Packaging for the Planet: A Supply Chain Imperative

In an era defined by environmental accountability and shifting consumer expectations, sustainable packaging has become a critical concern for decision-makers in charge of global supply chains.

As businesses face increasing pressure to reduce carbon footprints and embrace circular practices, packaging stands out as a key opportunity to drive meaningful change. From reducing waste and emissions to cutting costs and boosting brand credibility, sustainable packaging is no longer simply a nice-to-have, but a strategic imperative. 

Supply chain leaders are rethinking their material usage and partnering with innovative suppliers to deliver packaging solutions that align with both regulatory requirements and corporate ESG goals. The organisations spearheading this transition are reshaping the market and embedding sustainability into the very heart of their operations. 

Consumer demand for sustainable alternatives

Among those at the forefront of the sustainable packaging movement is DS Smith.

The London-headquartered trailblazer carries out frequent research into consumer attitudes towards eco-friendly alternatives, unearthing significant demand for products putting the planet first when it comes to its packaging. 

Several notable findings on this theme emerged from DS Smith’s recent Unboxing Consumer Preferences on Sustainable Packaging study, which discovered that US consumers consider sustainability to be the most important attribute of a shipping package.

The survey of more than 1,000 adults based in the US also highlighted that transparency is key. Respondents made it clear they want retail brands to clearly communicate their sustainability success and are paying attention to how retailers are cutting out waste both in stores and online. 

Other key topics addressed in the report include:

• Packaging space: Almost half (46%) of consumers are bothered by empty space in a box. Three-quarters (75%) of those respondents said empty space indicates the brand doesn’t prioritise sustainability. 
• In-store waste: A third (33%) of consumers have noticed better options to reduce waste at the checkout, including options for paperless receipts and the removal of plastic bags.
• Stuffing material: Half of consumers regard polystyrene as a last resort for stuffing material, with one in five going as far as to say they won’t buy from a company using the material. 
• Intelligent packaging: Three-quarters of consumers are interested in packaging built with sensors to ensure the product remains in optimal condition or temperature – otherwise known as intelligent packaging. In fact, 28% say they are willing to pay up to US$5 more for an intelligent package. 

Cheryl Holliday, Director of Marketing at DS Smith in North America, summarises the significance of the findings: “It’s clear from the survey that US consumers are not only concerned about the sustainability of their packages, but they are also willing to do their part and pay more for a better solution.

“We’re encouraged by the importance retailers and consumers are putting on sustainable packaging and believe the solutions exist to help manufacturers and retailers meet these expectations.”

Plastic remains prevalent

Listening to consumers’ feedback is one thing; responding and taking meaningful action is another matter altogether. 

The inaugural Material Change Index, published in late 2024, analysed packaging materials in 25 of the most popular supermarkets across six European markets: the UK, France, Germany, Italy, Spain and Poland. It demonstrated that the UK was the nation most reliant on plastic packaging, with a concerning 70% of all food and drink items on British shelves containing plastic.

However, European neighbours are not far behind, with Spain registering 67%, Italy and Germany 66%, Poland 62% and France 59%. Interestingly, the results of this research – commissioned by DS Smith and conducted by Retail Economics – prove that the perspective of large corporations is largely at odds with consumer attitudes, with food manufacturers and retailers worrying that shifts in packaging would make them uncompetitive. 

Almost three-quarters (72%) believe shoppers would be reluctant to pay extra for sustainable packaging, while nearly two-thirds (65%) think they wouldn’t want to sacrifice convenience for sustainability.

However, almost all (98%) manufacturing and retail respondents from the aforementioned countries have commitments to reduce plastic packaging, although a quarter are not on track to reach them. 

Two in five (40%) identified the cost of raw material as the biggest obstacle, a problem which may well have been exacerbated over the ensuing months thanks to uncertainty surrounding trade tariffs. 

“Good progress has been made but there is more to do,” asserted Miles Roberts, former Group CEO at DS Smith, after the research was published. “Governments can and should demand more of us all – phasing out certain plastics to create a level playing field that encourages innovation, investment and generates healthy competition to replace plastic.”

Packaging powers circularity

Avery Dennison, the global materials science and digital ID solutions specialist, and consulting giant Bain & Company have conducted their own in-depth research into packaging and its potential to power circularity for the world’s most influential consumer packaged goods (CPG) companies. 

