A STUDY ON IMPACT OF PACKAGING WASTE GENERATED BY E-COMMERCE INDUSTRY IN CHENNAI
E. Kirthika, Student, Saveetha School of Law, SIMATS, Chennai
Packaging, an integral part of the e-commerce process, plays a vital role in protecting products during transit and ensuring their safe delivery to customers. However, it is this very packaging that raises critical environmental concerns. The surge in packaging materials places immense pressure on waste management systems, raises questions about resource efficiency, and has repercussions for Chennai’s urban environment. The objective is to analyse the commonly encountered packaging materials in e-commerce industries, to examine the impact of packaging waste generated by the e-commerce industry and to find effective strategies to mitigate the impact of packaging waste. The sampling technique used was a convenient method of sampling and the sample size was 204. The data was collected through a structured questionnaire and it was later analysed with the help of SPSS software. The study found that plastic packaging such as air pillows, bubble wrap etc are most commonly received packaging during e-commerce deliveries. The major environmental impact of packaging waste is pollution. It also found a general consensus on packaging waste has economic impacts and has negative health impacts. It also affects the aesthetics and cleanliness of public spaces, reducing overall well-being and quality of life of people. Recycling programs, upcycling projects, take-back schemes, circular packaging, use sustainable and eco-friendly alternatives can mitigate the impact of packaging waste. The lockdowns and social distancing measures imposed during the pandemic led to a substantial increase in online shopping. Thus, it is crucial to address the impact of packaging waste immediately.
KEYWORDS: Transit, plastic, repercussions, upcycling, eco-friendly.
I. Contextual Framework: E-commerce Growth
1.1. From Boxes to Burden: The Packaging Explosion
E-commerce emerged in the 1990s with the advent of online marketplaces and retailers. In its early days, it catered primarily to a niche market, and packaging waste was not a significant concern. The mid-2000s saw a surge in e-commerce adoption, driven by factors like improved internet access, increased consumer trust, and the growth of online marketplaces like Amazon and eBay. This period marked the rapid expansion of the e-commerce industry. As the volume of online orders increased, so did the use of packaging materials. Cardboard boxes, bubble wrap, and plastic envelopes became ubiquitous. As e-commerce became a dominant retail channel, environmental concerns related to packaging waste began to emerge.
1.2 India’s Policy Push: Tackling Plastic Through EPR
The Ministry of Environment, Forest and Climate Change notified the Guidelines on Extended Producer Responsibility (EPR) for plastic packaging vide Plastic Waste Management (Amendment) Rules, 2022, on 16th February 2022. The Guidelines stipulate mandatory targets on EPR, recycling of plastic packaging waste, reuse of rigid plastic packaging and use of recycled plastic content. The guidelines provide for moving towards sustainable plastic packaging and reducing the plastic footprint. The implementation of ban on identified single use plastic items coupled with extended producer responsibility on plastic packaging will reduce pollution caused by littered and unmanaged plastic waste.
1.3. What Drives the Waste? Key Influencing Factors
Factors that affect the study are the rate of e-commerce industry growth, consumer shopping habits and preferences, packaging regulations, packaging innovation, environmental awareness, waste management infrastructure, economic conditions, logistics and transportation efficiency, government policies, socio-cultural norms, technological advancements, industry sustainability practices, community engagement, global supply chain dynamics, waste reduction initiatives, corporate responsibility, material sourcing, waste disposal costs, customer feedback, and the influence of digital marketing and sales strategies, all of which collectively shape the volume and environmental implications of packaging waste.
1.4. Amazon’s Packaging Footprint: Problem and Progress
A study by Oceana found that Amazon generated 465 million pounds of plastic packaging waste in 2019. They also estimated that up to 22.44 million pounds of Amazon’s plastic packaging ended up in the world’s freshwater and marine ecosystems as pollution in the same year. However, they took steps to reduce the use of plastic for packaging. In December 2019, the company replaced plastic packaging material, such as bubble wraps and air pillows, with ‘paper cushion’ in its packaging. The company introduced 100% plastic-free and biodegradable paper tape. All other plastic packaging material originating from the Amazon Fulfilment Centers is 100% recyclable through available collection, segregation and recycling channels.
