Trends Shaping the Sustainable Packaging Industry

Sustainable packaging is emerging as a pivotal focal point between environmental consciousness and responsible consumerism. As our global awareness of the harmful impacts of conventional packaging on ecosystems and resources continues to grow, businesses and industries are increasingly being compelled to innovate and adopt sustainable packaging solutions. These solutions span a spectrum of approaches, ranging from the use of eco-friendly materials and minimalist designs to advanced technologies such as holistic packaging, smart packaging, edible packaging, etc. Some environmentally friendly sustainable packaging examples include protein or algae-based, mono-material recyclable-based, and renewable polypropylene-based packaging.

Sustainable packaging not only aligns with the demands of environmentally conscious consumers but also reflects a strategic imperative for companies aiming to reduce their carbon footprint, mitigate waste generation, and demonstrate corporate social responsibility. Some of the notable companies in the domain include WestRock, Amcor, Smurfit Kappa, Crown Holdings, and Mondi among others. These companies offer a diverse portfolio of sustainable packaging and cater to a wide array of requirements across multiple industries.

MarketsandMarkets 360 Quadrants evaluated some of the Top Sustainable Packaging Companies in the market. The company evaluation was conducted on over 80 companies of which the top 20 were categorized and recognized as the quadrant leaders. Factors such as revenue, geographic presence, growth strategies, investments, channels of demand, and sales strategies were considered the market presence of the sustainable packaging quadrant. While the top criteria for product footprint evaluation included Material (paper & paperboard, plastic, metal, glass), Process (recycled, reusable, degradable), Function (active, molded pulp, alternate fiber), Application (food & beverage, healthcare, personal care, others), Sustainable Initiatives, and Incorporation of PCR content. Current Trends shaping the Sustainable Packaging industry can be understood as below:

Incorporation of Recyclable Materials: Industries are increasingly turning to materials that can be easily recycled, promoting a circular economy, and mitigating the impact of packaging waste. One notable example is the increasing adoption of cardboard and paper-based packaging. These materials are not only biodegradable but also readily recyclable, often being converted into new packaging or paper products. For instance, Mondi, one of the leading entities in packaging and paper developed a recyclable paper-based packaging for dry food products in January 2023 in partnership with Syntegon. Through this, the companies aim to create sustainable packaging solutions with the minimum environmental impact possible, and with paper packaging that is both recyclable and contains recycled material, the companies are towards closing the circularity loop for primary food packaging.  Another prominent company, DS Smith partnered with Aquapak, which was targeted to support the company’s long-term sustainability targets that include manufacturing 100% reusable or recyclable packaging by 2025. Such innovations and strategic activities by the market players are fostering the adoption of recyclable materials in the industry.

Edible Packaging: While still in its infancy, edible packaging holds immense potential to address not only the issue of packaging waste but also to offer a unique and interactive element to the consumer experience. The basic definition of edible packaging refers to a type of packaging material that is safe for human consumption. Usually, made from edible materials such as seaweed, rice starch, or even fruit peels, these wrappers are not only eco-friendly but also serve as an extension of the product they encase. It is designed to be consumed along with the product it encases, eliminating the need for disposal and reducing waste.

Such a design also reduces the need for extra processing steps, as it naturally breaks down over time and presents an exciting solution for single-use items that have long plagued the environment, thereby driving momentum in the sustainable packaging industry. This rise in the popularity of edible packaging solutions can also be attributed to government initiatives and advancements in packaging technologies. Countries like China, Indonesia, and India are among the key markets targeted by edible packaging manufacturers and distributors due to the government policies that favor edible packaging solutions and established base for raw materials in terms of plant-based sources that support the growth of edible packaging solutions in the region.

Lightweighting: Lightweighting has emerged as a compelling trend within the sphere of sustainable packaging. The ultimate goal of lightweighting is to create more efficient, cost-effective, and sustainable packaging. Through this manufacturers are able to decrease their shipping and handling costs, improve their logistics, and reduce their environmental impact by meeting the emission guidelines set forth by the governments. Manufacturers are adopting various materials like thinner plastic films, innovative materials, or technologies that can reduce the weight of the packaging. However, there are some factors like reduced protection and limited product range, and hence smart planning and execution are required to achieve a balance between the two. One noteworthy example of lightweighting.

Rising Adoption of Biodegradable Materials: Although there is an overlap between the two concepts as plant-based materials can often be biodegradable, the main difference lies in the origin of the material and the specific characteristics of how they break down. Plant-based packaging emphasizes the use of renewable resources, whereas biodegradable packaging emphasizes the material’s ability to naturally degrade over time. From compostable coffee cups made from plant-based materials to biodegradable films for wrapping perishable goods, businesses are responding to consumer demands for more sustainable choices. This trend signifies a shift towards a more circular economy, where packaging materials can be integrated back into the environment without leaving a lasting trace. Some of the common biodegradable materials include Polylactic Acid (PLA), Starch-Based Plastics (from sources like potatoes, tapioca, and wheat), Polycaprolactone (PCL), Polyhydroxyalkanoate (PHA), Paper and Cardboard, etc.

Additionally, plant-based materials are on the rise, especially in the food & beverages, fashion, and e-commerce industries. Materials such as cellulose, Sugarcane Bagasse, mushroom, biodegradable packaging peanuts, seaweed, algae, etc., are some materials that are being used widely for sustainable packaging.

Smart Packaging: Interactive Sustainability

Technology is converging with sustainability in the form of smart packaging. This trend is witnessing an overwhelming response from the e-commerce and food & beverages industry. Smart packaging utilizes sensors, RFID tags, and even QR codes to deliver real-time information to consumers, enhancing the user experience and promoting sustainability. They offer multiple benefits such as saving resources by requiring less packaging material, reducing CO2 emissions across the supply chain, and boosting environmental performance. For instance, in the food industry, smart packaging can help reduce food waste by alerting consumers when a product is nearing its expiration date. This not only minimizes waste but also encourages consumers to make more informed choices about their consumption habits.

Additionally, smart packaging can help trace the origin of products, ensuring transparency and accountability in supply chains, thus discouraging practices harmful to the environment. Companies like Amcor, Smurfit Kappa, Mondi, DS Smith, Ball Corporation, etc., are actively involved in smart packaging solutions.

Reusable Packaging Systems

The concept of “reduce, reuse, recycle” takes on a new dimension with reusable packaging systems. Instead of the traditional single-use approach, these systems involve packaging that is designed to be used multiple times, significantly reducing the demand for new packaging materials. This innovation spans across various industries, from e-commerce to grocery stores, and involves solutions such as bulk bins, durable containers, and deposit-return systems.

Final Thoughts

By redefining traditional notions of packaging and embracing innovation, the sustainable packaging movement is reshaping industries and contributing significantly to the ongoing conversation surrounding the delicate balance between commerce and conservation. In conclusion, sustainable packaging is a dynamic nexus where environmental awareness and responsible consumerism converge. As our understanding of the adverse effects of conventional packaging deepens, industries are embracing innovative solutions that span from eco-friendly materials to cutting-edge technologies.

These trends, from recyclable materials and edible packaging to biodegradable options and lightweight designs, embody a growing commitment to environmental stewardship. The appeal of sustainable packaging extends beyond conscious consumers to become a strategic imperative for businesses striving to reduce their carbon footprint and demonstrate social responsibility.