AFRY’s Perspective on Moulded Fibre Products: Advancing Sustainability

In a world increasingly aware of environmental concerns, the demand for sustainable products continues to rise. Both individuals and companies are seeking eco-friendly alternatives for packaging materials of everyday consumer goods, that minimise their environmental footprint. In this area, moulded fibre products are emerging as one of a promising solution. In Europe, the push for sustainability and the single-use plastics directive are key drivers behind the booming moulded fibre market.

Moulded fibre products are a type of packaging material made from either recycled paperboard or virgin fibres. These products are typically produced using a process called thermoforming, where pulp material is mixed with water and then moulded into various shapes using heat and pressure. This process results in strong, environmentally friendly protective materials that are biodegradable, compostable, and recyclable, making them a sustainable alternative to traditional plastic packaging. They can be incinerated without releasing toxic substances and are often produced with minimal waste, as both fibre and water are recycled during manufacturing. The use of different production technologies results in a variety of moulded fibre products, and the choice between virgin and recycled fibres adds further variability.

In Europe, the development of moulded fibre products is driven by the Single-Use Plastics (SUP) Directive. The objective of this directive is to put bans or restrictions on several single-use plastic items and set ambitious reduction targets. The SUP Directive is not a law itself but an instruction for EU member states to draft compliant legislation. Even when it mandates national governments to formulate their own complying laws, only a few countries have completed legislative processes on time.  

Moulded Fibre Market Overview

The global moulded fibre market is estimated at nearly 6 million tons per year, with the European market accounting for roughly 800 kt per year. Of this, 30% (240 kt per year) is based on virgin fibres. The main virgin fibre type is BSKP due to its preferred strength and stiffness properties, as well as its low impurities, extractives, and ash content. Driven by recent single-use plastic directives in Europe, the European moulded fibre market is expected to grow at 5.7% per year or +0.6 Mt by 2030.

The virgin moulded fibre market has grown due to end-user adoption of moulded fibre products and is expected to grow rapidly due to efforts in plastic replacement. The overall trend of replacing plastics in food packaging is boosting the demand, especially for virgin moulded fibre.

Categories of Moulded Fibre Products

Moulded fibre products are mainly divided into four main categories: Thick Wall, Transfer Moulded, Thermoformed (Thin-Wall), and Processed.

Thick Wall Products

Thick wall products are typically manufactured in open moulds and dried in the oven. One side is quite smooth, while the other is rough. These are typically used in protective/support packaging for non-fragile and heavy items, as well as plant, floral, and nursery pots.

Transfer Moulded Products

Transfer moulded products are typically manufactured using one forming mould and one transfer mould. Products are dried in the oven, resulting in one smooth side. These are commonly used for egg cartons, trays, and electronic product packaging.

Thermoformed (Thin-Wall) Products

Thermoformed (Thin-wall) products are manufactured in moulds with smooth surfaces. They are dried and pressed in hot moulds, eliminating the need for oven curing. Examples of these products include food containers and disposable plates.

Processed Moulded Fibre Products

Processed moulded fibre products require some type of secondary or special treatment beyond simple moulding and curing. These treatments can include after-pressing, printing, colouring, or adding special additives.

Dry pulp forming

Dry pulp forming competes with wet processes. Dry pulp forming intends to exclude the bottleneck of drying stage by using dry fluffed pulp which has a better formability than paper or board. Pulp is milled and air-laid as a web mat. Web is then pressed and coated according to requirements. Final product is manufactured in final pressing.

Balancing Traditional and Emerging Technologies for Optimal Production Efficiency

Machine sizes in moulded fibre production vary from very small batch-operated equipment to larger-scale operations with multiple parallel equipment/production lines. Stock preparation is adjusted accordingly: batch-operated or continuously operated systems supply several machines. Standard pulping with water processes is common, but new technologies such as foam forming, air laying and dry moulded fibre processes are also available. Additionally, multi-layering technology, which optimises strength and finishing for the final product, has been studied.

The raw materials for moulded fibre products can be either recycled or virgin fibres. Recycled fibres commonly include Old Corrugated Container (OCC) and Old Newspaper (ONP), while virgin fibres often consist of hardwood and softwood pulps. Softwood provides strength, and hardwood offers a smooth surface. Non-wood virgin fibres, such as bagasse and wheat straw, are becoming more popular. The choice of raw material depends on the desired quality — Recycled Content Paper (RCP) is typical for low-quality products, while Thermoformed (Thin-Wall) products are usually virgin fibre-based.

Grease and water resistance are common for moulded fibre packaging products, especially in food containers. These barrier properties can be achieved through internal sizing for less demanding applications, like hamburger clam shells. For more demanding applications requiring longer shelf life, surface chemistry is needed. For very demanding oxygen, vapour, or other gas barrier products, biofilm laminating is an option.

Per- and polyfluoroalkyl substances (PFAS) are synthetic substances widely used in paper and board food packaging since the 1950s. They prevent the paper material from soaking up fats and water, as well as printing inks and moisture barriers. However, research has shown that humans exposed to high concentrations of PFASs have experienced some health problems including high cholesterol, testicular and kidney cancers, and elevated blood pressure during pregnancy. New wet-end barrier additives are expected to replace PFAS. Barrier technology is still under development, and it is uncertain which will be the winning technology and barrier solution in the future. The drive to replace plastic is pushing the development of sustainable barrier solutions for food packaging applications.

The Competitive Landscape for Moulded Fibre

Today, moulded fibre production is a fragmented, local business, with few international, large-scale, diversified companies, and many small, moulded fibre-focused entities. Typically, moulded fibre plants have multiple product and production lines, and the scale of production is small compared to traditional paper and board production. Although production output varies by chosen technology, equipment and end-product mix, the expected margins to be captured are attractive for prospective producers of moulded fibre products.

The competitive landscape for moulded fibre is versatile. Several moulded fibre product types can be manufactured, and the positive outlook for their demand attracts new entrants, such as pulp and paper companies, some of whom have recently started pilot production.  

The moulded fibre landscape in Europe is scattered, with the majority of the players in Europe being small-scale, operating on fewer than 10 machines. These companies have a narrower product portfolio than the large players like Huhtamäki and CDL-Omni-Pac. As a response to sustainability requirements, plastic producers will defend their position in terms of improving recycling and moving towards mono-materials.  

There is no typical average scale or type of plant, but many moulded fibre plants have multiple lines, with larger plants having 15-25 lines. Production output varies by type of equipment, technology (e.g., type 3 is slower: more compression (thinner), longer drying time), target end-use markets, and the number of lines installed. Market entry barriers are low; the cost of equipment is not high, and the manufacturing process is fairly straightforward, resulting in a fragmented industry structure.

Key equipment suppliers

Conclusions

There is a growing importance of moulded fibre products as a sustainable alternative to traditional plastic packaging. The increasing environmental awareness and regulatory pressures, such as the Single-Use Plastics Directive in Europe, are driving the demand for eco-friendly packaging solutions. Moulded fibre products, made from recycled or virgin fibres, offer several advantages including biodegradability, compostability, and recyclability.

The market for moulded fibre products is expanding, with significant growth expected in Europe. The versatility of these products, which can be categorised into Thick Wall, Transfer Moulded, Thermoformed (Thin-Wall), and Processed, allows them to cater to various packaging needs. Additionally, advancements in production technologies and the use of different raw materials, including non-wood virgin fibres, are enhancing the quality and efficiency of moulded fibre products.

Overall, moulded fibre products represent a promising solution for reducing the environmental impact of packaging, aligning with global sustainability goals and consumer preferences for eco-friendly alternatives.