Make your money go further for just 25p per day

PREMIUM

DS Smith vs International Paper: which packaging stock should you buy?

03/09/2019 · DS Smith (SMDS)  · International Paper (IP) 

ESG FTSE 100 UK US

Cardboard boxes in piles for recycling

Packaging groups International Paper and DS Smith have seen big share price falls over the last year. But with plastic waste in the spotlight, we feel these cardboard specialists could find new opportunities for growth. In this article, we'll be comparing two leading fibre-based packaging specialists, US firm International Paper and FTSE 100 group DS Smith.


Supermarket group Tesco made headlines recently after it said that from next year, it will refuse to sell branded products with "excessive or inappropriate" packaging. The shift follows work to remove 4,000 tonnes of hard-to-recycle material from its own-branded ranges.

We’re all familiar with wasteful, half-empty food packaging. Tesco has the scale to play hardball with suppliers on environmental issues. We can only hope that it does so. But who will be the winners and losers from this process?

Manufacturers of plastic packaging seem likely to suffer. Cardboard can be sustainably produced and recycled multiple times using existing infrastructure. We think cardboard packaging producers that can create products to replace plastic packaging could be medium-term winners.

Read our overview of environmental, social and governance investing here.

A closed loop

Tesco's strategy is to reduce packaging where possible and remove hard-to-recycle materials. Where packaging remains necessary, the priority is to reuse or recycle, preferably through a closed-loop system. It's probably fair to assume that…

Continue reading this article…

With a subscription
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team
With credits
Get access to our premium content for as little as £3.20 per article.
  • Only pay for what you want to read
  • Easy credit payment system
  • Access our excellent Premium content

Previous article Next article

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

START FREE TRIAL

More on DS Smith

DS Smith vs International Paper: which packaging stock should you buy?

03/09/2019 · Companies Analysed

Packaging groups International Paper and DS Smith have seen big share price falls over the last…


More on International Paper

DS Smith vs International Paper: which packaging stock should you buy?

03/09/2019 · Companies Analysed

Packaging groups International Paper and DS Smith have seen big share price falls over the last…