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CPGs Experience Trade-offs in the Name of Sustainable Packaging

Higher production costs, diminished product quality, and lessened product production are some of the challenges CPGs say come with sustainable packaging shifts.

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PMMI Business Intelligence: 2025 The New Material World: Packaging’s Path Toward Sustainability

Implementing sustainable packaging comes at a cost, with 66% of CPGs saying they are or would be sacrificing lower production costs by adopting sustainable packaging, according to “2025 The New Material World: Packaging’s Path Toward Sustainability” from PMMI’s Business Intelligence.

As companies transition to sustainable materials, trade-offs are almost guaranteed—only 7% of survey respondents reported no trade-offs. In addition to higher production costs, other challenges include diminished product quality (33%), lessened product protection (28%), and shorter shelf life (27%). 

But CPGs aren’t the only ones adjusting to trade-offs while moving towards sustainability. OEMs and suppliers are also adapting their machinery and parts to accommodate sustainable materials.

The Business Intelligence team finds OEM perception of the most common trade-offs End Users face is packaging performance (42%) and equipment performance (34%)—both often requiring new innovations or modifications to handle current and emerging materials. Compared to End Users themselves, OEMs are less likely to cite higher production costs as a barrier. 

OEMs also observe shortened product shelf life (28%), slower ROI (23%), and reduced machinery flexibility (22%). Yet, 16% of OEMs report seeing no trade-offs at all—nearly double the rate reported by End Users (7%). This gap suggests that End Users may be experiencing more trade-offs than OEMs recognize.

SOURCE: 2025 The New Material World: Packaging’s Path Toward Sustainability

For more insights from PMMI’s Business Intelligence team, find reports, including The New Material World: Packaging’s Path Toward Sustainability, Food Safety and Sanitation Trends, and The Impact of Global and Local Standards on OEMs & Suppliers at https://www.pmmi.org/business-intelligence.

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