TIPA has been developing biodegradable alternatives to current flexible plastic packaging, which generally are not only non-biodegradable, but non-recyclable. Touting them as being similar to an orange peel, Tipa's wrappers and packages break down in just 180 days and can be thrown away just as any other food waste. Their packaging is designed to have the look, feel and function of current wrappings and comes in transparent and non-transparent varieties. Launched in 2015, TIPA is still expanding their product line and partnerships.
Zirra Rated Tipa
Business & Marketing Strategy: TIPA’s early partnerships demonstrates some success in their business strategy. They have been consistent in attending events, conferences and shows, such as PPMA in September 2016 where they announced the first UK partnership with Snact, a health food company. This partnership is strategic in that it demonstrates that TIPA has an understanding of the market, corresponding with trend noted by analysts, which is that people who purchase health food have a strong tendency to also consider environmental impact, with 60% reporting they decided against purchasing a product they viewed as not socially responsible.
Competitive Position: In addition to competing with the traditional producers of packaging, TIPA is competing with several other companies dealing directly with biodegradable and compostable packaging, including ENSO plastics, NatureWorks and Bemis. Further, some of the more traditional companies are beginning to develop alternatives themselves, which poses the largest threat to TIPA. Among the newer companies TIPA is gaining important traction and emerging as a middling leader, but should a larger company with established partnerships devote themselves to similar solutions they could quickly dominate at the expense of TIPA.
Market Forecast & Exit Indicators: Flexible packaging in and of itself is a growing market that is expected to have a market value of $248 billion by 2020 and produce more than 800 billion package units a year and account for 29% of the overall packaging market. Interest in compostable or recyclable versions of this packaging is also growing with analysts citing three trends: greater consumer awareness of health and plastics, a rising influence of environmental issues, and increased disposable incomes, which allow for the pursuit of better alternatives by consumers and producers. Together, the conclusion drawn in one report is that companies are not only seeing it as an environmental necessity, but potentially good for their bottom line. As a result, companies such as TIPA and their competitors will likely have increasing opportunities for partnerships and not need to seek an fast exit.
Professional & Customer Reviews: Packaging periodicals appear to be enthusiastic about the potential for TIPA’s solutions and they have already secured partnerships with at least 4 manufacturers and 5 food brands in Europe, both factors serving as favourable reviews. In addition, they have received several awards since 2012, including a Sustainable Packaging award and an IAIR Company of the year award and a Red Herring award in 2015.
Inside Scoops: A source familiar with the company stated that as of 2014 they were struggling to find a solution for wet foods. A review of their current offering does not appear to have a solution indicating this is still in progress. Such a solution would greatly expand their potential in this industry.