Many traditional packaging materials create unnecessary waste and contribute to deforestation and pollution.

Sustainable packaging refers to packaging that reduces environmental impact across its entire lifecycle. This includes using responsibly sourced materials, such as paper and cardboard from sustainably managed forests, and designing packaging that can be reused, recycled, or composted. 

For businesses, adopting sustainable packaging can help support forest health and contribute to broader sustainable business practices.

Table of contents: 

Key principles of sustainable packaging

To make packaging sustainable, businesses need to rethink how it’s made, how they use it, and what happens afterward. The principles below offer a practical path forward.

Reduces environmental impact 

Global plastic production is expected to rise by 70 per cent by 2040, reaching 736 million tonnes. This growth places added pressure on ecosystems, including the world’s forests.

Sustainable packaging provides a lower-impact alternative. When sourced from responsibly managed forests, fibre-based materials like paper and cardboard help reduce reliance on fossil fuels and lower carbon emissions. 

For businesses, these choices support sustainable forestry while meeting growing demand for environmentally responsible products.

Minimises waste

Sustainable packaging can use fewer resources and reduce the overall volume of materials needed. Common strategies include using recycled content and compostable materials, and designing packaging to eliminate excess space or layers.

Consumer demand reflects this shift. According to Trivium Packaging’s Buying Green report, 82 per cent of consumers across age groups said they are willing to pay more for products with sustainable packaging.

Offering FSC-labelled packaging allows businesses to meet this demand and demonstrate a tangible commitment to sustainability. This approach helps reduce waste and positions businesses to meet changing consumer expectations while supporting a more circular economy.

Focuses on the entire lifecycle

Sustainable packaging looks beyond the product and considers its total environmental footprint from start to finish. 

This includes using responsibly sourced materials such as paper and cardboard from sustainably managed forests and production methods that minimise waste and reduce emissions.

Lifecycle considerations include:

  • Sourcing: Use materials from responsibly managed forests to reduce pressure on natural ecosystems.
  • Production: Choose manufacturing processes that minimise energy use, waste, and emissions.
  • Design: Create recyclable, compostable, or reusable packaging to extend its life and reduce landfill waste.
  • End-of-life: Ensure packaging can be properly recovered or reintegrated into the supply chain.

Taking a lifecycle approach allows businesses to support long-term sustainability goals and promote the health of forest ecosystems.

Reduces material use

Minimising material use helps reduce environmental impact without sacrificing product safety or quality. Common strategies include simplifying packaging design, removing unnecessary layers, and using materials that provide strength with less volume.

Right-sized packaging and more efficient systems further support material reduction and improve logistics. As adoption grows, the global market for recycled packaging materials is expected to grow through 2030.

In 2024, the U.S. General Services Administration finalised a rule encouraging federal contractors to offer packaging free of single-use plastics. This shift underscores the growing expectation to reduce material use across packaging systems.

Sustainable manufacturing processes

How packaging is made plays an important role in its overall sustainability. Energy-intensive or wasteful manufacturing can undermine even the most responsibly sourced materials.

Businesses can reduce their environmental footprint through practices like:

  • Using energy-efficient equipment and systems
  • Switching to renewable energy sources
  • Minimising waste during production through reuse and recycling

Organisations like FSC© offer sustainability certifications that help businesses demonstrate their commitment to responsible manufacturing and meet recognised environmental standards.

A side-by-side chart comparing traditional and sustainable packaging.

4 types of sustainable packaging solutions

Businesses have a range of options to lower their environmental impact while meeting growing demand for responsible products. In fact, 79 per cent of consumers now seek out sustainable packaging.

Explore four practical packaging solutions that support better material use below.

1. Compostable packaging

Compostable packaging is made to break down into natural elements in the right composting conditions, either at home or in industrial facilities. Unlike traditional plastics, it leaves no toxic residue and can return nutrients to the soil.

It’s a practical option for the food and beverage sector, which currently leads the global green packaging market. Materials used for sustainable food packaging help divert waste from landfills and offer a more sustainable alternative for single-use items.

Common examples of compostable packaging include:

  • PLA-based (polylactic acid) clear containers and cups
  • Paper-based wrappers coated with compostable biopolymers
  • Compostable padded envelopes or protective wraps for shipping
  • Biodegradable labels and stickers used in product packaging

2. Recyclable packaging

Recyclable packaging is made from materials that can be collected, processed, and reused to produce new items. Packaging incorporating recycled or upcycled content helps conserve natural resources and reduces overall material demand.

Adopting recyclable packaging allows businesses to cut down on waste, support sustainable supply chains, and lower their environmental footprint. For example, recycling paper generates 74% less air pollution and uses 50% less water compared to producing paper from virgin materials. 

At the same time, virgin fibres are essential to sustain the recycling loop, by providing fresh, high-quality inputs needed to keep recycled packaging materials in circulation. 

When these fibres are sourced from responsibly managed FSC-certified forests, they offer a sustainable alternative to fossil-based plastic packaging.

Common examples of recyclable packaging include: 

  • Corrugated cardboard boxes
  • Paperboard cartons and sleeves
  • Glass jars and bottles
  • Aluminum cans and tins

3. Biodegradable packaging

Bio-based packaging uses renewable plant materials that break down more easily than conventional plastics. These materials support more sustainable production and disposal by reducing long-term environmental impact.

