In the United States alone, the market for EPS protective packaging is worth $20 billion per year (2020). Bans on Styrofoam, EPR legislation, investor demands for disclosure, and consumer pushback are all hastening businesses’ transition to more eco-friendly materials.
According to a Consumer Brands/Ipsos survey from 2021, 84% of consumers worry about plastic and pollution, and 87% worry about packaging waste.
Oil prices have hit all-time highs as the European crisis drags on. Oil is nearly three times as expensive as it was in 2020, significantly driving up the cost of virgin EPS.
There is a strong correlation between geopolitical unrest and the petrochemical industry. Plastic production can consume up to 15% of global crude oil. Packaging material sourcing decisions now directly affect the climate crisis, consumer costs, and human suffering.
Major retailers invest heavily in sustainable materials like compostable protective packaging as part of their supply chain processes. Companies that can aid others in hastening their transition to more sustainable, closed-loop practices stand to gain a great deal.
Sustainable packaging products and new waste management programs for collecting and processing natural materials are two potential sources of income.
Until recently, alternatives to Styrofoam/EPS/EPE have been scarce, especially to the level of protection necessary to cushion fragile goods like electronics and home appliances during shipping.
Using environmentally friendly alternatives
Any time a company can do something at a lower cost and with the same benefit to society (in this case, allowing producers to be proactively responsible for managing the waste created by their products rather than being forced by regulation), it is a win-win for the company and its investors.
A proactive transition to circular materials that reduces the risk of EPR and other fines while protecting and enhancing a company’s brand is something over which it can exert some measure of control.
Commercial composting, for example, can turn waste into a marketable product that can be sold to recoup costs for the waste management facility or the supplier, opening up additional revenue streams for the industry after collection.
To reduce the risks of government fines, investor backlash, consumer backlash, and brand reputation management issues, and to help industry partners meet their sustainability goals, startups like Cruz Foam are working to eliminate plastic waste.
Cruz Foam offers game-changing sustainable solutions
It is estimated that over half of the 380 million tons of plastic produced annually is used for single-use applications like packaging. About 30% of the volume in landfills is made up of regular Styrofoam containers. Cruz Foam may be able to stop that from happening.
Cruz Foam is a circular materials company specializing in regenerative, earth-digestible, ASTM-tested compostable protective packaging foam and other sustainable solutions. Using biopolymers derived from natural sources, Cruz Foam produces patented products that offer scalable alternatives to traditional packaging materials while maintaining compatibility with the current supply chain and pricing structures.
John Felts (CEO) and Marco Rolandi (Chief Scientific Officer) founded Cruz Foam in 2017 as a circular materials company to provide bio-based, regenerative alternatives to single-use plastic. Cruz Foam uses by-products from the food processing sector to create its foam products. Businesses in the consumer electronics, home appliances, CPG, and industrial goods industries are Cruz Foam’s current clients.
Based in Santa Cruz, Cruz Foam is a mission-driven organization making a global difference by equipping business pioneers to lead the charge toward a greener future.
Reducing single-use products
Packaging for popular consumer brands must be rethought to be eco-friendlier. The goal at Cruz Foam is to make products that aren’t harmful to the environment and to provide the same protection during shipping. Using materials derived from food waste makes the business sustainable and socially responsible.
Cruz Foam is a USDA Bio preferred vendor, and their products are tested compostable by the American Society for Testing and Materials (ASTM) to their standards D6400 and D6868. Cruz Foam is the first material to receive a perfect score of 100 on the Pela Earth Lomi home composting device, making it Lomi Certified as well.
By preventing new plastic from entering the waste stream, Cruz Foam is a preventative solution that satisfies industry demand and paves the way for swift action. Cruz Foam was designed to offer protection and performance without causing harm to the environment, as it is made from waste materials from food production and other natural ingredients.
Starting with packaging foam replacements and looking to expand into other spaces like the cold chain and primary packaging for consumer-packaged goods, Cruz Foam aims to replace single-use, petroleum-based plastics in the multi-billion dollar packaging sector and scale the output of circular materials at a similar cost.
Sustainable packaging, a market overview
Sustainable packaging is a lucrative market, expected to grow to $358 billion by 2028. Government legislation and demands from NGOs and consumers have ramped up the immediacy for enterprises to switch to more sustainable materials. By preventing new plastic from entering the waste stream, Cruz Foam is a preventative solution that satisfies industry demand and paves the way for swift action.
Cruz Foam was created to offer protection and performance without the negative environmental effects, as it is made from natural ingredients.
Benchmark in the industry
While maintaining their commitment to providing a net positive for the environment, Cruz Foam was the first company to develop circular foam protective packaging that met the stringent technical requirements of industries like electronics and appliance manufacturers.
The business has patented a technology that enables “frictionless” onboarding for partners by letting them use existing machinery to make circular foam products with minimal new investment and training requirements.
Triple bottom-line company
Regarding adapting to various packaging solutions, Cruz Foam can be post-processed in various ways and combined with recyclable paper and corrugate materials for complete solutions. Having a positive impact on the environment, society, and economy, Cruz Foam has three primary goals:
- By recycling food-processing by-products, Cruz Foam (pollution prevention).
- Produces circular packaging that can replace EPS/EPE made from petroleum for major global consumer brands.
- Takes advantage of pre-existing infrastructure and personnel to facilitate the “green economy” transition of existing supply chain vendors
When materials are composted, they can be used to make useful products like biofuels and fertilizers.