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Sustainability: more than an environmental concern?

By Larry Jackson

Sustainability attributes are becoming an increasingly important consideration in Australians’ purchasing decisions. In a global report conducted by Nielsen on corporate social responsibility, it found 55% of respondents are willing to pay extra for earth friendly products.

However, sustainability isn’t just about how your products are made and where they come from. How they are delivered is equally important. One aspect of importance is assuring that the paper products and packaging used to deliver the products you stock are sustainable.

The greater emphasis put on the role of sustainability in paper products – be it reused, recycled, certified, or deforestation-free materials – marks a fundamental and critical marketplace shift. Whereas many manufacturers had focused on delivering convenient and attractive products, paper and packaging development must now also take greater account of environmental concerns, as consumers show increased awareness of sustainability issues.

Recent research from North America, released earlier this year by our affiliate Asia Pulp and Paper (APP) revealed the call for more sustainably sourced products continues to gain momentum. Sixty-two percent of Baby Boomers, those born between 1946 and 1964, and 68 percent of GenXers, those born between 1965 and 1980, agreed that sustainability attributes are an important consideration in their purchasing decisions. This figure rises to 83 percent for Millennials, those born between 1981 and 1995. Similarly, 52 percent of Millennials are willing to pay extra for more earth-friendly paper products, compared to only 38 percent of GenXers and 36 percent of Baby Boomers.

Although the survey was carried out in North America, the findings provide valuable insight into one of the most developed paper and packaging markets in the world, as well as support the argument that consumers are willing to pay more for sustainable products.

Environmental considerations, therefore, are likely to become a critical business driver as the Millennials’ cohort becomes more economically influential.

The increasing demand for sustainably sourced paper and packaging will have significant implications for retailers, who will need to ensure the brands they stock are responsible in the way they source their packaging.

How can retailers achieve this? Preferably, you would talk to each of your suppliers. You’d ask them where they get their products, trace them back to the original source and make sure each link in the chain is sustainable. This due diligence process can be difficult, costly and time consuming for retailers to implement, however suppliers have a responsibility to provide this information especially if the paper and packaging products are being imported.

Australia has followed in the footsteps of the United States and the European Union by putting in place a law (Illegal logging Prohibition Act 2012) prohibiting the import or sale of illegally sourced forest products, including paper and packaging. Importers are now required to carry out reasonable due diligence to ensure their imports do not originate from illegally logged timber. The laws under the act will affect products that Aussies use on a day-to-day basis so knowing the origin is hugely important.

One way to confirm the paper and packaging from the brands you stock is sustainable, is to check the product is certified by globally recognised forestry schemes, such as The Programme for the Endorsement of Forestry Certification (PEFC). Certifications, like PEFC, have been set up to ensure products are made sustainably at all levels of the supply chain.

An increasing number of brands have also adopted transparent policies opening themselves up to a greater level of consumer scrutiny. Transparency is used to reassure customers about a company’s commitment to the environment and show there are no skeletons hiding in the closet.

Earlier this year, as part of APP’s commitment to transparency and openness, the Rainforest Alliance published an independent report on its progress in implementing their Forest Conservation Policy. This was the first time it had been evaluated in this way. Although it is not always easy for an organisation to open up to scrutiny, APP believes that a third party review of its supply chain was an important step in communicating to customers about its environmental commitments.

Changing consumer tastes and more active regulatory bodies, coupled with a growing global population, which puts greater pressure on resources, will drive a new sustainability agenda for the paper and packaging industry. With Australian consumers becoming more environmentally conscious, retailers may want to track the sustainability of their packaging paper products now, before they do, if they want to remain competitive in the future.

Larry Jackson is the CEO of APP business partner Paper Force. Larry has more than 20 years’ experience working in the paper industry in Australia, New Zealand, Hong Kong and Canada and took over Paper Force following the announcement of APP’s Forest Conservation Policy.


Relationship Reset Provides Opportunity for Bilateral Business Growth

By Terry Hughes

The election of Malcolm Turnbull to Prime Minister brought renewed hope we can put the past behind us and allow for the relationship between Australia and Indonesia to blossom. And it’s got off to a good start, with Mr Turnbull and Indonesian President Joko Widodo snapping a selfie during the former’s visit to Jakarta last week where trade, investment and jobs were the focus of discussions.

