2025: A challenging but clarifying year for corporate sustainability

In the past years, sustainability had wind it its sails. Markets for sustainable products and services were growing, supported by policies like the EU Green Deal and US Inflation Reduction Act. Companies developed sustainability strategies and announced ambitious net-zero targets, anticipating information requests from investors and clients and preparing for reporting regulation like the EU Corporate Sustainability Reporting Directive.

But the tides have shifted. In 2025, macroeconomic turbulence, geopolitical fragmentation, and a roll-back of sustainability regulation have pushed companies—especially in manufacturing—to recalibrate. Some large corporations have scaled back targets, tariffs have put pressure on supply chains, and investor priorities are shifting. In times of economic uncertainty, short-termism often takes centre stage.

Where in the past years, regulatory requirements guided many corporate sustainability agendas, now commercial value sets the direction and pace. Sustainability teams must once again justify the business value of sustainability. And that, I believe, is a healthy and necessary development. Compliance might get you through an audit. But it won’t win market share, secure supply chains, or build brand trust.

Amidst the current challenges lies opportunity. The uncertain market environment forces businesses to go back to basics and assess how sustainability affects their core business activities. In this process, many will find commercial opportunities and new ways to manage business risks.

Packaging remains in the spotlight

Packaging sits firmly among the sustainability priorities of many manufacturing companies, and the current uncertainties and pressures are not changing that.

Where sustainability regulations in other areas are being scaled back, those for packaging remain in place or are being expanded. In Europe, the EU Packaging and Packaging Waste Regulation introduces minimum standards for the recycled content and recyclability of packaging. Extended Producer Responsibility schemes in the UK and various US states require manufacturers to pay for the collection and processing of packaging waste.

Packaging – and plastic in particular – also continues to be a major focus for consumers and in the media. Many retailers have therefore implemented ambitious targets and strict requirements for packaging, including minimum levels of recycled content and potential for reuse.

Overcoming the hurdles to delivering the value potential of sustainable packaging

The combination of regulatory push and consumer pull means that the market for sustainable packaging solutions will grow significantly. Estimated at around $300 billion in 2025, it is expected to grow at 6% to 7% per year to reach a value of $450 billion to $500 billion in 2030.[1]

The transition to sustainable packaging is well underway. Manufacturers of packaging and transport products have been experimenting with new designs and materials and testing multi-use solutions. There has been plenty of learning but also challenges and risks that companies need to overcome as they shift their portfolio to sustainable products to capture the market opportunity.

Ensuring a consistent and scalable supply of sustainable packaging materials (e.g. FSC-certified cardboard, bio-based polymers, recycled content plastics) is challenging due to limited availability, supply chain complexity, and fluctuating costs. For fastener manufacturers, who often require durable and tear-resistant packaging, sourcing these materials in sufficient quantities can be unreliable. Companies must seek to diversify sources of certified sustainable materials and forging long-term supplier partnerships to reduce volatility.

Complex trade-offs in material design and engineering may be required when creating packaging that is environmentally friendly without compromising performance or significantly increasing cost. For instance, some innovations (e.g. compostables or molded pulp inserts) underperform in humid or abrasive conditions. Companies must ensure that they optimise for multiple variables. Cross-functional collaboration between R&D, procurement, and logistics is essential to balance cost, performance, and sustainability in design.

Demonstrating that reusable packaging solutions can be economically competitive and scalable remains a significant hurdle within existing logistics and consumer behaviour patterns. Investment payback is heavily reliant on reverse logistics and the ability to recover products efficiently – a challenge in fragmented B2B networks. Companies must pilot reusable packaging with a small number of partners in closed-loop systems where return logistics are viable, and measure results to build the business case.

Accurate, consistent, and transparent life cycle data is essential to validate sustainability claims, yet gathering and standardizing this information across suppliers and geographies is technically and operationally demanding. Without credible, comparable data, packaging innovation risks being dismissed as greenwashing. By investing in digital tools and standardized methodologies to capture reliable product footprint data, companies can enable transparent communication and compliance with emerging regulations.

Beyond compliance lies opportunity

Where the past few years were about fulfilling regulatory obligations, the next few will be about proving value. The packaging sector needs to build the foundation for capitalizing on the market opportunity for sustainable packaging. More than in most other sectors, sustainability will be increasingly integrated with commercial strategy.

We see that leading companies focus on:

• Understanding your clients’ sustainability goals and what they mean for their business
• Using certification and product footprint data to demonstrate the sustainability credentials of their products
• Equipping sales teams with sustainability knowledge, and where necessary, bringing in sustainability experts for commercial conversations

By connecting sustainability goals, innovation strategy and commercial realities, sustainable packaging can become a driver of growth, resilience, and brand value.

To understand more, contact our Country Manager, Sytze Djkstra here.