CPGs Embrace Paper’s Circular Properties, but Shelf Life and Barrier Hurdles Remain
CPG brands recognize paper’s potential to advance a circular economy. But implementation is hindered by performance limitations and a lack of brand investment in next-generation paper technologies.
Paper’s widespread recyclability enables CPGs to incorporate post-consumer materials and reduce use of virgin resources.
Calvin Chan Wai Meng via Getty Images
Driven by consumer demand for recyclable packaging, many CPG brands are adopting paper as a primary material when product needs allow. A 2024 Packaging World survey of more than 100 CPG professionals found paper now accounts for 43% of primary packaging, including paperboard (20%), flexible paper (13%), and molded pulp (10%).
Two follow-up survey questions posed to Packaging World readers explored paper’s effectiveness in advancing a circular economy and the barriers to wider fiber-based adoption.
The first of these questions asked, “How effective do you think ‘paperization’ is at furthering a circular economy for packaging?”and the second asked, “What is hindering your company from widespread implementation of fiber-based packing?”
Responses reveal that paper continues to factor heavily into many brands’ sustainability goals with only seven out of 251 respondents finding the material wholly ineffective at furthering a circular economy. However, CPGs are still struggling with widespread implementation of paper packaging.
Paper pushes a circular economy
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Paper’s widespread recyclability enables CPGs to incorporate post-consumer materials and reduce use of virgin resources. Fibers can be recycled five to seven times before degrading, after which they can be used in products like tissues or egg cartons.
Even if improperly discarded, paper’s ability to biodegrade, leaving only natural cellulose, is seen as another perk. When responsibly managed, sources like trees, sugar cane, and bamboo are renewable—unlike fossil fuels. Of 251 respondents, 27% say these reasons make paper “highly effective” at furthering a circular economy. Another 38% say paper is “moderately effective” because coatings, additives, or laminations to add barrier properties can potentially affect its recyclability.
Meanwhile, 32% of respondents still found paper to be only “somewhat effective,” because it offers some benefits in terms of recyclability, but it doesn't address the core issues of overconsumption—deforestation or unsustainable forestry. CPGs can seek Forest Stewardship Council (FSC) certifications to demonstrate their commitment to responsible forest management, which may help mitigate overconsumption concerns.
The recent surveys indicate broad agreement that paper packaging has at least some positive impact on CPGs’ sustainability and circular economy goals. Meanwhile, the previous survey indicated that paper has become the most popular substrate for applications that are able to use it, and more brands seem to be transitioning to the material by adding barrier properties without compromising repulpability or curbside recyclability. Together, the survey results point to strong underlying CPG commitment to circularity, driven by consumer demand, internal sustainability goals, and external pressures like EPR and plastics legislation.
Obstacles to widespread implementation
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Despite the benefits of paper for circularity, many respondents say they struggle with implementation. A majority of CPGs (38%) say they are worried about performance limitations of paper for product protection and shelf life. This issue conflicts with the sustainability of paper packaging because using coatings, additives, and plastic or aluminum laminations for increased shelf life or durability may sacrifice recyclability. New barrier paper film technologies (seen in brands like Mars, KIND, and MadeGood) seem to be eroding this hindrance. Still, even the latest repulpable films lag traditional plastic and plastic laminations in terms of shelf life.
Other challenges to implementation include a lack of CPG brand commitment to work through the risks of implementing paper or investing in the technology (34%), cost and scalability (16%), and supply chain complexity (12%).
Barrier properties that impact repulpability and shorter shelf life considerations seem to be the main hindrance to CPGs adopting paper more widely than they already have. New technologies are easing these hurdles, suggesting paper’s role may continue to grow in sustainable packaging strategies.
Hiring remains a major challenge in packaging, with 78% struggling to fill unskilled roles and 84% lacking experienced workers. As automation grows, companies must rethink hiring and training. Download the full report for key insights.
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