There are many similarities between what Jokowi and Turnbull want to achieve for their respective countries. Both come from a business background, so share similar ideologies on how to boost economic growth and jobs creation, a problem that our two countries are looking to overcome.

As such, economic cooperation is at the top of the agenda for both men. There is definitely room for improvement in this regard as Australia still does more trade with New Zealand, a country of four million, than Indonesia a country of 250 million.

Virtually all economists agree an increase in trade between nations can have a sizeable positive effect on economic growth in Australia. A recent PwC report found working together presents a $3 trillion opportunity for Australia and Indonesia over the next decade.

Hence why Australia’s Minister for Trade and Investment Andrew Robb was in Jakarta this week with 340 business leaders, the largest delegation in the history of the bilateral relationship.

Greater collaboration between Australian and Indonesian businesses will not only open doors for cross border trade, but could also lead to greater innovation, productivity, efficiency and understanding of two completely different business cultures.

However, if Australia wants to profit from an economy that will be double the size of its own in ten years’ time, it needs to consider Indonesia as a partner and not just a place to sell products and services for the benefit of businesses back home. Australian businesses need to remember it’s a two way relationship.

So how do Australian businesses go about doing business in Indonesia?

As the CEO of Solaris Paper, the Australian affiliate of Indonesian pulp and paper manufacturer, Asia Pulp & Paper, we regularly conduct business with our Indonesian counterparts. As we know, there are very different cultures at play, as well as a constantly moving regulatory environment. But, just as our politicians are building a relationship built on trust, friendship and collaboration, business must too. Here are a few pointers for businesses to bear in mind on their journey to working with our Indonesian counterparts to capitalise on that $3 trillion dollar opportunity:

Relationships take time – In Indonesia decision-making processes are influenced by the tradition of musyawarah dan mufakat – mutual agreement and solidarity. Relationships are therefore built on trust. You can’t dive straight in with numbers, figures and a proposition. They have to believe and trust in you as a person first. Place effort into building your relationship with Indonesian businesses. Be accommodating, polite and friendly. Return their pleasantries and you will sow the seeds for your relationship to blossom.

Nurture the relationship – An open and transparent relationship requires continued exchange. Touching base with your Indonesian counterparts every two to three months will not only strengthen the partnership but provide insight into business operations. Ensure some of these meetings are face to face; it’s vital to make regular visits. But take note of the national and religious holidays Indonesians observe.

The business of cards – Yes, we have pretty much eradicated business cards for email signatures in Australia, but in Indonesia they are still pivotal when doing business. They are exchanged upon meeting and two hands should be used during this exchange as a sign of respect. Make sure it has been translated and treat them like it’s your most prized possession in the world. And for any left-handers out there, using it is definitely a no.

Gift Giving – It’s not the cost of the gift that will matter, it is the thought that has gone into the gift that can break down barriers. It’s all part of building a reciprocal relationship. Don’t just get any old gift, listen and be attentive to their needs. The right gift can be the breakthrough your business needs to take your relationship from casual to serious.

After several tense years, it’s now time to put the past behind us, hit reset and restart on an important relationship. Let’s use the opportunity of a change in leadership to bring our two countries closer together. As politicians focus on the policy side of our relationship, there is an opportunity for the Australian business community to play an important role in making Indonesia one of our top 10 economic partners.

Terry Hughes is the CEO at Solaris Paper, the Australian affiliate of Asia Pulp & Paper

 

 


Sustainability: more than an environmental concern?

By Larry Jackson

Sustainability attributes are becoming an increasingly important consideration in Australians’ purchasing decisions. In a global report conducted by Nielsen on corporate social responsibility, it found 55% of respondents are willing to pay extra for earth friendly products.

However, sustainability isn’t just about how your products are made and where they come from. How they are delivered is equally important. One aspect of importance is assuring that the paper products and packaging used to deliver the products you stock are sustainable.

