Paper-based packaging is gaining momentum as a renewable packaging choice, driven by consumer preferences and brand strategies. Increasing environmental scrutiny and regulatory pressure presents opportunities and a clear need to optimise sustainable solutions. This report examines the rise of paper packaging, its environmental credentials and reveals how to navigate evolving regulatory, technological and trading challenges, to secure its place in a waste-conscious, circular economy.
This report comes in PPT.
Paper-based packaging is gaining traction in brands’ packaging strategies, particularly as a replacement for plastic. Its use, and potential, extends beyond core consumer FMCG applications into multipacks, transit packaging and filler materials. R&D is exploring paper-based closures and functional coatings to broaden potential - clear signs of the embedding of sustainable materials.
Folding cartons lead with above-average growth across paper-based packaging, driven by consumption and conversion. With consumer focus on food staples, at-home dining boosts cartons, from rice to ready meals, while indulgence offers snackification potential from chocolate to snacks and ice cream. Switching to paper reduces plastic use and can improve pack circularity.
As climate consciousness grows, including concerns over plastic pollution, consumers are increasingly drawn to packaging that reduces environmental footprint. Paper holds “most sustainable material” accolade, for over half of consumers, thanks to its recyclability and plastic-free/reduced qualities. There is room to strengthen understanding of paper’s circularity, on-pack.
As regulatory interventions rise, compliance becomes critical. While plastic remains the most regulated, paper now faces rising demands, from recycling targets to phasing out PFAS in coatings and complying with the EU’s new deforestation rules. Brands need to get ahead of regulation through innovation, responsible sourcing and design, and improved sustainability reporting.
The paper packaging sector is under cost pressures including from economic uncertainty, energy volatility, trade tensions and shifting consumer demands. While these risk slowing growth and circularity, regulation and a suite of mergers, acquisitions and innovation partnerships signals how industry players are choosing to consolidate and invest to scale efficiency and circularity.
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