When it comes to setting sustainability goals, it appears that some major U.S. brands may have overshot their targets.
RaboResearch, part of Rabobank, a multinational banking and financial services company, found that many major U.S. brands are scaling back packaging sustainability goals they set for 2025 because of economic, regulatory and infrastructure hurdles.
“This shift marks a broader transition from aspirational pledges to pragmatic strategies, where policy, cost-efficiency and measurable outcomes are taking precedence over idealistic goals,” according to research released in July, titled “The Great Pullback: How waning sustainability ambitions impact U.S. packaging producers.”
Jim Owen, senior packaging and logistics analyst for RaboResearch and the study’s author, says the change, while a challenge for plastics suppliers, presents an opportunity to “move from being passive suppliers to strategic partners, helping brands navigate a more regulated, performance-driven sustainability landscape.”
Packaging suppliers seem to be on board with Rabobank’s findings.
Sustainable packaging is more expensive, and it often has reduced mechanical properties that make it inferior to standard materials, says Rob Williams, president and CEO of Collinsville, Ill.-based Sev-Rend.
“Companies have invested millions of dollars in packaging equipment that is often incompatible with sustainable materials,” he says. “The cost to retrofit or change their packaging processes makes it a challenge to consider and adopt more sustainable packaging.”
Wiliams says he’s starting to see “sustainability fatigue” creep in.
“It’s more important now than ever that we continue to work closely with our customers to navigate the current sustainability environment,” he says.
Active and sustainable packaging often struggles to scale because of cost pressures, capital expenditure (CAPEX) requirements and complex regulatory landscapes, says Kris Czlaplicki, co-founder and board member of Fresh Inset, which has a U.S. location in Memphis, Tenn.
Success depends on close collaboration with converters, label manufacturers, equipment suppliers and growers across multiple regions to standardize processes and ensure reliable performance, he says.
With its Vidre+ technology, the company has learned that “the only viable path is to create a solution that improves economics across the entire packaging value chain, not adds cost,” Czlaplicki says.
Aaron Fox, vice president at McAllen, Texas-based Fox Packaging, says designing sustainable packaging is a balancing act.
“Every decision has cost, performance and infrastructure considerations that have to be weighed carefully,” he says.
“Sustainable packaging has to work in the real world,” adds Victoria Lopez, marketing and business development manager for the company. “Customers are very interested in greener options, but they still make decisions based on price, performance and lead time.”
The role of Fox Packaging is “to recommend structures where PCR (post-consumer recycled) or downgauging genuinely reduces waste and supports their goals, rather than changing materials just to add a marketing claim to the bag,” she says.
Flexible packaging plays a critical sustainability role, but producing sustainable packaging comes with real challenges, says Kevin Kelly, CEO at Emerald Packaging, Union City, Calif.
“Many brands remain unwilling to pay the premium for recycled materials or to fund the infrastructure needed for true circularity,” he says.
Emerald Packaging advocates for commonsense regulations that recognize the full life-cycle impact of flexible packaging, Kelly says.
“We’ve embedded a design-for-recovery approach — integrating PCR, exploring compostable and curbside-recyclable structures and supporting pathways toward scalable recycling,” he says.
But he adds that education is key.
The company guides brands and growers, often working through industry organizations, to reach “realistic sustainability goals that balance performance, cost and policy requirements,” he says.
Participation in high-profile voluntary initiatives is waning, Rabobank’s Owen says in his research. Future success will require proactive leadership.
“The companies that appear best positioned for the road ahead are not necessarily those making the loudest sustainability claims,” he says. “It’s the companies that are adapting most strategically — supporting brand customers as they recalibrate expectations, face growing regulatory pressure and manage tighter cost realities.”