The greater emphasis put on the role of sustainability in paper products – be it reused, recycled, certified, or deforestation-free materials – marks a fundamental and critical marketplace shift. Whereas many manufacturers had focused on delivering convenient and attractive products, paper and packaging development must now also take greater account of environmental concerns, as consumers show increased awareness of sustainability issues.

Recent research from North America, released earlier this year by our affiliate Asia Pulp and Paper (APP) revealed the call for more sustainably sourced products continues to gain momentum. Sixty-two percent of Baby Boomers, those born between 1946 and 1964, and 68 percent of GenXers, those born between 1965 and 1980, agreed that sustainability attributes are an important consideration in their purchasing decisions. This figure rises to 83 percent for Millennials, those born between 1981 and 1995. Similarly, 52 percent of Millennials are willing to pay extra for more earth-friendly paper products, compared to only 38 percent of GenXers and 36 percent of Baby Boomers.

Although the survey was carried out in North America, the findings provide valuable insight into one of the most developed paper and packaging markets in the world, as well as support the argument that consumers are willing to pay more for sustainable products.

Environmental considerations, therefore, are likely to become a critical business driver as the Millennials’ cohort becomes more economically influential.

The increasing demand for sustainably sourced paper and packaging will have significant implications for retailers, who will need to ensure the brands they stock are responsible in the way they source their packaging.

How can retailers achieve this? Preferably, you would talk to each of your suppliers. You’d ask them where they get their products, trace them back to the original source and make sure each link in the chain is sustainable. This due diligence process can be difficult, costly and time consuming for retailers to implement, however suppliers have a responsibility to provide this information especially if the paper and packaging products are being imported.

Australia has followed in the footsteps of the United States and the European Union by putting in place a law (Illegal logging Prohibition Act 2012) prohibiting the import or sale of illegally sourced forest products, including paper and packaging. Importers are now required to carry out reasonable due diligence to ensure their imports do not originate from illegally logged timber. The laws under the act will affect products that Aussies use on a day-to-day basis so knowing the origin is hugely important.

One way to confirm the paper and packaging from the brands you stock is sustainable, is to check the product is certified by globally recognised forestry schemes, such as The Programme for the Endorsement of Forestry Certification (PEFC). Certifications, like PEFC, have been set up to ensure products are made sustainably at all levels of the supply chain.

An increasing number of brands have also adopted transparent policies opening themselves up to a greater level of consumer scrutiny. Transparency is used to reassure customers about a company’s commitment to the environment and show there are no skeletons hiding in the closet.

Earlier this year, as part of APP’s commitment to transparency and openness, the Rainforest Alliance published an independent report on its progress in implementing their Forest Conservation Policy. This was the first time it had been evaluated in this way. Although it is not always easy for an organisation to open up to scrutiny, APP believes that a third party review of its supply chain was an important step in communicating to customers about its environmental commitments.

Changing consumer tastes and more active regulatory bodies, coupled with a growing global population, which puts greater pressure on resources, will drive a new sustainability agenda for the paper and packaging industry. With Australian consumers becoming more environmentally conscious, retailers may want to track the sustainability of their packaging paper products now, before they do, if they want to remain competitive in the future.

Larry Jackson is the CEO of APP business partner Paper Force. Larry has more than 20 years’ experience working in the paper industry in Australia, New Zealand, Hong Kong and Canada and took over Paper Force following the announcement of APP’s Forest Conservation Policy.

 


Retailers and product brands must change or risk going the way of the dodo

It’s no secret the retail landscape has changed significantly in recent years. Consumer behaviour, demographics and spending priorities are changing, as Australia continues down the path of economic uncertainty. This has led to in-store traffic slowing for bricks and mortar retailers and we are seeing sales shrink and competition increase, especially as pure online players disrupt the market. One thing is certain, standing still is not an option. In today’s market, retailers and brands must be more agile, flexible and responsive than ever before. Reinvention is a must.

When making a purchasing decision, consumers today have an overwhelming number of products to choose from. But, with little differentiation between products, it’s becoming increasingly difficult to stand out on the shelves and compete on anything other than price. The problem is, there is a lack of innovation in a number of product categories, with many in danger of becoming commoditised, especially in regards to established products.

