The FMCG industry is facing mounting pressure to embrace sustainable packaging. Between shoppers wanting eco-friendly options and new laws getting stricter by the day, sticking to ‘business as usual’ just isn’t going to cut it anymore. In 2021, for example, the EU generated a staggering 84 million tonnes of packaging waste, equivalent to around 189 kg per person, which was mostly composed of paper and cardboard (40%), followed by plastic (19%), glass (19%) and metal (17%). This mountain of waste drives pollution and resource depletion, fueling the climate crisis. While the need for change is clear, the transition is rarely straightforward. To move forward, we need to look beyond the surface, understand the challenges and explore how strategic pilots can turn these complexities into competitive advantages.
Material matters: A stream-by-stream overview
Every material comes with its own set of trade-offs. Finding the right fit and innovation potential requires balancing performance with environmental impact:
- Aluminum: It is highly recyclable, but the initial production is incredibly energy-intensive. Current innovation focuses on increasing recycled content, lightweighting and improving collection infrastructure to reduce the carbon footprint.
- Cardboard: While renewable and widely recycled, issues such as deforestation and non-recyclable coatings remain. The goal is to source alternative fibers, simplify recycling processes and reduce the amount of material used.
- Glassware: It offers infinite recyclability but suffers from high transport costs due to its weight and fragility. Innovators are looking toward lightweighting, reusable packaging systems and logistics optimization to offset these hurdles.
- Plastics: Though the versatility and cost-effectiveness are unmatched, their reliance on fossil fuels is a major drawback. The industry is now pivoting toward bio-based plastics, improved recyclability and closed-loop systems.
The pitfalls of sustainable packaging innovation
More than just swapping materials, sustainable packaging requires systemic solutions. We generally see hurdles fall into three categories:
1. Technological hurdles
Sustainable materials don’t always offer the same performance as traditional packaging. Issues such as weaker barrier properties, reduced durability or limitations in print quality mean that further innovation is needed. At the same time, manufacturers are under pressure to scale quickly, even though adapting existing production lines to new materials can be both costly and technically complex. In addition, ensuring that sustainable packaging is genuinely recyclable or compostable usually requires substantial investment, not only in infrastructure but also in educating consumers.
2. Market challenges
Cost remains a major obstacle. Sustainable packaging solutions are often more expensive, which makes it harder to keep products affordable. Consumers may also avoid switching if they feel sustainability undermines convenience, appearance or product protection. On top of this, sourcing alternative materials and integrating them into existing supply chains often increases complexity and risk.
3. User challenges
For sustainable packaging to work in practice, it must be easy to use, easy to open and simple to dispose of. Clear and understandable labeling is crucial to helping consumers correctly recycle or compost packaging. Finally, widespread adoption relies on these solutions being consistently available across different retail channels, rather than limited to niche or premium offerings.
Piloting your way to success
Rather than jumping straight to a full-scale launch, FMCG companies can use strategic pilots at different points in the innovation journey to test assumptions and learn what truly works.
- Front-end innovation: Test consumer preferences for different materials, formats, and functionalities to guide early-stage innovation.
- New product development: Evaluate the performance of new sustainable packaging solutions in real-world conditions, ensuring they meet both consumer and product needs.
- New product introduction: Assess the feasibility of integrating sustainable packaging into existing manufacturing and distribution processes, optimizing for efficiency and cost-effectiveness.
For these pilots and, more broadly, sustainable packaging innovation to succeed, multidisciplinary teams are essential.
- Material expertise: Deep knowledge of sustainable packaging materials and their properties.
- Technology scouting: Advanced tools to scout for out-of-the-box solutions at all technology readiness levels.
- Concept design: Creative concept and usability design to increase adoption rates.
- Consumer research: Conducting in-depth consumer research to understand preferences and behaviors.
- Target-based costing: Drive material selection, design, and manufacturing processes to meet the cost target while maintaining functionality and sustainability
- Pilot project design and execution: Designing and executing strategic pilots to de-risk innovation and ensure market success.
- Technology integration: Integrating cutting-edge technologies to optimize packaging performance and sustainability.
Ultimately, the circular packaging economy is not about finding a single ‘perfect’ material. It requires continuous optimization across the entire value chain. Lasting impact emerges where material expertise meets consumer-centric design. At Verhaert Strategic Innovation, we support FMCG companies in working through the challenges of sustainable packaging by combining deep technical expertise with a data-driven, pragmatic approach, helping create solutions that work for both consumers and the planet.