Sustainability in Packaging
The impact of public and private sustainability efforts continues to grow in the US packaging industry. Driven by rising concern about the environmental effects of packaging production, use, and disposal, these efforts are driving a shift in product mix toward packaging that can help packaging producers and end users meet such targets as source reduction (i.e., reducing packaging material volume); improved recycling rates, especially for plastics; increased use of materials that are biodegradable and/or compostable; increased use of recycled content in packaging; expansion of reusable packaging programs. However, packaging sustainability is not straightforward and cost and performance will continue to be top priorities of packaging customers.
This study is focused on identifying key trends in sustainability in the packaging industry, including:
- shifts in material mix toward more sustainable alternatives to virgin plastics (e.g., paper, bioplastics, molded fiber, recycled materials, reusable packaging)
- packaging producer and end user sustainability efforts and target goals
- product innovation in compostable, biodegradable, recyclable, and lightweight packaging
- expansion of packaging reuse programs
- supply and demand for recycled content
- regulatory changes affecting demand for sustainable packaging
Sustainability trends are analyzed by leading packaging material (plastic, paper, metal, glass, molded fiber) and in terms of packaging producer and end user sustainability goals. Historical data and forecasts for overall packaging demand and key market segments (food, beverage, pharmaceuticals, foodservice disposables, and other markets including e-commerce) are also provided. Additionally, profiles of select packaging products, markets, and materials are highlighted. Consumer survey data related to packaging sustainability collected by The Freedonia Group are also presented.
Packaging is generally classified as rigid or flexible (although semi-rigid packaging straddles the line between these two categories) and can be made from a variety of materials, primarily plastic, paper and paperboard, metal, and glass but also with other niche materials such as molded fiber or cellophane.
Scope of the ReportThis report analyzes the sustainable packaging market, including key trends in materials, products, and public and private sustainability efforts. Data are provided in current dollar value. Also included are analyses of packaging producer and end user sustainability efforts and product innovation in sustainable packaging, and the impact of these developments on the overall packaging industry.
Pandemic Accelerates Expansion of Private Sustainability Targets While Public Efforts Slow
The COVID-19 pandemic has been a backdrop for expansion of private sector sustainability targets, even as the pandemic has caused public sector efforts to slow somewhat. These efforts have been most pronounced in the food, beverage, and consumer markets, with major packaging firms as well as end users – including Nestlé, Keurig Dr Pepper, PepsiCo, and L’Oréal – announcing aggressive new goals for packaging sustainability and introducing packaging solutions to meet established ones. Sustainability efforts have also grown in the e-commerce market. For instance, in 2021, major shipping concerns in Europe launched reusable e-commerce packaging solutions that could translate to the US market.
Pledging to Cut Virgin Plastics, Packaging End Users Look to Paper, Bioplastic, & Molded Fiber
Reducing use of virgin plastics is a key goal of packaging sustainability efforts, and leading US packaging suppliers including Amcor and Berry Global are showing dedication to these trends by participating in the Ellen MacArthur Foundation New Plastics Economy Global Commitment and similar pledges. While some companies are exploring ways to fulfill such pledges by making plastic more eco-friendly – such as by improving recyclability or increasing use of recycled content – others are looking to shift away from conventional plastics altogether, changes that benefit materials that are perceived as more sustainable, including paper, bioplastics, and molded fiber. Though often higher cost and lower performance than plastics, these materials are increasingly the focus of product development efforts. A number of promising introductions have occurred in recent years, including Sonoco Products’ Natrellis molded sugarcane, PABOCO’s paper bottles, and Danimer Scientific’s Nodax PHA bioplastic resin for use in packaging.
Metal & Glass Also Benefit from Interest in Reusable Packaging
Reusable packaging programs are of increasing interest as a means to meet corporate source-reduction goals and provide consumers with further sustainable packaging options. Most reusable packaging is made from metal, glass, or other durable materials that do not quickly degrade under use and cleaning. Though generally higher in cost and heavier in weight (which makes shipping less energy efficient), metal and glass packaging are highly recyclable and reusable, boosting their environmental profile when they exit circulation in reusable packaging programs.