Companies may have dialed back their public sustainability messaging, but they are still heavily investing in sustainability initiatives, especially when it comes to packaging, as per a recent report from Bain & Co. released on Thursday. The report emphasizes that neglecting sustainability efforts would be a significant strategic mistake for the paper and packaging industry, particularly with regulations now playing a crucial role in shaping the economy.
While some companies have reduced their outward focus on sustainability, many are still prioritizing sustainability behind closed doors. A survey revealed that 59% of respondents would switch suppliers within three years if their sustainability metrics were not being met, highlighting the importance of sustainability as a purchasing criterion for packaging customers.
The report stresses that simply setting sustainability goals is no longer enough, and companies need to put in the hard work to meet these commitments. Packaging customers are falling behind in their sustainability targets, signaling a need for increased efforts in this area.
The 2026 paper and packaging outlook report covers a range of themes including rethinking supply chains, leveraging artificial intelligence, exploring chemical recycling, and expectations for mergers and acquisitions. Sustainability and substrate issues are key focal points in the report.
Consumer pressure and tightening environmental regulations are driving companies to reconsider their packaging substrates, especially in the quest to replace plastics. Brands are under scrutiny to choose substrates perceived as more sustainable by consumers, with material innovations and regulatory changes influencing these decisions.
About 60% of consumer packaging globally is estimated to be plastic, while 20% is fiber. There is a growing demand for more sustainable packaging options, with consumers and regulators advocating for shifts away from plastic. Plastic-heavy categories like cups, containers, and boxes are likely to face regulatory pressure, creating opportunities for fiber-based alternatives.
US consumers prefer non-plastic substrates for packaging
Percentage of 2,000 surveyed consumers who favor a certain packaging material for products purchased in a grocery store
Research shows that consumers in the US and other countries favor paper and glass packaging for grocery store purchases.
Manufacturers of non-plastic substrates are innovating to mimic the qualities of plastic packaging and capture a larger market share. Fiber producers, for example, are developing improved barrier properties to compete in the market.
Consumers rank recyclability as top packaging sustainability attribute
While consumers prefer packaging materials other than plastic, “plastic-free” ranks lower in importance compared to other sustainability attributes.
Studies have consistently shown that recyclability is a top sustainability attribute for consumers when it comes to packaging. Recycled content is also highly valued, but suppliers are struggling to meet the demand for recycled plastic, leading to a potential supply-demand gap by 2030.