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CPGs Double Down on Recyclables as Reuse and Compostables Stall

The Business Intelligence Report reveals that CPGs are increasingly likely to adopt recyclable materials by 2025, but face ongoing barriers to scaling reusable and compostable options.

Kraft paper packaging with burgundy bands and yellow labels on wooden background
PMMI Business Intelligence: 2025 The New Material World: Packaging’s Path Toward Sustainability

CPGs remain committed to using recycled materials, with a notable increase in those “extremely likely” to do so in 2025—a 10% rise from 2022, according to “2025 The New Material World: Packaging’s Path Toward Sustainability” from PMMI’s Business Intelligence PACK EXPO attendees—CPGS, contract packagers/manufacturers, and other end users—were polled on how they will change their packaging material usage in the upcoming years. There were minimal changes in the proportions of respondents who selected “Extremely Unlikely,” “Somewhat Unlikely,” or “Neither Likely nor Unlikely.”

This indicates that CPGs who were already committed to recyclable materials have strengthened their commitment, while those previously unlikely to adopt remain unchanged.

Reusable materials

The likelihood of increasing reusable materials has remained relatively constant from 2022 to 2025. Reusability infrastructure remains a key hurdle for increasing the presence of reusable materials in packaging.

The Business Intelligence team finds that while reusable options are employed in select applications, they still face structural, logistical, and cost-related challenges that hinder broader implementation. Consequently, recyclable materials continue to be the primary focus for packaging innovation and sustainability initiatives. 

Compostable materials

Similarly, the increased use of compostable materials has slowed from 2022 to 2025, likely due to the limited infrastructure for compostables.

The most notable shift is an 8% drop since 2022 in those “Somewhat Likely” to adopt compostable packaging within the next five years, reflecting growing uncertainty. 

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.

Download the FREE report below.

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