Survey documents broad satisfaction with 100% recycled paperboard, Solutions!, Online Exclusives, May 2004

SURVEY DOCUMENTS BROAD SATISFACTION WITH 100% RECYCLED PAPERBOARD

By Phil Wirth, Rowland Communications Worldwide

Packaged good companies rate 100% recycled paperboard highest for value, specific performance attributes and consumer preference

New opinion research provides the strongest evidence to date of the packaged goods industry’s growing satisfaction with the value, performance and consumer benefits provided by 100% recycled paperboard packaging. In the most comprehensive study ever conducted of packaged goods company attitudes regarding 100% recycled paperboard, surprising insights are revealed regarding today’s packaging marketplace and the industry’s major materials, including 100% recycled paperboard and virgin paperboard.

“The study proves that consumer product packaging companies that use 100% recycled paperboard have high regard for the substrate and see it as having a very strong value proposition, with excellent performance qualities. They also view it as a key tool in catching the attention of the end-consumer by communicating an environmentally positive image,” said Lynn Harrelson, executive director of the 100% Recycled Paperboard Alliance (RPA-100%).

“As recycled paperboard expands into new markets and applications, the results of this study should give existing users who are interested in using more—and those non-users considering the use of recycled paperboard—a great deal of confidence,” added Harrelson.

Conducted for RPA-100% by South Carolina, USA-based opinion research firm Priority Metrics Group, the study documents which packaging materials represent preferred value and use among packaged goods companies; identifies what drives their satisfaction; and discusses the performance attributes they view as important in the selection of a packaging material.

According to Priority Metrics Group, the study is statistically projectable across all current and likely folding carton users within U.S. packaged goods companies. The study consisted of 220 telephone interviews with packaging, technical and purchasing professionals at 143 U.S. companies in dry and frozen/refrigerated foods, pharmaceutical, toothpaste, pet supply, soap and office supply industries.

Six key findings
An in-depth analysis of the results of the study by Priority Metrics Group reveals six key findings or themes:

1. More than 55% of respondents rate 100% recycled paperboard as having superior value, especially in the categories of dry and frozen/refrigerated foods.
“This finding is significant since packaged goods company respondents say that value—defined as price combined with product quality, performance and service—plays the dominant role in the decision-making process of choosing a package/substrate material,” observed Priority Metrics President John Barrett.

2. The study reveals that one-third of heavy users of 100% recycled paperboard see recycled paperboard as superior to other types of packaging regarding consumer preference and shelf impact.
Similar satisfaction with key process attributes such as filling line performance and distribution efficiencies was also found. Overall, 56% of respondents identify, on average, two areas where 100% recycled paperboard packaging is superior to other types.

3. Current users of any amount of 100% recycled paperboard are 20% - 25% more positive in their evaluation than non-users and find 100% recycled paperboard superior to other packaging on a number of attributes.
“This finding underscores the reality that packaged goods companies currently using 100% recycled paperboard understand clearly how well it meets their needs and those of their consumers,” says Harrelson. “It also directly rebuts any decades-old myths about recycled paperboard’s attributes and performance that may still linger among non-users.”

4. As a result of these attitudes, 100% recycled paperboard has today become a dominant packaging material.
More specifically, among users of any amount of 100% recycled paperboard, it plays the dominant role in their packaging portfolio, representing nearly a 60% share of their total packaging. Among likely and current users, recycled paperboard represents 40% of their total packaging.

5. The study identifies a clear majority—nearly 55%—of packaged goods companies saying that when it comes to the marketing of their products, an environmentally positive image is important.
Of this total, an overwhelming majority (70%) recognize the consumer appeal, value and importance of the recycled paperboard “chasing arrows” symbol to the marketing of their products. The study also reveals that, as usage of 100% recycled paperboard increases, packaged goods companies say the marketing value from an environmentally positive image goes up sharply—ranging from a 33% increase to a 73% jump in importance.

6. The study identifies the four attributes that are the most critical drivers of respondents’ overall sense of satisfaction when choosing and using 100% recycled paperboard.
“Value” is the top-ranked driver of packaged goods company satisfaction when selecting and using a paperboard, and was cited 45% more frequently than the second most important attribute. Carton runnability is the second-rated attribute in terms of importance. The two other drivers of satisfaction are overall paperboard quality and overall carton performance, according to the study.

Hands on experience
Harrelson says that one of the conclusions to be drawn from the study is that people closest to actually using and running 100% recycled paperboard cartons have the most positive perceptions. The study finds that perceptions of 100% recycled paperboard are positive for people in all job functions, but that respondents holding positions in the production and purchasing arena consistently rate 100% recycled paperboard higher than respondents in other job functions.

In terms of key market segments, the study finds that respondents in the frozen food category is the most positive industry sector overall, while those in dry foods are more likely to see noticed improvements in 100% recycled paperboard and to see these cartons as superior to other packaging alternatives. Significantly, in terms of its overall value proposition, 100% recycled paperboard is rated higher than virgin paperboard by producers of both frozen and dry foods.

“Despite the subtle differences in perception of 100% recycled paperboard between various segments of the industry, the study clearly shows that over the last five years—across all market segments and job functions—the vast majority (64%) of packaged goods companies cite significant improvements in recycled paperboard,” notes Barrett of Priority Metrics. “For example, runnability, printability, consistency and strength are identified as critical quality attributes for packaging decision-makers that have improved substantially over the last five years.”

Packaging industry impacts
According to RPA-100%, the study is expected to open eyes at packaged goods companies that may be considering use of 100% recycled paperboard for the first time, or those who may be using the material in small amounts but are considering expanding their usage.

“We understand that the decision about which materials to incorporate into a package design is a critical one in the lifecycle of any product,” says RPA-100%’s Harrelson. “We hope the results of this study will provide those making the packaging decisions with an accurate, industry-wide assessment of the value, benefits, and performance that 100% recycled paperboard delivers.”

About 100% RPA:
The 100% Recycled Paperboard Alliance is a group of leading manufacturers whose mission is to increase the use and labeling of 100% Recycled Paperboard packaging. Members include Caraustar Industries, Inc., The Newark Group, Inc., Rock-Tenn Company, Smurfit-Stone Container Corporation, Corenso North America, and Cascades Boxboard Group, Inc. To learn more about 100% RPA, or about obtaining a complete copy of the study profiled here, contact Lynn Harrelson at (315) 635-1215

About the author:
Phil Wirth is with Rowland Communications Worldwide, New York, NY. Reach him by email at pwirth@rowland.com