"It is estimated that $10B to $20B worth of single-use plastic packaging will convert to molded fiber": ZUME
"It is estimated that $10B to $20B worth of single-use plastic packaging will convert to molded fiber": ZUME
- Time to Integrate Molded-Fibre Business in India
- Parason Machinery joins a network of Zume manufacturing partners around the globe, expanding the availability and market share of Zume sustainable goods that replace plastics and styrofoam
Zume is a sustainability solutions company reimagining the packaging industry with their invention: anti-leak molded-fiber sustainable packaging. Zume’s packaging is a molded-fiber, plant-based and 100% compostable product with revolutionary features that is made using Zume’s advanced molded fiber manufacturing equipment and software stack. An exclusive Interview of Mr. Alex Garden, CMD & CEO -ZUME Inc., USA over the molded fiber product market in India in the shadow of single-use plastic ban. Here are his views:
August 2021 | The Pulp and Paper Times:
Q: What is Molded Fiber Technology? Why are Molded Fiber Products considered as the future of disposable tableware?
Molded fiber is a type of biodegradable raw material that is renewable and usually wood-based. In our case, the molded fiber packaging consists of moldable fibers such as bagasse (sugarcane fiber), bamboo, wheat, straw and blends of various grass fibers.
Agricultural waste long held promises of finding second life as an environmentally friendly material, but the technology had not yet existed to make use of it at scale. Zume’s proprietary machinery converts agricultural byproducts, such as bagasse from the production of sugar, into fully compostable single-use plastics replacements.
The use of molded fiber based solutions allow us to offer sustainable packaging at the same price, or less, than plastic. Our sustainable molded-fiber products also hold up in delivery transit, microwaves, and refrigerators - performing equally or better than plastic. Zume’s molded fiber products mirror the adaptability and durability characteristics of plastic utilizing cutting-edge manufacturing technology and material science - which is why it's a great alternative to plastic.
Q: As the Indian government is committed to phasing out single-use plastic products from the beginning of the year 2022, what demand for these fiber molded products do you see in the next 5 years?
Valued at $340B, the single-use plastic packaging industry is ripe for innovation. The global trend toward increased sustainability is driving growth in molded fiber solutions as a leading sustainable alternative to single-use plastics. Projections vary, but in coming years it is estimated that $10B to $20B worth of single-use plastic packaging will convert to molded fiber, and Zume intends to use it’s superior equipment and products design and technology advantages to drive this conversion in the most accelerated pace possible to meet the demand as countries like India continue putting sustainability laws in place.
Q: As Zume inc is a growing name on Indian Soil, how does Zume cater to the requirement of molded products? Meaning what services, machinery, and after-sale support does Zume provide to its customers?
Zume’s proprietary software and professional services integrate brand owners, manufacturers, suppliers, and vendors. The patented system drives efficiencies and cost savings by matching brand owners with a reliable source of molded fiber products that are produced at scale.
Q: What is the shelf life of the molded box and how does it protect inside food products? Does it require any barrier coating?
Zume’s packaging is the premier anti-leak sustainable molded-fiber product that holds up in delivery transit, microwaves, and refrigerators - performing equally or better than plastic at competitive cost. Zume’s food packaging is specifically designed to physically stabilize perishable food products, which is especially important when food is in transit for delivery. The standard shelf life for fiber based products alone is six months to ensure structural integrity and minimize degradation due to the effects of hysteresis that has been well studied and documented. The ZUME product line has been engineered in a manner that does not require coatings to achieve barrier properties.
Q: As Zume is a global name, how much of the world is aggressive and aware to adopt these molded products, and where does India stand?
Packaging is one of the most damaging sectors to the environment and plastic pollution costs $13 billion in economic damage annually. There is a tremendous runway for plastic packaging disruption as plastic production has outpaced that of almost every other material and corporations are supplying single-use plastic at record pace. Nearly every brand in the world has a plastic reduction commitment but change has been slow due to a lack of competitively priced alternative solutions available at scale. Zume is selling our machines and products to 20+ countries around the world and just added Russia. Zume has industrial partnerships now in India, the US, and now across the UK and EU. It’s very inspiring to see the enthusiasm for sustainability that will carry us into the future and continued growth.
