THE PACKAGING INDUSTRY HAS UPDATE BUYERS SHOULD KNOW

As the end of the pandemic approaches, the global political climate, paper supply, and production capacity are causing major upheavals for all things packaging. We excel in these situations - finding solutions to the most complex problems.
In the months to come, packaging buyers must be aware of the latest factors affecting supply chains.

WHY ARE PAPER BAGS & SUPPLY CHAINS SO EXPENSIVE？

ISSUE #1: PAPER PRICE INCREASES & WHITE KRAFT DISCONTINUED
There have been price increases across the board for US-made papers in the past few weeks. It is normal in our industry for price adjustments to occur occasionally, but what is causing a stir is the price increase for recycled white kraft paper. Therefore, many domestic paper bag manufacturers have decided to discontinue the use of 40% PCW white kraft in favor of virgin white kraft. This will happen as early as April 1st, 2022. White kraft papers are even being produced without FSC certification in some factories.

Retailers and restaurants that have locations that are subject to bag ban legislation (requiring a minimum of 40% PWC) or have a commitment to sustainability will find this a big deal).

WHAT WE RECOMMEND:

•Option 1: Alter your bag design to be printed on recycled natural (brown) kraft. This option not only saves you money on the cost of the paper itself, but it boosts your sustainability metrics by allowing for more recycled content in your bags.

•Option 2. Change up the style of your bags. Would you like to maintain US production without having to affect your brand's look and feel? Follow in the footsteps of companies such as West Elm, Nautica, Hilton, Eataly, and Walmart who are opting for a new style of bag made here in the US. The factory specializing in this bag still carries 40% PCW white kraft paper and has production capacity available.

• Option 3: Consider shifting your manufacturing overseas. Yes, the wait can be longer, but the growing demand on US factories has created longer than normal domestic lead times, shortening the difference between the two options. Even with the cost of shipping, this option can be competitive and would allow you to keep a recycled white kraft bag.
If your current paper bag program makes use of recycled white kraft, contact us today. Getting you on the right path starts by discussing the pros and cons with us!

ISSUE #2: THE UKRAINE SITUATION
Russia's invasion of the Ukraine has weighed heavy on our hearts. Since the situation has escalated, we have been tracking the potential fallout for our customers. The price of oil is one issue we track (Russia is the world's third-largest producer).). According to the Wall Street Journal, ocean shipping will be the biggest immediate impact on the supply chain. The cost of resin is also expected to increase.

Because of this, we recommend that you plan ahead. This may mean ordering more product, expediting releases, or revisiting packaging materials and manufacturing supply chains altogether. Our team is ready to talk through the solutions that work best for you.