Sustainable Packaging Trends of 2024

December 3, 2024|Exclusive Features, Materials, Sustainable

What’s important isn’t whether single-use packaging is made from plastic, paper, or compostable materials – instead, it is crucial that packaging is reusable. © Natchaya– stock.adobe.com

A circular economy hinges on reusable packaging

By Mike Jones, Mainetti’s Head of Innovation

The packaging industry is closely intertwined with multiple sectors, including retail and pharmaceuticals. As these markets respond to the escalating climate crisis, the packaging sector must evolve. Consequently, sustainability has emerged as a top priority, and is a trend that has continued to gain momentum this year.

The packaging industry has played a significant role in global warming, as a 2021 study from Science Journal found that packaging materials account for the largest proportion of plastic waste at 47 percent. Additionally, non-government organization, Waste & Resources Action Programme (WRAP), found that the plastic packaging sector produces an annual equivalent of 1.8 billion tons of carbon emissions. A move toward sustainable packaging is therefore crucial to alleviate the effects of the climate crisis.

Shifting Away from Plastic: The Industry Embraces Paper and Compostable Packaging

While companies make efforts to reduce their plastic consumption, many opt for paper packaging as an environmentally friendly alternative. Indeed, a report published earlier this year by market research firm, IMARC Group, found that in 2023, the global paper packaging market size amassed $428.1 billion, and is expected to grow to $535.6 billion by 2032. This is to meet the increasing demand for paper over plastic packaging, as illustrated by a 2020 survey by Two Sides North America which found that 57 percent of U.S. consumers prefer paper bags due to their environmental benefits, such as ease for recycling and composting. Additionally, the survey found that the same number of respondents are taking active steps to cut down their use of plastic packaging.

Although replacing plastic with paper can be an effective way to achieve net-zero targets, the issue is more complicated than swapping one single-use material for another. The reality is that, while paper biodegrades more easily than plastic and so is easier to dispose of than plastic, the manufacturing process is incredibly energy intensive. The Northern Ireland Assembly found that a paper bag takes over four times as much energy than a plastic one to manufacture.

Additionally, a 2023 study featured in Waste Management Bulletin showed that, in 2019, the paper and cardboard industry produced 110 million tons of waste in the U.S., where 56 percent of this was sent to landfill and only 38 percent was recycled. It is therefore critical that businesses and consumers remain mindful when deciding which material type to use.

In response to growing concerns about plastic waste, compostable packaging is becoming an increasingly popular alternative in the retail industry. While compostable packaging is often perceived as breaking down quickly and being easily recycled, the reality is that its recycling process is much more complex. This is because the current waste collection infrastructure in the U.S. is limited in its capacity to handle certain types of compostable packaging, as illustrated by the Sustainable Packaging Coalition which found that only 11 percent of the U.S. population currently has access to composting programs.

Additionally, varying regulations across municipalities regarding what composting facilities can and cannot accept further complicate the recycling process. The process becomes even more confusing for consumers when separating materials for recycling, as it’s nearly impossible for the untrained eye to distinguish between bioplastic and regular plastic. This often results in contamination at composting facilities. Despite this, the compostable packaging industry is projected to grow from a global market size of $88.73 billion in 2022 to $197.85 billion by 2032, with a compound annual growth rate of 8.4 percent, according to consulting firm Towards Packaging.

The U.S. is taking steps to improve legislation around compostable packaging. In 2023, the U.S. Senate introduced the Recycling and Composting Accountability Act, which mandates the Environmental Protection Agency (EPA) to produce several reports on composting, recycling, and the nation’s capacity to enforce a national composting strategy aimed at reducing contamination rates in recycling. Although these recent efforts will create further support for the use of compostable packaging, the U.S. still does not have the appropriate infrastructure. Packaging producers must recognize this reality and carefully choose materials to ensure their packaging is genuinely sustainable.

Contrastingly, Italy has made substantial progress in enhancing its recycling infrastructure for compostable materials. In 2021, the country launched BIOREPACK, a ground-breaking national consortium for compostable packaging and the first Extended Producer Responsibility (EPR) scheme in Europe. This initiative ensures that producers are responsible for the entire lifecycle of their products.

BIOREPACK not only supports, but also finances the recycling and recovery of compostable packaging. By working with councils, waste operators, and composting facilities, the consortium guarantees the effective collection and disposal of these materials. According to a 2021 activity report from BIOREPACK, Italy’s EPR scheme has achieved an impressive 52 percent recycling rate for compostable packaging, benefiting 61 percent of the country. For the U.S. to advance toward a circular economy for compostable materials, it is crucial to follow Italy’s lead. Without a sufficient waste collection system, U.S. retailers must instead ban compostable packaging – as the UK has done in recent years – to support the circular economy and ensure all materials are appropriately collected and recycled.

Reusable Packaging is the Future of the Circular Economy

What’s important isn’t whether single-use packaging is made from plastic, paper, or compostable materials – instead, it is crucial that packaging is reusable. Indeed, the Reusable Packaging Association explains that this kind of packaging can reduce the environmental impact of supply chains and more effectively support a circular economy than single-use materials. Indeed, a single reusable packaging item can reduce solid waste sent to landfills by up to 86 percent. Additionally, single-use reusable packaging cuts CO₂ emissions by up to 60 percent, energy consumption by up to 64 percent, and consumes up to 80 percent less water. This is because reusable materials do not need to be remanufactured or recycled, whereas single-use packaging does.

As a result of these benefits, the retail industry is increasingly embracing reusable packaging solutions to achieve their sustainability goals. Indeed, a 2024 study by Towards Packaging found that the reusable packaging market is set to grow from $113.77 billion in 2022 to $197.11 billion by 2032. Additionally, government legislation across the U.S. is increasingly promoting reusable packaging over single-use materials, according to a 2024 study published by the non-profit organizations Environment America, U.S. Public Interest Research Group Education Fund, and Frontier Group. The report revealed that plastic bag bans have been implemented in 500 municipalities across 28 states, including California, Hawaii, New Jersey, New York, and more. These bans have cut the number of single-use plastic bags used each year in the U.S. by approximately 6 billion, encouraging instead the use of reusable packaging.

Overall, businesses are reassessing their packaging materials to address the severe impacts of the climate crisis. With numerous sustainable packaging options available, it is crucial for companies to consider the end-of-life management of these materials – whether there is adequate recycling infrastructure to handle them and if the materials are even recyclable. To effectively combat the climate crisis and minimize environmental impact, adhering to the principles of the circular economy is essential.