Flexible, compostable, and recycled content packaging forecast to grow
Recycling and composting systems are not prepared to meet this growth
Investment and legislative policies are needed now to ensure success
(MARCH 23, 2023) AMERIPEN and PMMI, The Association for Packaging and Processing Technologies, today released “PACKAGING COMPASS: Evaluating Trends in U.S. Packaging Design over the Next Decade and Implications for the Future of a Circular Packaging System” (“Packaging Compass”), a study to help identify key 10-year trends in packaging design, and materials, and the implications of these trends on legislation and the recovery systems for consumer-packaged goods (CPG).
Click here to access the study online.
Interest in advancing a circular packaging economy is shared by stakeholders across the packaging value chain and policymakers throughout the U.S. are introducing legislation to improve and grow the package recovery system; industry and stakeholders are engaging on that legislation. This report is intended to help support informed legislation and investment for packaging recovery by providing industry insights on the future of packaging so legislation and investment can better align to meet tomorrow’s needs.
AMERIPEN Executive Director Dan Felton said, “The U.S. is in a unique position, with four states enacting packaging producer responsibility laws, and more states looking at similar legislation or complementary policies like recycled content mandates. These laws are seen as a vehicle in which the packaging community can help fund and support the design of recovery systems to advance circularity. Sharing data on packaging trends and the rationale for packaging design decisions can help align our recycling and composting systems with the data needed to understand future material inflows. Using that data, we can begin to target investments and strategies to collectively create increased circularity.”
“Packaging is essential to the world. We rely on packaging to safeguard our food, protect our medicines, shield our purchases, and transport our goods; and because of this, our industry is committed to doing its part to limit its environmental impact,” said Rebecca Marquez, Director, Custom Research at PMMI. “This research, with AMERIPEN, is vital to our path forward so that we align key packaging trends with sustainability goals.”
Key findings include:
- Today’s recovery systems are not well matched to meet the foreseen shifts in packaging design. Of the three key materials identified within design trends, two are materials for which there are limited options for consumers to access recovery systems while the use of post-consumer recycled (PCR) demand is already demonstrating a gap between demand and supply. As we look to legislation and investment for packaging and recovery, alignment and collaboration with an eye towards future packaging trends will help target the most effective legislation and investments for the U.S. recovery system.
- Packaging designers indicate a strong interest in flexible films with a projected annual compound annual growth rate (CAGR) of 4-6 percent. Flexibles are anticipated to be one of the fastest growing segments within plastic packaging. Data shows that currently only 1.9 percent of U.S. households have curbside access to recycle flexible materials. Material recovery facilities (MRFs) need further development to handle the growth of this material. Investments in collection, sorting and processing of flexible packaging films are needed to expand recycling of this growing packaging format.
- Compostable packaging is projected to see a significant jump around 2027, with a CAGR of 15-16 percent. Compostable packaging is not yet accepted by many composting facilities across the U.S., limiting consumer access to compostable services collection. The successful recovery of compostable packaging will require increased composting infrastructure and investment.
- Packaging designers indicate plans to increase post-consumer recycled (PCR) content within their packaging over the next decade. There is already a gap between PCR demand and supply for packaging, particularly for food contact packaging. This gap is expected to increase without more investment and supply into the recycling system. New technologies and systems to improve both the quality and volume of PCR content for safe packaging use must be considered.
This report is an attempt to close the gap between packaging design and recovery systems, outlining the complexities of packaging design, what materials or formats are expected to grow and how these trends will impact recycling and composting systems and related legislation.
AMERIPEN and PMMI believe that effective policy and market development is based on good data. The Packaging Compass report brings critical insights into legislative, recycling, and composting policy considerations by providing insight into packaging design over the next 10 years. Collaborating to share insights with stakeholders across the packaging value chain can help ensure we collectively design and implement well-crafted policies and systems that are results-based, effective and efficient, and equitable and fair.
ABOUT AMERIPEN
AMERIPEN – the American Institute for Packaging and the Environment – is a coalition of stakeholders dedicated to improving packaging and the environment. We are the only material neutral packaging association in the United States. Our membership represents the entire packaging supply chain, including materials suppliers, packaging producers, consumer packaged goods companies and end-of-life materials managers.
We focus on science and data to define and support our public policy positions and our comment are based on this rigorous research rooted in our commitment to achieve sustainable packaging, and effective and efficient recycling policies. The U.S. packaging industry contributes $537.91 billion in total economic output to the national economy and is responsible for nearly 1.7 million jobs. These workers earn over $117.73 billion in wages and benefits, and members of the industry and their employees pay $43.46 billion in direct federal, state and local taxes.
Learn more at www.ameripen.org
ABOUT PMMI
PMMI, The Association for Packaging and Processing Technologies, represents more than 950 North American manufacturers and suppliers of equipment, components, and materials as well as providers of related equipment and services to the packaging and processing industry. We work to advance a variety of industries by connecting consumer goods companies with manufacturing solutions through the world-class PACK EXPO portfolio of trade shows, leading trade media, and a wide range of resources to empower our members. The PACK EXPO trade shows unite the world of packaging and processing to advance the industries they serve: PACK EXPO International, PACK EXPO Las Vegas, PACK EXPO East, PACK EXPO Southeast, EXPO PACK México, and EXPO PACK Guadalajara. PMMI Media Group connects manufacturers to the latest solutions, trends, and innovations in packaging and processing year-round through brands including Packaging World, Healthcare Packaging, Contract Manufacturing + Packaging, ProFood World, Mundo PMMI, and OEM. PMMI Business Drivers assist members in pursuing operational excellence through workforce development initiatives, deliver actionable business intelligence on economic, market, and industry trends to support members’ growth strategies, and actively connect the supply chain throughout the year.
Learn more at pmmi.org and packexpo.com a
Click here to access the study online.
