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Many companies have toned down their public sustainability messaging but are still investing in sustainability initiatives, especially in packaging, according to a report released Thursday by Bain & Co. Losing the momentum on sustainability, it says, would be a “serious strategic miscalculation” for paper and packaging, especially since regulations are “now shaping the economy on a large scale”.
Despite some curbing of their external messaging, numerous companies are still prioritizing sustainability behind the scenes. Sustainability is also a key purchasing criterion for packaging customers, with 59% of 125 respondents surveyed in 2025 saying they would switch suppliers within three years if sustainability metrics were not met.
“The era of setting ambitions is over and the hard work is just beginning,” the report says. “Five years ago, goals were enough to earn trust. Today, packaging customers are falling behind in their commitment to sustainability.”
The 2026 Paper and Packaging Outlook report covers topics such as rethinking supply chains, the role of artificial intelligence, chemical recycling, and M&A expectations. Sustainability and substrate issues represent key areas of focus.
For years, companies have been grappling with whether to switch packaging substrates for a variety of products, primarily to replace plastics. According to the report, brands are under pressure to choose specific materials that consumers perceive as more sustainable. Increasingly stringent environmental regulations and evolving material innovations are also factors.
“The past five-plus years have been turbulent for the packaging industry, and market dynamics continue to change rapidly,” the report said.
Of the 8 trillion units of consumer packaging Bain has globally, approximately 60% are plastic and 20% are fibre. Both consumers and regulators are driving a shift toward more sustainable options. Cups and lids, containers, boxes and shells are key categories that account for a large share of plastics but are expected to come under regulatory pressure, opening up more opportunities for fibers.
American consumers prefer non-plastic materials for packaging.
Percentage of 2,000 surveyed consumers who prefer specific packaging for products purchased at a grocery store
Consumers surveyed in the United States and other countries reported a preference for paper and glass packaging for products purchased at grocery stores.
According to the report, non-plastic substrate manufacturers are innovating to replicate certain qualities of plastic packaging and gain market share. For example, textile producers are devising better barrier properties.
Consumers rank recyclability as the top packaging sustainability attribute.
Despite respondents’ preference for packaging materials other than plastic, the “plastic-free” attribute was less important than other packaging sustainability attributes.
As found in other recent sustainability studies, Bain survey respondents considered recyclability to be the most important packaging sustainability attribute.
Recycled content also ranks highly as a packaging sustainability attribute. But suppliers are struggling to meet demand for recycled plastics, and the gap between supply and demand for certain resins is likely to be as high as 30 to 40 percent by 2030, according to Bain.