1.5. China’s E-commerce Waste Crisis and Countermeasures
According to the State Post Bureau, China’s courier handled 83 billion express parcels in 2020 alone, which accounted for 1.8 million tonnes of plastic waste and nearly 10 million tonnes of paper waste. According to a study by the local group Green Sense in Hong Kong, 780 million pieces of packaging waste from online shopping was generated over the course of 2020 and on an average 2.18 pieces of packaging were used for each product in the same year, mostly consisting of mixed materials, which are hard to recycle. As space for landfills become scarcer, China is struggling to keep up with the growing e-commerce waste mountain. Companies such as Alibaba are thus developing more sustainable packaging, trying to reverse the trend while the Chinese government is taking steps to regulate packaging standards.
II. OBJECTIVES
To analyse the commonly encountered packaging materials during e-commerce deliveries.
To examine the impact of packaging waste generated by the e-commerce industry.
To find effective strategies to mitigate the impact of packaging waste.
III. LITERATURE REVIEW
3.1. Environmental Impact of Packaging Materials and Waste Management
Skovgaard et.al., (2005) analysed the effectiveness of packaging waste management systems in selected countries. The study found that the targets of the packaging directive were generally met, but not the directive’s priority of preventing the production of packaging waste. The study concluded that measures to reduce the generation of packaging have greater potential to reduce overall environmental impacts than the management of the waste alone since its manufacture has greater environmental impacts. Iosip et.al., (2014) assessed the environmental impact of corrugated board production. The study found that the major environmental impact is caused by the type of component papers, from which the kraft liner and testliner have major contributions. The study concluded that the effects are due to non-renewable fuel consumption for recovered paper collection, transportation and processing. Hao (2021) analysed the pollution hazards of express packages and recycling strategies for the e-commerce express packaging wastes. The study found that e-commerce enterprises should develop an online appointment platform, and collaborate with logistics companies in the offline collection of goods to improve the ease of recycling channels and encourage recycling behaviours. The study concluded that the participation of e-commerce enterprises exerts an apparent positive influence on the recycling of e-commerce logistics package wastes. Caiyi et.al., (2022) analysed the nexus between e-commerce industry and solid waste generation. The study found that e-commerce has negative and positive effects, but the adverse effects are apparent and green e-commerce is the trend. The study concluded that e-commerce substantially increases solid-waste emissions. Arora et.al., (2022) analysed the carbon emissions of packaging used. The study found that most households dispose of packaging with household wastes rather than reusing or recycling. It also found that corrugated boxes may be thought of as an eco-friendly option since they’re biodegradable, unlike plastic but, according to a life cycle analysis of these two, corrugated boxes exceed poly mailers in emission release, fossil fuel, and water consumption. Somlai et.al., (2023) examined the impact of plastic packaging waste generation. The study found that factors such as freeriding, non-compliance and de minimis have represented the primary weaknesses in evaluating and reporting packaging waste statistics as producers have financial incentives for under-reporting.
3.2. Consumer Perception and Behaviour Towards Eco-friendly Packaging
Nayyar et.al., (2014) examined the factors that influence the perception of urban and rural young Indian consumers towards eco-friendly packaging. Demographic factors and perception towards eco-friendly packaging were considered. The study found that blend or interest, attitude and education are major significant attributes which impacts eco-friendly buying behaviour of Indian consumers towards packaging. Prakash and Pathak (2017) examined the influence of eco designed packaging on consumers’ response. The study found that purchase intention towards eco-friendly packaging is significantly influenced by personal norms, attitude, environmental concern and willingness to pay. The study concluded that strategies to reduce the global ecological footprint of packaging should be developed. Dharaiya and Paul (2021) examinedconsumer’s perception towards the usage of sustainable packaging materials for e-commerce products. The study found that the majority of consumers are ready to pay an increase in cost for sustainable packaging and even companies will gain a lot of brand value. The study concluded that e-commerce sector companies can use them for marketing purposes. James and Kurian (2021) assessed the consumer perception on sustainable packaging options in the e-commerce industry. The study concluded that the majority of the Indian population is still young, companies can develop appealing and efficient strategies to capture this market as young Indian consumers are willing to pay more for sustainably packaged products. Oloyede and Lignou (2021) analysed consumer’s perspectives on sustainable paper-based packaging. The study found that consumers expect a sustainable package to do everything a standard package would do and not be harmful to the environment (environmentally friendly) at the same time. The study concluded that consumers felt that everyone (government, manufacturers, and consumers) had a part to play if the change to sustainable packaging is to be successful. Kapse et.al., (2023) studied the impact of sustainable packaging aesthetics on customer behaviour. The study found that brand trust, price, and quality are more important than the environmental friendliness of the box. The study concluded that despite the acceptance of sustainable packaging, the price is a limiting factor that can be controlled by controlling costs in the supply chain.
