Nothing demonstrates the economy’s current linear consumption model better than single-use plastics. Used in everything from packaging to toothbrushes to beverage bottles, these materials are becoming a significant environmental problem, which is exactly why personal care and consumer goods brands (and even cities and states) are increasingly turning to paper and plant-based packaging and materials.
WestRock is benefiting from the trend. For example, it developed the Cluster-Pak and EconoClip packaging products to replace shrink wrap and plastic rings, respectively, that traditionally accompany beverage containers on the shipping part of their life span. The company has also developed EnShield Natural Kraft, a grease- and oil-resistant paper that can replace polyethylene coatings typically applied to paper packaging. While such coatings make the inside of coffee cups and ice cream containers smooth to the touch and better equipped for food applications, they also complicate recycling efforts.
The business has also been tapped directly by customers to create custom packaging solutions. When Walmart launched its new razor brand, Joy, it approached WestRock to create a 100% paper-based product package that could include branding inside and out and be packed at third-party facilities without added capital expenses. Ditto for the store display. WestRock delivered — and Joy hit the market with rave reviews.
Replacing plastic rings, polyethylene coatings, and packaging for razors may not seem like much, but it’s added up to a massive opportunity for the business. WestRock has increased the number of customers purchasing at least $1 million in products from both its consumer and industrial segments from 102 at the end of fiscal 2016 to 143 by the end of March 2019. Those customers have generated trailing 12-month revenue of $6 billion at last count, which is more than one-third of total revenue in that span. As more localities and brands ditch plastic, the business should continue to be rewarded.