Despite bold commitments and substantial investments, many of the world’s leading consumer goods companies are falling short of their sustainability goals, particularly those related to packaging and plastics. As 2025 approaches, companies like Unilever, PepsiCo, Colgate-Palmolive, The Coca-Cola Company, Mars, Walmart, and members of the US Plastics Pact are confronting the complex realities of achieving sustainable packaging targets.
When companies first announced their 2025 packaging goals – often promising 100% recyclable, compostable, or reusable packaging and significant reductions in virgin plastic – they were celebrated as pioneers of change. These goals aligned with consumer expectations and anticipated tightening regulations and investor scrutiny. However, many of these companies are now revising, delaying, or softening these targets.
Unilever, for instance, initially aimed to reduce its virgin plastic footprint by 50% by 2025. However, the company has adjusted its targets to a 30% reduction by 2026 and 40% by 2028, citing technical challenges and market constraints. As of now, Unilever has achieved a 23% reduction in virgin plastic use compared to 2019 levels.
PepsiCo had committed to making 100% of its packaging recyclable, compostable, biodegradable, or reusable by 2025. The company now projects that it will reach 98% on that target by 2025, acknowledging that certain challenges remain.
Colgate-Palmolive introduced a recyclable toothpaste tube made from high-density polyethylene (HDPE). While technically recyclable, the tube’s acceptance in municipal recycling programs remains limited, leading to challenges in achieving widespread recyclability.
Infrastructure and innovation challenges
A significant hurdle lies in the disconnect between packaging innovation and recycling infrastructure. The Coca-Cola Company has invested in bottle-to-bottle recycling and aims to use 30% to 35% recycled plastic globally by 2035. However, as of 2023, only 17% of the PET used in its primary consumer packaging was recycled resin, indicating a slow progression toward its goals.
Coca-Cola HBC, a major bottler, has made strides in Europe, achieving nearly 50% rPET use across its EU and Swiss markets by the end of 2023. However, supply chain disruptions and raw material shortages have posed challenges in other regions.
Mars set targets for 100% of its packaging to be reusable, recyclable, or compostable by 2025 and to reduce virgin plastic use by 25% from 2019 levels. The company has acknowledged that it will miss these targets, citing delays in design and infrastructure changes necessary for packaging circularity.
Retailer influence and economic trade-offs
Retailers like Walmart play a dual role in the sustainability landscape. Walmart introduced its Sustainable Packaging Scorecard to encourage suppliers to improve packaging sustainability. However, the complexity of global supply chains and cost pressures make it challenging to enforce uniform standards across all products.
Economic pressures, including inflation and shifting consumer demand, have made companies cautious about investing in expensive packaging transitions. Mondelēz International has made progress with paper-based wrappers and reducing material weight but acknowledges that costs, supply issues, and consumer acceptance are significant hurdles to faster implementation.
L’Oréal Groupe has invested in bio-based materials and refillable packaging formats. While leading in premium segments, scaling these innovations across all product categories and markets remains challenging due to cost, performance, and logistics concerns.
The US Plastics Pact – a collective struggle
The US Plastics Pact, which includes companies like Aldi, Nestlé, Kraft Heinz, Danone North America, General Mills, and Unilever, aimed for 100% of plastic packaging to be reusable, recyclable, or compostable by 2025. However, the Pact has delayed key sustainability targets to 2030 after initial collective progress fell short, highlighting the broader challenges in achieving these goals.
Regulatory pressures and the risk of greenwashing
As scrutiny intensifies, some companies face accusations of greenwashing – promoting sustainability initiatives without substantial progress. Governments are responding with stricter regulations. The European Union’s Packaging and Packaging Waste Regulation (PPWR) and the US Break Free From Plastic Pollution Act are pushing companies toward mandatory reductions and Extended Producer Responsibility (EPR) schemes.
However, the private sector still lacks harmonized standards and incentives to move at the required pace. There is also a fundamental misalignment between corporate sustainability timelines and shareholder expectations. Most brands operate on quarterly reporting cycles, while sustainability transitions often require multi-year investments with delayed returns, creating a risk-averse environment where incremental changes are favored over systemic transformation.
Bridging the gap between rhetoric and reality
In the race toward 2025, the packaging sustainability ambitions of big brands have encountered significant logistical, financial, and systemic roadblocks. While some progress is undeniable – especially in areas like lightweighting, pilot programs for refill/reuse, and material innovation – the industry as a whole is not on track to meet its self-imposed deadlines.
The road ahead requires more than revised targets and cautious optimism. It demands bold, coordinated action involving governments, recyclers, packaging producers, and consumers. Only then can ambition be matched by meaningful impact.
