The global drive toward sustainable packaging continues to gain momentum. Consumers increasingly prioritise environmentally friendly products, regulators are tightening requirements, and businesses recognise the strategic advantage of greener solutions.
Yet, despite these pressures, packaging purchasers—including FMCG brands, retailers, private label producers, and co-packagers—face persistent challenges in adopting sustainable materials effectively.
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Understanding these hurdles is crucial for companies aiming to balance performance, cost, and environmental responsibility.
1. Cost and economic constraints
A primary obstacle for packaging purchasers is affordability. Sustainable materials such as recycled polyethylene terephthalate (rPET) or polyhydroxyalkanoates (PHA) typically come at a premium compared to conventional plastics.
Supply limitations, complex production processes, and high-quality standards often make these materials two to five times more expensive than traditional options.
Passing these costs to consumers is not always feasible, as willingness to pay for sustainable packaging varies significantly.
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By GlobalDataWhile some shoppers are eager to support eco-friendly products, others remain price-sensitive, creating a delicate balance between sustainability goals and maintaining profit margins.
For purchasers, managing these economic pressures is an ongoing challenge, particularly as demand for recycled materials is projected to exceed supply in the coming years.
2. Performance and functional limitations
Sustainable packaging materials do not always match the performance characteristics of traditional options.
For example, biodegradable plastics such as polylactic acid (PLA) may underperform in key areas like thermostability, mechanical strength, or print quality. These limitations can increase product spoilage, breakage, or reduce shelf appeal.
Mitigating these issues often requires investment in specialised machinery or combining multiple materials.
While such solutions can enhance functionality, they may also introduce trade-offs—for instance, affecting recyclability or increasing complexity in manufacturing processes.
Consequently, packaging purchasers must carefully evaluate the balance between environmental credentials and practical performance to ensure product integrity.
3. regulatory uncertainty and compliance challenges
The regulatory environment for sustainable packaging is increasingly complex and varies across regions. Rules may differ between countries, states, and even cities, creating uncertainty for companies operating globally.
For instance, regulations governing compostable materials differ significantly between Europe and the United States, and localised variations within the European Union add further complexity.
This fragmented regulatory landscape requires packaging purchasers to stay informed and agile.
Misinterpretation or non-compliance can result in penalties, wasted investment, or reputational risk, making regulatory alignment a critical consideration when implementing sustainable packaging strategies.
4. Supply chain limitations
Consistent access to sustainable materials remains a significant barrier. High-quality recycled materials are often scarce, and limited supplier networks can constrain availability.
For example, if a brand plans to switch multiple SKUs to recycled packaging but can source sufficient material for only one, scaling sustainable solutions becomes difficult.
Additionally, some materials, such as at-home compostable plastics, have few alternatives, concentrating supply risks among a small number of manufacturers.
These supply chain constraints can delay projects, increase costs, and reduce confidence in long-term sustainability plans.
5. Misalignment on sustainability priorities
The concept of “sustainable packaging” can vary widely among stakeholders. Some focus on recyclability, others on carbon footprint reduction, use of recycled content, or overall circularity. This lack of consensus can create conflicting strategies across procurement, production, and marketing teams.
Consumer perceptions add another layer of complexity. Preferences differ by region, age group, and demographic, and shoppers’ priorities—such as recyclability versus recycled content—may not always align with actual product impact.
Packaging purchasers must navigate these divergent priorities to design solutions that meet both consumer expectations and sustainability targets.
6. knowledge gaps and innovation challenges
The pace of innovation in sustainable packaging can overwhelm purchasers. New materials, technologies, and regulatory developments appear regularly, and assessing their performance, cost, and long-term viability requires expertise and dedicated resources.
Many companies rely heavily on suppliers for information, which can limit exposure to the broader market.
Without a comprehensive understanding of available and emerging solutions, packaging purchasers may miss opportunities to adopt the most effective sustainable options.
The takeaway
Although hurdles to implementing sustainable packaging solutions are substantial, they are not insurmountable.
Companies that invest in research and development, foster collaboration across the value chain, and align packaging strategies with consumer expectations can successfully overcome these challenges.
Sustainable packaging is more than an environmental imperative—it represents an opportunity to drive innovation, enhance brand reputation, and respond to evolving market demands.
By addressing economic, performance, regulatory, supply, alignment, and knowledge-related barriers, packaging purchasers can position themselves as leaders in the transition to a more sustainable future.
