Advanced Recycling

Brands Scale Back as Recyclers Advance

The packaging industry is at a critical stage as it grapples with sustainability goals, technological advances, and economic pressures.

The packaging industry is at a critical stage as it grapples with sustainability goals, technological advances, and economic pressures. According to Cole Rosengren, a leading industry expert, while the term “tipping point” may be debatable, there’s undeniably more attention than ever on packaging sustainability, particularly concerning plastics.

During MD&M East, being held May 20 to 22 at the Jacob K. Javits Convention Center in New York, Rosengren, managing editor of Manufacturing Dive, Packaging Dive, and Waste Dive, will moderate a session titled, “Sustainable Packaging at a Crossroads: Can You Keep Moving Forward?” The session will be held from 10:45 to 11:30 am on May 20 at the Advanced Manufacturing stage. He will be joined by Jonathan Quinn, CEO of the US Plastics Pact.

Despite some brands scaling back their sustainability targets due to challenges in sourcing post-consumer resin (PCR) and difficulties in converting certain packaging categories, opportunities for innovation persist. Rosengren highlights growing interest in domestic manufacturing, strong potential in fiber-based packaging, and increased investment in recycling infrastructure by major waste management companies.

Standardized language, goals

The US Plastics Pact continues to play a crucial role in standardizing language and goals across the industry, while global initiatives like the upcoming global plastics treaty meeting signals the ongoing importance of sustainability in the packaging sector.

Rosengren said he believes it is accurate to consider sustainable packaging at a tipping point and noted that he’s heard similar comments in his conversations with Quinn as they prepare for the presentation.

“It feels like there’s more attention than ever — both from consumers and regulators,” he said. “Packaging, especially plastics, has been a hot topic for the last five to 10 years.”

When it comes to the technology side of the sustainability conversation, especially surrounding recycling, Rosengren said the technology itself isn’t new.

“Pyrolysis has been around forever, but many of the latest facilities haven’t hit their stride yet,” he said. “So it’s definitely an interesting moment for the industry.”

Across the industry landscape, some brands have scaled back or even delayed their sustainability targets, and Rosengren said he’s seen two main themes.

“First, brands say they can’t get enough post-consumer resin (PCR),” he explained. “And the big question is: Is it a price issue? Often, yes. Many aren’t willing to pay more for PCR than virgin plastic. But it’s also about reliability — consistent quantity and quality.”

The second theme, he said, is that when viewing some of the environmental, social, and governance (ESG) reports from brands scaling back, it appears certain packaging categories are just really hard to convert.

“If the goal is 100% recyclability, we’re hearing that 5 to 15% of product portfolios are tough to address,” he said. “A lot of that is flexible packaging, which, while beneficial from a life cycle assessment perspective, doesn’t fit well with the current recycling system. Some people hope chemical recycling will help solve that, but it hasn’t yet.”

Economic pressures

Moreover, Rosengren noted that current economic pressures may reshape the case for sustainable packaging, but he pointed out that viable options for investment and innovation remain.

“Tariffs are changing daily, and we’re still trying to keep up,” he said. “We’re hoping to learn more when converters release their quarterly earnings.”

That said, regardless of tariffs, Rosengren said there’s growing interest in domestic manufacturing, something Quinn has been emphasizing in recent presentations.

“The new administration sees recycled content as part of the ‘Buy American’ narrative,” he said. “That could become an economic story worth telling.”

In terms of opportunities, Rosengren said fiber continues to be a strong area for sustainable packaging, and there’s been a lot of investment in North American mill infrastructure that uses recycled fiber, especially after China’s National Sword policy in 2017 to 2018.

“On the plastic side, there’s still a solid business case for getting more PCR into PET, especially in beverage packaging,” he added. “It works, and it’s happening. Also, we’re seeing more investment from waste haulers. Republic Services, for example, is opening secondary plastics recycling facilities, following the European model.”

However, even a decade ago, this was not happening, and Rosengren pointed out that waste companies weren’t interested.

“Now Republic and Waste Management & Recycling Services are both investing, particularly in film and flexible plastics,” he said. “Republic even says demand exceeds what they can supply right now.”

In addition to standardized language and goals in sustainability, Rosengren said there are discussions about internal standards for how the industry talks about chemical recycling.

“There’s good industry involvement, including from petrochemical and CPG companies,” he added. “It’s about agreeing on what’s recyclable, what isn’t, and helping educate legislators. State bills vary a lot, so a common language is important.”

Consumer demand and climate concerns continue to be strong, and Rosengren said packaging companies can stay aligned today without overextending.

“On Packaging Dive, we track greenhouse gas (GHG) emissions reports from major converters,” he said. “Nearly all of them now have reduction goals. In their view, it’s good business — facility efficiency saves money.”

Even with shifting politics, community relations matter, which Rosengren said can show that a company managing its own emissions can be helpful.

“Investors still seem interested in the ‘E’ part of ESG. These are global companies, and the EU is pushing this hard,” he said. “There are other markets with strict compliance, too. Plus, studies and anecdotes suggest that younger consumers, in particular, care about this and let it influence their purchasing decisions.”

MD&M East presentation

At MD&M East, Rosengren said he and Quinn hope to help reset what’s going on with the US Plastics Pact.

“They’ve updated their roadmap from 2025 to 2030,” he said. “Jonathan’s been leading for about a year now, and we’ll hear more on where they see the Pact fitting into the domestic manufacturing and supply chain conversation — something the current administration is really focused on.”

Rosengren said the session will also include a discussion of the global plastics treaty.

“The next meeting is now in August after no resolution last year,” he said. “Even if the US doesn’t sign on — which isn’t likely — it will still have global implications.”

Rosengren said he also expects Quinn to discuss his thoughts on how Pact signatories are thinking about recyclability and investment, and what they’re actively working on now.