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Innnovation Advice

Case Study: Regulations are Driving External Innovation

Case Study

With an intense focus on plastic waste, food service packaging regulations are here, or are coming to a city near you very soon. Companies are being compelled to adopt compostable packaging in places like Seattle, Atlanta and Washington DC. From straws to utensils and take out containers, food service corporations need a solution and soon.

Compostable packaging is not the core focus of corporations like Starbucks, Amazon Whole Foods, or McDonald’s. Food service corporations could look to their long standing packaging partners for a solution. Packaging companies are large corporations as well with locked in contracts and perhaps limited expertise with new materials that comply with the new regulations.

The regulations are driving external innovation and perhaps some upcoming M&A in the space. Packaging corporations are actively being disrupted by the move to new earth-friendly materials. Startups are leading the way. What was previously a niche market is now going mainstream.

In this case, our client was looking externally for innovative solutions that are leading the market, aren’t provided by their current partners, and are outside of their core expertise. With our help, our client is working with a startup driving the compostable packaging movement and creating cost-effective solutions long before they were required.

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