3.3. E-commerce Packaging and Sustainability Trends
Wang and Hu (2016) analysed problems of express package and the application of express package design in the e-commerce environment. The study found that the express packaging materials used under electronic commerce are not environmentally friendly, difficult to recycle and reused. The study concluded that a kind of direct recycling of green logistics boxes is a solution to environmental pollution, waste of resources and other issues caused by the express packaging. Chunfang et.al., (2019) assessed e-commerce logistics packaging problems. The study found that through the innovative research of packaging structure, packaging form and wrapping method, the use amount of carton, cushioning material and paper surface can be reduced or reduced, thereby achieving cost reduction and efficiency increase. Arora (2019) studied the impact of e-commerce and its sustainability. The study found that many consumers expect a premium unboxing experience with environmentally friendliness in the look and the feel of packaging which will be actually a win-win. The study concluded that sustainability of e-commerce benefits every individual right from producers to customers. Escursell et.al., (2020) studied the evolution of packaging in e-commerce. The study found that production with new technologies such as additive manufacturing and 3D printing should be further explored to devise new packaging solutions. The study concluded that since packaging evolved substantially, it will call for new design paradigms to be built to reduce costs and environmental impacts. Rajeshwari and Leela (2022) studied the trends of e-commerce. The study found that e-commerce boosts the economy by increasing productivity, encouraging innovation, and driving better shopping experiences. The study concluded that e-commerce protects the planet, both for forward-thinking sellers and for eco-conscious shoppers.
3.4. Business Strategy, Branding, and Supply Chain Implications
Xin et.al., (2019) examined the benefits of eco-friendly packaging on sustainable supply chain management. The study found that the benefits are cost reduction, brand image, legal compliance, and environmental friendly. The study concluded that there is a direct relationship in which the benefit of eco-friendly packaging brings the company in developing more sustainable supply chain management. Zhao et.al., (2021) analysed the impact of green packaging on brand attachment in e-commerce. The study found that green packaging can enhance consumers’ perceived value of products or brands because consumers’ first impression of new products comes from the packaging. The study concluded that online businesses cannot ignore the brand value or damage caused by packaging. Lai et.al., (2022) assessed the sustainable express delivery packaging materials (EDPMs). The study found that reverse logistics, especially for online retailers, becomes a major factor not only for environmental reasons but also for retaining a stable customer base. The study concluded that the quality characteristics of the collected used EDPMs significantly influence the success of the proposed reuse framework.
METHODOLOGY
The study was based on an empirical method of research. The data was collected around Chennai by adopting the convenient sampling method and the sample size was 204. The tool used for the study was a structured questionnaire.
ANALYSIS
FIGURE 1:
LEGEND: Figure 1 represents the opinion of sample respondents on the packaging
materials that they commonly encounter while receiving e-commerce deliveries.
FIGURE 2:
LEGEND: Figure 2 represents the opinion of sample respondents on the major
environmental impact of packaging waste generated by the e-commerce industry.
FIGURE 3:
LEGEND: Figure 3 represents the opinion of sample respondents on packaging waste
also has economic impacts such as cleanup cost and has negative health impacts.
FIGURE 4:
LEGEND: Figure 4 represents the place of living of sample respondents and their
opinion on packaging waste affects the aesthetics and cleanliness of public spaces
reducing overall well-being and quality of life of people.
FIGURE 5:
LEGEND: Figure 5 represents the educational qualification of sample respondents
and their opinion on recycling programs could reduce the impact of packaging waste
generated by the e-commerce industry.
FIGURE 6:
LEGEND: Figure 6 represents the gender of sample respondents and their opinion on
upcycling projects could reduce the impact of packaging waste generated by the e-
commerce industry.
FIGURE 7:
LEGEND: Figure 7 represents the educational qualification of sample respondents
and their opinion on collaborations with recycling innovators could reduce the impact
of packaging waste generated by the e-commerce industry.