Consumers have nothing to choose from

Consumers feel, while there are a large number of products available across categories, in actuality there is little for them to choose from, with a lack of distinguishing features from brands and many having similar imagery and identities. This has led to a few brands dominating their category.

Consumers are struggling to discover new products, with no revolution or evolution to drive interest. This means the purchasing process has become almost entirely functional, with consumers purchasing the majority of products based on their basic needs.

Price is all that is left to drive purchasing decisions. This is not a good thing for brands or retailers, especially as consumers are willing to pay for the quality they require. For instance, recent research from Solaris Paper found 16% of Aussie grocery buyers only buy the cheapest toilet paper brands, with the majority of consumers seeking a minimum quality level prior to making a purchasing decision on price.

To go beyond the battle on price, retailers should look to offer a more upscale experiences that emphasise service, selection, quality, organics, fair trade, and locally grown food. In Brazil, premium grocer Pão de Açúcar has found another way to stand out in an undifferentiated function-driven landscape. It has positioned itself as “the place of happy people”, adding an emotional dimension to shopping, rather than just focus on value, price or quality alone.

Purchases have become routine

With a lack of innovation across a number of product categories, there is consumer appetite to see something new. For instance, in the technology sector, everyone is watching and waiting to see what will come next. But how do you get this same appetite for other, less exciting categories like washing up liquid or toilet paper.

The problem is, consumer enthusiasm to try something new is tempered by a reluctance to risk purchasing a new or different brand, which may not deliver what they require from the product. Even if you did design a better phone than the iPhone, consumer enthusiasm won’t be the same until their requirements have been assured. Any brand will need to reduce this perceived risk by providing reassurance on key competing features across packaging and communications or offering trial incentives.

However, brands have to ensure they avoid becoming a ‘copy-cat’. Although it is necessary to highlight the most required features, it’s important that products reassure or create greater expectations on product experience, in addition to delivering on value. Brands must come across differently to competitors, otherwise we’re back to looking at aisles of the same products.

For retailers, this means stocking brands that offer a greater experience and not just any old also-ran. Be selective. According to research from Nielsen, 59 per cent of consumers in Asia Pacific would switch stores due to the product quality offered.

Standing out in a wall of products

With all the different ways to find, compare and purchase products, companies must make their products distinctive. Looking similar ruins all the hard work brands have put into differentiating from the competition. The effectiveness of any packaging design for a product relies on being able to communicate the superior features, is stylish, looks premium and is differentiated from the competition.

In today’s society, consumers are becoming increasingly vain – just look at the selfie revolution. Almost everything can be perceived as a fashion accessory – whether it be the pen you show off in meetings to the bags given to you after a purchase at your favourite store.

By packaging up products in such a way that consumers feel that the brand fits with who they are, more people will feel comfortable trialling and picking up the product, as well as driving greater emotional connection, increasing loyalty and differentiating the brand in the competitive context.

This is the approach we take when designing our own products. By looking at our competition and consumer perceptions, we are able to differentiate our product offering and design a product that stands out. For EMPORIA, our unique selling point was luxury, as we felt there was a gap in the market for luxury toilet paper. We incorporated this into the packaging, providing us with brand personality. Using standout colours, design and creating a unique and premium looking product that would be prominent on the shelves.

For retailers, think of ways to leverage creative brands on the shelves. Can new materials or technologies be used? Maybe it’s promoting the use of sustainable packaging or implementing an NFC chip to provide consumers with additional information?

It’s no longer just about creating a new product. True innovation can be achieved by ‘shaking up’ and modernising established product categories through re-branding, re-design, re-positioning or re-launching traditional products. It’s time for brands and retailers to re-evaluate and re-energise their offerings. Success will require collaboration between retailers and brands, leveraging each other’s strengths to deliver services and offerings aligned with evolving consumer expectations.

If brands and retailers do not look to address this issue, they will likely see themselves going the way of the dodo, as they race to the bottom to capture market share.

Terry Hughes is the CEO at Solaris Paper, the Australian affiliate of Asia Pulp & Paper

 


Stopping the fakes

By Larry Jackson

All around the world the pressure for authorities to take a more active role in combatting counterfeit products is increasing. Over the past few years, we have seen criminals diversify their products, from the usual knock-off handbags to the counterfeiting of wines, washing detergent and even stationery sets. The Australian Border and Custom Services, who are responsible for investigating the importation of counterfeit products, seized over half a million in counterfeit products in 2014/15 alone. These products had an estimated retail value of more than AU$23 Million[1], up from AU$17 million worth of seizures in 2013/14.

