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Is paper packaging always better for the environment than plastic?

Sustainability concerns are driving demand for paper packaging – but without careful design and sourcing, paper packaging may offer “little or no benefit”, say experts.

Food and drink manufacturers are increasingly choosing materials such as paper, pulp, and fibre for their sustainability benefits, according to new research by GlobalData, an intelligence and productivity platform.

“Compostable and recyclable packaging options that use paper and moulded fibre are growing in demand, and manufacturers are capitalising on this trend by introducing innovative packaging formats using these materials,” said the platform’s consumer analyst Naveed Khan.

Mars Australia has long had a paper-based Squeeze-On Tomato Sauce pack under its MasterFoods brand, with a reported 58% less plastic than the traditional pack. Mondelēz International has also moved to paper-based packaging for its multipacks of confectionery, biscuits, and chocolates. And Nestlé has boasted of 90% reductions in single-use plastic following new fibre-based packaging formats.

Those with a heavy presence in confectionery and convenience in particular have been chasing innovation in paper packaging, with flexible plastic wrappers notoriously difficult to recycle. Incorporating recycled plastic into these wrappers is harder still, with very few innovations having passed food contact safety laws in Europe, for example.

Bel Group is the latest brand to the paper party, in January committing to a target of 100% responsibly sourced paper packaging for Babybel by 2027. Since late 2020, Babybel has used a bio-based, home-compostable cellophane, and the transition to paper has not been straightforward, said Bel director of RID Delphine Chatelin.

“[This] is a true technical and industrial challenge. It is not simply about replacing one material with another, it requires rethinking the entire protection system to ensure product quality and safety from production to consumption,” she explained.

Packaging companies have also been investing heavily in new fibre formats, working closely with manufacturers. Sappi, the paper, pulp and packaging manufacturer headquartered in South Africa, has just expanded its range of functional packaging papers with a set of heat-sealable options for brand owners who want fibre-based alternatives to plastic.

“Many companies face pressure from new regulations, including the EU Packaging and Packaging Waste Regulation (PPWR), growing customer expectations, and rising demand for recyclable packaging across global markets,” the company said in a statement. “At the same time, they need stable sealing results, strong mechanical strength, and materials that run well on existing equipment. Total cost of ownership also plays a role, as paper-based solutions must be competitive with plastic,” it added.

Price is a key concern. Closures of plastic recycling plants in the UK and Europe have created a crisis in recycling of plastic and availability of recycled plastic, for example. Conflict in the Middle East is also casting a shadow over packaging production as oil and energy prices spike, and supply chains are disrupted. This all comes as regulations to reduce single-use plastics, in particular, loom in many regions.

Sachets, wrappers and pouches are fastest-growing plastic packaging globally

The Ellen MacArthur Foundation, which leads the Global Plastics Commitment signed by a host of leading FMCG companies, last month (March) came out in support of paper packaging alternatives to flexible plastic packaging – albeit with caveats.

The think tank’s new report – endorsed by businesses including Mars, PepsiCo and Unilever, plus WWF, the NGO – noted that sachets, wrappers and pouches, are the fastest-growing type of plastic packaging worldwide, and in countries with low formal collection and recycling systems, they are a major source of pollution, making up 80% of the plastic packaging that ends up in oceans. This type of packaging also has “one of the lowest recycling rates”, the report noted.

“Paper-based alternatives have the advantage that they can be more easily designed to be both recyclable and biodegradable,” EMF said. “In markets [like India, Indonesia, Philippines, Thailand and Vietnam] where flexible packaging has a high likelihood of ending up in the environment, this would enable them to be recycled once collection and recycling systems are in place, while reducing persistent plastic pollution in the event they do leak into the environment.”

Paper isn’t automatically better than plastic, say environmentalists

EMF’s report highlights that paper-based solutions do not yet exist at the scale, cost or performance needed. However, the report’s authors also warned that without careful design and sourcing, paper packaging may offer “little or no benefit”.

Indeed, environmental campaigners have been cautious to promote paper packaging given links to deforestation – some have reported that switching from single-use plastic to paper is simply swapping one environmental disaster for another.

Ivy Schlegel, policy lead at Canopy, an NGO, said EMF’s report “reinforces a crucial point: paper isn’t automatically ‘better’. In many cases, paper-based packaging can introduce significant risks, like forest degradation, high water use, and underestimated emissions, and may not deliver meaningful improvement over the plastic if it isn’t responsibly designed and sourced,” she added.

Food companies should prioritise ‘next-gen’ non-wood fibres

Schlegel advised food companies to prioritise recycled and ‘next-gen’ non-wood fibres and to “design for recyclability and safer chemistry”, as well as account for sourcing impacts in scope 3 emissions accounting.

Khan at GlobalData said the growing paperisation trend would present significant opportunities for manufacturers to innovate, enhance their brand image, and expand their market presence.

“Manufacturers need to invest more in sustainable packaging materials and formats and introduce innovative packaging options to compete in the evolving packaging landscape,” he added.