Sustainable Packaging Trends of 2025

Source: EcoEnclose

Key Trend 1: More Brands Will Make Sustainability-Related Decisions Based On Profitability and Growth Impact

Over the past three months, there has been an unfortunate shift among businesses when it comes to sustainability goals. Many are adjusting their posture and tone when talking about the planet - as well as walking back specific sustainability commitments and investments.

This changing tide in corporate sustainability is influenced by a “perfect storm” of factors: 

• Administrative changes and a volatile political landscape

• Financial struggles that have affected businesses in recent years

• Failure by many brands to put real plans or meaningful funding in place to make actual progress toward bold eco-commitments that were made in the past 

One example of this trend is Coca-Cola’s December 2023 announcement that the company is revising its 2030 sustainability goals. Coca-Cola reported that their decisions were “informed by learnings gathered through decades of work in sustainability, periodic assessment of progress and identified challenges.” The company stated that achieving their sustainability goals would require continued innovation and collaboration between industry leaders, supply partners, governments, and others.  

Despite these statements, critics have noted that Coca-Cola has seemingly abandoned their goals of reducing virgin plastic use by 3.3 million tons by 2025, scaling back their recycled content goals, and pushing the time horizon for most goals to 2035.  

These changes have prompted backlash from customers, thought leaders, and conservation groups alike, beginning as soon as the company released their announcement. This raises an important point: public opinion and brand image must be considered along with financial factors as businesses reevaluate their sustainability initiatives. 

Takeaway:  

At this point, we expect that the majority of businesses will continue to maintain sustainability as part of their strategy and goals, but will pursue changes and targets that are incremental rather than revolutionary. Many businesses will put more and more emphasis on prioritizing sustainability decisions that can quickly boost their bottom line (or at least keep their bottom line net neutral). 

However, we know that many brands will continue to make sustainability and corporate responsibility an integral part of their business strategy. Brands that have committed to sustainability as a core value will re-commit to ambitious goals, cutting-edge innovations, and system-wide improvements. For these brands, sustainability progress can help differentiate them even more, and we expect to see them at the forefront of sustainable change, including in the world of packaging. 

Actions Steps for Brands to Consider:  

When was the last time you refreshed or revisited your brand’s sustainability plan?  

If you drafted it five years ago and let it sit in the background, you may have set a bold 2025 or 2030 goal that is coming due. Kick this year off by going over your values, targets, and current efforts to identify areas for improvement, celebrate wins, and align your vision and business investments with your sustainability goals.  

As you do so, remember to set clear goals, prioritize transparency, and find ways to engage your customers in your mission. By continuing to choose a genuine commitment to sustainability, your brand can stand out to conscious consumers.

Key Trend 2: Sustainable Packaging Legislation and Compliance Will Begin Influencing Brand Choices and Investments

Regardless of how brands decide to move forward with and/or scale back their bold sustainability goals – the reality is that sustainable packaging legislation is here and expected to expand in coming months and years. 

Despite the fact that the incoming administration has been vocal about deregulation of business, state-level regulations - especially Extended Producer Responsibility laws - are already in implementation mode. In 2025, many of these regulations will likely have a significant influence on brand packaging decisions for the first time. 

EPR legislation in California and Colorado will require brand action for the first time in 2025, and similar passed legislation in Maine, Oregon, and Minnesota will follow shortly thereafter. Several states and many municipalities already have bans in place or under consideration for plastic retail bags, single-use retail bags, PFAs, polystyrene, PVC, and more. Finally, two states (New Jersey and Washington) have EPR bills in consideration this year, and several other states are expected to follow.  

Even as we’re unlikely to see any federal action related to packaging circularity or broader sustainability topics over the next few years, individual state legislatures have and will continue to influence brand strategies and decisions. 

In addition to state-level packaging legislations, global EPR and sustainable packaging laws continue to expand. For example, many global brands are already in the process of updating their packaging to comply with EPR laws in the European Union. 

As existing legislation comes into effect and new legislation is passed, we expect to see brands make continued adjustments in their packaging strategies and overall sustainability programs.

