The global economy is shifting as industries work to address environmental improvement while maintaining economic growth. Many consumer brands have set aspirations to reduce waste and greenhouse gas emissions, aligning with frameworks like the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard and the Ellen MacArthur Foundation’s New Plastic Economy Global Commitment. Brands, converters, and suppliers are rethinking how they produce plastic packaging, aiming to curb environmental impact and improve consumer perception.
Over the last five years, brands set ambitious targets for 2025 and 2030. Research programs expanded to investigate compostable bioplastics, designing for recyclability, and increasing the use of post-consumer recycled (PCR) content, creating optimism that these goals were within reach.
In 2025, however, many brands are falling short. Aspirations are being reworked, although progress is evident. According to The Global Commitment, recyclable packaging grew from 42% in 2019 to 57% in 2024 and PCR use has increase 10 percentage points in the same timeframe.
Reframing the cost equation
The packaging industry has a long history of optimizing for performance and cost. Lightweighting, material innovation, and efficient production have reduced costs while meeting protection and design needs - like the evolution of the plastic bottle cap, which is now over 60% lighter than in 2010.
Introducing sustainability into this optimization equation, however, brings new complexities. From sourcing recycled content to redesigning packaging for recyclability, costs remain a significant hurdle particularly as cost of living inflation prevails as a top consumer concern. How can brand owners manage these costs while developing packaging that supports a plastics circular economy? It is essential to understand the factors that influence packaging design, resin pricing, and compliance requirements to accurately forecast the costs and benefits of utilizing packaging materials that are recycled or designed to be recyclable.
Designing for Recyclability
One key trend is monomaterial packaging, which uses a single type of plastic to design for recyclability. For flexible packaging, innovations in polyethylene (PE) have enabled all-PE structures that are recyclable through store drop-off programs. For example, multilayer PET/PE pouches can now be replaced with 100% PE alternatives in many use cases.
Despite technical feasibility, adoption remains slow. The industry is investing in machine direction oriented (MDO) and biaxially oriented PE (BOPE) films, but until demand increases, the return on investment can be difficult to justify. Monomaterial structures may not be compatible with existing packaging lines due to design constraints or equipment age. They also require lower sealing temperatures, which may slow down packaging lines.
Including Recycled Content
Strengthening the recycling market depends on increased use of PCR plastics. Mechanically recycled PET, HDPE, and LLDPE are now available in high quality and food-contact grades, but have differences in appearance or performance characteristics versus virgin plastics. Chemically recycled materials offer virgin-equivalent performance, yet supply remains limited. A recent Bain & Company study found that chemically recycling polyolefins in Europe costs more than twice as much as producing virgin material.
Hidden Costs
In addition to the upfront infrastructure and equipment costs related to improving the circularity of plastic packaging, evolving legislation is reshaping the risk landscape for brand owners. In Canada, the Competition Act introduced steep penalties for greenwashing: up to $10 million or triple the value gained from misleading claims. Globally, new Extended Producer Responsibility (EPR) laws and PCR mandates are emerging, which will carry legal and financial consequences.
Managing Costs and Driving Change
Despite challenges, real change is possible when brands align sustainability with consumer expectations and business strategy. The most successful companies choose to introduce sustainable packaging where customers are willing to pay a premium or shift behavior. Research shows consumers care about sustainability but often don’t know how to make an impact.
Collaboration across the value chain is also critical. By partnering with resin producers, converters, and recyclers, companies can co-develop new solutions and share in the risk of transitioning to new technologies. Multi-year offtake agreements can provide recyclers the financial certainty needed to scale up collection and processing.
Creating a circular economy for plastics is an ambitious goal, but one that can be advanced with the right strategies and a clear understanding of the challenges and opportunities. While early goals have proven difficult, progress in recyclability and PCR content shows that meaningful change is underway.
The path forward requires smart, data-driven decisions about where and how to introduce recyclable and recycled materials. When brands focus on product lines aligned with sustainability-minded consumers, invest in cross-sector collaboration, and support supply chain innovation, they can accelerate toward a future that delivers both environmental and economic returns.
Sarah Marshall is vice president of polyethylene marketing at NOVA Chemicals. She has nearly 30 years of experience in the chemicals and plastics industry. She earned her B.Eng. in chemical engineering from McGill University.