Grant and Graham Blog

Trends in Eco-Friendly Materials: Shaping the Future of Sustainable Packaging

Written by Ahmed Kassem | Apr 28, 2025 8:24:18 AM

Environmental responsibility has transitioned from a discretionary choice to a fundamental obligation across all industries. This shift is propelled by a multitude of factors, including heightened public awareness, stringent government regulations, ambitious corporate sustainability targets, and evolving consumer preferences. These forces are collectively driving a wave of innovation towards eco-conscious practices.
Businesses that proactively integrate eco-friendly materials into their operations are not merely enhancing their brand reputation; they are strategically positioning themselves for long-term success. As environmental concerns continue to escalate, regulatory landscapes tighten, and consumer expectations shift, companies that fail to adapt risk obsolescence. Embracing sustainable materials is not just about mitigating environmental impact; it's about ensuring business continuity and resilience in an increasingly eco-conscious world.

Senior Specialist Ahmed's 2025 Predictions
Ahmed, a Senior Specialist at Grant and Graham, and a recognized expert in his field, has provided a comprehensive analysis of emerging trends and materials that he anticipates will be at the forefront of the industry by 2025. His insights are based on extensive research and experience, offering valuable guidance for businesses and professionals looking to stay ahead of the curve.
In the following in-depth exploration, Ahmed delves into the specifics of these trends, examining the factors driving their growth and the potential impact they could have on various sectors. He also highlights key materials that are expected to play a significant role in shaping the future, discussing their unique properties and applications.

1. Bioplastics: Redefining What Plastics Can Be

The packaging industry has traditionally relied heavily on petroleum-based plastics, but bioplastics are rapidly changing that landscape.

  • PLA (Polylactic Acid):
    Made from renewable resources like corn starch or sugarcane, PLA offers a compostable alternative to traditional plastics. It breaks down in industrial composting facilities within a few months under the right conditions. PLA is increasingly used for food containers, straws, and cutlery, but challenges like composting infrastructure availability still exist, requiring collaboration across supply chains.

  • PHA (Polyhydroxyalkanoates):
    PHA is produced naturally by bacterial fermentation of sugars or lipids. It is not only biodegradable in soil but also in marine environments, helping to tackle ocean plastic pollution. Applications range from packaging films to agricultural mulch films, and its growth is driven by stricter regulations around single-use plastics.

  • PBS (Polybutylene Succinate):
    PBS is emerging as a viable solution where durability and heat resistance are needed, such as hot food packaging or coffee capsules. It is fully biodegradable, offering an alternative where other bioplastics may fall short in performance.

These bioplastics offer the promise of reducing carbon footprints while maintaining packaging functionality.

Market Examples:

  • Danone and Nestlé are investing heavily in PLA and PHA for water bottles and yogurt containers.

  • CJ CheilJedang, a South Korean conglomerate, is expanding PHA production for global packaging markets.

Data Points:

  • The global bioplastics market is projected to reach $19.93 billion by 2027, growing at a 16.1% CAGR (source: Grand View Research).

  • PLA and PHA together are expected to represent over 60% of bioplastic demand by 2025.

Regulatory Drivers:

  • European Single-Use Plastics Directive (EU 2019/904) bans specific single-use plastics and promotes alternatives like compostable bioplastics.

  • U.S. states like California and New York are passing bans on traditional plastic bags and promoting compostable solutions.

Key Insight:
Businesses investing early in bioplastics not only comply with upcoming legislation but also gain strong market differentiation for eco-conscious consumers.

2. Molded Fiber and Pulp Products: The Return of Natural Solutions

Molded fiber and pulp products have seen a resurgence as companies move away from plastics toward easily recyclable and compostable materials.

  • Produced from recycled paper or agricultural waste, molded fiber trays, clamshells, and carriers are strong, lightweight, and customizable.

  • New innovations are making molded fiber more water- and oil-resistant without using plastic coatings, broadening its use beyond dry goods to moist and greasy food packaging.

  • Its familiarity to consumers and municipal recycling systems ensures high acceptance and ease of disposal, closing the loop effectively.

Companies looking to meet both sustainability and regulatory demands are increasingly turning to molded fiber as a key part of their packaging portfolio.

Market Examples:

  • McDonald’s and Starbucks have adopted molded fiber for drink carriers and food trays.

  • Huhtamaki, a major packaging manufacturer, has launched fiber-based packaging lines globally.

Data Points:

  • The molded fiber packaging market is expected to reach $8.7 billion by 2028 (source: Market Research Future).