FIGURE 8:
LEGEND: Figure 8 represents the age of sample respondents and their opinion on
sustainable and eco-friendly alternatives could reduce the impact of packaging waste
generated by the e- commerce industry.
FIGURE 9:
LEGEND: Figure 9 represents the rating of sample respondents on take-back
schemes and circular packaging initiatives can reduce packaging waste generated by
the e-commerce industry.
RESULTS
From the bar chart it can be inferred that, 67.65% said plastic packaging, 20.10% said paper-based packaging, 10.29% said cardboard boxes, 1.96% said styrofoam or foam insert as the most packaging materials that they commonly encounter while receiving e-commerce deliveries (Figure 1).It can be inferred that 60.29% of respondents said pollution (landfill, marine), 20.10% said energy consumption, 13.73% said resource depletion and 5.88% said biodiversity and ecosystem disruption as the major environmental impact of packaging waste generated by the e-commerce industry (Figure 2). From the bar chart, it can be inferred that 55.88% strongly agreed, 41.18% agreed and 2.94% chose neutral to the statement packaging waste also has economic impacts such as cleanup cost and has negative health impacts (Figure 3). It can be inferred from the bar chart that among urban respondents, 17.16% strongly agreed, 39.22% agreed and 12.75% chose neutral while among rural respondents 6.86% strongly agreed, 14.71% agreed, 6.37% chose neutral and 2.94% disagreed to the statement packaging waste affects the aesthetics and cleanliness of public spaces reducing overall well-being and quality of life of people (Figure 4). From the bar chart, it can be inferred that among UG respondents, 33.82% said yes and 9.31% said no while 18.63% and 16.67% of PG respondents said yes and no respectively. 11.76% of school graduates said yes and 7.84% said no while 1.96% of respondents who had no formal education said no for recycling programs could reduce the impact of packaging waste generated by the e-commerce industry (Figure 5). It can be inferred from the bar chart that 23.53% of female and 26.96% of male respondents said no while 34.80% of female and 14.71% of male respondents said yes that upcycling projects could reduce the impact of packaging waste generated by the e-commerce industry (Figure 6). From the bar chart, it can be inferred that among UG respondents, 31.86% said yes and 11.27% said no while 28.43% and 6.86% of PG respondents said yes and no respectively. 16.18% of school graduates said yes and 3.43% said no while 1.96% of respondents who had no formal education said no for collaborations with recycling innovators could reduce the impact of packaging waste generated by the e-commerce industry (Figure 7). It can be inferred from the bar chart that 100% of sample respondents irrespective of their age said that sustainable and eco-friendly alternatives could reduce the impact of packaging waste generated by the e-commerce industry (Figure 8). From the bar chart, it can be inferred that 4.90% rated 5, 1.96% rated 6, 9.31% rated 7, 27.94% rated 8, 21.57% rated 9 and 34.31% rated 10 for the statement that take-back schemes and circular packaging initiatives can reduce packaging waste generated by the e-commerce industry (Figure 9).
DISCUSSION
The results indicate the prominence of plastic packaging, which raises concerns about plastic waste generation and environmental consequences. Conversely, the presence of paper-based and cardboard packaging suggests that there is room for more sustainable packaging choices in the industry, which could help reduce its environmental footprint (Figure 1). The disposal of packaging waste in landfills and water bodies or through improper waste management practices can result in the accumulation of non-biodegradable materials, taking up valuable landfill space and causing pollution. The production of packaging materials consumes significant natural resources and requires energy, which often comes from non-renewable sources. This contributes to overall energy consumption and its associated environmental impacts (Figure 2). Managing and cleaning up packaging waste imposes significant expenses. It may deter tourists, affecting the local economy. Cleaning up packaging waste that enters natural environments such as rivers, lakes, and oceans can be costly. It can reduce property values, affect owners and potentially reduces tax revenue for local governments. Improperly managed waste can pose health hazards such as breeding grounds for disease-carrying mosquitoes or releasing harmful pollutants into the air, leading to respiratory and other health issues for nearby residents (Figure 3). Littered packaging waste can be unsightly and create visual pollution in parks, streets, and public areas. This detracts from the overall beauty of the environment and can lead to a decreased sense of well-being. It potentially impacts tourism and local businesses. It can also create safety concerns, such as tripping hazards on sidewalks or roads. Several studies indicate that living in aesthetically pleasing and clean environments can positively impact mental health and reduce stress. Conversely, the presence of litter and waste can have the opposite effect, leading to increased stress and discomfort (Figure 4). Recycling allows packaging materials to be collected, processed, and reused in the manufacturing