Consumer packaged goods (CPG) items are used by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products. In the present times, consumers prefer paper-based packaging over alternatives that leverage metal or plastic. Despite experiencing a slow-down in growth over recent years, the CPG industry is still one of the largest sectors in North America, valued at approximately $2 trillion.
Jabil Packaging Solutions investment and expansion of the is a continuation of the process that begun in January 2021, when Jabil acquired Ecologic Brands, a leading provider of sustainable packaging specializing in paper bottle and paper-based packaging solutions. Jabil delivers Ecologic’s innovative pulp molding capabilities to new geographies and enables production of hundreds of millions of new paper packages. Jabil Inc., announced expansion plans for its newly acquired paper bottle technology with a $25 million investment in subsidiary Ecologic’s Manteca, California, location and the buildout of a new paper bottle plant in its Sustainability Center of Excellence in Tortosa, Spain. This expansion will create the first paper-based scaled technology in the market, as Jabil delivers Ecologic’s innovative pulp molding capabilities to new geographies and enables production of hundreds of millions of new paper packages. Jabil Tortosa is the European Headquarters for Jabil packaging Solutions in Europe and located close to Barcelona. With expertise in the areas of molding, tooling, engineering, quality assurance and automation, Jabil Tortosa serves some of the largest packaging customers in the world. Jabil is making this investment in response to significant consumer packaged goods (CPG) market demand.
Jabil is making this investment in response to significant consumer packaged goods (CPG) market demand. Jabil’s global investment includes a footprint expansion, as well as the delivery of new equipment and automation, unlocking tremendous potential for CPG brands. This investment accelerates the maturation of paper packaging in commercial settings, from niche application to global brand scale. New automation and machinery will increase packaging capacity for North American and European markets. The enhancement of the two facilities in the Jabil Packaging Solutions (JPS) division significantly enriches Jabil’s sustainable packaging platform and offerings for CPG customers.
Jason Paladino, senior vice president of Jabil and CEO of Jabil Packaging Solutions said, “As consumers become more informed about the environmental impact of plastic waste, they are looking for new, sustainable packaging solutions such as paper. The challenge for packaging providers is the ability to scale production to meet this demand. The expansion of these two facilities will result in a significant increase in packaging capacity for the North American and European markets, helping CPG brands in pursuit of challenging sustainability goals.”