Changes We Expect to See In Response to Evolving Packaging Legislation Over the Next 1-2 Years: 

Recyclable materials. Many brands will prioritize materials that are readily curbside recyclable, such as paper, glass, aluminum, HDPE, and PET. Most brands will also gradually eliminate materials of concern like polystyrene, polypropylene, and PVC (essentially, all other plastics).  

Compostable food packaging. California’s EPR Legislation will encourage brands to design packaging that is intended for food contact to be compostable. As a result of this, more brands will move packaging for food use to all compostable materials. Of note is that California’s legislation is also likely to discourage brands from choosing compostable bioplastic packaging for non-food use cases, which will push more brands to prioritize recyclable over compostable in this situations.  

Expanded packaging data collection and reporting. Brands will need concrete, robust data on their packaging use to comply with reporting requirements for CAA (the Producer Responsibility Organization designated for several states’ EPR laws). In many cases, packaging data and sustainability claims will also have to be third-party verified. As a result of this, brands will have to expand their data collection and tracking, and some will also seek closer relationships with packaging providers for support with data as well as broader compliance-friendly decision making.  

EcoModulation to reduce EPR fees. Many EPR schemes include opportunities to reduce fees by modifying packaging to be more eco-friendly. For example, packaging made with higher recycled content may have a lower fee rate than virgin packaging. Brands will likely use these guidelines to update packaging in order to reduce their dues to PROs. However, since none of the current EPR laws have clear ecomodulation structures in place yet, it may take time for this to take shape and heavily influence packaging decisions.  

Prioritization of clear labeling and third-party verification. Due to EPR laws, truth in labeling laws, as well as specific anti-greenwashing laws, transparent and accurate labeling is more important than ever. Vague or confusing symbols will need to be eliminated, and the current chasing arrow/resin code system will likely be updated or eliminated in the next eighteen months. Packaging will need to have clear sustainability and end-of-life claims that are verified by trusted third parties. In support of this need, How2Recycle Labeling has been revamped in response to truth in labeling, and will likely become even more common. 

Removing packaging that gets to the end customer. Brands may seek to reduce their end-customer packaging volumes by minimizing the amount of material that travels all the way to the end customer. Packaging that is essential for the supply chain but not for unboxing may be removed before shipping. For example, poly bags, void fill, or factory-use polystyrene may be taken out at distribution centers. Because dues are driven by end-consumer packaging, this approach may allow brands to reduce their fees while still getting the supply chain transit protection they need. 

Takeaway:  

Packaging legislation, such as Extended Producer Responsibility, is becoming more common across the United States and globally. At this point, it is not yet fully clear how this will affect some brands or what the specific requirements will be. However, some points that we expect to see include: increased demand for recycled content, material reduction, and curbside recyclability; as well as clearer labeling and more robust data and verifications. As they evolve and come into effect, these guidelines will play an increasingly important role in packaging decisions. 

Action Steps for Brands to Consider:

Stay updated on evolving packaging laws using resources like our legislation tracker, particularly in areas where you currently sell or plan to sell.  

While waiting for clearer guidelines to emerge, take the opportunity to proactively improve your packaging to prioritize recycled content and recyclability, as well as efficient design. Begin now to collect data on your packaging use and, where possible, seek third-party verification for your sustainability claims.

Key Trend 3: Plastic-Free Packaging Strategies Will Evolve, With Brands Taking More Incremental and Nuanced Approaches

Over the past few years, we’ve seen many brands set the goal of going completely plastic-free in their packaging. This strategy has sustainability benefits (such as reducing fossil fuel reliance, reducing landfill waste, and eliminating the risk of contributing to ocean plastic pollution) as well as unique challenges (such as a higher carbon footprint and the risk of contributing to deforestation).

In 2025 and in coming years, we expect the discussion on plastic-free packaging to shift from all-or-nothing to a more nuanced approach. That being said, brands will need to continue rethinking their use of many types of plastics. The Global Treaty on Plastic Pollution - while currently stalled - is putting businesses on notice that there may be global requirements to come. Many businesses are already aligning with the UN Plastics Treaty (expected to take clearer shape in 2025) to phase out problematic plastics, increase reuse systems, and implement closed-loop packaging solutions.

Here are some of the big-picture changes we anticipate in the use of plastic and plastic alternatives.

