R&D innovation enabling sustainable packaging solutions in consumer packaged goods

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R&D innovation enabling sustainable packaging solutions in consumer packaged goods

April 10, 2025

Pascale Wautelet

Vice President Global R&D and Sustainability, Materials Group

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R&D Innovation Enabling Sustainable Packaging Solutions in Consumer Packaged Goods

Originally featured on LinkedIn

Sustainability in consumer packaged goods (CPG) is no longer a trend — it's a necessity. Research commissioned by Avery Dennison and conducted by Bain & Company in conjunction with Avery Dennison reveals a host of reasons why recycling and related sustainability practices generate consumer loyalty and benefit the environment. Consumer brands have perhaps the largest role in driving sustainable packaging solutions. Brands that show progress on sustainability will advance their organizations toward a more circular economy.

R&D teams in the packaging industry are spearheading innovation with solutions that help CGP brands achieve their sustainability goals. From pressure-sensitive labels using novel “clean-release” adhesive technology that enables recycling to digital labels using RFID technology that streamlines supply chains, innovation is shaping the future of sustainable packaging. Packaging also supports brands' sustainability ambitions. It can be designed according to Design for Recycling (DfR) principles and made with sustainable materials. CPGs are also leveraging sustainability to differentiate. More on this later.

First, let’s look at some facts illustrating the scope of CPG brands’ sustainability efforts in general:

Ellen MacArthur Foundation's Global Commitment 2023 Progress Report shows that many global CPG brands aim to have 100% recyclable, reusable and compostable packaging by 2030.
According to NYU Stern's Sustainable Market Share Index, sustainable products represented about 31% of CPG's growth between 2013-2023, despite only accounting for approximately 18.5% of CPG's sustainable market share.
Nestlé reports partnering on 220 initiatives to develop well-functioning waste collection, sorting and recycling schemes in Europe, Africa, Asia, North America and Latin America.

Motivation

Motives underlying CPG brands establishing sustainable practices and moving toward achieving their sustainability goals are apparent in several studies.

Efficiency

A 2023 report by Zero Waste Europe found that brands can achieve an ROI of 16.4% over 10 years by switching from single-use to reusable packaging. The Bain Sustainability Survey from June 2023 reports that reusable packaging reduces the need for frequent replacements and lowers overall costs.

Regulatory pressure

The Packaging and Packaging Waste Regulation 2025/40 (PPWR) is calling for a change in the beverage segment, requiring 10% reusable beverage packaging in Europe by 2030.

Consumer demand

Consumers are also expressing interest in reuse models — 41% of consumers associate sustainable packaging with being reusable or refillable.

To further promote sustainability, brands are turning to next-generation pressure-sensitive labels and RFID technology.

Brands must innovate and invest to keep up with the changing landscape. By doing this, brands need to consider all aspects of the package, including the role that new label innovations play.

R&D innovation is advancing packaging circularity

Novel “clean release” PSL adhesive technologies are highly sustainable decoration solutions recognized by the Association of Plastic Recyclers (APR), RecyClass and other bodies to be compatible with standard rigid plastic recycling streams, such as HDPE and PET.

Clean release labels are also a platform to communicate sustainability and traceability messages to consumers, helping them to make informed choices and align their purchases with their values. They also display product certifications for environmental, social and ethical standards, such as Fair Trade, Rainforest Alliance and USDA Organic.

Packaging functionality is rapidly evolving. Pressure-sensitive labels equipped with digital technology are another dynamic lever. For example, smart packaging with QR codes or RFID can monitor and communicate information about a product's quality throughout the supply chain and on shelf, aiding in quality control and reducing waste. RFID enables CPGs to make more data-driven inventory management and purchasing decisions. Smart packages can also provide interactive features or personalized messages to engage with consumers.

Additionally, smart packaging can help increase recycling by informing consumers about how packaging is sorted, recycled, reused and refilled. Plus, it can automate the sorting of materials, facilitate traceability and incentivize the use of sustainable containers, such as reusable coffee cups and refillable beverage bottles.

As brands look to advance their recycling and reuse models, they need to consider recent innovations in pressure-sensitive label technology. This calls for expertise in label selection. Pressure-sensitive label material manufacturers and converters are helping CGPs determine what combination of label facestocks, adhesives, digital triggers and overall design best addresses specific CPG applications.

Brands must innovate and invest to keep up with the changing landscape. By doing this, brands need to consider all aspects of the package, including the role that new label innovations play. As awareness of sustainability issues grows, so too will demand for sustainable and digital solutions.

Learn more about CPG packaging sustainability in our new white paper, “Pressure-sensitive labels and their role in making packaging circular:” https://www.makingpackagingcircular.com/

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