The Packaging Europe editorial team kicks off the New Year with its predictions for the packaging industry in 2025, from business trends and legislation to popular materials and technological advancements.
Mergers and acquisitions
Mergers and acquisitions dominated headlines in 2024 – can we expect more of the same in 2025?
The landmark merger between Smurfit Kappa and WestRock, which had been announced the previous year, was finalised in July 2024. When we spoke with Saverio Meyer, CEO of Smurfit Westrock Europe, in September – he told us: “We expect there to be at least €400 million of cost synergies from the combination. The journey ahead will be a challenging but exciting one.”
Later on in the year, Amcor announced its purchase of Berry Global for $8.43 billion – a deal that is expected to create a new entity worth $24 billion.
However, the DS Smith acquisition saga – and its associated twists and turns – is the story that truly dominated our coverage last year.
Mondi originally expressed interest in acquiring DS Smith, but this was quickly followed by a counterbid from International Paper. The waters were muddied further by rumours that Suzano was looking to snap up International Paper, but it eventually backed out of the deal.
Ultimately, International Paper acquired DS Smith in a deal that was approved in October 2024.
So then, can we expect more of the same going forward? In our report on mergers and acquisitions in the packaging industry, Tim Galpin, Senior Lecturer in Strategy and Innovation at the Saïd Business School at the University of Oxford, offered the following insight:
“In their early stages industries are typically very fragmented but at some point, there will be what’s called an accelerated growth and shakeout period.
“Look at the auto industry: 100 years ago there were hundreds of auto manufacturers and then a lot of them were swallowed up until today we’re essentially down to a handful of global auto manufacturers. The same thing has happened in mining and oil.” Fin Slater, Digital Content Manager
Reusable packaging
When we surveyed our Sustainability Awards jurors about what areas across the packaging industry were in most urgent need of innovation, reuseable and refillable packaging came out on top with 53%. Reuse and refill solutions look like an obvious choice to address many of the sustainability challenges faced with single use packaging, but the devil is in the detail.
While progress in the areas of secondary packaging and e-commerce has been steady, also exemplified by some of our 2024 Sustainability Awards finalists, for example Capsa’s 2in1® reusable cardboard box, uptake of reusable systems for FMCG packaging has been somewhat slower, with some major supermarket trials being abandoned. But efforts are still ongoing, for example with Ocado Retail trialling reusable containers for groceries ordered online.
Existing packaging policies and targets across the world are as yet too diverse to facilitate more widespread reuse and refill adoption, and competition laws also prevent collective action.
Reuse makes a lot of sense, but in order to create systems that work, we need more harmonization and collaboration across the supply chain to standardize and simplify processes and to operate more efficiently. If consumers can also be brought on board, I’m optimistic that we will see more scaled up reuse systems in 2025. Elisabeth Skoda, Editor at Large
The shift to paper continues
The introduction of the Packaging and Packaging Waste Regulation is expected to further accelerate the ongoing paperization trend, as it places strong restrictions on single-use plastics but not paper, and exempts paper-based materials from the new minimum recycled content requirements that will come into force in 2030. Consumer demand for paper-based packaging is also showing no signs of slowing, as it is perceived, rightly or wrongly, as the more sustainable choice.
Therefore, while it’s unlikely to take a larger share of the market than plastics any time soon, in the coming year expect to see paper solutions make further inroads into areas previously dominated by plastics or other rigid materials. In recent years we’ve heard a lot about paper-based bottles, but this year we also saw paper-based cans as well as further strides in oxygen and moisture barriers. The next big arenas may be demanding products such as chocolate or even coffee.
Furthermore, with ongoing improvements in recycling capabilities, we may well see further use of paper composites with higher barrier properties and sealing properties as an alternative to flexible plastics.
In addition to mass-market products, given that the PPWR also sets weight reduction targets there is likely to be an increase in the use of paper for more luxury segments that have previously been dominated by glass. For example, expect to see more intricate, origami-inspired designs with intuitive opening mechanisms and unusual shapes.
Finally, given that machinability demands of paper differ compared to those of plastics, to accommodate the increased use of this material watch out for news about further machinery innovations in the coming year to support the trend. Victoria Hattersley, Senior Writer
Underpinning sustainability targets
In the last decade, a number of multinational corporate players have shared ambitious sustainability targets, a commendable response towards addressing our shared global issue. 2024, however, has largely demonstrated that some of these targets were too ambitious, unachievable in reality when it comes down to, for example, timescale and the processes required.
We reported back in July 2024 that Unilever, PepsiCo and Colgate-Palmolive all announced that “they will fail to meet longstanding packaging sustainability goals.” Most recently, Coca-Cola joined the fray by revealing it has “lowered the ambition of its voluntary environmental goals… and extended its timeframe to 2035.” Ultimately, we are all on a learning curve together – what can we glean from these statements?
