Gartner: 75% of Businesses to Drop Sustainable Packaging

Research and advisory firm Gartner predicts that by 2028, 75% of organisations will relinquish their voluntary sustainable packaging objectives and follow just compulsory legislative standards.

At present, most companies which boast sustainable packaging products do so on a voluntary basis, surpassing guidelines and targets set by governments.

As these corporations strive to uphold their self-imposed targets, there's a trend towards aligning with official regulatory frameworks instead.

Challenges in sustainable packaging

In 2023, sustainable packaging adoption jumped to 50% - up from 36% in 2021. 

Despite this growth, many companies encounter roadblocks in achieving their packaging sustainability benchmarks.

In recent years, governments around the world have begun enforcing responsible packaging.

In the EU, all plastic packaging must be recyclable, reusable or compostable by 2030. 

The Coca-Cola Company and PepsiCo are brands sometimes associated with substantial plastic waste.

While companies like Walmart and Unilever set ambitious sustainability benchmarks, a gap remains. Factors such as limited infrastructure and consumer behaviours are frequently cited as challenges to their objectives.

Despite big brands setting sustainable targets, many are falling short, blaming unavailable infrastructure and consumer behaviour.

“By the end of this year, Gartner predicts that 90% of public sustainable packaging commitments will remain unmet, as organisations continue to rely on plastics and single-use packaging,” says John Blake, Senior Director Analyst in Gartner's Supply Chain practice.

“With packaging rules rapidly evolving, CSCOs must shift their focus to meeting extended producer responsibility (EPR) requirements, which will demand new investments in data management, package design and compliance resources.”  

Extended Producer Responsibility (EPR) is a tool to reduce the environmental impact of packaging by holding producers accountable for their packaging. 

This regards financial responsibility and operational responsibility. 

12 US states have introduced legislation on packaging EPR in 2025, whilst seven bills have passed in the US. 

Many programmes encourage producers to join a producer responsibility organisation (PRO) which develops a producer responsibility plan to support and manage these producers. 

In the US, producers pay a fee to the PRO and the funds are then distributed to cover costs required by programme legislation. 

Higher costs and preparations

Gartner says that Chief Supply Chain Officers need to prepare internal profit and loss (P&L) owners for increased costs as a result of the switch to EPR requirements. 

EPR can drive costs to rise significantly as the fiscal burden shifts toward producers and manufacturers.

Under the aegis of EPR and PRO regulations, companies must furnish data on packaging materials, volume and recyclability to ensure compliance with regional jurisdictions.

“Many organisations are currently unprepared for these new requirements, lacking the data management tools and resources needed for compliance. Longer term, legislation can lead to significant costs for PRO fees and fines, alternative materials and supply chain adjustments,” John adds.

Design methodologies are increasingly dictated by legislation, as focus on sustainability, labeling and reuse requirements are necessary.

Essential steps for leaders

Gartner has laid out some recommended steps for CSCOs.

1. Education - All functional teams should be educated on the implications and risks of EPR legislation. These teams include, but are not limited to, marketing, manufacturing and R&D.

2.  Engagement - The supply chain ecosystem should have a space to address issues and concerns about sourcing sustainable materials and return networks like collection. This relates to suppliers, procurement teams, transportation teams and manufacturing teams.

3. Incorporate legislation - Packaging legislation should be considered throughout strategies as the legislation impacts design, material sourcing and manufacturing decisions.

John concludes: “Organisations that fail to prioritise packaging legislation in their design and sourcing strategies risk losing market access and eroding margins as EPR fees rise.

"Proactive compliance protects market position and also creates opportunities for differentiation in an increasingly regulated environment.”