These seizures may only be the tip of the iceberg, with the International Chamber of Commerce (ICC) estimating that it accounts for between 5-7% of all world trade – a $600 billion industry[2].

But it’s consumers that face the most danger. There is a vast difference between knowingly purchasing fakes – after all, no-one expects the $10 pair of “Fay-bans” bought on holiday to be the genuine item, and being conned by a well packaged, seemingly genuine fake. Consumers tend to be unware that the product they’re buying isn’t the genuine item and this can lead to extremely dangerous situations, such as the recent counterfeit Toyota brakes which contained asbestos.

These ‘genuine fake’ products are also very lucrative for criminals. These are products that are usually sold online, convincingly packaged, close to the manufacturer’s RRP and accompanied by a decent story to explain the discount – such as the product being opened for inspection or an unwanted gift. Ultimately this type of con plays on the well-established consumer desire for a good bargain.

All industries are vulnerable. Pharmaceutical products for example are another hotspot, stimulated by constant consumer demand and the often high cost of products. It is currently estimated over half of the pharmaceuticals purchased online are fake. These products pose an obvious health risk, and internationally the level of concern is high enough for the EU to have introduced its recent Falsified Medicines Directive. The directive brings in a new range of packaging requirements for vulnerable products around labelling and serialisation to support the European Medicines Verification System (EMVS), a point-of-dispensing verification system.

The pharmaceutical industry is also an example that it’s not just end-consumers that are at risk from fakes. Consumers turning to fakes instead of the genuine article is an obvious case of lost revenues, but there are also wider risks from elaborate fakes entering the supply chain. The consequences in reputational terms of an established brand inadvertently selling fake products are severe.

Brands have focussed on two related areas to protect them from fraudulent products; labelling innovation and packaging innovation.

Addressing labelling innovation, well known basic security measures include security inks, holograms and tamper-evident seals. But unfortunately, counterfeiters have kept up and fake holograms are now an established feature of high quality fake products. This is driving innovation into new areas, some of the most interesting include the development of 3D barcodes for all types of products. Developed in collaboration with UK company Softmat Ltd and a group of engineers at the University of Bradford, the system uses a series of pins and depths to create sequential and individual barcodes for products. The barcodes afford companies the ability to individualise barcodes for each product making counterfeit products immediately stand out within supply chains.

From the packaging perspective, there’s a level of crossover between fraud-prevention and tamper resistance. Many of the systems designed to prevent tampering; itself often a form of fraud, particularly in food and beverage also help to prevent forgeries – through their recognisable and often difficult to emulate form. Nonetheless, whilst the tamper-proofing used to protect food and beverage is generally effective, partly because of the relative low value of the protected items, less can be said of the beauty sector which tends to be packaged in boxboard with security and tamper-evident strips.

The response from the packaging industry has been to focus on design innovation, whether in terms of shapes or difficult to emulate printing techniques. The San Francisco based company Benefit Cosmetics, is well known for its combination of uniquely shaped and uniquely printed packaging. This in practice makes the cost of replication and forgery much higher, helping consumers to identify the real deal and to deter prospective counterfeiters.

Regardless of the form of product protection, added advanced forms of packaging or advanced labelling comes at an increased cost. Businesses should be embracing the added brand security and focusing on the added value this investment brings. For example, a more luxurious package that through a combination of materials, printing and design becomes difficult to emulate is also justifiable through its positive impact on the consumer brand experience and shelf presence.

While it is up to the brands to introduce these protections into their product lines, retailers need to be careful about what they are stocking. By ensuring the products they stock are legitimate, retailers can protect themselves and their customers from any nasty surprises.

Larry Jackson is the CEO of APP business partner Paper Force. Larry has more than 20 years’ experience working in the paper industry in Australia, New Zealand, Hong Kong and Canada and took over Paper Force following the announcement of APP’s Forest Conservation Policy.

