Sustainability in Packaging: Navigating the Trends and Challenges of 2025

Make no mistake about it, consumers are driving this train. They continue to demand more sustainable packaging and eco-friendly practices from the companies they align with, support, and purchase from.

According to Mark Shayler’s You Can’t MakeMoney from a Dead Planet: The SustainableMethod for Driving Profits, page 127, “…Business Wire interviewed 10,000 people across 17 countries and found that 85 percent of respondents have shifted their purchases towards more sustainable products and services” See original source here.

Additionally, two thirds of consumers refuse to buy from companies that fail to address issues they care about, per Shayler (see pages 126-127). To consumers, sustainability is among the biggest issues.

Consumers are willing to put their money where their mouth is. They’re prepared to pay more for sustainably produced and packaged products. A lot more. At the 2nd Europe Green Packaging Innovation Summit 2024 put on by ECV International, McKinsey presented Sustainability in packaging – what are consumers & customers asking for and how can innovation help . During this presentation, McKinsey noted consumers are “willing to pay up to [a] 40% premium for certain [sustainable] features.” This is particularly the case with 90% of younger shoppers (below the age of 45), who will pay more for products packaged sustainably.

Companies are aware of this, as the second highest number of responses reflect that companies gauge their sustainability efforts in packaging based on customer feedback.

Regulations regarding sustainability and packaging are, at best, a moving target. New regulations are being introduced while current regulations are continually being updated. Sustainability regulations are very nuanced and staying compliant is no easy feat.
 
The Ecodesign for Sustainable Products Regulation (ESPR), Packaging and Packaging Waste Regulation (PPWR), and Corporate Sustainability Reporting Directive (CSRD), are but a few examples of such regulations. Let’s take a look at each one.

ESPR came into effect on July 18, 2024. It is a key component of the European Commission’s strategy to promote sustainable products as well as their circularity. The regulation addresses how the EU’s consumption contributes to climate change and pollution and how to minimize their effects. As part of the 2020 Circular Economy Action Plan, ESPR is designed to help the EU meet its environmental and climate goals, improve energy efficiency, and double the circularity rate of material use by 2030.
 
PPWR, expected to be implemented in the near future, aims to reduce the environmental impact of packaging across the EU by promoting waste reduction, reuse, and recycling. Key measures include setting specific targets for packaging reduction, mandatory reusable packaging systems for certain sectors, and stricter recycling requirements. The regulation also seeks to reduce over-packaging, improve the recyclability of materials, and harmonize packaging laws across EU member states to ensure a unified approach to sustainability.

Among other things, PPWR will require that every package is designed to be recyclable by 2030. It will also impact labeling, the use of plastics, and additional packaging information. 
 
CSRD expands the scope and requirements for sustainability reporting. It requires companies to provide more detailed information on how their operations impact the environment, society, and governance (ESG).
 
CSRD applies to a broader range of companies, including large and listed small and medium-sized enterprises (SMEs), and mandates that reports be audited for accuracy. The goal is to enhance transparency and promote sustainable business practices across the EU. This regulation seeks to standardize sustainability at a federal level, something that’s never been done before.
 
According to Jan De Roeck, Marketing Director of Industry Relations & Strategy at Esko, “Business that are not preparing for this new reality today, run the risk of losing access to certain markets tomorrow. This is a particularly important change compared to previous years. The avalanche of new regulations makes business leaders nervous, and uncertainty about what needs to be done by when creates the risk of delaying investments. Expect trade associations to provide more clarity for their members in this forest of new legislative initiatives.”

It’s clear compliance is non-negotiable. Per Susie Stitzel, Director of Product Management at Esko, “Adapting to new regulations with recycled or recyclable materials is essential. Failing to do so could lead to non-compliance or unsellable products, which would result in significant losses to companies.”

Furthermore, compliance with regulations is seen as a barometer of success, with the highest number of survey respondents agreeing they measure the success of sustainability initiatives by ensuring compliance with regulations.

One of the biggest challenges for companies in 2025 will be balancing consumer sustainability demands against the costs of being more sustainable. Sustainable materials are more costly at the outset because they are not as readily available as their more common, less sustainable counterparts. 

