IKEA: Packaging in a Changing World

With around one million tons of packaging material, IKEA is one of the global heavyweights. We spoke to Allan Dickner, Packaging Development Leader at IKEA of Sweden, about the challenges in a changing world. In focus: sustainability, lots of new thinking, the regulation of the café latte cup, plastic, reusable packaging, paper pallets and paper wrap as the next big contribution to the circular economy.

Allan Dickner, Packaging Development Leader at IKEA of Sweden — Allan Dickner is Packaging Development Leader at IKEA of Sweden.

You talk about a changing world. Which factors stand out?
There is a whole range of influences that are decisively changing our world. These include digitalization, the circular economy, climate, corona and regulatory intervention. This development changes key parameters. Many things remain unclear for a long time. This has a major impact on the way we consume, produce, package and transport goods.

Sustainability as an example: How does IKEA deal with these changes?
Basically, you have to think and plan carefully. The complexity has increased. I compare it to an airplane on the runway. You can't just say "fasten your seatbelts, we're going to accelerate now". You need the tower to check whether the runway is clear, the airspace is free and the planned route is safe. Quick fixes don't get you there.

At IKEA, we work for people all over the world. We encounter very different conditions. In rich countries you might be able to say, okay, circular economy is important, then it just costs more. But we also want to help people in India with our products. Costs play a major role here. You have to consider that. That's also part of sustainability.

Packaging consumption of IKEA — IKEA’s packaging consumption in 2023

The substitution of plastic with paper is a big topic and a strong trend. Also at IKEA?
Our packaging DNA is fiber-based. This has to do with the IKEA tradition of the flat pack. It has always been made of corrugated cardboard. Currently, 91 percent of our B2C packaging is fiber-based. We want to reach 100 percent by 2028. And we are on the right track. For example, we have reduced the use of plastic in consumer packs by almost 50 percent since 2020. We have not used EPS since 2015. But major challenges remain. And it's about more than just plastic.

You say it's about more than the plastics issue. What do you mean by that?
The basic idea is to use as little packaging as possible. However, we must not forget the central role of packaging. Packaging is sustainable. For us, packaging is above all a product protector. If the packaging looks nice but doesn't ensure the integrity and quality of the product, it doesn't serve anyone. That would be the opposite of sustainable. But of course, marketing also has its demands. Plastic has always delivered reliably in this area too. We now need alternatives. That means we have to find new solutions. But that won't work without a lot of new thinking about packaging.

You talk about major challenges and a lot of new thinking about packaging. Can you give an example?
To put it simply: In the past, everything was just wrapped in plastic. The material is light, flexible and stable and can handle sharp corners and edges well. These properties are central to our fitting bags, for example, which contain screws and materials for assembling our products. We need around 400 million of these bags per year. You have to think about how paper can achieve this.

What is happening in terms of sustainability in secondary packaging?
There are also strong levers within the fiber-based solutions. For example, apart from the last mile, we have long since stopped using wooden pallets for transportation and instead use paper pallets. This saves valuable resources and transport capacity. Our paper pallets are only 50 mm high, which adds up to 5 to 6 cubic meters more products per container. With full recyclability.

IKEA has alreadymassively reduced its use of plastic in recent years.

What good is recyclability if politicians demand reusable items?
That's right, the new Packaging and Packaging Waste Regulation stipulates that transport packaging must be reusable from 2030. To be honest, the regulators have not understood the complexity of the global world. At IKEA, we compress the paper pallets and transport them for recycling with minimal volume. That works globally, reusable does not. In Brussels and Strasbourg, they only ever think about the cup for the café latte. We are convinced that reality will catch up with politics and people will realize that they have made a mistake. In addition, it has already been written that you can forego reusability if you can prove that it does not bring any circular benefit. So all in all, I'm not worried.

What about plastic versus paper in secondary packaging?
We have reduced the use of plastic by around 45 percent since 2020. Here, too, our goal is 100 percent. The biggest levers include stretch films and straps for transport security. We need around 10,000 tons of these per year. That is why we are experimenting with paper wrap in various constellations. This requires a high level of commitment to development, including in the area of machinery. The challenges are great. Plastic can be stretched to 250 percent, with paper you can achieve 10 percent with a lot of luck. So the question is, how can you achieve the same product and load security with paper?

Are there already solutions for Paper Wrap? Maybe already at FACHPACK?
Definitely! Our development partners borrmannplus verpackungen and EW Technology will be exhibiting Paper Wrap for Unit Loads at FACHPACK. A real milestone. The elimination of stretch film and plastic straps will be IKEA's next major contribution to the circular economy.