of new products or packaging. It leads to less packaging waste generated in the first place, contributing to waste reduction. This conserves valuable resources, consumes less energy, less greenhouse gas emissions, keeps packaging materials out of landfills, which helps extend the lifespan of existing landfill sites and reduces the environmental problems associated with landfill disposal, such as soil and water pollution. It also aligns with the principles of a circular economy (Figure 5). Upcycling involves repurposing or creatively transforming used or discarded packaging items. By upcycling packaging materials, they are given a new life and purpose, reducing the need for producing new packaging materials. Instead of disposing of packaging waste directly in landfills, upcycling diverts these materials from the waste stream. This not only conserves landfill space but also prevents the environmental impact associated with landfill disposal, such as methane emissions and groundwater contamination. Females, on average, might have a higher participation and interest in do-it-yourself (DIY) trends. This could make them more supportive of upcycling projects, which often intersect with DIY culture (Figure 6). Collaborations with recycling innovators can lead to the development of innovative packaging materials that are inherently more recyclable or compostable. They can offer insights into designing packaging that is easier to recycle. Innovators in recycling technology can develop more efficient and accurate sorting and processing systems. This ensures that recyclable materials from e-commerce packaging are properly separated, reducing contamination and improving recycling rates. Innovators may have solutions for optimizing supply chain processes to reduce excess packaging, minimise waste generation, and improve logistics efficiency (Figure 7). Sustainable packaging uses less plastic, has a smaller carbon footprint, and has a lower environmental impact. Eco-friendly packaging can include plastic, but generally, it would be bioplastic that is biodegradable, recycled, or recyclable. Some sustainable and eco-friendly alternatives are the use of paper and card mailers, mycelium or mushroom packaging, compostable packaging, repurposable packaging etc (Figure 8). Take-back schemes and circular packaging initiatives promote the efficient use of resources. Packaging materials can be reused multiple times, reducing the need for new resources and lowering the environmental footprint. By collecting and reusing packaging materials through take-back schemes, less packaging waste is generated. It is also cost savings as it reduces waste management expenses. It also aligns with consumers’ growing preference for eco-friendly and sustainable products (Figure 9).
LIMITATIONS
The study was geographically limited to the city of Chennai which may not cover the packaging waste patterns in other areas. The sample size of 204 which cannot be used to assume the thinking of the entire population in the city which may also be subjected to bias or inaccuracies. The lack of standardized data on packaging waste from e-commerce companies operating in Chennai due to which a precise quantitative conclusion can’t be drawn.
SUGGESTIONS
Few suggestions are to provide incentives or tax breaks to companies that prioritise sustainable packaging practices, offer discounts or rewards to consumers who choose eco-friendly packaging options or participate in recycling programs and provide grants or funding opportunities for businesses and researchers to develop innovative packaging materials and waste reduction technologies.
CONCLUSION
Being a developing country, it is currently seeing a rise in industrial growth rate and urban population. Both of these factors have together played a crucial role in the growth of the e-commerce industry. However, the above two factors may also result in an increased rate of packaging waste generation in India. The study aimed to examine the impact of packaging waste generated by the e-commerce industry and to find effective strategies to mitigate the impact of packaging waste. The study found that plastic packaging such as air pillows, bubble wrap etc are most commonly received packaging during e-commerce deliveries. The major environmental impact of packaging waste is pollution. It also found a general consensus on packaging waste has economic impacts and has negative health impacts. It also affects the aesthetics and cleanliness of public spaces, reducing overall well-being and quality of life of people. Recycling programs, upcycling projects, take-back schemes, circular packaging, use sustainable and eco-friendly alternatives can mitigate the impact of packaging waste. E-commerce companies experienced unprecedented growth as more consumers turned to online platforms for their shopping needs, resulting in increased packaging waste. By implementing the proactive measures from both companies and consumers, Chennai’s e-commerce industry can work towards reducing its environmental footprint and mitigating the impact of packaging waste, contributing to a more sustainable and responsible model of online retail. It will be key in creating a balance between economic growth and environmental sustainability, paving the way for a cleaner, healthier future.
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