And, as already noted, some regulations currently don’t or will not allow sales of certain less sustainable products. 

However, if a product is made or packaged more sustainably, and consumers are willing to pay more for it because of that, then, in the end, companies are likely to continue to be profitable.  
 
Stitzel says it best, stating, “Balancing cost-effectiveness with sustainability is challenging, but it’s about making informed choices early in the process to maximize sustainability within the constraints of cost.”

Packaging contributes about 5-10% of a product’s entire carbon footprint (Eco Enclose). Overall, that’s a small percentage. However, it’s one of the more visible aspects for consumers, which is why their demand for sustainable packaging is so at the forefront of the packaging world. 
 
Consumer pressure and regulations significantly impact packaging materials used. There are always new materials becoming available that are more recyclable or compostable. And, as we head into 2025, a key focus for companies will be materials science. Stitzel validates this, stating, “Innovative new materials are not just a step toward greater sustainability—they are a game-changer that can set companies apart in a highly competitive market.” 

De Roeck cautions patience, noting “it took the industry over 40 years to optimize the traditional fossil oil-based flexible packaging substrates like PE, PVC, PP, and PET. It may take more time than anticipated before science can develop new bio-based substrates that have the same functional properties as the traditional substrates. Herein lies a challenge for the industry.”
 
Additionally, packaging must still protect and preserve the product. This is especially true for pharmaceutical and food products. For example, if a food product is packaged in virgin material that’s sustainable, but the barrier inside is made of plastic, the inside barrier diminishes recyclability of the box, and thus its sustainability. 
 
As a result, one of the biggest trends expected in 2025 is the transition from oil-based multi-layer substrates to bio-based mono layer architectures and wood fiber-based carton boards with similar barrier properties.

Similarly, paper-based flexible bags are increasingly being used to replace plastic barriers. At drupa 2024, Esko showcased how our prototype, Sales Assistant, could help develop more sustainable packaging without compromising product freshness.

The Sales Assistant prototype can determine if a product requires special barriers and suggest more sustainable material alternatives. This happens by integrating the prototype with CarbonQuota, calculating the total CO2e emissions of the packaging and identifying options with lower environmental impact.

At drupa, we shared sample packages containing nuts, sealed in a recyclable paper pouch, that both preserved freshness and were environmentally friendly. The barrier material was both effective and recyclable.

Automation and digitalization are also making waves in the sustainability realm. Simply put, the more automated processes become, the faster companies can produce products and packaging, which require less materials and energy throughout the process. 

Technology enables processes to become more repeatable and accurate, which in turn reduces errors and rework. This is especially seen when physically printing packaging. 
 
As Stitzel states, “Automation has a huge impact on production. It reduces errors, energy consumption, and material waste, thereby making processes more sustainable and efficient.”

Data and analytics are the holy grail for improvements in packaging. They work in two ways.
 
First, data is the key to determining whether something is more sustainable. Having access to data helps companies make decisions in the very beginning, before anything is produced. It enables them to make choices about the best options, usually resulting from a comparative assessment.
 
Second, over time, as data has allowed the best choices to be made throughout the packaging supply chain, companies will have the benefit of a historical record tracking how their carbon footprint has improved.
 
As Stitzel comments, “Companies are increasingly seeking data for a holistic view of their sustainability progress. They need aggregated insights across projects to understand their environmental impact in real-time to continually assess and progress their sustainability initiatives.”

As we approach 2025, companies will have no choice but to keep sustainability in the forefront of their strategic planning. They must navigate the complex regulatory landscape, balance sustainability with costs, and adopt innovative materials and designs to meet consumer demands for eco-friendly packaging.
 
Automation and digitalization will play a key role in improving packaging sustainability by reducing errors, energy usage, and material waste. Additionally, data and analytics will continue to be critical tools for making informed decisions and tracking progress in reducing carbon emissions and their resulting impacts.
 
Ultimately, the path forward for sustainable packaging lies in embracing these advancements and continuously striving for improvement. By leveraging technology, data, and innovative materials, companies will not only meet regulatory requirements but will also gain a competitive edge in the market.