Manufacturing Impact Report: Packaging Edition, Q1 2025

Circular Solutions and Trade Adaptations Transform Packaging Material Sourcing

This in-depth analysis examines how packaging companies face significant regulatory pressure to reduce chemicals of concern (COCs) in food packaging, particularly bisphenols, phthalates, and PFAS. This research reveals how these regulatory developments manifest as both compliance challenges and innovation opportunities, requiring robust materiality assessment processes that consider both financial materiality, through compliance costs, and impact materiality, through consumer safety and environmental health outcomes throughout packaging value chains.

The report additionally reveals how tariff volatility has disrupted sustainability initiatives for 62% of packaging manufacturers particularly affecting investments in alternative materials and circular systems.

Call to Action: Packaging companies should develop regionally diversified material sourcing and implement resilient innovation pipelines that can adapt to trade policy fluctuations.

The report highlights innovative approaches to ESG compliance, with Crown Holdings screening 1,000 chemicals against the ChemSec Substitute-It-Now (SIN) List, establishing new industry benchmarks for proactive chemical management. Simultaneously, International Paper's Global Cellulose Fiber team has generated over 100 circular economy initiatives to replace petroleum-based materials, demonstrating how material innovation can address both environmental objectives and business imperatives in alignment with evolving regulatory expectations.

This analysis examines significant regulatory developments that are reshaping the industry landscape, including the UK's Extended Producer Responsibility (EPR) reforms, which are making manufacturers increasingly responsible for packaging waste management. As these frameworks intensify disclosure requirements around material composition, recycled content and end-of-life management, companies implementing comprehensive governance approaches are demonstrating enhanced preparedness for CSRD reporting obligations and other emerging policy frameworks.

The report examines how packaging sustainability trends are evolving in 2025, with more minor, lighter designs reducing material usage by up to 30% while cutting production and shipping costs. These minimalist approaches not only enhance operational efficiency but also align with shifting consumer preferences for transparent and environmentally conscious packaging solutions throughout the retail and consumer goods sectors.

Looking toward future market dynamics, the report identifies how local sourcing is gaining momentum, with companies like Coca-Cola European Partners committing to using over 90% of materials from local suppliers. This approach not only reduces transport-related emissions by approximately 25% but also enhances community relations and supply chain resilience, creating both environmental and social value in alignment with holistic sustainability frameworks and the SDGs.