It's a wrap: honeycomb paper cushioning from Anderson Group.

Hong Kong companies Asiapack, EPI Environmental Technologies, Sunny Concept and Anderson Group Limited have two things in common: they're all in some way involved in the packaging materials business - and they're among those leading the trend locally towards sustainable packing.

That's likely to work in favour of these and other companies intending to break into the potentially huge international demand for "green" packaging. Sustainability is a watchword among retailers and consumers in mature markets, so buyers are more frequently demanding packaging that fits the description.

Of course, packaging also has to preserve and protect the contents and act as a marketing tool to attract consumers. But the environment is now rated as a major consideration.

Experts from US-based research firm Freedonia say this will continue until at least 2013. Environmental concerns and consumer awareness are key factors creating the demand for green packaging. More stringent government legislation will almost certainly add to the demand pull.

The Chinese mainland is the largest export market for Hong Kong's packaging materials industry. But demand for packaging materials on the Mainland has been mainly driven by domestic production.

Indeed, the Mainland packaging industry has one of the highest growth rates internationally and is the world's third largest, worth over US$81 billion annually. And it is no slouch for state-of-the-art technology, with equipment which meets international standards to produce packaging of high quality at low cost.

The Mainland's demand for products includes packaging materials, labels, manuals and advertising material aimed at promoting a product's brand image.

Recycled materials are being sought after by industry players as they turn to bio-degradable plastic bottles, re-usable bags, recyclable boxes, as well as materials such as polyethylene terephthalate and polystyrene.

International demand for recycled materials.

The global packaging industry is divided into consumer packaging (the wrappers and cartons seen in stores) and industrial packaging. In the latter case, the packaging is mainly used for protection and transportation purposes. This includes vacuum packs, heat sealers, shrink packaging films, cartons, paperboard boxes, PS foam, air bubble blister stuffing, pallets and foam sheets.

Freedonia forecasts demand for green packaging - defined as material comprised of recycled content that's biodegradable or reusable - to increase 3.4% annually to US$43.9 billion in 2013. Demand for biodegradable plastics in the US is set to expand 16% annually, valued at US$845 million. Green packaging growth is anticipated to outpace that of the overall industry.

Biodegradable plastics are expected to show the fastest gains, fueled by increased price competitiveness. Brand owners' sustainability efforts and legislative bans on polystyrene are cited as stimulants for growth as well.

At the same time, recycled content packaging is expected to grow in line with that of green packaging. Plastic recycled content packaging is expected to drive this segment's expansion with the boost in collection volume, the development of food-contact approved resin grades and sustainability initiatives.

But counterbalancing the growth of plastic recycling is the slower growth of paper recycled content, according to the research.

Hong Kong players making green headway

Attractive and green: packaging from Asiapack.

Asiapack's green blister package.

Asiapack of Hong Kong started out as a tool packing facility on the Mainland to stock and pack a client's products. Executives realised the potential of other sectors. "Our company slogan is Pack - Stock - Ship," says Sales and Marketing Manager, Jonathan Zamora.

He adds: "we also keep stocks of customers for packing and shipping. We offer free short time stocking of products. We help the customer design his packaging, improve the look and make it more saleable."

"One of the main advantages of our business is that one customer can sell one type of product to different kinds of customer in different countries with different kinds of packaging. Being able to do this requires our kind of platform. We also have the facility to standardise the printing and re-printing in out factory, which allows flexibility for our customers," Zamora explains.

Asiapack has opened offices in the Shenzhen Export Processing Zone (EPZ), where potential customers can pick up tax benefits. The company has been instrumental in introducing contract packing (usually called "co-packing") to the Chinese mainland market.

As to the materials used in the industry, plastics have been a challenge for the industry, since their use has become widespread. With conventional plastics virtually non degradable, disposable plastic products represent an estimated 30% of worldwide plastic consumption, substantially contributing to the damage done to the Earth's ecosystem.

