Novolex acquires compostable packaging company Vegware25 Aug 2021
U.S.-based packaging manufacturer Novolex acquired Scotland’s Vegware, a company that makes renewable, plant-based materials designed to be commercially composted alongside food waste. Financial details of the transaction were not disclosed.
With an established presence in 70 markets, the Vegware brand will remain intact as part of Novolex’s Eco-Products portfolio of brands and will continue to sell its products under the Vegware label. At the same time, this new Vegware acquisition will complement Novolex’s own sustainable container brand Eco-Products by broadening its presence in Europe and giving Vegware additional access to the North American market.
Sustainable packaging is a growing sector where demand is far from slowing. According to market research firm Mordor Intelligence, the biodegradable packaging sector is poised for substantial growth. It was valued at $89.57 billion in 2019 and is expected to reach a value of $121.38 billion by 2025. With such projections for the category at large, it is no surprise that Vegware reported double-digit (43%) revenue growth to $62.9 (£45.9) million last year from 2019 to 2020 despite challenges faced by widespread foodservice closures.
Part of this growth can be attributed to the European Union's recent ban on single-use plastics like cutlery, plates and food containers that took effect this year and created a runway for a sustainable disposable packaging product demand to skyrocket.
Already the fruits of this partnership between Novolex and Vegware are beginning to show. Industry publication Packaging Insights reported that the two brands have already put their heads together to plan innovative launches such as a molded fiber grease resistance solution as well as a compostable cutlery dispensing system for Vegware. These additions will complement previous collaborations between the duo, namely when Novolex launched compostable cold beverage cups made from plant-based plastic to follow Vegware’s February debut of paper lids made from sustainably sourced paper lined with plant-based PLA.
“Vegware has been committed to quality, performance and design for over 15 years,” said Joe Frankel, Managing Director of Vegware. “Joining Novolex, with its exceptional resources and large footprint, will allow Vegware to expand distribution of quality compostable products and waste management initiatives to our customers across the globe.”
Not only will this acquisition of a sustainable packaging powerhouse help Novolex expand its sphere of influence in the compostable packaging market, but it will help the company reach its target of a 20% reduction in greenhouse gas emissions by 2025.
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