They also offer practical business benefits, including faster decomposition, fewer emissions in manufacturing, and stronger appeal to eco-conscious buyers. One study found that 73 per cent of consumers consider recyclable packaging an “essential,” signaling a growing demand for plastic-free solutions. 

Examples of bio-based packaging include:

  • Bamboo-based containers and trays
  • Hemp fiber wraps or pouches
  • Cotton bags and textile-based gift packaging
  • Straw-based packing materials

4. Reusable packaging

Reusable packaging is designed for repeated use without compromising performance. It helps eliminate waste at the source and encourages a more circular model of consumption.

While often overlooked in favor of single-use alternatives, reusable systems are gaining traction 

The approach offers tangible benefits for businesses, including reduced shipping costs, improved customer retention, and lower emissions.

Common examples of reusable packaging include:

  • Glass or stainless steel containers
  • Returnable shipping crates or totes
  • Fabric gift bags and shopping totes
  • Refillable product jars or dispensers
  • Rigid cardboard gift boxes
  • Reusable fiber-based cooler boxes

What is the most sustainable packaging?

The most sustainable packaging materials tend to be responsibly sourced, recyclable or compostable, and designed to minimise waste. 

Materials like recycled cardboard, paper, and bioplastics often lead the way thanks to their low environmental impact and ability to be reused or safely broken down to help the environment.

Sustainability also depends on where and how materials are sourced. FSC-certified packaging supports sustainable environmental practices by ensuring materials come from responsibly managed forests that support biodiversity, climate, communities and Indigenous Peoples.

An image showing step-by-step actions businesses can take to adopt sustainable packaging.

Benefits of sustainability packaging

Sustainability is no longer a nice-to-have. It’s becoming a standard that businesses are expected to meet. Packaging plays a large role in that shift as a way to build trust and future-proof supply chains.

Here’s how sustainability packaging can add value across your business:

  • Reduced environmental impact: Sustainable materials and designs help lower emissions, reduce waste, and lessen pressure on natural ecosystems. This includes reducing Scope 1 (on-site), Scope 2 (purchased energy), and Scope 3 (supply chain) emissions tied to packaging.
  • Cost savings: Using fewer materials, improving transport efficiency, and reducing waste can lead to measurable cost reductions over time.
  • Enhanced brand image: Demonstrating a commitment to sustainability builds consumer trust and strengthens brand reputation.
  • Compliance with regulations: Sustainable practices help businesses stay ahead of current and future environmental standards.
  • Market differentiation: Eco-friendly packaging can help products stand out in a crowded market and appeal to eco-conscious consumers.
  • Improved operational efficiency: Smarter designs and lighter materials simplify production, storage, and shipping processes.
  • Long-term viability: Responsible packaging supports the health of supply chains and secures access to materials over time.
  • Increased innovation opportunities: Sustainability challenges often lead to creative packaging solutions and new product formats.
  • Healthy forests: Choosing responsibly sourced materials helps conserve forest ecosystems and supports efforts to halt global deforestation.

Done right, sustainable packaging solutions can become a strategic business advantage.

Key challenges in achieving sustainable packaging

While sustainable packaging offers long-term benefits, it also comes with trade-offs that businesses should be prepared to navigate.

These challenges may include:

  • Higher upfront costs: Eco-friendly materials and certifications often come at a premium, especially for smaller businesses or those switching supply chains.
  • Limited availability: Some sustainable materials may not be available in all regions or at the scale needed for large production runs.
  • Logistical complexity: Reusable or refillable systems require new infrastructure, from take-back programs to cleaning and redistribution, which can add layers to existing operations.

Despite these hurdles, many businesses find that long-term savings, regulatory alignment, and customer trust help offset the early challenges of going sustainable.

An image showing key business benefits of using sustainable packaging.

How to use sustainable packaging

Incorporating sustainable packaging into your business starts with understanding your current impact and identifying improvement opportunities.

Start by auditing your existing packaging materials: What can you reduce, reuse, or replace with more sustainable alternatives?

Conduct an emissions assessment that includes Scope 1, 2, and 3 sources to understand how packaging choices affect your full carbon footprint. This includes raw material sourcing, manufacturing energy use, and direct emissions from production and transportation.

Consider switching to compostable or recyclable options, sourcing FSC-certified paper and packaging products, or simplifying your packaging design to use fewer materials. 

In fact, 74 per cent of consumers are willing to pay more for products with sustainable packaging, making these efforts a practical investment and a simple way to help save the Earth.

It’s also important to think beyond the product. Educate your customers on how to properly dispose of or return packaging, and work with suppliers that align with your sustainability goals. 

“For our innovation, FSC is key to enabling circularity—our fiber-based screw caps offer a real alternative to millions of plastic items.”— Urika Ganterud Evermark

Develop a sustainable packaging plan that supports healthy forests

Sustainable packaging is a commitment to reducing waste, cutting emissions, and protecting forest ecosystems. Choosing FSC-certified materials connects your brand to verified solutions supporting environmental impact and consumer trust.

Explore FSC’s paper and packaging solutions to access responsibly sourced materials, and discover FSC solutions designed to help your business meet sustainability goals.

Additional resources 

Learn how packaging waste contributes to climate change and pollution with insights from the EPA. Explore global efforts to eliminate plastic pollution through the OECD.

For international research, review policy guidance and sustainability efforts from the UNEP.

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