Why Consumer Tech and Reusable Packaging make a Logical Partnership in a Circular Economy

Circular Packaging, or reusable packaging as it's often called, is the way forward when it comes getting tech to the consumer and its packaging back to the retailer or supplier and, at the same time, reducing everyone's carbon footprint.

Read on to find out exactly how the circular approach can benefit tech companies, consumers, e-commerce businesses and the environment in one fell swoop.

What is Consumer Tech?

Definition

What exactly is consumer tech? First off, it's different to the tech developed to support companies and government organisations where the main aim is to support or achieve underlying business intentions and purposes.

Consumer tech - or to give it its full name, consumer technology - is an umbrella term referring to any type of technology used by the general public: TVs, lightbulbs, toasters, calculators, set-top boxes, smart phones, fitness apps and video game consoles are all examples of consumer tech and of course, we could list many more.

Impact

Consumer tech comes in a variety of forms, shapes and sizes and has multiple and diverse capabilities. There's one commonality, however, the impact it has on our lives. Millions of us use it on a daily basis to make our everyday just that little bit easier and simpler. Some would even argue, that tech has the capability to enrich our very existence and prolong our lives. They maintain that we could no longer function without it. After all, thanks to tech, we can stay in touch with family and friends as never before, watch the latest cinema releases from the comfort of our own homes, keep track of our blood pressure or our insulin levels without going to the doctor and work from home avoiding that five-hour daily commute. And don’t get us started on air fryers…

Popularity

Sometimes when talking about consumer tech, the phrase high tech or advanced tech might be bandied about. This tech also falls into the consumer category; it's simply a way of describing the newest, most cutting-edge forms of technology available on the market and there's a lot of that because consumer tech is evolving all the time. Established tech giants (Apple, Meta, Microsoft, Sony, Samsung, etc.) are continuously developing products that they say will benefit our health, our homes and our social lives.

We, the consumers - though ever discerning and increasingly knowledgeable - are snapping it up. And it's not just the younger generations that are keen to have a go. According to Forbes, the older demographic is no longer being left behind and are just as tech savvy. Importantly, they also happen to be the demographic with the highest levels of disposable income.

Consumer Tech and Packaging

Substantial amount required

The upshot of all this is that the continued and increasing demand for tech means that a substantial amount of packaging is required if it's all going to make its way safely and securely to the consumer. In 2022, Allied Market Research published a report stating that the global consumer electronics packaging industry had generated over $20bn. It went on to forecast that, by 2032, this figure will reach $49.1bn. That's a staggering amount of packaging for an equally large amount of tech.

Need for protective, robust materials

So why so much packaging? It's not hard to understand. Components can be fragile, sensitive and highly averse to being shaken, bumped or dropped. It's also imperative that they're protected from dust, dirt, excessive humidity, moisture and butterfingers. And a lot of tech is ordered online. Some of it even helps us to order online in the first place, like gadgets that establish links with the internet (WIFI or internet routers, for example). Whatever its journey, whether to the warehouse, shelf or the consumer directly, tech must arrive at its destination in the right amount of pieces with delicate elements in perfect working order.

Growing appetite for reusable

In recent years, packaging in general - including the e-commerce sub genre - has come under increasing scrutiny especially as regards its sustainability. Despite phenomenal sales figures and global reach like never before, increasingly, manufacturers and retailers are having to take note of the customer's growing appetite for reusable packaging options across the board and their desire for sustainability.

Then, there are the slew of recent regulatory laws and quotas established by governments and international organisations which aim to combat irreversible resource depletion and unnecessary waste and pollution on a global scale. Any company that is reliant on packaging will have their work cut out for them, but if they tackle the issue head on they will be rewarded with longterm gain. Proponents of the circular economy insist that being part of a circular economic model will generate enormous profit levels.

Thinking ahead

It's clear then that there's a strong financial incentive for leaving behind the well-established linear economic practices and transitioning to forward thinking circular ones. It's also clear that a desire for financial success doesn't preclude protecting the environment.

But, for any business, achieving these financial and environmental goals means adjusting and adapting products, systems and practices and the sooner, the better. And packaging is one area which must be overhauled. In light of the levels of growth forecast to take place in this sector over the next decade, it is imperative that companies re-examine and re-define their packaging to ensure that it meets the modern requirement of being truly sustainable. It must be future proofed. The era of circular packaging is dawning.

What is Circular Packaging?

What is circular packaging? In short, it's packaging that's intended to have as low an impact on the natural world as is possible. It's not single use and it's not packaging that, though 'green', solely travels in a straight line from A to Z, A being the manufacturer and Z being the recycling bin.

Another name for circular packaging is reusable packaging because it is used over and over again in a continuous loop. It delivers, then redelivers and redelivers again and again and again. Finally, at the end of its very long, fulfilled and busy life, it's broken down and made into something else, or, it biodegrades (quickly and easily) to be used as compostable material.

The increasing popularity of and reliance on consumer tech isn’t going anywhere which means packaging isn't going anywhere either. But, now the packaging must be as cutting edge and innovative as its contents. Step forward circular packaging.

Five reasons why circular packaging is perfect for consumer tech and e-commerce

1. It’s sustainable

This might sound a bit obvious given that we’ve just been banging on about circular packaging and how ecologically sound it is, but let's delve a little deeper into the reasons why circular packaging is truly sustainable.

