Industry Insights

Packaging and Sustainability in 2025 – C.A.P. S3E5 | ICPG

Written by Natalie MacVarish | Jan 13, 2026 9:00:00 AM

Welcome back to the Crazy About Packaging Podcast! In our first episode of 2026, we’re taking a hard look at packaging and sustainability in 2025 and asking the question a lot of people in the industry are already thinking about: did we actually make progress or did we just talk about it louder?

In this episode, the C.A.P. Pack — Natalie, Mike, and Jonathan — get specific. They talk about where sustainability conversations got sharper, where confusion is still holding the industry back, and why 2026 is going to feel even more demanding for brands and manufacturers.

 

 

Sneak Peek for Episode 5

Watch the full episode above or listen now on Spotify, Apple Podcasts, or our website. Below is a closer look at the moments that set the tone for the conversation and why they matter.

The Recycling Problem Starts With Trust

We kick off with something different: talking about other podcasters! Early in the episode, Natalie brings in a clip from the Oversharing Podcast, hosted by Jordana Abraham and Dr. Naomi Bernstein. Oversharing isn’t a packaging-focused podcast, so why the attention? The clip comes from a listener story about a neighbor digging through trash to call out bad recycling habits.

It sounds funny at first. Then it gets uncomfortable.

One host admits she still recycles, but isn’t convinced it makes a difference. Another questions whether recycling is actually sorted at all once it leaves the house. They both express frustration that they’re putting in the effort, but have no idea if it’s paying off.

Consumers lack trust in the recycling system, and that’s a problem for packaging and sustainability.

“There’s too much mystery around what happens when the trash and the recycling leaves your house,” the hosts explain. “I think if it were being done right, they would let us know somehow. Because they’d want to motivate us.”

Well, Oversharing podcast hosts, we’re here to let you know! Recycling is important and, when everyone takes part in the system, it works!

Here’s the disconnect: consumers are being asked to do more, but they’re rarely shown what happens next. When people don’t trust the system, participation drops. Not because they don’t care, but because they don’t know if their effort matters.

If the industry wants better recycling outcomes, it has to stop assuming people will hunt for answers. Education has to be visible, simple, and consistent — your packaging needs to be designed for recyclability from the start.

One Year, Three Words

To frame the rest of the discussion, each host sums up sustainability in packaging in 2025 with one word.

  • Natalie chooses urgency. Deadlines stopped feeling abstract this year. Companies felt pressure from regulators, customers, and internal teams all at once.
  • Jonathan picks dynamic. Regulations moved forward, but not always in a straight line. Some regions pushed ahead. Others doubled down on short-term fixes. Progress happened alongside resistance.
  • Mike lands on clarity, or rather, the need for it. Governments want realistic input from industry. Industry wants rules that don’t change midstream. Brands are stuck in the middle trying to plan five, ten, even fifteen years out.

Together, those words reflect a key theme: 2025 was pivotal for packaging and sustainability, but also full of tension. There was movement, but very little breathing room.

PCR Became a Real Conversation

PCR was always part of the conversation. In 2025, it became unavoidable.

What changed? Availability. For polypropylene, PCR finally began to show up in grades that can handle demanding applications like form fill seal and thermoforming. That shift turns PCR from a nice-to-have into something teams can actually evaluate.

At the same time, recycled polystyrene resurfaced in parts of Europe. Not because it solves long-term challenges, but because it avoids immediate disruption. Taxes, equipment costs, and limited alternatives made it look attractive in the short term.

The problem is scale. Collection is limited, economics are tight, and the path forward stays narrow.

The bigger question keeps coming up: if a solution only works for a moment, is it worth building around?

Regulations Are Driving Behavior (Unevenly)

Regulation drove much of the urgency this year, especially in Europe. PPWR and extended producer responsibility created clearer direction, even when the details remained complex.

In the U.S., the picture stayed fragmented. Different states means different dates and different requirements. Many companies pushed sustainability targets out a few years just to regroup.

That breathing room is not without risk. More time can slow momentum. As Natalie puts it, “If you give yourself too much time, you think you have all the time in the world, without realizing how much time all this actually takes to really make it happen and put it into practice.” On the other hand, short timelines force action, and action is what actually changes systems.

Where expectations were firm, progress followed.

Simpler Packaging Keeps Winning

Again and again, the conversation comes back to simplicity.

Mono-material packaging reduces confusion for consumers and friction for recyclers. It makes sorting easier and results in better outcomes.

The technology already exists to design entire packages from a single material. The remaining challenge is alignment across design, operations, and long-term goals.

Brands are no longer asking whether this approach makes sense. They’re asking how quickly it can be done without disrupting existing lines.

Looking Ahead to 2026

Some ideas keep circulating without much traction. Reusable packaging at scale still struggles outside limited use cases. Compostable food packaging continues to raise questions around infrastructure and performance.

Other directions feel far more promising for packaging and sustainability:

  • Mono-material solutions continue to gain momentum.
  • PCR requirements continue to tighten globally.
  • XPP continues to grow because it addresses real constraints without forcing major manufacturing disruption.

This episode matters because it reflects the conversations happening across the industry right now. If you’re weighing timelines, materials, and risk, you’ll hear those same tensions here.

Stay Tuned for More on Packaging and Sustainability

Thanks for tuning into the latest episode of Crazy About Packaging. Be sure to subscribe on Spotify or Apple Podcasts, or listen to past episodes on our website. Share your thoughts with us, and if you’re ready to talk through what these shifts mean for your packaging, reach out to ICPG.