Materials specialist Zotefoams (ZTF) saw its shares leap after it announced a joint development agreement with a leading beverage carton packager following successful trials.
The initial scope of the agreement – which will run until early 2024 - will see Zotefoams ReZorce® monomaterial beverage carton packaging further developed in conjunction with the partner for in-market trials with a major European retailer.
The partnership is significant, given that at present drinks packaging such as Tetra Pak remains hard to recycle, with many councils in the UK only able to do where specialist infrastructure is in place.
Zotefoams’ ReZorce offers clear advantages over such existing laminated packaging, being recyclable using existing, standard recycling streams. And by incorporating 30% recycled materials, ReZorce also delivers a lower carbon footprint.
The packaging can also be processed using existing packaging and filling equipment, meaning customers won’t need to invest in new machinery to begin using it. In combination, that should make it an attractive option for retailers and beverage producers looking to lower their carbon footprint in a cost-effective manner.
“As we have continued our development efforts, it has become clear that demand for a sustainable alternative material for beverage cartons is significant and in line with our initial market assessment,” said Zotefoams CEO David Stirling.
Should the in-market trials prove successful, Zotefoams’ foray into drinks packaging presents a major opportunity, with the beverage packaging market expected to grow from $148bn in 2021 to $189bn by 2026, of which the European and North American carton market represents around $11bn a year.
In particular, increasingly stringent environmental legislation around waste means this growth will be driven by rising demand for sustainable packaging alternatives.
Although commercial confidentiality meant the company gave no details of the partner, potential partners could include Tetra Laval, which sells €12.5bn of Tetra Pak each year, and Finland’s Stora Enso, a €9bn producer of renewable materials including packaging