The manufacture of copious amounts of packaging, whether or not it's produced from cardboard or recycled paper, etc., uses up valuable resources. Reusable packaging on the other hand stops what are essentially finite resources from continually being extracted/mined/chopped down unnecessarily. Packaging's reuse means there’s also far less pollution (no need to create new, disposable products) and waste (no need to throw away). Plus, the enormous amount of energy and manpower put into first production and then recycling (if recycling's possible at all) can take a back seat because there’s far less of that too due to the packaging's continuous use.

As a result of the amount of environmental damage they cause, many forms of packaging have an incredibly bad (and some might say, well deserved) reputation, particularly single use plastics. Reusable, circular packaging means an end to significant amounts of pollution and waste and importantly, it would be one way in which a tech brand could demonstrate their ecological integrity (more on that later).

2. It's cost effective

Using circular packaging will generate significant cost savings. However, there’s no getting away from the fact that, initially, there will be up-front costs in terms of implementing functioning infrastructure (delivering, collecting, cleaning and redistribution). Current delivery systems have been working based on the linear model and any transition to a circular version will take a while to bed in and run smoothly. Time, money, a lot of patience as well as consumer buy-in will all be required.

Creating top quality, sustainable packaging will also demand commitment in terms of the research and development phase, both of which can be costly. As well as the initial expense of creating solutions that are able to be used and reused hygienically, packing materials must still fulfil one of their most important functions, i.e., protecting delicate and fragile products during transit. Innovation, flexibility and collaboration will be required.

Effort and investment however will bear fruit in the form of excellent ROIs. The cost of reusing packaging will work out to be significantly lower than the cost of previous high stocking requirements. The necessity to restock frequently will be relegated to history.

Using circular packaging will safeguard businesses (and consumers) against external risks (e.g., consistency of supply) which means operational efficiency will improve. Overall, businesses will be more self-sufficient and resilient and therefore able to make significant cost savings, some of which will inevitably be passed onto customers.

3. It’s not messy

One good thing about the packaging required for consumer tech is that it doesn’t come up against some of the obstacles faced by other industries that also use monumental amounts of packaging, for example, the food and drinks industry.

Consumer tech is clean. It doesn’t drip, spill, stain, go off, risk becoming contaminated or need disinfecting. Though it's vital that packaging is hygienic, sanitising will be a lot less time intensive and more straightforward.

4. Customers are up for it

Consumers are already on board as far as sustainable solutions are concerned, especially when it comes to unnecessarily wasteful packaging. They certainly don’t like to feel as though they’re contributing to a waste problem and increasingly, they’re becoming all too aware of the impact of their purchasing decisions. In a multitude of different retail scenarios, they’ve shown themselves ready to reuse, refill and return, even when the only incentive is the knowledge that they’re – even if only a bit - protecting the planet.

What’s great for the tech industry specifically is that their target markets are well used to upgrading their tech fairly regularly so they already have the mindset of replacing and upgrading. It’s only a small step from that to returning and swapping rather than throwing away, especially if it’s hassle-free self-explanatory and contributes to one’s own feelings of righteousness.

5. It sends a message

Using circular packaging sends a valuable, powerful message to all customers (current and potential) that a tech company is as serious about its eco credentials as it is about its products. Sustainable practices have been shown to attract eco-conscious customers who prioritise environmental packaging leading to increased customer loyalty and positive word of mouth referrals. 

In an ultra-crowded market such as that of consumer tech, using circular packaging also shows that a business is prepared to take risks for the sake of the planet. After all, circular packaging is not yet mainstream. These factors enhance brand image exponentially and can give competitive edge.

Adopting circular practices as a whole can signify a willingness for collaboration and cooperation. Many organisations are currently recognising the value of pooling their ideas and best practices to access shared resources, services and improve products whilst they navigate this new territory.

Conclusion

Consumer tech is all about the consumer and there's no reason why its packaging can't be as well. Before putting circular packaging into practice, tech companies could (should!) involve the consumers in its design and the best, most convenient methods of implementation. In this way, customers will be far more actively engaged and invested in ensuring its success. After all, circular packaging is going to require them to do their bit, i.e. make the commitment to return the box, package or mailer.

Involving consumers will have the additional side effect of opening up new avenues of communication. Communication at any level fosters loyalty and creates that important sense that we’re all in this together. Which we are.

Consumer tech must take the reins and capitalise on the current trend towards circularity, adopting and adapting circular packaging. Not only would they be doing this for all the right reasons, but with their know-how and expertise, their propensity for design, innovation and function, they're already proving themselves the ideal conduits. They have the ability and creativity to bring about monumental change in this area, to shake up the status quo and make the reusable mainstream, leading by example.

What's irrefutable is that, over the next decade, circular packaging will become a mainstream solution. Consumer tech companies already possess the capabilities to instigate, drive and benefit from the change. It would be unforgivable to be left behind, but no one needs to be.

Talk to us today to see how reusable packaging can get your tech safely and securely to the right place at the right time. Feel like you might need a bespoke solution? That's not a problem either. As we said in the title, circular packaging and consumer tech are a logical partnership. So for your circular packaging, come to RepeatPack. We're all about two things: collaboration and sustainability.