per cent of total global paper consumption – with overall figures continuing to rise dramatically.

Understandably, this is also prompting regulators to act. The European Union wants to counter this with its EU Deforestation Regulation (“EUDR”) and at least ensure that packaging containing virgin fibre, such as folding cartons, is produced “sustainably” and comes from clean supply chains.

 

Alternative fibres as a way out

Fortunately, more and more producers of fibre-based raw materials for packaging are therefore addressing the issue of alternative fibre sources. The corresponding interest is also evident on the demand side.

The path seems to be mapped out and the topic has already been identified as a top trend in the start-up scene for 2025. The Confederation of European Paper Industries (CEPI) also speaks of increasing importance, albeit starting at a low level. According to CEPI figures, alternative fibres only accounted for 0.3% of the total fibre volume in 2022.

A study carried out by the nova-Institute on behalf of CEPI in the same year also came to the conclusion that 33 producers in Europe are already using the material. The focus was clearly on the packaging sector. The corresponding paper, cardboard and corrugated board applications contained between 10 and 50 percent alternative fibres in relation to the total fibre volume.

 

Which plant should it be?

As a raw material supplier for alternative, non-wood-based fibres, the focus is shifting to annual plants. At best, they can be grown regionally and require little or no fertiliser and care.

It is currently still completely unclear which specific material will win the race in the future. There is a whole range of candidates, from perennial grass (more current than annual suppliers such as hemp, silphium, wheat (straw) or beetroot (shreds). (There is a current overview article on grass in “neue verpackung“).

All materials have their own strengths and weaknesses. In addition, important questions such as possible capacities and scalability as well as costs and prices have not been fully clarified.

 

Market examples

There are more and more solutions on the market that rely on alternative fibres. We show you two examples.

1. Lidl

• • The Schwarz Group (Lidl, Kaufland) has created its own brand for packaging made from silphium plant fibres called OutNature via its environmental division PreZero. OutNature operates as a start-up within the group of companies.
  • Regarding the advantages of the alternative fibre source, OutNature emphasises the cascading use of the silphium. Not only is it a rapidly renewable, regionally grown raw material, it is also insect-friendly, resource-saving and recyclable via the waste paper material stream.
  • OutNature currently offers paper products with a minimum of 35 per cent silphium fibres in combination with FSC®-certified pulp or recycled paper. The company firmly believes that the plant is the solution of the future.

2. Mc Donalds

• • McDonald’s Germany launched grass paper packaging for its burgers back in 2021. According to McDonald’s, the paper contains 20 per cent grass, is FSC-certified and avoids long transport routes. In addition, large amounts of energy, water and CO₂ are saved during production. The use of chemicals can be avoided. Another advantage: the grass used comes from existing grassland and therefore does not compete with other utilisation options. Overall, McDonald’s says that the grass paper solution reduces the amount of packaging material required by almost 70 per cent.
  • The changeover in packaging is a further step in the company’s roadmap to reduce plastic and packaging waste. By 2025, all sales packaging is to consist of 100 per cent renewable, recycled or certified materials.

 

Conclusion

Forests around the world are under severe pressure as timber extraction is exploding. This is also being fuelled by the increased use of paper packaging, which is riding a wave of success driven by sustainability considerations. At the same time, the use of recycled fibres is not only limited by technical constraints, but also by factors such as quantity and availability. Every percentage of virgin wood fibre that is replaced by alternative fibres helps – not only the forest, but also the sustainability profile of the fibre-based packaging produced from them.