[1] https://www.border.gov.au/ReportsandPublications/Documents/annual-reports/ACBPS-Annual-report-2014-15-optimised.pdf

[2] http://www.iccwbo.org/products-and-services/fighting-commercial-crime/counterfeiting-intelligence-bureau/


Is it Time for Packaging to get Personal?

By Larry Jackson

Australians have always been early adopters when it comes to technology, and print and packaging companies have been at the forefront as they work with brands who are continually looking for new and unique ways to engage consumers.

What has been firmly entrenched in the domain of luxury brands and high-end gifts is slowly coming to the masses – personalised packaging. Australia was the first to launch the ‘Share a Coke’ campaign, which has now circulated the globe several times. Over the length of the original campaign, 378,000 custom drink cans were created, emblazoned with common names or labels, such as ‘Mate’ and ‘Best Friend’, resulting in an increase of 7% in summer sales. Coca Cola’s Facebook page rose to the number one page in Australia and 23rd globally.

Coca Cola’s success shows personalisation should no longer be restricted to the luxury sector and that it can be hugely popular amongst consumers. In fact, there are a few companies that have capitalised on personalised packaging and followed Coca Cola’s lead such as Jim Beam with its ‘Join the Family’ campaign and more recently Ferrero Australia’s ‘MyNutella’.

But beyond these handful of brand campaigns, personalisation through mass spectrum variable packaging is still in its infancy.

It is important to take into account the barriers to personalisation in packaging. At the forefront of most brands’ mind is cost. The cost of designing and delivering personalised packaging carries a price tag, and has been the deciding factor of why personalisation has been limited to the high-end and luxury side of the sector.

Furthermore, demand for personalised packaging still hasn’t been extensively tested, how much will consumers be prepared to spend to see their name on the front of a product, if not in lights? Being in its infancy this is difficult to quantify in packaging, however, clearly brands can draw some correlation and have identified personalisation is the way to go in mass market direct mail.

Following on from this is the logistical barrier personalised packaging creates. Brands are unaware of how far consumers will go in order to procure something personalised. Previous campaigns, such as those mentioned before, have relied on consumers purchasing the product in-store, sending off for a personalised label or the product being printed on the spot. As in-store printers become more commonplace personalised labels could soon be streamlined.

A final hurdle is demand. While seeing your name on a can of coke or a jar of your favourite spread is a novelty, are today’s consumers really crying out for it?

On the other side of the coin, very few people are searching for products featuring their own name. Instead time-poor consumers are seeking gift items with a personal touch and are willing to pay a premium for that added personalisation on a favourite product.

In this sense, personalisation offers the perfect solution for rushed people buying presents online during busy holidays, such as Christmas, Valentine’s Day or Mother’s and Father’s Day. This is when we can see personalisation having the desired effect. In terms of consumer engagement and campaign impact, personalisation in packaging can work extremely well.

However, in order for personalised packaging to take off, brands must adapt their view of personalisation and see it less of a costly, unwieldy process and more of a clever tactic along the lines of mass customisation.

This means transitioning personalisation from the individual to the distinct. Recent advances in digital printing could soon motivate major brands into becoming more nimble with their packaging – altering pack designs to seasonal or local events, even news stories and figures.

Although personalisation is likely to remain firmly in the luxury and high-end space, or to punctuate a short, sharp, seasonal campaign, forward-looking brands should now be interrogating the latest innovations in digital printing to see how mass customisation can give them an edge over competitors.

Larry Jackson is the CEO of APP business partner Paper Force. Larry has more than 20 years’ experience working in the paper industry in Australia, New Zealand, Hong Kong and Canada and took over Paper Force following the announcement of APP’s Forest Conservation Policy.


Cartonboard industry looks east for five-year growth

New data released by Paper Force and Asia Pulp & Paper Group (APP) identifies the Asian market as critical for the growth of the cartonboard industry, driving demand for both folding cartons (e.g. folding boxboard) and liquid cartons (e.g. milk cartons).

