The transition away from flexible plastic packaging will require more than material substitution. According to the Ellen MacArthur Foundation, success depends on coordinated action across the packaging value chain to ensure paper-based flexible packaging delivers genuine environmental benefits while remaining commercially viable.

In its 2030 Plastics Agenda for Business, the Foundation identifies flexible plastic packaging as one of the most difficult barriers to achieving a circular economy. While paper-based alternatives continue to attract investment from packaging producers and material developers, the report argues that replacing plastic alone will not solve the broader challenge of packaging waste.

Instead, the Foundation calls for collaboration between brand owners, packaging manufacturers, material suppliers, recyclers and policymakers to accelerate innovation and develop scalable circular packaging solutions.

Flexible Plastic Remains a Circular Economy Challenge

The report notes that flexible plastic packaging continues to face low collection and recycling rates in many markets, while leakage into the natural environment remains a significant concern.

According to the Foundation, around 25,000 pieces of flexible plastic packaging enter the world’s oceans every second, with cumulative leakage projected to reach 20 trillion items by 2040 if current trends continue.

Although paper-based flexible packaging is increasingly viewed as one potential alternative, the Foundation stresses that material substitution must be carefully managed to avoid creating new environmental problems.

Paper packaging that relies on unsustainable fibre sourcing, excessive water consumption, or coatings and inks that reduce recyclability may simply shift environmental impacts rather than reduce them.

Responsible Paper Packaging Requires More Than Fibre

Rather than promoting paper as a universal replacement, the Foundation outlines several performance criteria that paper-based flexible packaging should satisfy before large-scale adoption.

These include:

• Responsible fibre sourcing
• Efficient manufacturing processes
• Product performance suitable for intended applications
• Compatibility with local recycling infrastructure
• Chemical safety
• Biodegradability where appropriate

These factors, the report suggests, are essential if paper-based flexible packaging is to contribute meaningfully to circular economy objectives.

The Foundation believes continued investment in research, material development and industry cooperation will be necessary to improve both technical performance and commercial scalability.

Rob Opsomer, Executive Lead for Plastics at the Ellen MacArthur Foundation, said the long-term objective remains the development of a circular economy that eliminates unnecessary plastics, expands reuse models and improves the circulation of materials that remain in use.

He added that companies taking early action will be better positioned to respond to evolving regulations while maintaining long-term market competitiveness.

Policy and Industry Must Progress Together

Joe Murphy, CEO of the Ellen MacArthur Foundation, also highlighted the importance of public policy in supporting circular business models.

He noted that meaningful progress will require policymakers to introduce measures that encourage sustainable innovation while creating market conditions that allow circular packaging systems to scale.

According to Murphy, stronger alignment between industry and government could help address plastic pollution, reduce environmental pressures and support economic development through new circular business opportunities.

Packaging Companies Continue Developing Fibre-Based Alternatives

The Foundation’s report comes as packaging manufacturers continue investing in fibre-based flexible packaging technologies.

One example is Amcor, which has partnered with UK-based startup Kelpi to evaluate a bio-based seaweed coating designed for fibre packaging applications.

The collaboration is assessing whether the coating can provide the barrier performance required for flexible packaging while remaining compatible with existing paper recycling systems.

The technology is being evaluated for Amcor’s AmFiber packaging platform, where performance requirements include product protection, high-speed converting and improved circularity.

David Clark, Chief Sustainability Officer at Amcor, said the company’s AmFiber platform continues to gain market interest, adding that Amcor’s recent Lift-Off Challenge encouraged paper-based packaging innovation by offering joint development opportunities and potential investment support for selected startups.

He also noted that the Ellen MacArthur Foundation’s report provides useful guidance for scaling paper-based flexible packaging responsibly while helping reduce plastic waste.

Industry Outlook

Across the packaging sector, interest in paper-based flexible packaging continues to grow as companies respond to tightening regulations, sustainability commitments and changing customer expectations.

However, the Ellen MacArthur Foundation argues that long-term success will depend not only on replacing plastic with fibre-based materials, but also on ensuring those materials are responsibly sourced, technically fit for purpose and compatible with established recycling systems.

For packaging producers, converters and brand owners, the report reinforces that the transition to circular packaging will require coordinated innovation across the entire value chain rather than a simple material switch.

Last Updated on 07/08/2026 by Jota Machinery