First of all, we do expect plastic use to continue among the majority of brands.

When it comes to conventional plastics, polyethylene (PE) and polyethylene terephthalate (PET) will likely become the preferred polymers. These plastics are more commonly accepted in recycling programs than others and have stronger existing markets for recycled content. High post-consumer recycled content will become increasingly important when using PE and PET.

Other plastics, such as PVC, LDPE, and even PP, will be minimized over time, often driven more by regulations, bans, and consumer preference than value-based brand decisions.

Second, as paper continues to gain traction, we expect many brands (particularly international brands) to reevaluate the way they source to minimize risk of deforestation.

Despite the fact that the EU Deforestation Law has been delayed a year, companies with an EU presence will soon need to actively address deforestation in their supply chains. This law, which was passed after voluntary efforts failed, will require businesses to submit data proving their products aren’t causing forest loss. Reporting requirements will include evidence of due diligence, including identifying the plot of land their products came from and prove no forests were cleared on site. In many cases, this will likely include the use of satellite imagery.

While the EU’s current legislation focuses on product commodities and high-risk deforestation areas and does not specifically address packaging, we expect this law to bring a new focus to paper sourcing and deforestation in the global packaging industry. One of the biggest risks of moving from plastic packaging to 100% paper is contributing to deforestation, and more discussions and regulatory measures are needed to mitigate this risk.

Third, well vetted novel materials will provide additional plastic-free alternatives this year.

Novel materials include bio-alternatives whose production has potential to be restorative, marine-safe materials that won’t contribute to ocean plastic pollution, and more. We are excited to see the development of promising materials and technologies such as:

• Seaweed and algae, including our Sway Poly Bags and Black Algae Ink

• Regeneratively grown sugarcane

• Food and agricultural waste-derived packaging (such as wheat straw paper

• Edible or naturally biodegradable food wrappers

• Plastic-free and recycling-compatible coatings for paper that add strength, barrier and heat sealability

While these materials haven’t yet achieved large-scale implementation, their technologies have been developed and proven - and they are ready to serve as viable replacements for traditional plastic.

At EcoEnclose, we have evaluated, piloted, and launched packaging that includes novel materials like seaweed, and we will continue to push the boundaries of packaging innovation to find more regenerative solutions.

Finally, reusable or refillable packaging will expand in certain industries.

Reusable packaging is not always sustainable or cost-effective for every business model or industry. However, when reusable packaging makes sense, it can help brands dramatically reduce their material use and overall footprint.

For example, we have seen brands who sell products such as cosmetics, personal care items, or household goods implement refillable packaging. These models often involve an initial purchase in a durable, reusable bottle made from glass or aluminum, with refills available at dispensaries or in smaller, resource-light packaging.

In some cases, reusable retail or shipping materials can also be an effective decision. Brands that have customers ship products back, such as subscription or rental fashion brands, may choose reusable mailers to reduce their raw material use.

Takeaway:  

The use of conventional plastics will begin to change, with materials like PVC, PS, and PP phasing out, and high-PCR PE and PET becoming the new plastic norm. Paper will serve as a viable plastic alternative in some cases, but more and more, brands will pursue this transition thoughtfully, with particular focus on avoiding deforestation.  

Novel alternatives to plastic and paper will continue to gain more market share, especially as sustainability-focused brands become early adopters and bring these solutions into their packaging strategies. Ultimately, how brands navigate the transition away from traditional virgin plastics will depend on a variety of factors, from product lines to impact goals to budget constraints.  

Action Steps for Brands to Consider:

Audit your current packaging materials to see where you may be able to improve. For example, if you’re using polystyrene as a cushioning/void fill product, switch to a void fill made from preferred materials such as recycled paper.  

If you are currently using paper or considering a switch to paper-based packaging, examine your supply chains to ensure you are buying from responsible sources that do not contribute to forest loss. Ideally, prioritize recycled paper content wherever possible.  

If feasible for your brand, explore opportunities to take a leap on novel materials as an alternative to plastic.You can also learn more about our recent innovations to see how they can fit into your brand’s packaging strategy.

Key Trend 4: Net Zero Commitments May Stall, But Carbon Reduction and Climate Change Mitigation Efforts Will Continue

At one point, Net Zero goals - eliminating or offsetting 100% of carbon emissions - were a staple in many companies’ sustainability commitments.

