Periodic Reporting for period 1 - RAIKU bio packaging (Optimization, demonstration of natural, biodegradable packaging from wood in desired shapes for various industries)
Reporting period: 2024-03-01 to 2025-02-28
RAIKU is a cleantech company that has developed a breakthrough packaging material and its production technology to solve the massive pollution in the packaging industry. We will substitute plastics and other high-carbon packaging materials (bubble wrap, paper, cartons, bioplastics) with our 100% natural, compostable, beautiful, and shock absorbing material. RAIKU’s packaging filling is made out of only one raw material, wood, and no chemicals or additives are used in the production. The raw material use is extremely efficient as we can turn 1 m3 of wood into 15-20 m3 of packaging. Combined with very low amounts of energy and water, we can offer one of the lowest packaging materials in the world, if not the lowest. For example, compared to paper and carton production we reduce wood use by over 90%, energy use by 95% and water use by 98%. In addition, chemical use will be reduced by 100% as we use none. Compared to paper/carton, RAIKU’s material is much more protective, aesthetic, similar or even lower priced, and offers a minimally 10 times smaller CO2 footprint.
This innovation comes at an important time in an industry that is worth €1 trillion and will continue to grow to €1.5 trillion by 2030. Packaging is a massive source of pollution where only 9% of plastics is recycled globally. At the same time, the EU has set very strict targets in relation to Green Deal and Fit for 55, where all industries have to bring down their footprint by 55%. The packaging sector itself is being heavily regulated, e.g. Single Use Plastics Directive and Packaging Waste Directives. We can see the shift from the market itself - 81% of consumers now expect sustainable packaging. In addition, the sustainable packaging market is growing 2-3 times faster than traditional – from €336.7 billion in 202 to €897.43 billion by 2031, growing at a CAGR of 10.30%. There is a clear opportunity and need in this sector for new innovative materials, especially since the sector doesn’t have any scaled-up low-footprint packaging and the market uses mainly technologies from previous centuries.
This innovation comes at an important time in an industry that is worth €1 trillion and will continue to grow to €1.5 trillion by 2030. Packaging is a massive source of pollution where only 9% of plastics is recycled globally. At the same time, the EU has set very strict targets in relation to Green Deal and Fit for 55, where all industries have to bring down their footprint by 55%. The packaging sector itself is being heavily regulated, e.g. Single Use Plastics Directive and Packaging Waste Directives. We can see the shift from the market itself - 81% of consumers now expect sustainable packaging. In addition, the sustainable packaging market is growing 2-3 times faster than traditional – from €336.7 billion in 202 to €897.43 billion by 2031, growing at a CAGR of 10.30%. There is a clear opportunity and need in this sector for new innovative materials, especially since the sector doesn’t have any scaled-up low-footprint packaging and the market uses mainly technologies from previous centuries.
The EIC project will focus on optimization, high automation, and integration of our machinery into production lines, and we will set up a pilot factory. RAIKU’s 1st year of developed focused on developing and finalising its core production technologies that would be ready to commercialise and expand to new markets in the following year(s). RAIKU’s production technology is modular and extremely fast-paced, and at the same time totally unique and novel industrial process in the world. This is why multiple design iterations and prototyping of different product steps of the whole process were needed to carry out. We were able to start pilot production as planned, as the most important development goal. In addition, the EIC project allowed the team to move into a larger piloting space and hire key technical personnel to carry out the development work in the planned way.
By the end of the first project year, we achieved 50 paying customers in numerous countries and client segment showing the great potential of the novel material, as well as the success of technology development to be able to service the market (including, for example, being part of the globally recognised LVMH Accelerator in addition to EIC Accelerator). We’ve taken part in several key trade fairs, EIC events, and investor events expanding our stakeholder network and international dissemination. We’ve also handed in further IP protection in patents and industrial designs.
To ensure further uptake and success, we need this year to expand our production lines, increase output, as well as marketing efforts. In addition, we’ve started the planning and action phase to expand our modular production lines to new markets and countries.
To ensure further uptake and success, we need this year to expand our production lines, increase output, as well as marketing efforts. In addition, we’ve started the planning and action phase to expand our modular production lines to new markets and countries.