EPI Environmental Technologies Inc is a Hong Kong-based firm which develops, manufactures, distributes and sells degradable and biodegradable chemical additives to manufacturers of finished plastic products. It has developed a bio-degradable additive called TDPA.

There are two major categories of biodegradable plastic technologies, namely hydro-biodegradable (degradation initiated by water) and oxo-biodegradable (degradation initiated by oxygen).

TDPA is based on oxo-biodegradable technology. Hydro-biodegradable plastics are not yet cost-competitive with traditional plastics and many have failed to satisfactorily meet the intended use and performance requirements of finished product applications. In contrast, EPI's oxo-biodegradable additive, TDPA, is cheaper, simpler and effective.

EPI's Stuart Mackenzie says: "rapid growth for degradable plastics is expected in the packaging industry. Packaging represents the largest single sector of plastics use. In the UK, this sector accounts for approximately 35% of plastics consumption. Plastic is the material of choice in nearly half of all packaged goods."

EPI has a network of agents and distributors around the world who are continually identifying new applications for the TDPA additive. A number of large supermarket chains, including ParknShop, uses the TDPA additive for their disposable bags.

Food packaging fast gobbling green concepts

According to US-based MarketResearch.com, the largest markets for green packaging are food, consumer products and beverages, which together represented two thirds of total green packaging demand in 2008.

However, the fastest growing markets through 2013 are set to be the food service and shipping markets.

Li: honeycomb products a better substitution.

Flexible usage.

In industrial packaging, Hong Kong's Anderson Group Limited manufactures a series of honeycomb products, like honeycomb paper, box, cushion material and pallet.

"Honeycomb products are made of environmental-friendly materials, which are light in weight, durable and can be recycled. It is the best substitution for a wooden pallet," says the company's Cathy Li. "We just launched out new product, a honeycomb coffin."

Another popular green packing product is the recycled bags made of 100% polypropylene (PP). This plastic material is biodegradable.

Maranda Lee of Hong Kong's Sunny Concept says: "pure nylon and canvass material are also used and both are biodegradable and environment friendly. Clients decide on logo and printing and it is mainly used as a marketing tool. We encourage clients not to do too much printing, since ink is toxic and non-degradable."

Gold and silver - but green, from Sunny Concept.

Recycled bag from Sunny Concept.

Sunny Concept started making non-woven bags but has switched to natural materials on increasing demand. "Cotton is a natural material but the cost is higher than non-woven," explains Lee. "Non-woven bags are between HK$3 and HK$4 per piece; canvass or cotton nylon bags are over HK$10 per piece retail. But natural materials are more popular."

Material made from PP woven lamination and canvass represents the upcoming trend in recycle bags. "There is a growth in demand for this product. It is a very useful gift or product to use," adds Lee.

Her message is that companies should refrain from using plastic materials such as PVC which is toxic to the environment and switch to PP, PET or bio-based polymers.

Brand owners are pushing for green products, which are quickly becoming something consumers expect.

The world's largest mobile telecom producer, Hong Kong-listed China Mobile, has initiated a green packaging system adopting recyclable wood substitutes in the packaging process for its products.

Looks as well as environmentally friendly.

Fun green bag, by Sunny Concept.

China Mobile is aiming to reduce wood consumption by 57,000 cubic metres annually through green packaging, equaling 670 hectares of forest, as well as reduce fuel consumption by 1.37 million litres and save 3.9 million kWh of electricity, amounting to a carbon dioxide emission reduction of 120,000 tonnes, according to the Mainland's GreenChinaTech.com.

Dell, one of the world's largest personal computer makers, has also embarked on a green packaging programme that will save more than US$8 million and eliminate 9 million kilos of packing material over the next four years.

"There is an industry coming out of environmental concern and it can sell. You can make a green product out of anything. Some green packing sells better than non green packaging," says Asiapack's Zamora.

from special correspondent Resham Aron, Hong Kong