Recently, however, headlines are declaring Net Zero a thing of the past as large corporations and banks are quietly dismantling or scaling back their Net Zero commitments or distancing themselves from previous pacts.

Some reasons behind this shift away from Net Zero goals may include:

• Vague plans that led to disappointing progress on the path to carbon reduction

• Concerns about the financial cost of some carbon reduction/offsetting initiatives

• Desire to go after goals with a greater chance for quick ROI

• Lack of support for carbon reduction from internal stakeholders

• Greater understanding of the cost of pursuing 100% carbon neutrality

• More scrutiny into the effectiveness and transparency of carbon offsetting schemes

But even as large businesses prioritize short-term profitability over net zero, the reality is that climate change is here and must be considered as part of business strategy. More and more, consumers are driving business towards carbon reductions and pushing for increased environmental responsibility.

Additionally, with EU climate laws in place and a global framework for carbon emissions trading finally fleshed out with the Paris Agreement’s Article 6, there are more incentives than ever for brands to reduce their carbon footprint.

Because of this, even if Net Zero isn’t the clear goal for multi-national brands right now, finding ways to lower carbon emissions continues to be essential. When carbon reduction strategies are also cost effective, brands have an even more compelling reason to invest.

Here are three ways that we expect to see brands pursue reduced carbon emissions over the next year:

Investments In Carbon-Neutral and Carbon-Negative Packaging. Since packaging is a moderate component of a brand’s carbon footprint, many brands will choose to invest in packaging that has a neutral or negative carbon impact through sustainable sourcing and offset projects.

Lightweighting Packaging. This strategy involves a reduction in material usage through downgauging, streamlining packaging materials, and using innovative designs that maintain durability while cutting weight and waste. When executed effectively, lightweighting can also reduce the overall cost of packaging.

Prioritizing Flexible Packaging. We’ve seen a distinct shift from rigid packaging (such as bottles, boxes, or containers) to flexibles (such as pouches, mailers, or films). This move is both cost effective and carbon efficient, making it an attractive strategy for budget-sensitive brands. As brands move to flexible packaging, recyclability will be a key factor to consider. Many current flexibles involve multi-layer films that are typically not curbside recyclable. We expect to see a continued growth of monomaterials - as well as advances in the recycling of multilayer packaging. 

Takeaway:  

As many brands move away from bold sustainability goals, Net Zero commitments are likely to stall or decline. Despite this, reducing carbon emissions will continue to be a critical step for all brands. Consumer preferences, pressing climate concerns, and developing global legislation mean that businesses can’t afford to ignore their carbon footprints, including when it comes to packaging. Instead of Net Zero targets, many brands will undertake more incremental carbon reduction measures that are also cost-effective.  

Action Steps for Brands to Consider:

Ask yourself the following questions: 

• Do we currently measure and understand the carbon impact of our packaging?

• What are our present carbon reduction goals? Do we have clear plans to get there?

• How can we make further progress toward lowering our carbon footprint?

• If currently using carbon offsetting schemes, do we have a clear picture of how the scheme operates and verifies their impact? 

If you’re looking to make your packaging more effective when it comes to carbon impact and cost, consider lightweighting or shifting to flexible materials. For individual guidance about designing carbon efficient packaging, reach out to us and we’ll be happy to help.

More Packaging Trends to Be Aware of In 2025

The trends above are some of the most significant and potentially impactful developments in the packaging industry. Below, we’ve identified additional trends that may also play a role in your packaging decisions this year.

Tariffs Will Lead to Expanded Local Sourcing (And More Brands Frontloading Inventory)

Pending tariffs on China will encourage domestic sourcing of packaging. This may prompt brands to move from overseas suppliers to domestic packaging providers. In the past, this often meant an increase in cost. With these new tariffs, however, it will likely be a more cost-effective strategy to produce or purchase packaging within the United States. In many cases, this will also help brands lower their overall carbon impact by reducing the “miles” their packaging must travel. We also expect to see many brands frontloading inventory, ordering a larger quantity of packaging before costs increase.

