Paptic

Tuomas Mustonen is the Co-founder and CEO of Paptic, a company leading the way in eco-friendly packaging solutions. With a background in materials science, he's dedicated to finding alternatives to plastic, helping to reduce waste worldwide. Mustonen is committed to making Paptic a champion of sustainability and environmental responsibility.

Please tell our readers about your journey in the industry and your key roles and responsibilities at Paptic.

Since our start in April 2015, I've led the company through almost nine years of progress and innovation. My background blends business and technology, giving me a distinctive viewpoint in the packaging material industry. Before Paptic, I gained experience in the finished packaging material sector, particularly at the VTT Technical Research Institute. It was during this time that the idea for Paptic took root. Since our inception, I've been committed to propelling our company toward sustainable innovation.

What are some of the challenges that are currently prevailing in the market? How are you mitigating these challenges?

One of the prevailing challenges in the market, especially in the context of our journey since 2015, has been navigating the landscape of sustainable packaging materials. When we began, there were relatively few players focusing on fiber-based materials, which presented both opportunities and obstacles. The inherent nature of material-related businesses demands substantial investments and slower scalability due to asset burdens. However, our early emphasis on circular packaging and sustainability positioned us ahead of the curve. Despite the challenges of scaling up, we have successfully secured investments, including $27 million in funding in 2023 from sustainable packagingoriented venture capitalists and growth investors. Our sector, defined by sustainable materials, typically faces asset-heavy dynamics. To address this, we've innovated our business model towards contract manufacturing, leveragingexisting industrial infrastructure and excess capacity within the industry. This approach allows us to minimize capital expenditure while tapping into underutilized resources, presenting a win-win scenario for both manufacturers and ourselves.

“Our sector, defined by sustainable materials, typically faces asset-heavy dynamics. To address this, we've innovated our business model towards contract manufacturing, leveraging existing industrial infrastructure and excess capacity within the industry. This approach allows us to minimize capital expenditure while tapping into underutilized resources, presenting a win-win scenario for both manufacturers and ourselves”

Moreover, beyond focusing solely on product-market fit, we recognize the importance of building a credible growth narrative. Our customers, predominantly global brands, seek suppliers capable of sustained expansion and reliability. Thus, alongside product innovation, we prioritize evolving our business model to ensure scalability and credibility in the eyes of investors and customers alike. In essence, addressing market challenges necessitates not only product-market alignment but also continual innovation in our approach to scaling and serving global clientele.

How do you envision the future of the space?

In envisioning the future of space exploration, I see a trajectory marked by substantial anticipation and ongoing efforts, albeit without major breakthroughs just yet. Currently, our focus primarily revolves around foundational aspects such as packaging materials and mechanical structures. However, to truly address the needs of the largest end-users in the packaging industry, particularly in food packaging, we must prioritize materials that are conducive to circularity, such as fiber-based options that facilitate easy recyclability. Yet, these solutions necessitate sustainable barriers to safeguard the packaged contents, thus prompting a crucial emphasis on developing eco-friendly barrier coatings and treatments. This avenue of innovation represents the next frontier in advancing our market approach and forging impactful partnerships to propel us toward sustainable progress in space exploration.

What will be your piece of advice for your fellow peers and aspiring professionals in your field?

My advice for fellow peers and aspiring professionals in our field revolves around three key points. Firstly, prioritize building a strong company culture when bringing in new team members. Reflect on the type of company you aim to create, as retention and motivation are crucial for achieving results.

Secondly, establish reliable partnerships. Startups and growth companies rarely succeed alone, so invest time in cultivating trustworthy collaborations. While it may take time, solid partnerships are invaluable for mitigating risks and driving success.

Lastly, maintain agility and focus on your core strengths while being open to learning from the past. Reflect on past decisions that remain relevant and stick to the core values that define your business. By staying adaptable yet grounded, you can navigate market fluctuations and achieve enduring success.