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Sustainable Development Goal 12: Reduce waste, enable sustainable consumption: now is the time!

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By Timi Olubiyi, PhD

Happy New Year 2023. The holiday season has seen a significant consumption rate across the country in the consumer goods sector. On a larger scale, the use of the sachet has dominated the retail industry in many parts of Africa, but most significantly in Nigeria, where the population is high and the demand for consumer goods is huge.

Sustainable Development Goal 12 recognizes that long-term development and economic growth depend on changing our production and consumption practices. This requires more efficient and environmentally responsible management of materials throughout their life cycle, including production, consumption and disposal.

However, the level of plastic waste and sachet production is extremely high, and we could have a big problem with that if this trend continues to rise without proper regulation.

Consumption within the consumer goods ecosystem in the country is currently far from sustainable as the waste of these products has negative consequences for people and the environment, mainly bagged goods.

Pouched products, or single-serve packs as they are normally referred to in the fast moving consumer goods (FMCG) industry, are dominating the retail landscape, and the increase in their use has been alarming.

In colloquial terms, the model is called “sachetization” which is known to have started in Nigeria in the 90s with the manufacture of small sachets of drinking water (pure water) and Cowbell milk powder by Promasidor. Then, the idea was necessitated by innovation to penetrate the wider low-income or no-income population.

However, the idea later encountered intense and fierce competition. Today, the literature suggests that more than 60 million units of pure water are consumed daily in Nigeria, along with loads of other sachet products, from takeaway food packaging to carry bags, beverages, ingredients kitchenware and household cleaning products.

The bag trend has continued to grow due to declining income levels, widespread hardship and increasing poverty among the population. These have undoubtedly caused the growing adoption of sachets in the country recently.

For businesses, the challenging operating environment, dilapidated infrastructure, continued inflation, porous borders and declining bulk consumption have further increased the need to adopt the sachet model. Individuals and businesses alike are feeling the brunt of economic challenges and, over time, consumer disposable income continues to decline.

Besides the consequences of the novel coronavirus (COVID-19) pandemic, the economy in recent times has continued to worsen the situation. They significantly erode the purchasing power of many individuals, households and even businesses.

The current economic situation has also made products and services more expensive nationwide. In fact, many manufacturing companies are seeing a drop in footfall for large items, as not everyone can afford bulk purchases or regular packaging, and consumers continue to seek out cheaper alternatives. So, “baggage” is a business strategy and an alternative to continued customer engagement during this difficult time. The idea is to make the products affordable for consumers, especially the majority of daily earners who make up a large part of the country’s population.

Many businesses, in this time of high inflation and economic uncertainty, have decided to adopt the “sachetization” model to give some of the poorest people in Nigeria easy access to household essentials and for patronage continuous in the space of consumer goods.

Also, for businesses this time, it’s a way to increase sales to customers who can’t afford to buy in larger quantities. Even though the pouch model reduces waste through portion control, it requires minimal packaging materials, less storage, low shipping and transportation costs, and most importantly, it is user-friendly. final.

However, the painful truth and revelation is that this trend is an indication of unsustainable consumption, income inequality, unaffordability, the wide gap between haves and have-nots, the declining economy and a high level of poverty in the country.

Rightly, the National Bureau of Statistics (NBS), in the report “2019 Poverty and Inequality in Nigeria”, points out that 40% of the total population, or almost 83 million people, live below the poverty line of Nigeria. country. This figure even appears underestimated, in my opinion, for lack of data on the huge informal sector of the country. However, these bagged products allow the country’s poor to have access to basic necessities but compromise sustainable consumption and the environment.

From the observation, there is hardly any market leading FMCG company in Nigeria that has not manufactured single serving packaging (bag product) to appeal to poor consumers.

To support the adoption of this model, the various operators of open markets in the country unknowingly practice the bag model on perishables, vegetables and foodstuffs freely; all this for economic reasons and the decline in consumer purchasing power.

Regular essential consumables that are noticeable in the sachet are milk, detergent, cooking oil, cereal, margarine, liqueur, pepper mix (pepper, tomatoes and onions), toothpaste, sugar, tomato sauce, shampoo, cornflakes, seasoning/spices, cookies, washing up liquid, shaving sticks, cereal, bleach, Lipton sachet with only two tea bags, diaper sachet with only two units, sanitizer and energy drink among others.

Based on the sampled opinion, this bag trend is on the rise in an effort for companies to continue to grow market share, increase market penetration, and stay competitive.

The important thing is that the trend is becoming more and more popular, and even premium brands are included in the growing wave. This trend encourages quick sales and increases the competitiveness of consumer goods, where affordability is a big issue.

Importantly, companies should note that the population of poor people in the country continues to grow, indicating that those unwilling to follow the bag trend may find themselves out of business.

Given the country’s economic difficulties, the trend is beneficial in terms of sponsorship, sales and business continuity. The sachet model is undoubtedly on the increase in the country, and it is currently a winning strategy to sell what a large percentage of the population can afford.

All said that the points raised above are not intended to completely justify “sachetization” as a business strategy, but also to implore business and government to promote measures to improve sustainable consumption, clean production and the circular economy to reduce multidimensional poverty, which can include food security. , housing, health, education and security which have a direct impact on the well-being of the population.

The big problem is that most plastic bags are currently not recycled and reused. Therefore, government strategies and policies for sustainable development should be strengthened to involve waste management, environmental management, pollution and recycling, and socio-economic plans should be put in place to promote recycling and save the environment. This should be a priority now. Therefore, key policies and measures to encourage proper waste management and recycling in the country should also be considered to avoid huge environmental pollution.

In conclusion, the observation indicates that “sachetization” is now more of a necessity than an option in the country due to increased deprivation in a myriad of aspects of life.

The country’s telecommunications and some real estate companies are exploring the sachet model with various smart pack (sachet) products with daily payment options.

Crucially, it’s not even out of place to mention that just like these companies and FMCG, the financial industry – banks, insurance and investment management firms and even cable TV operators can “baggage to make services more accessible and affordable for the masses.

However, leveraging innovation, sustainable production and technology will be of great importance to achieve this. Good luck!

How can you get advice or additional information about the article?

Dr. Timi Olubiyi is an expert in entrepreneurship and business management with a PhD in Business Administration from Babcock University Nigeria. He is also a prolific investment coach, author, seasoned academic, Chartered Fellow of the Chartered Institute for Securities & Investment (CISI), and registered capital market trader with the Securities and Exchange Commission (SEC). He can be contacted on the @drtimiolubiyi Twitter account and by email at drtimiolubiyi@gmail.com, for any questions, reactions and comments.

The opinions expressed in this article are those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the opinion of others.


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