Packaging trends to watch in 2025

As we start 2025, the packaging industry is undergoing a significant transformation. The growing demand for sustainable alternatives promotes innovations across various sectors. Fibre-based packaging is emerging as one of the most promising solutions. As consumer awareness around environmental issues continues to rise, businesses increasingly turn to fibre-based materials such as paper and cardboard to meet consumer demands and regulatory requirements.

We propose a few key trends that will define 2025:

1. Sustainability remains at the forefront

In 2025, sustainability will continue to dominate the packaging landscape, with more companies seeking packaging solutions that minimise environmental impact. Fibre-based packaging offers a significant advantage in this regard, being the packaging type with the highest recycling rate, 83,2% (Eurostat, 2022). In a 2023 PwC consumer survey, it emerged that 80% of consumers would pay more for sustainable produced or sourced goods, with a 9,7% sustainability premium on average. This means that consumers are more and more attracted to companies that offer environmentally friendly solutions.

2. Promoting a Circular Economy

By 2025, fibre-based packaging will play a key role in the circular economy, where materials are reused, recycled and repurposed to reduce waste. The concept of a "closed-loop" system for packaging materials—where fibre is recovered and reused—will become more widespread. This will be achieved through improved recycling technologies, especially in collection and sorting. 4evergreen's technical workstream recently updated its Guidance on the Improved Collection and Sorting of Fibre-Based Packaging for Recycling. This essential tool aims to help implement future collection, sorting and recycling infrastructure to meet the EU legal requirements.

3. The AI role in the industry

A 2024 McKinsey survey of more than 200 paper and packaging executives investigated the industry's current state of generative AI adoption. An astonishing 95% of the interviewees believe their company should use generative AI. According to the study, gen AI could be applied across the whole value chain, including R&D, commercial, supply chain, manufacturing, procurement and corporate functions. It could help productivity through IP and patent analytics, customer analysis, processing vast stacks of data, streamlining processes, optimising routes and improving production planning.

Some participants showed concern regarding potential costs, privacy issues and a lack of knowledge, but the majority agreed that AI could help raise their revenue.

Conclusion

In 2025, fibre-based packaging will continue to play a crucial role in transitioning to a more sustainable and circular economy. Advances in material science, recycling infrastructure and consumer demand for eco-friendly products will all contribute to the growth of fibre-based packaging.

By adopting innovative materials, enhancing recyclability and embracing new technologies, the packaging sector is looking at a greener future in 2025. 4evergreen is always at the forefront of innovation, working with industry experts across the whole value chain to reach a 90% recycling rate of fibre-based packaging by 2030.

About 4evergreen

4evergreen is a cross-industry alliance perfecting the circularity of fibre-based packaging to contribute to a climate-neutral and sustainable society. Our goal is to raise the overall recycling rate of fibre-based packaging to 90% by 2030. We bring a particular focus on packaging with a lower circularity performance today, namely the types used for household, out-of-home and on-the-go consumption. The alliance brings together over 110 industry leaders from across the fibre-based packaging value-chain, from pulp, paper and board manufacturers and recyclers to packaging producers and converters, including brand owners, retailers, and waste management companies. It also comprises non-fibre material suppliers (e.g., adhesives, inks, coatings), technology providers (e.g., machinery, collection, and recycling solutions), leading research institutes and start-ups. Together they share expertise to develop tools and guidelines for an even more sustainable sector. Their goal is to reach a 90% recycling rate for fibre-based packaging by 2030. Overall, our members employ 4.9 million people all over the world, with a consolidated annual turnover of over 2.4 trillion euros. All our members have set ambitious targets, clearly showcasing their commitment to addressing the most pressing global challenges. The host of the initiative is Cepi, the Confederation of European Paper Industries, headquartered in Brussels.