October 27, 2025 – There is growing consumer interest in eco-friendly packaging, along with a focus on prices and local and national regulations. Manufacturers need to balance these competing demands. They must also find ways to clearly communicate their actions and product benefits to boost declining consumer trust. Innova Market Insights looks at the key trends shaping the global FMCG packaging industry. This includes the latest innovations, regulations, and consumer insights, especially regarding environmental sustainability.
Recyclable is Not Enough
The vast majority of products with sustainable packaging have no claims beyond being recyclable. Given barriers to recycling for many consumers, many of these products end up in landfills. Nearly half of all food and beverage NPD has some sort of sustainability claim, but that claim is virtually synonymous with being recyclable; fewer than 15% of “sustainable” products feature a claim other than recyclability. The key problem is that recyclable products are only sustainable if they are actually recycled.
Shifting the Responsibility from Consumers to Manufacturers
Manufacturers should take the sustainability burden off consumers by using eco-friendly, bio- or plant-based materials. These materials are better for the environment even without any action from consumers. Although recycled packaging helps reduce waste, unclear standards can confuse consumers. This confusion allows for dishonest practices, even though 71% of consumers want more transparency from companies.
Trust in Sustainability Claims of Companies Waning
In an environment of lost trust in the government and large companies, consumers are more likely to say they don’t believe companies’ claims about being sustainable. They expect transparency in packaging materials. Packaging trends show that 38% of consumers don’t trust food and beverage companies regarding their sustainability efforts. Companies that are open about their packaging and processes will have an advantage as consumers take more time to decide where to spend their often-shrinking budgets.
Consumer Confusion About Eco-Friendly Packaging
Ask consumers, manufacturers, and industry experts about sustainable packaging, and you’ll get many different answers and terminology. Bio- and plant-based plastics may or may not be recyclable or biodegradable. Biodegradable and compostable materials can also be recyclable. All compostables are biodegradable, but not all biodegradables are compostable. Products labeled as made from recycled materials or recyclable may not be fully so, depending on local recycling programs.
Clear Definitions to Educate Consumers
Brands should help consumers see how packaging impacts sustainability, clarifying materials used, and disposal actions through transparent info and QR codes. Since 56% of consumers trust environmental claims only with certifications, brands should adopt clear certifications. Explaining how packaging reduces waste or deforestation enables informed, positive choices.
Product Value is Still Important
Despite concerns about the environment, consumers are still very focused on the economy and the prices of products purchased. Despite environmental concerns and claimed desires for manufacturer transparency, the environmental impact of products ultimately falls low on the consumer radar, far outpaced by price, freshness, and flavor. With more sustainable materials often coming with higher price tags, manufacturers must supply evidence-based proof for claims to gain consumer buy-in. By quantifying the positive impact of eco-friendly packaging and providing proof of key features such as product safety and durability, manufacturers can move the conversation beyond costs.
Some Consumers More Receptive Than Others
Consumers are more open to eco-friendly packaging for products like meat, poultry, and dairy alternatives, as well as organic items. In these categories, consumers usually care about the environment, so packaging and messaging connect with them. Highly engaged environmentalists, often millennials with higher income and education, living in cities, place a greater value on environmental impact. Manufacturers should tailor their messaging to this audience. While price, freshness, and flavor still matter, environmental messaging should target consumers who are more receptive to it.
Regulations on Eco-Packaging
The packaging regulatory environment includes materials, chemicals, reducing plastic use, and Extended Producer Responsibility (EPR). EPR makes producers responsible for managing products at the end of their life. Regulations differ by region. In Asia, the rules are unclear, and consumers show little interest in sustainable packaging. However, India and China are rolling out new plastic waste rules. China focuses on using materials to reduce waste leakage, while India is targeting single-use plastics and EPR. The EU sets the standard with strict packaging regulations. It bans single-use plastics and requires that all packaging be recyclable by 2030. The Packaging and Packaging Waste Regulation (PPWR) mandates a 20% reduction in plastic use by 2040. In the US, regulations are inconsistent and mainly decided at state level.
Paperization Shift
Packaging trends indicate that the paperization or fiberization transition will continue to gather pace this year amid increasingly stringent regulations. The days of brands putting a “recyclable” label on a product and claiming sustainability are gone, with consumers expecting more and regulations requiring more. The EU and UK have some of the strictest regulations, and paper, paperboard and cardboard are among the easiest materials to recycle. Beyond recyclability, uncoated cardboard and kraft paper packaging are among the most compostable materials. A product launch example incorporating this eco-friendly packaging trend is Bauck Sugar Beet Syrup. Unlike most syrups, this product is packed in a carton board tub.
Hot Drinks Clear Leader in Eco-Friendly Launches
Tea with eco-friendly packaging, accounting for nearly half of NPD, grew over 5x the 7% overall tea growth. Its dominance is due to biodegradable and compostable launches. Tea’s shelf-stable, dry, lightweight nature allows simple packaging like compostable bags and minimal plastic. Similar characteristics in other categories suggest a shift to eco-friendly materials. Eco-friendly launches also grew significantly in alternative proteins—fish, seafood, poultry, red meat, and pork substitutes. Consumers want planet-friendly food options and packaging that meet these standards. As consumers seek out more planet-friendly food options, they are also demanding that the packaging of these items conforms to similar standards.
What’s Next in Global Eco-Friendly Packaging Trends?
Demands for corporate accountability and transparency around sustainability will increase as consumer skepticism grows, and manufacturers will bear more responsibility. They will need to use eco-friendly materials that don’t depend on consumer behavior, i.e. to recycle the packaging appropriately themselves.
Packaging regulations are spreading, but standards still vary by region. Growth is clear in categories beyond hot beverages, especially in meat alternatives and in paper and bio-based products that replace fossil plastics. Successful brands will introduce eco-friendly packaging that eases the burden on consumers. They will also clearly communicate the effects of their sustainability efforts and highlight the strength and durability of the packaging.
This article is based on Innova’s Global Packaging Trends: The Rise of Eco-Friendly Materials report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more.