According to the findings from the report, “Paper based packaging trends to 2019”, the Asia-Pacific region will increase its share of global volume demand for folding cartons from 56% in 2013 to more than 63% in 2018. The prominence of the region will also be compounded by a wider global increase in consumption of folding cartons from 47 million tonnes in 2013 to 63 million tonnes in 2018.
Asian growth is expected to significantly surpass the global average in a number of sectors. Asia will outpace the worldwide increase in the confectionary sector by 41%, the preserved foods sector by 29% and the soft drinks sector by 35%. This is forecast to be largely at the expense of developed markets, with the EMEA share of demand falling from 25% to 21% and the Americas declining from 19% to 16% across 2013 to 2018.
Meanwhile, Asia, together with Australia, is expected to drive strong underlying growth in global liquid packaging board output. While the sector will grow from just under four million tonnes in 2013 to five million tonnes in 2019, Asia and Australia is expected to account for 60% of incremental tonnage over the period, despite only accounting for 25% of demand today.
The report identifies a number of drivers of demand in Asia which account for the growing importance of the region for the cartonboard industry:

Diversification of consumption patterns – Increasing numbers of western and international products are being consumed by Chinese and other Asian consumers as they travel more and experience western food and other products, driving cartonboard consumption growth.

Shift from informal to formal markets – The shift from ‘informal’ ‘unpackaged’ to ‘formal’ ‘industrially packaged’ consumption will drive long-term growth in liquid cartonboard and folding carton demand across food and beverage areas. For example, currently the majority of the milk market in India (world’s largest milk market) is mainly unpackaged, and a growing shift to packaged consumption is having a major impact on liquid cartonboard material demand.

Single-serve packs – An increasing number of single-person households coupled with a growing demand for convenience, has driven demand for smaller packs, which involve more packaging than the larger packs they replace. The single-slice pizza box has become increasingly popular in Asia and particularly in major cities such as Shanghai.

Larry Jackson, Managing Director of Paper Force, Australian Affiliate of Asia Pulp and Paper, said:
“We are seeing a global shift in cartonboard demand, which will have implications across the industry. The prominence of the Asian region will re-focus international supply chains, and manufacturers will need to respond quickly to capitalise on the emerging markets. The middle classes in Asia are increasingly becoming a global force and, if manufacturers hope to be internationally competitive in five years’ time, then they will need to ensure that they are positioned to serve the Asian markets. These emerging Asian markets present an exciting opportunity for all Australian manufacturers right on their doorstep.”
Dr Graham Moore, Strategic Consultant, Smithers Pira, said:
“With cartonboard use covering a wide range of end use applications, its overall demand is linked with prevailing economic conditions. In the developed economies, cartonboard demand has been flat, but the slowly improving economy should lead to better local demand and a growing export market in the near future. In contrast, in the developing economies of Asia, the rise in overall incomes and expanding middle classes is resulting in a surging demand for a range of products packaged in cartonboard. Such demand will continue to stimulate increased consumption of the grade.”


Solaris Paper’s Big Breakfast in support of Foodbank NSW & ACT

By Jemma Logan

IMG_0976

Everyone knows that breakfast is the most important meal of the day. It provides the body and brain with fuel after an overnight fast. That is where its name originates from – breaking the fast. Without breakfast we are effectively running on empty, like trying to start a car with no petrol. Unfortunately more than two million Australians (half being children) face hunger at some point during the year.

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Foodbank and Solaris Paper fight to end hunger

By Jemma Logan

IMG_0832

Australia is a country where a high standard of living, affordable housing, excellent public transport, an integrated healthcare system and world class education are just few of the many amenities available to the average Australian. But even though the United Nations’ Human Development Report 2014 ranked Australia as the second most livable country in the world, there are still many people who do not have access to sufficient, safe and nutritious food.
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Who cares? Solaris Paper does

By Jemma Logan

Who Cares We Do 2

According to the 2013-2014 Specialist Homelessness Services Collection annual report, specialist homelessness services assisted around 254,000 clients, where 45% were homeless and 55% were at risk of being homeless. Sadly there is not enough affordable housing or government services to meet the growing demands of homeless people throughout Australia. Who Cares? We Do recognizes that. For ten years founder Malcolm Wells was an advisor with Windermere Child and Family Services and witnessed an increase in hardship and genuine need to support those in need within the local community. (more…)