Their recent white paper found that, while almost all global CPG brands have a goal of 100% recyclable, reusable and compostable packaging by 2030, nearly 80% remain short of their waste and recycling targets.

Going green makes business sense, too. Sustainable products were shown to represent about 31% of CPG’s growth between 2013 and 2023, despite accounting for just 18.5% of CPG’s sustainable market share.

Ryan Yost, President of the Avery Dennison Materials Group, explains: “Worldwide concerns over environmental and waste issues are driving consumers to demand greater environmental stewardship from companies that manufacture consumer products and make or use packaging.

“This concern directly translates to consumer buying preferences for sustainable products and for plastic, paper, cardboard and glass packaging that can be recycled, reused or disposed of responsibly.”

On a similar note, Ryan’s colleague and Head of Enterprise Sustainability Michael Colarossi spoke on the problem of supply chain waste in a recent edition of Supply Chain Digital, calling it one of the primary challenges facing businesses from a sustainability perspective. 

"Supply chains in general are long and they tend to be quite inefficient, producing waste across multiple geographies, particularly as global supply chains have taken hold,” said Michael. “That waste represents cost and it’s raising the pressure on organisations from a financial perspective.”

Adhering to regulations 

Michael also noted that current industry collaborations are heavily focused on improving recyclability and creating more efficient waste collection and sorting systems.

However, pointing to joint efforts aimed at addressing regulations such as the European Packaging Waste Directive, he noted the presence of inherent tension. "I think we need to recognise that, particularly in the CPG space, packaging is both a means by which the product is carried but also something that has significant brand impact around shelf appeal and usability,” he continued. “A lot of companies are looking at packaging as a point of differentiation as well.”

While sustainability initiatives often originate from brands first before being followed by regulatory pressure, legislation is, without doubt, driving changes in packaging. 

For example, the Packaging and Packaging Waste Regulation (PPWR) in Europe is mandating that packaging is Designed for Recycling (DfR) and that at least 10% of beverage packaging is reusable by 2030.

Brands are responding by making a host of strategic and operational adjustments, shifting towards:

• More sustainable packaging designs
• Increased use of recycled materials
• Exploration of reuse models
• Improved labelling
• Greater focus on the entire packaging life cycle.

Ryan also notes active investment in research and the development of innovative packaging solutions: “Brands are leveraging RFID-embedded and QR-coded labels to facilitate deposit return schemes, traceability, transparency and supply chain efficiency. 

“Equally important, brands are actively seeking and securing reliable sources of high-quality recycled materials to meet PPWR targets, exploring multi-use packaging solutions, such as those for beverage packaging, and implementing reusable or refillable models like refill stations,” he goes on.

Brands embracing sustainable packaging 

One of numerous businesses attempting to make meaningful progress is Zalando, the Berlin-based multi-brand retailer for fashion and lifestyle. 

Building on a long-term partnership, DS Smith began providing fibre-based corrugated cardboard packaging solutions for the e-commerce leader’s European products from April, catering to customer order and delivery hubs across the continent. The collaboration is anticipated to provide a benchmark in excellence for the wider sector.

“DS Smith has proven to be a highly-valued, inspiring and dependable partner for Zalando and we’ve worked incredibly well together in recent years,” said David Fischer, Zalando’s Director of Logistics Sustainability and Packaging, after the extended contract was unveiled. 

“Our focus is on innovation and leading the way with customer-centric, more sustainable solutions. We have a strong interest in developing high-quality packaging solutions for e-commerce and, as a leading player, our customers expect us to lead the way into a more sustainable future. We are very keen to set new standards for e-commerce and for Zalando in general.”

A glowing opportunity 

Ultimately, sustainable packaging is fast becoming a defining factor in how businesses are judged by consumers, regulators and investors. 

Beyond compliance, it represents a glowing opportunity to innovate, reduce environmental impact and meet shifting customer expectations. Research clearly shows that people are actively seeking responsible alternatives and willing to pay more for smarter, waste-free solutions. 

Businesses that respond with clear action and transparency stand to strengthen trust, unlock efficiencies and help shape a more circular, resilient future.

To read the full article in the magazine, click HERE.

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