Eco-friendly packaging is rapidly shifting from a branding trend to a business necessity as companies face rising pressure to reduce packaging waste and improve sustainability performance.

According to OECD data, global plastic packaging waste exceeded 141 million tonnes in 2021, pushing brands to rethink how products are packed, shipped and presented.

Packaging Audits Are Becoming the First Step

Many businesses are starting with packaging audits before changing materials.

This process involves reviewing:

• boxes
• fillers
• bubble wrap
• labels
• decorative layers
• transport protection

The goal is to identify unnecessary packaging and reduce material usage before introducing alternative substrates.

For many companies, packaging reduction itself delivers immediate environmental and cost benefits.

Recycled Paper and Cardboard Remain Core Solutions

Recycled corrugated packaging and paper-based materials remain among the most widely adopted sustainable packaging options.

Advantages include:

• broad recycling infrastructure compatibility
• lower production energy demand
• lightweight transport performance
• biodegradability

Cardboard produced from recycled fibre can reportedly use up to 75% less energy than virgin fibre production.

This aligns with the broader industry trend toward fibre-based packaging formats already supported by established recycling systems.

Compostable Packaging Still Faces Infrastructure Challenges

Compostable mailers and plant-based packaging continue attracting interest, but infrastructure limitations remain a major barrier.

Industrial compostable materials often require:

• controlled composting facilities
• regulated temperature conditions
• specialist collection systems

In many markets, these systems remain limited.

As a result, compostable packaging frequently ends up in:

• landfill
• incineration
• mixed waste streams

despite sustainability claims.

Mycelium Packaging Gains Attention

Mycelium-based packaging is emerging as one of the most closely watched sustainable packaging technologies.

Produced using:

• agricultural waste
• fungal root structures

mycelium packaging offers:

• home compostability
• mouldable structures
• low carbon production

Major companies including IKEA and Dell have already adopted mycelium-based protective packaging for selected applications.

Plant-Based Plastics Create Complexity

PLA and other bio-based plastics remain controversial.

While derived from renewable feedstocks such as:

• corn starch
• sugarcane

many still require industrial composting infrastructure.

Without proper disposal systems, PLA may behave similarly to conventional plastics in landfill environments.

This has increased scrutiny around misleading sustainability claims and packaging greenwashing.

Businesses Are Focusing on Full Lifecycle Analysis

The packaging sector is increasingly moving toward lifecycle-based sustainability evaluation.

Businesses are examining:

• production emissions
• transport efficiency
• recyclability
• customer disposal behaviour
• end-of-life recovery

rather than relying only on recyclable labels.

According to McKinsey data referenced in the report, less than 20% of plastic packaging globally is actually collected for recycling.

This is pushing companies toward packaging formats compatible with existing infrastructure.

Packaging Is Becoming a Brand Communication Tool

Packaging now plays a growing role in communicating corporate sustainability values.

Brands increasingly use packaging to display:

• recycling instructions
• disposal guidance
• sustainability credentials
• certification labels

This is particularly important in ecommerce, where packaging often becomes the customer’s first physical interaction with the brand.

Certification Is Becoming More Important

Businesses are placing greater emphasis on verified sustainability certifications.

Key certifications include:

• FSC (Forest Stewardship Council)
• SFI (Sustainable Forestry Initiative)
• TÜV Austria OK Compost
• BPI compostability certification

These certifications help brands support environmental claims with independently verified standards.

Cost Perception Around Sustainable Packaging Is Changing

Historically, many businesses viewed sustainable packaging as significantly more expensive.

However, the economics are shifting because:

• lighter packaging reduces freight costs
• right-sizing lowers material consumption
• simplified packaging improves logistics efficiency
• sustainability positioning can improve customer retention

The article references Nielsen research showing brands with sustainability positioning growing significantly faster than conventional competitors.

Industry Insight

The sustainable packaging market is increasingly moving beyond material substitution alone.

The industry is now prioritising:

• infrastructure compatibility
• realistic recyclability
• lifecycle performance
• logistics efficiency
• customer communication
• verified certification systems

For converters, packaging suppliers and brand owners, sustainable packaging is becoming less about finding a “perfect” material and more about building packaging systems that work operationally, commercially and environmentally at scale.

Last Updated on 22/05/2026 by Jota Machinery