The packaging industry continues to evolve as governments, consumers and businesses rush to become more environmentally conscious.

Demand for sustainable packaging solutions has accelerated, paving the way for advancements in material technology that will allow organizations to move away from single-use plastic packaging and other non-recyclable materials.

The Pressure to Reduce or Replace Plastics

According to the World Economic Forum, more than 300 million tons of plastic are produced every year, but only about 9% of that is recycled. Plastic waste in nature degrades into fragments that never fully decompose.

Many countries have policies to combat plastic waste. The European Union’s 27 member nations have agreed to ban single-use plastics in cafes, restaurants and airports by 2030. In the United States, the goal is to phase out federal procurement of single-use plastics in food service and packaging by 2027. This pressure to innovate has led to the development of sustainable materials.

Top Trends in Packaging Materials

The packaging industry and material technology are coming together to meet these goals. Recent initiatives coming to the market include:

“Monomaterial” for improved recyclability

Since replacing plastics isn’t always possible, improving their recyclability is a viable path to sustainability. Monomaterial packaging, made from a single type of material, is easier to recycle than traditional multi-layered packaging.

Recently, global packaging giant Amcor was honored with the Special Award at the 35th Packaging Innovation Awards for the company’s recycle-ready AmPrima™ Plus coffee packaging, a mono-polyester pouch. AmPrima enables coffee brands to move away from non-recyclable plastics while keeping their products fresh.

Bio-based plastic packaging

Bioplastics, derived from natural polymers, offer a sustainable alternative to petroleum-based plastics.

New Zealand-based Mushroom Material is replacing polystyrene foam (commonly called Styrofoam) with mycelium-based packaging, combining agricultural waste with fungi to create biodegradable but durable materials. Another innovator, Cruz Foam, offers compostable shipping foam made from 70% upcycled food waste. These solutions highlight a growing shift toward materials that decompose efficiently without harming the environment.

Next-generation paper packaging

Consumers favor paper packaging as it comes from renewable resources like wood pulp. However, critics warn that replacing plastics with virgin paper could lead to deforestation. To mitigate this, companies are using post-consumer recycled paper and also exploring wood pulp alternatives like wheat straw, miscanthus, hemp and grass.

Ranpak recently launched GrasiKraft™, a recyclable packaging void filler made from grass and recycled paper fibers. As another example, Sacma collaborated with Futamura to create B.Life Gaia® compostable bags made from FSC-certified grass paper and a cellulosic liner for packaging hot foods like cooked chicken.

Biodegradable barrier coatings for paper

While paper is widely perceived as more sustainable than plastics, pure paper soaks up water or oil, making it impractical for many packaging applications. However, barrier paper lined with a biodegradable coating can be an eco-friendly means of protection against moisture and grease, making it suitable for food and beverage packaging.

An example is UPM’s Asendo™ barrier paper for food wrapping, which is made of FSC-certified fibers and can be recycled in existing waste streams. Another innovation is Aquapak’s Hydropol™, a biodegradable polymer coating used on paper packaging. Just like paper, Hydropol can be recycled, repulped, and composted. If it ends up in nature, it is non-toxic and marine-safe while it biodegrades over time.

Edible packaging

Edible packaging is an exciting frontier in sustainable packaging. Made from natural and edible ingredients like seaweed, rice or milk proteins, edible packaging is designed to be consumed with the product it encases, eliminating waste altogether. Companies are experimenting with edible wrappers for food, beverages and pharmaceuticals.

One standout product is Ooho, an edible bubble made from seaweed by UK-based Notpla. Ooho can be used to package energy drinks, juices, water and sauces. A transformative idea is to be able to pass out liquid at events without littering the area with plastic.

Academic scientists in Sao Paulo, Brazil, have created edible films using yerba mate extract and sorbitol, a sugar alcohol. The films not only resist heat and sunlight but also possess vapor barrier and antioxidant properties. Hence, the developers believe that edible films can potentially replace traditional packaging materials while offering nutritional benefits to consumers.

The Road Ahead for Sustainable Packaging

As consumers around the world demand more sustainable practices, the packaging industry will need to adapt quickly. Aside from developing new materials, innovative packaging designs and a focus on waste reduction will drive the future of packaging.

The restaurant industry is responsible for much of the innovation. McDonald’s, for instance, recently introduced the Mini McFlurry, which is packaged in a newly designed four-flap paper cup that does not require the classic McFlurry plastic lid. The new design is expected to help McDonald’s attain its goals of waste reduction and 100% sustainable sourcing for its primary packaging materials by the end of 2025.

We will still use plenty of plastics in packaging. According to Towards Packaging, the global plastic packaging market is projected to reach US$584.09 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.4% from 2023 to 2032. By comparison, the global biodegradable packaging materials market is expected to surpass US$169 billion by 2032, with a faster growth rate of 6.8% CAGR, according to Fact.MR.

Industry challenges

While new materials offer promising solutions, there are still challenges to overcome. Higher costs, scalability issues and the need for more efficient recycling systems are among the hurdles for the packaging industry. Additionally, the regulatory landscape surrounding sustainable packaging is still evolving, and companies must stay ahead of changing standards and requirements.

Industry Intelligence Solutions for the Packaging Sector

At Industry Intelligence Inc, we have 24 years of experience helping clients anticipate trends and seize opportunities in sustainability. Our unique “Technology + Human Expertise” formula connects the dots efficiently, allowing industry trends to surface without extensive daily research.

Our packaging intelligence covers key topics such as packaging design, material innovation, recycling, extended producer responsibility, bans and restrictions, and more. Please explore our suite of solutions:

We also offer customized solutions integrating our intelligence with your preferred platform (Microsoft Teams, Salesforce, intranet), empowering knowledge sharing and driving informed decision-making across your organization.

For more information or to schedule a consultative demo, please contact us at Info@industryintel.com.

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