June 27, 2025 – Driven by regulatory changes, innovation, and a change in consumer preferences, packaging is undergoing a revolution of its own. Everything from the materials we use to the systems of design creates both challenges and opportunities for brands seeking to balance functionality, sustainability, and economic viability.
The regulatory landscape is accelerating this transformation, with landmark legislation like the European Union’s (EU) Packaging and Packaging Waste Regulation (PPWR) and the United Nations (UN) Global Plastic Treaty setting ambitious targets for recycling and waste reduction. These frameworks are not just vague goals and objectives, but binding conditions that are designed to reshape how products are packaged and distributed across global markets.
To further explore the packaging trends and breakthrough technologies shaping the global packaging sector, Innova Market Insights provides a comprehensive view of packaging’s role in the circular economy and the near future trends that are in view.
How Does Connected Packaging Improve Transparency?
Connected packaging continues to proliferate across Fast-Moving Consumer Goods (FMCG) industries at an accelerated rate, with the narrative expanding beyond circularity to encompass improved transparency, AI sorting, and enhanced consumer connection.
This evolution is exemplified by innovative reuse systems for cups at large venues like stadiums and arenas, which employ streamlined steps catering to ease of payment and minimal consumer involvement during purchase or return.
Another development that is one of the most important has been the introduction of artificial intelligence (AI) and machine learning to recycling systems. One set of trials demonstrated the ability to sort 5 tons per hour of mixed plastic while achieving nearly 100% purity levels.
Last but not least in connected packaging innovation are new regulations recently implemented by the EU, requiring nearly all products sold in the region to feature a digital product passport. This is designed to enhance transparency across product value chains by providing comprehensive information and closing the gap between consumer demand for transparency and the lack of reliable product data.
The Environmentally Conscious Paperization Shift
The paperization or fiberization transition will continue to gather pace for the foreseeable future amid stringent regulations targeting non-recyclable packaging, promoting a shift from plastic to paper-based packaging. This transformation represents more than a simple material substitution – fueled by regulatory frameworks across major markets that are accelerating this transition through comprehensive policy measures.
The EU’s Packaging and Packaging Waste Regulation (PPWR) and the United Kingdom’s Extended Producer Responsibility (EPR) requirements are examples that have mandated recyclable or reusable packaging by 2030. Such policies create persuasive economic incentives, outlining that paper proves easier to recycle through existing infrastructure, reducing compliance costs and avoiding plastic-related penalties. On top of those policies, the UN Global Plastic Treaty reinforces the momentum of those regulatory guidelines by establishing an ambitious target to eliminate plastic pollution by 2040, creating a unified international framework for paper-based solutions.
Packaging trends reveal that consumer awareness and technological innovation are forming additional market pressures for paper alternatives. Environmentally conscious consumers are seeking sustainable packaging options, which are becoming more widely available due to technological advancements that enable brands to develop viable paper substitutes without compromising functionality.
How Monomaterial Innovations Are Transforming Food Packaging
While regulatory and consumer pressures are pushing for recyclable packaging, plastic is favored for safety and shelf life, although the ability to recycle is insufficient, monomaterial alternatives may provide a solution.
The global consumer perception is that planetary health is the top concern, and this recognition comes to the forefront of the mind for various decision-makers within companies who are aware of the challenges ahead. Most notably, a commitment to complete reusability and the ability to recycle packaging. This is evident in the actions of companies that have adjusted their plastic packaging sustainability goals. Within these commitments are aims for a reduction in virgin plastic and “recyclability” targets.
As for suppliers, some are developing monomaterial solutions that balance functionality and recyclability. The idea being that using monomaterials can simplify the recycling process, making it easier to separate and process packaging materials in existing systems. Producers in food and beverage are also innovating with monomaterial plastic packaging in an effort to improve sustainability across a range of formats.
The Importance of Embracing Natural Solutions
Renewable packaging solutions are expected to gain popularity as more consumers choose bio-based packaging over petrochemical plastics, reflecting current packaging trends. This comes as a substantial number of consumers worldwide believe that multilayered plastics are not sustainable.
From a business perspective, collaborations among companies are focusing on enhancing sustainability through natural packaging solutions. For instance, efforts are underway to introduce sugarcane-based mailing bags to the e-commerce market in Ireland.
Additionally, promoting sustainable donation practices can help minimize single-use packaging waste. Implementing recyclable designs such as these supports a closed-loop system, promoting circularity, and is key for reducing the environmental impact of packaging.
Why Is Consumer Acceptance Important for Reusables Expansion?
Reusable and refillable packaging models have gained traction in the food and beverage, personal care, and home care sectors as part of the push for a circular economy. European non-governmental organizations (NGOs) are advocating for the adoption of reusable packaging to ensure compliance with the Packaging and Packaging Waste Regulation (PPWR), which mandates that businesses offer reusable and refillable options to reduce reliance on single-use packaging.
Environmental organizations are calling on EU governments to promote reusable packaging as a means to decrease waste and enhance regulatory compliance. In the ready meal packaging sector, manufacturers often prioritize cost-effectiveness, which has led to a continued dependence on single-use packaging. However, awareness of the environmental impact of these practices is growing. Advocates and industry stakeholders are urging the establishment of regulated and economically viable reusable packaging systems.
Recent trials for refillable packaging have shown promising results, achieving a high return rate for reusable containers, and indicating a strong consumer appetite for such solutions. There is also an expression of interest among those surveyed to purchase products packaged in this way again. With this growing packaging trend towards the adoption of reusability in food and beverage products, an uptake in new initiatives aimed at encouraging reusability has appeared in quick-service chains.
What’s Next in Global Packaging Trends?
The conclusion from these developments in packaging on a global scale shows that companies that invest in connected packaging technologies today will enhance sustainability, improve supply chain transparency, and strengthen connections with consumers.
Moving away from multilayered materials and investing in recyclable monomaterials or reusable formats now can position businesses as leaders or innovative, particularly given that the future of packaging emphasizes circularity and compliance.
Exploring fiber and bio-based packaging allows companies to comply with various regulations, allows them to reduce reliance on fossil materials, and meets the growing consumer demand for low-impact packaging.
This article is based on Innova’s Top Packaging Trends 2025 – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
