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It was restrictions on the use of styrofoam, a lightweight, environmentally hazardous plastic, to ship furniture to Europe that prompted Alvin Lim to switch to sustainable packaging in the mid-2000s.
“It was 2005, when outsourcing was in vogue. I had several businesses, one of which was the production of furniture for the gaming industry. I was told that I could not supply styrofoam to Europe, otherwise there would be tariffs. I began to look for alternatives,” – said the Singaporean entrepreneur who founded RyPax, a company that makes recyclable, biodegradable molded fiber packaging using a blend of bamboo and sugar cane.
His first big step was to convert the Napa Valley wine industry from styrofoam to molded fiber in the United States. At the height of the wine club boom, RyPax shipped 67 40ft wine consignment containers to wine producers. “The wine industry wanted to get rid of styrofoam – they never liked it. We offered them an elegant, environmentally friendly alternative,” says Lim.
The real breakthrough in his business came at the Pack Expo in Las Vegas. “We were very interested, but there was a gentleman at our booth who spent 15 minutes checking our products. I was busy with another customer so he put his card on our table, said ‘call me next week’ and left.” Lim recalls.
A major established consumer electronics brand, renowned for its sleek design and intuitive products, reflects RyPax’s own culture and approach to sustainability. Just as RyPax has helped customers move from plastic to molded fiber, customers have inspired RyPax to use renewable energy to power its operations. In addition to investing $5 million in solar panels on the roof of its plant, RyPax also invested $1 million in a wastewater treatment system.
In this interview, Lim talks about innovation in packaging design, the weaknesses of Asia’s circular economy, and how to convince consumers to pay more for sustainable packaging.
Molded fiber champagne cap by James Cropper. It is lighter and uses less material. Image: James Cropper
A good example is molded fiber bottle sleeves. Our strategic partner, James Cropper, produces 100% sustainable packaging for luxury champagne bottles. Packaging design reduces the carbon footprint of packaging; you save space, are lighter, use fewer materials, and don’t require expensive outer boxes.
Another example is paper drinking bottles. One participant made one on a plastic liner using two sheets of paper that were glued together with a lot of hot glue (so they were hard to separate).
Paper bottles also have problems. Is it commercially viable and ready for mass production? RyPax has taken on these challenges. We have broken it down into steps. First, we develop an airbag system that uses easily removable aluminum or thin plastic bottles. We know this is not a viable option in the long run, so the next step we take is to create a single material for the bottle body with a durable liquid-retaining coating. Finally, our company is working hard to completely eliminate plastic, which has led us to an innovative molded fiber screw cap option.
Good ideas are emerging in the industry, but knowledge sharing is key. Yes, corporate profits and competitive advantage are important, but the sooner good ideas are spread, the better. We need to look at the big picture. Once paper bottles become available on a large scale, a significant amount of plastic can be removed from the system.
There are inherent differences in properties between plastics and sustainable materials derived from nature. Thus, environmentally friendly materials are in some cases still more expensive than plastics. However, mechanical technology and advances are advancing rapidly, increasing the cost-effectiveness of mass production of environmentally friendly materials and packaging.
In addition, governments around the world are imposing tariffs on the use of plastics, which in turn will encourage more companies to switch to more sustainable practices, which can reduce overall costs.
Most sustainable materials come from nature and do not have the properties of plastic or metal. Thus, environmentally friendly materials are in some cases still more expensive than plastics. But technology is advancing rapidly, potentially driving down the cost of mass-produced environmentally friendly materials. If tariffs are imposed on plastic as a way of combating plastic pollution, it could lead companies to switch to more environmentally friendly materials.
Recycled plastic is always more expensive than virgin plastic due to recycling, recycling and recycling costs. In some cases, recycled paper can be more expensive than recycled plastic. When sustainable materials can scale, or when customers are willing to accept design changes, prices can rise because they are more sustainable.
It starts with education. If consumers were more aware of the damage plastic is doing to the planet, they would be more willing to pay the cost of creating a circular economy.
I think big brands like Nike and Adidas are addressing this by using recycled materials in their packaging and products. The goal is to make it look like a recycled mixed design dotted with different colors. Our partner James Cropper transforms takeaway coffee mugs into luxury packaging, recyclable bags and greeting cards. Now there is a big push for ocean plastic. Logitech has just released a marine plastic optical computer mouse. Once a company goes down that path and the recycled content becomes more acceptable, then it’s just a matter of aesthetics. Some companies want a raw, unfinished, more natural look, while others want a more premium look. Consumers have increased demand for sustainable packaging or products and are willing to pay for it.
Another product that needs a design overhaul is the coat rack. Why do they have to be plastic? RyPax is developing a molded fiber hanger to further move away from single-use plastic. The other is cosmetics, which is the main cause of single-use plastic pollution. Some lipstick components, such as the pivot mechanism, should probably remain plastic, but why can’t the rest be made from molded fiber?
No, this is a big problem that came to light when China (2017) stopped accepting scrap imports. This led to an increase in raw material prices. Prices for secondary raw materials also rose. Economies of a certain size and maturity can cope because they already have waste streams to recycle. But most countries are not ready and they need to find other countries to get rid of their waste. Take Singapore as an example. It lacks the infrastructure and industry to handle recycled materials. Therefore, it is exported to countries such as Indonesia, Vietnam and Malaysia. These countries are not created to deal with excess waste.
Infrastructure must change, which takes time, investment and regulatory support. For example, Singapore needs consumer support, business readiness and government support for industries seeking more sustainable solutions to develop a circular economy.
What consumers have to accept is that there will be a transitional period to try out hybrid solutions that aren’t ideal at first. This is how innovation works.
To reduce the need to transport raw materials, we need to find local or domestic alternatives, such as locally produced waste. Examples of this include sugar mills, which are a good source of sustainable fibre, as well as palm oil mills. At present, the waste from these factories is often incinerated. RyPax chose to use bamboo and bagasse, options available at our location. These are fast-growing fibers that can be harvested several times a year, absorb carbon faster than almost any other plant, and thrive in degraded lands. Together with our partners globally, we are working on R&D to identify the most sustainable feedstock for our innovations. Together with our partners globally, we are working on R&D to identify the most sustainable feedstock for our innovations. Together with our partners around the world, we work on research and development to identify the most sustainable raw materials for our innovations. Together with our global partners, we work on research and development to identify the most sustainable raw materials for our innovations.
If you do not need to send the product anywhere, you can remove the packaging completely. But this is unrealistic. Without packaging, the product will not be protected and the brand will have one less messaging or branding platform. The company will start by reducing packaging as much as possible. In some industries, there is no other choice but to use plastic. What consumers have to accept is that there will be a transitional period to try out hybrid solutions that aren’t ideal at first. This is how innovation works. We shouldn’t wait until a solution is 100% perfect before trying something new.
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