  • Recycling molded fiber packaging requires 70% less energy than creating virgin materials.

Regulatory Drivers:

  • Bans on polystyrene foam containers across major cities (e.g., New York City, San Francisco) boost demand for fiber alternatives.

  • Municipal composting and recycling mandates are favoring paper-based over plastic solutions.

Key Insight:
Fiber and pulp are not just sustainable but cost-effective, offering strong lifecycle benefits for companies scaling their green operations.

3. Edible Packaging: A Revolutionary Concept Gaining Traction

Although still in early adoption stages, edible packaging is capturing interest for its zero-waste promise.

  • Made from ingredients like seaweed, rice paper, milk proteins, or starches, edible films can package sauces, snacks, or even coffee capsules.

  • It offers a fully consumable alternative, eliminating packaging waste altogether.

  • While regulatory hurdles, shelf life, and food safety concerns still need to be addressed, forward-looking brands are already trialing edible solutions for single-serve products and on-the-go markets.

For companies seeking radical innovation in sustainability, edible packaging offers an exciting frontier.

Market Examples:

  • Notpla, a London-based startup, produces seaweed-based edible packaging for beverages and sauces.

  • Evoware in Indonesia offers seaweed packaging for food and cosmetic products.

Data Points:

  • The edible packaging market is expected to grow from $727 million in 2020 to $1.1 billion by 2025 (source: Research and Markets).

Regulatory Drivers:

  • EU Green Deal and the UN Sustainable Development Goals encourage zero-waste innovations, boosting edible packaging R&D investment.

Key Insight:
While still niche, edible packaging resonates powerfully with Gen Z and Millennials, who prioritize environmental impact in purchasing decisions.

4. Compostable Films: Meeting Demand for Flexible and Green Solutions

Flexible packaging is critical for protecting food and extending shelf life, but traditional plastics create waste challenges. Compostable films offer a viable, scalable alternative.

  • NatureFlex, a leading cellulose-based film, is compostable, transparent, and offers excellent barrier properties against moisture and oxygen.

  • It is ideal for wrapping dry foods like granola bars, nuts, and coffee.

  • With growing certifications for home compostability, these films are appealing to both manufacturers and eco-conscious consumers.

Expect compostable films to continue evolving with better mechanical properties and broader applications, from snacks to fresh produce packaging.

Market Examples:

  • PepsiCo has committed to using compostable bags for products like SunChips in select markets.

  • NatureFlex by Futamura is already used by brands such as Alter Eco for chocolate bar wrappers.

Data Points:

  • Compostable plastic production is projected to grow by 15% annually (source: European Bioplastics Association).

  • Over 72% of U.S. consumers say they would pay more for products with compostable packaging (source: McKinsey).

Regulatory Drivers:

  • Legislation like California's Compostable Packaging Law (SB 54) drives the adoption of compostable solutions across industries.

Key Insight:
Compostable films provide a much-needed bridge between performance and sustainability, especially for flexible packaging challenges.

5. Paper and Cardboard with Eco-Friendly Barrier Coatings: Upgrading Traditional Materials

While paper and cardboard have been eco-friendly staples, their limitations with moisture and grease have traditionally required plastic linings — until now.

  • The rise of biopolymer coatings, such as PLA or natural waxes, allows paper-based products to maintain full compostability or recyclability.

  • New coatings resist heat, moisture, and grease, enabling use in hot drink cups, takeaway containers, and sandwich wraps.

  • Governments are increasingly banning plastic-lined paper products, accelerating this transition.

Businesses that embrace these upgraded paper solutions can not only meet regulations but also gain favor with environmentally conscious consumers.

Market Examples:

  • Costa Coffee and Pret A Manger now use compostable cups with biopolymer coatings.

  • Lactalis Group uses recyclable and compostable paperboard packaging for its dairy products.

Data Points:

  • Global demand for coated paperboard is expected to surpass $31 billion by 2027 (source: Research and Markets), with a strong tilt toward eco-coatings.

Regulatory Drivers:

  • EU Packaging and Packaging Waste Directive requires plastic components to be minimized or removed from paper-based products.

  • France and Germany have imposed strict rules on plastic-lined disposable food packaging.

Key Insight:
Investing in compostable coatings allows brands to transition without abandoning familiar paper-based packaging aesthetics.

6. Refillable and Reusable Packaging Systems: A Circular Economy in Action

Beyond simply swapping materials, the next evolution in packaging is rethinking the system entirely — from disposable to reusable.

  • Durable materials like stainless steel, thick glass, and engineered plastics are designed to be used hundreds of times.