Chemical Recycling Is In Flux and May Decline

Unfortunately, chemical recycling is up against several significant challenges: current capacity is limited, the capacity that does exist isn’t being used effectively, consumers aren’t well educated about what this type of recycling actually is, and messages are conflating waste-to-energy efforts with true advanced chemical recycling. Because of this, growth in chemical recycling industries is stalling, and may end up declining just when we need progress most. We continue to see true chemical recycling (using pyrolysis to turn existing polymers back into polymers for use in products and packaging) as a critical aspect of circularity. While these delays are disheartening, we hope to see an eventual rebound as the demand for and use of quality recycled content increases.

Minimalist, eCommerce-Ready Packaging Will Become More Prevalent

Emphasis on “less is more” with clean, minimalist designs that avoid excess inks, dyes, or materials. With the exponential growth of eCommerce, packaging designed specifically for shipping will be crucial in 2025.  

eCommerce packaging needs to balance protection, cost, sustainability, and branding. To meet these needs, we expect a surge in frustration-free packaging (such as that used by Amazon), which is easy for customers to open and made with minimal materials. The shift towards lightweight and durable designs will help brands maintain eco-friendly practices while reducing costs - and, in some cases, reducing carbon impact as well. Protective inserts, efficient padding, and collapsible designs will also play a central role in optimizing shipping processes.

The Market for Interactive, Experiential, or Smart Packaging Will Grow

Customers increasingly desire labels that are not only clear, but interactive. Because of this, the market for “Smart Labels” is growing fast. The smart labels market is currently valued at over $12 billion and is expected to reach around $35 billion by 2030. 

A 2020 study by Ipsos highlighted the crucial role of product labels in consumers’ purchase decisions, with ESG labels such as “100% biodegradable packaging” and “packaging made from 100% recovered ocean plastic” perceived as providing high-priority information. Consumers use RFID, EAS, or QR Codes to interact with the label using devices such as cell phones and scanners to “read” product information such as product ID, catalog number and pricing. As an increasing number of countries and commercial sectors adopt these technologies, market analysts predict rapid growth and wider use among brands of all sizes. 

When it comes to packaging sustainability, QR codes and RFID tags embedded in packaging can guide consumers on proper recycling or return for reuse. The drive for unified industry standards and practices around recycling and sustainable packaging is resulting in collaborations between organizations like How2Recycle on one hand, and key industry players on the other. A central goal of these standards is to create product labels that provide clear, easy-to-understand instructions for recycling both the product and its packaging.  

Takeaway:  

The world of sustainable packaging is increasingly complex, with many factors for brands to consider as they develop their strategies and goals. From pending tariffs to a growing desire for effective, interactive packaging, brands will need to stay informed on market trends and legislative developments in order to get the most from their packaging and avoid potential headaches.  

Action Steps for Brands to Consider:

If you’re currently sourcing packaging internationally, ensure you understand how tariffs may affect your supply chain. Where possible, consider moving to domestic sourcing. If you haven’t yet optimized your packaging for eCommerce use and easy customer interaction, take the opportunity to evaluate your current strategy and look for ways to improve. If you’re looking to implement How2Recycle® labeling or other ESG labels, we can help you navigate this process.

EcoEnclose Is Here to Help Your Brand Stay Ahead of the Curve In Sustainable Packaging

These sustainable packaging trends will likely affect all brands to some extent, particularly those who are committed to going above and beyond in prioritizing the climate in their business and packaging. The good news is that you can begin now to prepare and make proactive changes.  

Whether you have an existing sustainable packaging strategy or are exploring eco-friendly materials for the first time in 2025, EcoEnclose is here to help. We can help you determine which compliance issues apply to your business, develop an effective packaging mix, identify ways to invite customers to engage with your business, and more. 

To learn more, explore our extensive resource library or contact us to set up a one-on-one consultation call. 

Additional Resources

• Guide to Extended Producer Responsibility and Sustainable Packaging Legislation
• Transitioning from Plastic to Paper Packaging: Guide to Going Plastic-Free
• Alternative Packaging Materials: Beyond Paper and Plastic
• Guide to Sustainable Packaging Certifications
• EcoEnclose’s Sustainable Packaging Framework
• Packaging Innovations: Our Collective Power at Work