Were these targets always unobtainable? Or was there a gross underestimation of the factors needed to support this push forward? Ambition is commendable; however, we need to ensure targets are achievable and based upon proven technology and clearcut data, with an industry working in unison.
Perhaps it is more damaging as a message to recede on unachievable targets; better to take bitesize, but realistic steps towards a sustainable future. Less newsworthy, but more creditable.
At the end of the day, reaching for targets and making pledges shines a spotlight on the complexity of achieving our goals, and we are still advancing forward and learning from our past mistakes. Let’s look towards 2025 and clearer progress, clearer communication, underpinned by realistic goals. Libby Munford, Editor
A Global Plastics Treaty
High hopes for a completed and ambitious Global Plastics Treaty were dashed in Busan as, between 25th November and 1st December 2024, INC-5 resulted in no clear agreement. Now negotiations will carry over into 2025 – perhaps taking place as late as July or August, should any preparation or intersessional work require it.
If the proceedings so far are anything to go by, attempts to limit the treaty’s scope are likely to continue. Those on the ground have pinned the blame on countries with ties to petrochemical industries, for whom a crackdown on plastics and chemicals of concern may affect their bottom line. Yet a coalition of over eighty countries refuses to accept anything short of binding global bans and phase-outs, and they threaten to leave their ‘low-ambition’ counterparts behind so as not to water down the final treaty.
After a year of limited success, from the widespread disappointment in COP29 to big brands reneging on their sustainability targets for 2025, I hope to see a renewed drive for meaningful legislation in the new year. Perhaps we can afford some optimism, given the passion many negotiators bring to the table, but time will tell whether the urgency of the climate crisis will overcome slow-moving bureaucracy or capital gain. Emma Liggins, Journalist
Integration of AI
The integration of AI in 2024 mainly focused on applications in logistics and waste management, with some utilization in packaging design.
The year began with Bollegraaf and Greyparrot forming a strategic partnership to retrofit recycling plants with AI technology to boost processing times and TOMRA’s acquisition of a 25% stake in start-up PolyPerception, to develop AI-based waste flow monitoring for PET recyclers and sorting plants.
AI was also applied within packaging design as Scodix unveiled its first AI tool, using learnings from databases of Scodix-enhanced pages to automate the embellishment design process, analyzing designs before suggesting intelligent design choices.
In the final months of 2024, Saahas Zero Waste announced it would be utilizing Google’s open-source machine learning model, CircularNet, in a bid to sort improve recycling rates in India and responsibly manage over 500 tonnes of waste every day by 2026. The Massachusetts Institute of Technology Center for Transportation & Logistics and intralogistics group Mecalux began a five-year project to accelerate the integration of self-learning AI in logistics, initially focusing on increasing the productivity of autonomous warehouse robots and training self-learning AI models.
In 2025, it will be interesting to keep an eye on the developments from the MIT and Mecalux project, while also seeing whether the use of AI will become more widespread in other areas of the packaging industry, particularly when it comes to design. Frances Butler, Journalist
Sustainable Packaging Summit 2025
At the Sustainable Packaging Summit just gone, we took note of attendees’ thoughts and concerns on the packaging industry as it stood last year.
On a scale of one to ten, their level of readiness for the upcoming Packaging and Packaging Waste Regulation averaged at six. 67% of respondents were most trepidatious about their ability to meet legislative goals, from recyclability at scale to a single market for secondary materials.
Cost, infrastructure, and complexity were the concerns that sprung to mind when it came to sustainability obligations. Reporting requirements, in particular, were perceived as “challenging”, “complex”, and “overwhelming”.
Amidst all this uncertainty, however, collaboration was by far the most commonly identified opportunity for progress; and attendee feedback revealed that few were willing to wait another year to connect with experts or action ideas. Where waiting for legislation to catch up is becoming increasingly unreliable, Packaging Europe can certainly provide a platform for the best and brightest in our industry to come together in pursuit of a brighter future.
The Sustainable Packaging Summit will return in 2025, this time at the Jaarbeurs Event & Exhibition Centre in Utrecht. To accommodate for the event’s yearly growth, we are pleased to announce that it will take place from 10th – 12th November this year – giving attendees an extra day to hear from speakers, meet exhibitors, and network with fellow industry professionals.
In the shorter term, submissions for this year’s Sustainability Awards will open on 14th January and close on 14th March. Whether it’s to nominate an innovation of your own or be the first to hear about any updates on this year’s itinerary, keep an eye on our website, LinkedIn, and X pages for upcoming announcements. Tim Sykes, Brand Director
If you liked this story, you might also enjoy:
The ultimate guide to the Packaging and Packaging Waste Regulation in 2024
How are the top brands progressing on packaging sustainability?
Sustainable Innovation Report 2024: Current trends and future priorities
Everything you need to know about global plastic sustainability regulation
No comments yet