The future of logistics: Bearhug’s reusable wraps cutting costs and waste

In an era where sustainability is an increasingly critical driver of business strategy, Bearhug is at the forefront of transforming logistics with an environmentally conscious approach.Committed to redefining how businesses manage pallet wrapping, Bearhug demonstrates that ecological responsibility and commercial success are mutually reinforcing.Founded in 2023 by Tom Field and Max Higgins, Bearhug was cultivated out of a simple frustration: A truck driver wasting a kilo of plastic every day. This issue was experienced first-hand by Field during his five years in the logistics sector as a truck driver, and became the foundation for a company focused on tackling the pervasive environmental problem of plastic waste.With 95 per cent of packaged goods being wrapped in plastic at some point in the supply chain, Bearhug’s mission is rooted in solution. The solution being the beginning of a smart and niche business venture starting with reusable pallet wraps. The wraps are certified to be more secure than plastic, reducing breakages in the process, making it mutually beneficial for businesses looking to cut costs and reduce their environmental impact.Bearhug is focused on a business-to-business model with one caveat. “With our production and repair of wraps, unfortunately there is a minimal generation of waste, which recently we transformed into the Bearbag – a satchel bag made from offcuts of our reusable pallet and keg wraps,” said Tom Field, co-founder of Bearhug.“This additional offering means not only can we target a B2B model, but also offer a DTC strategy allowing your everyday consumer to join our mission,” he added.The smart business of sustainabilityBearhug’s business model taps into the growing demand for more sustainable practices across industries. After just one year in operation, Bearhug has sold out of its initial stock and quadrupled its inventory last year. And with 36 businesses already on board, it’s clear that the demand for reusable pallet wraps is only growing.“With any reusable product, the more regularly you use it, the more you save money by replacing the single-use alternative (and eliminating plastic in our case),” Field explained.Bearhug’s customer base is diverse, ranging from manufacturers to distributors and retailers. The company’s focus on FMCG brands is particularly noteworthy.In this sector, where businesses are constantly moving goods, switching to reusable pallet wraps results in immediate cost savings while contributing to a cleaner environment.Retailers and brand owners often underestimate the influence they wield over their supply chains when it comes to sustainability. In practice, the shift to reusable systems is more accessible than many realise. “Going reusable for just 6 per cent of your pallet wrapping will have the same environmental impact as using recycled stretch wrap for everything,” he said.According to Field, clients typically transition after recognising inefficiencies like importing goods in containers, shrink-wrapping pallets for short-term storage, only to discard the plastic moments later. Others already operate closed-loop logistics, returning pallets to their warehouse, yet still dispose of the wrap rather than reusing it. Some wrap pallets solely to transfer goods between their own facilities. In each case, waste is generated where smarter, circular practices could easily take hold.One of the challenges in implementing reusable packaging solutions is overcoming the logistical barriers associated with returning and reusing the wraps.Bearhug is addressing this issue head-on by developing what it calls the world’s first “pooling model” for reusable pallet wraps. This concept, which is similar to how pallets are exchanged and reused in the supply chain, allows businesses to return their wraps for reuse in a seamless, cost-effective way.Expanding to the US marketWith an eye on global growth, Bearhug set its sights on the US market early in its journey. To break into the substantial US logistics landscape, Bearhug leveraged its early success in Australia, focusing initially on a niche market of craft brewers. “The US is a big place, so we had to start a niche to get noticed. By focussing on the craft beer market, we could piggyback off our success in Australia to give Bearhug its initial legs,” he explained.Bearhug’s expansion strategy was further supported by its presence at the Craft Brewers Conference in Indianapolis. With pre-sales and a handful of customers secured beforehand, Bearhug was able to gather valuable insights and build relationships with key industry players. “Distributors are very powerful in the states, so we’re now in discussions with a few to help expand to the big fish that is US FMCG,” he concluded.The future of circular logisticsBearhug’s vision is ambitious with an aim to replace the world’s 2.8 million tonnes of annual pallet wrap waste with a reliable system of circularity. With reusable wraps that reduce plastic waste, lower operational costs and improve supply chain efficiency, Bearhug is well-positioned to disrupt the logistics industry.For Field and Higgins, sustainability is the future of logistics. And as Bearhug continues to grow, they’re proving that sustainability is not only the right thing to do for the planet, but also a lucrative business decision.