Market Update April 2023

Earthquakes In Turkey Affect Supply Chain

There have been several earthquakes in Turkey in recent months, which have caused significant loss of life and injuries as well as damage to buildings and infrastructure. Turkey is a major producer and exporter of goods, and the earthquakes have disrupted transportation and logistics operations, leading to delays and increased costs.

The earthquakes have also damaged ports, airports, and highways, which are critical components of the supply chain. For example, the Port of Izmir, one of Turkey’s busiest ports, was closed for several days following the earthquakes, leading to a backlog of shipments and delays in delivery.

These earthquakes have impacted manufacturing operations in the affected areas, as many factories have been damaged or destroyed. This has led to a reduction in the supply of goods, which has caused prices to increase.

The earthquakes have also disrupted the flow of raw materials, such as minerals and metals, which are used in the production of goods. This has led to shortages and increased costs for manufacturers. The full extent of the damage is still being assessed, and it may take some time for the supply chain to fully recover.

If you are worried about continuity of supply of your transit packaging products, get in touch here to discuss your requirements.

Plastic Packaging Tax Increase

The Plastic Packaging Tax (PPT) is set to increase from £200 to £210.82 per metric tonne from April 1st, 2023. This tax was introduced by the UK government last year in an effort to reduce the use of single-use plastic and encourage the use of more sustainable packaging materials. This has resulted in a lot of manufacturers looking to make the switch to more sustainable packaging solutions like recycled content packaging so as not to be liable for the tax.

This increase in the tax may affect food and beverage manufacturers who use plastic packaging on or in their products, as they could face higher costs for their packaging materials. It may also lead to increased consumer prices for these products. However, Lindum are doing all we can in absorbing any additional costs that may be passed through the supply chain, to keep prices stable so as not to impact our customers.

To reduce the impact of the tax, manufacturers may need to consider alternative packaging materials, such as biodegradable or compostable materials. Lindum can help you reduce your plastic packaging usage and help you make the switch to recycled content packaging.

The PPT is a significant change for the food and beverage manufacturing market, and manufacturers should be prepared to adapt to the changing regulations and market conditions.

Should you have any further questions about the tax, watch the recording of our webinar, Plastic Tax For Dummies to find out more.

Spanish Packaging Tax

The Spanish government has recently introduced a new indirect tax on non-reusable plastic packaging, which came into effect on January 1st, 2023. Like the UK’s PPT, this tax is designed to encourage the use of more sustainable packaging materials and reduce the amount of plastic waste generated in the country. Under the new regulation, companies that manufacture or import non-reusable plastic packaging in Spain will be required to pay a tax of €0.45 per kilogram of packaging. This tax applies to all types of non-reusable plastic packaging, including bags, bottles, containers, and wrapping materials.

The tax is expected to have a significant impact on the packaging industry, as well as on companies that use plastic packaging in their products. In response, companies may need to consider alternative packaging materials, such as biodegradable or compostable materials, in order to avoid the impact of the tax.

Contact Lindum if you need help sourcing sustainable packaging solutions.

AI x Packaging

AI can improve various aspects of the industry, including quality control, supply chain management, and sustainability. The use of AI can enhance packaging production by increasing speed, reducing errors, and minimizing waste. AI can also help to optimise the design of packaging, allowing for more creative and efficient packaging solutions. Additionally, AI can be used to identify and sort recyclable materials, contributing to a more sustainable packaging industry. As such, the integration of AI is a significant trend in the packaging industry, providing opportunities for companies to improve their operations and environmental impact.

Click here to learn more about AI in the packaging industry.

Industry 4.0

Industry 4.0, also known as the Fourth Industrial Revolution, is transforming the manufacturing sector with the use of digital technologies. This is having a significant impact on the packaging industry, as companies are adopting Industry 4.0 technologies to optimise their operations and increase their competitiveness.

One of the key benefits of Industry 4.0 for the packaging industry is the ability to achieve greater efficiency and productivity. Smart factories that use advanced sensors and data analytics can optimise the production process, reduce downtime, and improve quality control. This leads to faster production times, reduced costs, and increased output.

Another important aspect of Industry 4.0 is the integration of the Internet of Things (IoT) and machine learning. IoT devices can collect data from packaging machinery, enabling real-time monitoring and predictive maintenance. Machine learning algorithms can analyse this data to identify patterns and optimise operations, leading to even greater efficiency gains.

Industry 4.0 is facilitating the adoption of sustainable packaging solutions. Smart packaging that uses sensors and IoT devices can help reduce food waste by monitoring freshness and expiration dates. Additionally, the use of IoT-enabled packaging can improve supply chain efficiency and reduce environmental impact.

Industry 4.0 is having a significant impact on the packaging industry, driving greater efficiency, innovation, and sustainability. Companies that embrace these technologies will be well-positioned to succeed in the rapidly evolving packaging landscape.

To find out how Industry 4.0 technologies could benefit your packaging operations, get in touch.

Plastic Supply Chain In Europe

The plastics supply chain in Europe is pushing for greater legal certainty for recycled content. The European Union has set a target of 30% recycled content for plastic packaging by 2030, but the industry is concerned about the lack of clarity around what constitutes recycled content. This has led to uncertainty and confusion among companies in the supply chain, making it difficult for them to plan and invest in recycled content initiatives.

To address this issue, the supply chain is calling for clearer definitions and standards for recycled content, as well as a harmonized approach across EU member states. This would provide greater legal certainty for companies and encourage investment in recycled content initiatives, leading to a more sustainable and circular plastics economy.

The packaging industry has made significant progress in increasing the use of recycled content in recent years, with some companies already exceeding the EU target. However, the lack of legal certainty around recycled content is hindering further progress, making it difficult for companies to scale up their use of recycled materials.

The plastics supply chain in Europe is advocating for greater legal certainty around recycled content to support the development of a more sustainable and circular plastics economy. Clarity and consistency in definitions and standards for recycled content would enable companies to plan and invest in recycled content initiatives with greater confidence, leading to increased use of recycled materials in plastic packaging.

Lindum have a range of 30% recycled content transit packaging products which are not liable for the PPT. Click here to view the recycled content range.

If you are affected by any of these industry wide issues or developments, please get in touch with our team and we will work with you to overcome the challenges you may be facing. You can reach out to us on info@lindumpackaging.com or +44(0)1469 574480 or fill in the contact form below.