  • Brands like Loop are pioneering refill-and-return models, where customers return containers to be cleaned and reused.

  • Reusable packaging significantly reduces overall material use and carbon emissions when managed properly.

Companies willing to invest in these systems are positioning themselves as leaders in the circular economy revolution.

Market Examples:

  • Loop by TerraCycle partners with brands like Unilever and Nestlé to offer reusable packaging for everyday products.

  • Algramo in Chile offers a pay-per-use refillable system for groceries.

Data Points:

  • Reusable packaging could cut global plastic demand by 20% by 2040 (source: Ellen MacArthur Foundation).

  • Brands using reusable models could save up to 25% in packaging costs over time.

Regulatory Drivers:

  • The EU and Canada are promoting zero-waste legislation that prioritizes reuse over recycling.

  • Extended Producer Responsibility (EPR) laws are incentivizing reusable systems.

Key Insight:
Refillable systems unlock brand loyalty, operational savings, and dramatic environmental benefits simultaneously.

7. Monomaterial Packaging: Simplifying Recycling at Scale

One of the biggest challenges with packaging recycling is the complexity of multi-material combinations.

  • Monomaterial packaging uses a single type of material, like polyethylene (PE) or polypropylene (PP), making it easier for recycling facilities to process and reuse.

  • Innovations in barrier layers and printing technologies are ensuring that even monomaterial packages can meet high-performance needs for shelf life and branding.

Brands focusing on monomaterial designs will benefit from lower recycling costs, better recyclability claims, and a stronger environmental image.

Market Examples:

  • Nestlé uses recyclable monomaterial films for their Smarties candy line.

  • P&G's Ariel detergent pods use monomaterial packaging for better recyclability.

Data Points:

  • Monomaterial flexible packaging is projected to account for 40% of all flexible packaging by 2030 (source: Smithers Pira).

Regulatory Drivers:

  • EU Circular Economy Action Plan promotes design-for-recycling, making monomaterials a favored solution.

  • U.S. states are beginning to mandate recycling labeling standards that monomaterials more easily meet.

Key Insight:
Monomaterials are a smart move for brands seeking to meet aggressive recyclability targets without major redesign costs.

8. Smart Labels for Sustainability: Fighting Food Waste with Technology

Food waste is a massive environmental issue — and smart labels are emerging as a key tool to fight it.

  • These labels can detect and display information about a product’s freshness or spoilage using chemical sensors, time-temperature indicators, or even smartphone-readable codes.

  • Paired with compostable or recyclable materials, smart labels help consumers make better decisions while reducing unnecessary food disposal.

  • Retailers benefit by optimizing inventory management and reducing losses.

Integrating smart technology with sustainability is set to become the new standard for responsible packaging.

Market Examples:

  • Mimica Touch uses smart freshness indicators on food products, extending shelf life and reducing waste.

  • Insignia Technologies has developed time-temperature indicator labels for perishable goods.

Data Points:

  • Food waste costs the global economy $1 trillion annually (source: FAO).

  • Smart labeling could reduce global food waste by up to 10% according to industry estimates.

Regulatory Drivers:

  • U.S. Food Waste Reduction Act and EU Farm-to-Fork Strategy prioritize smart labeling solutions.

Key Insight:
Smart packaging doesn’t just save the environment — it also protects brand margins by reducing shrinkage and waste.

Conclusion

The future of packaging is undeniably green. Across industries, the transition toward eco-friendly materials is no longer just an aspiration — it is becoming an urgent business necessity, driven by regulation, innovation, and consumer demand. As we've explored, solutions like bioplastics, molded fiber, edible packaging, compostable films, and monomaterial designs are not just trends — they represent a deeper shift toward circular economy principles and sustainable value creation.

Businesses that embrace these materials today are positioning themselves as leaders of tomorrow’s economy. They are building brand loyalty, reducing environmental impact, and aligning with regulatory frameworks that are tightening worldwide.

At Grant and Graham, we are committed to helping organizations navigate this critical transition. Our Senior Specialist, Ahmed, stands ready to support companies in identifying the right eco-friendly materials, integrating sustainable strategies, and staying ahead of both market expectations and legislative changes.

The opportunity to lead — and the responsibility to act — has never been clearer. Together, we can shape a smarter, greener, and more resilient future for packaging and beyond.

For expert guidance, Ahmed can be reached through Grant and Graham. Let’s start the transformation today.

Find out more about more about Ahmed: https://www.grant-graham.co.uk/en-gb/v-/-senior-consultant-ahmed-kassemh