Q: How many types of fibers can be used in the making of molded products? As molded products are made from Agro Residual like straw or Bassase, Some Paper Mills in India are making Writing and Printing paper from Agro waste also, and they are successfully selling paper at good price. How do you see the future picture of agro fiber availability, when the penetration of molded products will increase? Which business do you think is more profitable and sustainable in long term?
Our motto is “For a country, by a country, in a country†meaning our system is very robust and is adaptable to the available Agro Residual for the region. This creates the perfect closed-loop solution for growing the food product, converting the waste to a molded fiber container and then composting the container to use to grow more product. Throughout Zume’s R&D initiatives, we have not encountered a fiber we can not convert into a product with the patented Zume technology.
Q: Why is this technology considered as a sustainable molded product technology? If we compare a rigid plastic molded product versus a Fiber Molded Product (non-plastic) then what will be the Unique Selling Points (USP) of a Fiber Molded Product over a rigid plastic molded product?
Zume’s process is a fully closed-looped system. We repurpose agricultural waste from sources such as bagasse, bamboo, wheat, and other organic fibers for our sustainable packaging which significantly reduces water use, energy use, and carbon emissions in production. After use, the compostable packaging breaks down into organic material and can be re-used to regenerate soil or other organic matter. Zume’s solution not only takes single-use plastics out of circulation but is certified for compostability so when buried in the ground, it's gone in 90 days instead of sitting in landfills.
Q: Please share your journey on Indian Soil. As Zume has made up the deal with Jefferson Enterprise Energy, Parason & Satia Industries already, Is Zume open for further association with any Indian company? If yes, what services and products will you offer to the new joint venture?
Zume values our partnerships in India and sees great growth potential in the region. Initially, Zume and Satia Industries will deploy more than 2,000 tons of self-sealing, sustainable molded-fiber products to be manufactured and marketed during the first year of the partnership. Satia Industries plans to enhance its expertise and expand its product offering basket through this association with Zume by providing customized molded fiber packaging solutions across multiple industries such as food, consumer packaged goods, electronics, cosmetics, healthcare, and pharma.
Parason is constructing a greenfield factory where the Zume manufacturing technology will be deployed. With this deal, Parason joins a network of Zume manufacturing partners around the globe, expanding the availability and market share of Zume sustainable goods that replace plastics and styrofoam. As part of this partnership, Parason is helping Zume further optimize stock preparation and other auxiliary systems that complement Zume’s core manufacturing technology.
Q: What is the SWOT analysis of the fiber molded product business and how can one overcome the challenges?
There are always challenges associated with bringing products to market at scale. But, Zume is able to bring our molded-fiber sustainable packaging to market at scale because of our proprietary software that integrates brand owners, manufacturers, suppliers, and vendors. Our patented system drives efficiencies and cost savings by matching brand owners with a reliable source of molded fiber products that are produced at scale, giving brands an alternative to single-use plastics.
Q: As India is a growing economy and in this economy, there are many kinds of customers such as small-scale, mid-scale, and large-scale. Who are your target customers? and on the basis of what strategy, Zume will move into the targeted market?
Consumer plastic packaging alone is a $340 billion industry and includes 190 million tons of single-use plastic a year. That’s why nearly every brand has a plastic reduction commitment, yet change has been slow due to a lack of competitively performing alternative solutions. Zume sells their sustainable packaging directly to brands, restaurants, helping them keep their commitments to reduce plastic waste.
As trends toward convenience/delivery accelerate, food companies and restaurants are actively seeking better packaging solutions and providers in an effort to improve food quality, customer experience and cost, making Zume’s customers and target audience world-leading food manufacturers and food retailers.
Q: Can Fiber Molded Products be used in heavy-weight packaging & storing applications also? If yes, then what are the limitations and how much will it be cost-effective from the traditional heavy-duty kraft paper boxes?
The cushioning and protective benefits of molded fiber products have been long studied and documented. The current ZUME technology may be suited for limited applications based on size and the value of the product to be stored. Zume does plan to explore new technologies that would be better suited to service this market with a superior, cost-effective solution in the future.
Q: Do you provide any financial assistance through banks to the buyers? If yes, then what will be the cost of business, minimum manpower engagement, and raw material availability if we select a kind of business and Return of Investment (ROI) you assure to the buyers?
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