Turning sustainability goals into operational wins in food processing and packaging

The food processing and packaging industry finds itself at a crossroads. Consumer demand, regulatory pressure and retailer requirements are converging to make sustainability not just a corporate goal but an operational imperative. Yet, for many companies, the challenge remains: How can ambitious sustainability commitments translate into practical, cost-effective and resilient business strategies?

A new report, The New Material World: Packaging’s Path Toward Sustainability from PMMI, The Association for Packaging and Processing Technologies, looks closely at how food and beverage companies — and their packaging and processing partners — can navigate this transition. The findings highlight both the urgency of change and the pragmatic steps companies are taking to ensure sustainability drives competitive advantage rather than operational setbacks.

The CPG reality: Balancing trade-offs

Consumer packaged goods (CPG) companies are at the sharp end of sustainability pressures. According to the report, state mandates and retailer guidelines such as Walmart’s Packaging Playbook and Target’s sustainability objectives are far more influential than federal regulation. For companies supplying major retailers or operating in tightly regulated states such as California, adopting sustainable practices is no longer optional — it is a condition of market access.

Still, trade-offs are inevitable. The most common sacrifices CPG firms cited include higher costs, potential reductions in product protection and risks to product quality. Two-thirds of CPG respondents acknowledged that adopting sustainable materials leads to higher production costs, while a third cited diminished performance and protection. For a sector defined by slim margins and complex supply chains, these risks cannot be dismissed lightly.

One executive put it bluntly: “We just can’t afford to have a lost batch or a lost pallet because recycled plastic doesn’t hold up under temperature stress.” The takeaway is clear: Sustainability must not compromise the fundamental roles of packaging — protecting products, extending shelf life and ensuring safety.

OEMs step into the sustainability equation

Packaging machinery manufacturers — original equipment manufacturers (OEMs) — are increasingly central to the sustainability equation. The report finds that 64% of OEMs are now manufacturing equipment redesigned or modified to accommodate more sustainable materials. Nearly half say that up to a quarter of their machinery portfolio has already been adapted.

From the OEM perspective, the most common trade-offs for customers include declines in packaging performance and equipment performance. These issues often demand innovations or modifications to machinery rather than simple adjustments. Interestingly, OEMs are less likely than CPG companies to flag higher production costs as barriers. This suggests a gap in perception. While brand owners see cost as the dominant challenge, machinery partners focus on the technical hurdles of running new materials on existing lines. Bridging that gap through collaboration could be one of the industry’s most significant opportunities.

The material transition: Priorities and realities

The report’s Materials Transitioning Dashboard provides a snapshot of the industry's direction. Some materials are entrenched: recycled paperboard with forestry certification, corrugate and glass are unlikely to be replaced in three to five years. Conversely, polystyrene (PS), foams and polyvinyl chloride are top candidates for phase-out, with 70% of respondents planning to replace PS.

Recyclable materials continue to dominate corporate sustainability strategies. Over 80% of CPG companies expect to increase their use of recyclable packaging in the next five years. Compostables, once seen as the next frontier, have stalled amid infrastructure and performance challenges. Reusables are growing only modestly, hindered by cost and logistics barriers.

For food companies, this trajectory makes sense. Recyclable solutions can more readily slot into existing collection and recovery systems, while compostables and reusables require deeper structural change. The near-term strategy, then, is not radical reinvention but scaling what works.

Operational constraints: Machinery as a bottleneck

Perhaps the most striking finding is that half of end users agree that packaging machinery limitations are preventing them from meeting sustainability goals, the same proportion as in 2022. Performance issues such as sealing, shelf-life and durability persist when new materials are introduced on legacy lines.

As one industrial engineer explained, “We either run at a slower speed and explain that, or we say it’s not feasible.” Incremental adaptation is the reality for many companies, rather than a sweeping transformation.

For CPG firms, this underscores the need to view sustainability through an operational lens. Ambitious packaging pledges must be matched with investments in machinery upgrades, line flexibility and strategic collaboration with OEM partners.

Looking ahead: From parallel goals to shared wins

When asked to identify the factors shaping their five-year outlook, OEMs and end users named cost, legislation and consumer preference as the top three influences. This alignment points to a shared agenda — one that could foster stronger partnerships.

End users need strategic insight and foresight, not just technical fixes. OEMs are well-positioned to provide both by anticipating material transitions, designing adaptable equipment and co-developing solutions with their customers. The report notes that future collaboration opportunities lie in shifting from reactive problem-solving to proactive strategic planning.

If the industry can embrace this mindset, sustainability goals will no longer be seen as compliance burdens or cost centers but as catalysts for innovation, efficiency and consumer trust.

Turning goals into wins

Sustainability in food processing and packaging is no longer a trend — it is a structural shift. The challenge for companies is not whether to act but how to act strategically. Success lies in converting sustainability goals into operational wins: packaging that protects products, meets consumer and retailer expectations, and runs efficiently on modernized machinery.

The industry has made progress, but the road ahead demands more collaboration between end users and OEMs, deeper investment in adaptable machinery and a pragmatic focus on recyclable solutions while infrastructure for reusables and compostables catches up. Those who succeed will not only meet sustainability commitments but also unlock new efficiencies and market opportunities — proving that operational excellence and environmental responsibility can go hand in hand.

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