Barriers to sustainable packaging

Packaging sustainability is set to become a major focus in the coming years as regulations grow stricter. This is particularly evident with the EU Packaging and Packaging Waste Regulation (PPWR), will enter into force on the 20th day following its publication (11th February 2025), and will apply from 12th August 2026.

PPWR establishes new obligations for packaging suppliers, manufacturers, producers, retailers and waste management companies handling packaging made from any material distributed in the EU market, regardless of their location.

Designing sustainable and functional packaging is a complex process influenced by several factors, including material selection, functionality, cost, and environmental impact. With these existing challenges, the added requirements of the EU PPWR raise the question: are brand owners and packaging designers prepared to adapt and ensure compliance while maintaining packaging innovation and functionality?

UPM, in collaboration with Pentawards, revealed insights from a survey of top packaging designers, highlighting challenges in sustainable packaging design and strategies to overcome them.

The survey results show that while the majority (47 percent) of the designer respondents feel extremely comfortable handling briefs that include sustainability requirements, 43 percent of packaging designers would prefer more direction or information to feel fully comfortable when dealing with these briefs. This highlights a need for further education on how to incorporate sustainability into packaging design, with most respondents (35 percent) suggesting material guides would be the most beneficial.

Further findings reveal that 57 percent of the designer respondents believe they always or often have the opportunity to impact the material choice of a product. However, 20 percent say they seldom do, and 17 percent almost never, which suggests some clients may not have yet realized the value of exploring alternative and more sustainable packaging solutions.

Cost challenges

Despite many packaging designers and brands striving to develop more sustainable packaging, price was highlighted as a key challenge by the majority of those surveyed. Although many of the designers acknowledged the importance of using sustainable materials for innovative packaging, the cost frequently deterred their customers, leading many to choose the cheapest option instead. One respondent stated: ‘Everyone wants to be green, until they see that being green is usually more expensive’. While another noted: ‘I think the production end, or the manufacturers are not yet completely ready for this kind of change.’

Robert Taylor, sustainability director at UPM and member of the Pentawards jury states: ‘While cost has been highlighted as a barrier to embracing sustainable packaging design, it’s important to take a moment to consider what is the true cost of not doing so. We need a holistic approach that considers the total cost and value creation potential in a market that is growing twice as fast for sustainable products. This is especially key as the impact of new regulation and green finance kicks in, with carbon taxes, plastics taxes and Extended Producer Responsibility (EPR) fees just a few examples. Reducing packaging is one of the most effective ways to reduce impact and cost. Using less raw material, water and energy and generating less waste or having a more effective supply chains brings savings and reduces the environmental footprint.’

He adds that the industry needs to understand the true cost of sustainable packaging design and embrace innovations that will help meet the ambitious environmental targets set. UPM’s approach when collaborating with value chain partners is to ensure that they understand the total cost or the total value opportunity of introducing a more sustainable option.
‘There are many sustainable solutions already on the market that do not come with a higher cost—let’s be clear about that,’ Taylor emphasizes. 

Brands will have to consider EPR and taxes, making it essential to look at both the overall value and the costs when making decisions.  

While cost has been highlighted as a barrier to embracing sustainable packaging design, it’s important to take a moment to consider what is the true cost of not doing so.

‘This means looking beyond a simple comparison of raw material cost A versus raw material cost B, because that’s no longer the full story,’ he says.

Collaboration across value chain  

The survey also revealed that designers working for brands, developing their new packages need more information.

‘The survey with Pentawards reveals that more than half of the designers were uncomfortable with understanding sustainability enough. And you know, that's,that therefore, presents the opportunity again for companies like UPM to come in and be provide that help provide through material guides, do offering training and podcasts, whatever is needed for them to grow their knowledge, to and make the decisions that will make ensure future packaging meets the needs of the legislation,’ he says.

Another key insight from designers was the need for better collaboration across the value chain to explore opportunities around raw materials and their price points. Designers expressed interest in taking step-by-step approach rather than implementing changes all at once. 

One of the most important elements of PPWR is its harmonization across Europe, providing a level playing field for designers, converters, and companies like UPM to innovate.

Taylor explains that UPM, with a range of innovative raw material options, can play a pivotal role as materials providers. It can offer various tools and solutions for packaging designers to incorporate into their creative toolbox. As material manufacturers, the company’s role is to collaborate across the value chain with its partners to identify and deliver tailored products that meet the unique needs of each packaging designer.

‘At UPM, our strategy is centered on designing a future beyond fossil-based materials, and there are many ways to achieve this. The first step is reducing packaging, followed by incorporating recycled content and improving material efficiency. Enhancing recyclability is another critical area of focus,’ Taylor explains.

‘For example, we offer innovative products such as Forest Film and Ocean Action Label. These solutions go a step further than simply reducing packaging—they support circularity and address climate challenges effectively. Our "reduce, recycle, renew" approach not only tackles sustainability but also contributes to a more climate-positive future.’

Regulations accelerating change

The industry is seeing growing impact of regulations such as the PPWR. The PPWR aims to reduce packaging waste, promote recyclability, and develop markets for recycled materials, fostering a circular economy. 

‘One of the most important elements of PPWR is its harmonization across Europe, providing a level playing field for designers, converters, and companies like UPM to innovate. All the actors are putting a lot of effort into understanding what this legislation will mean in practice and develop their packaging accordingly,’ Taylor remarks.

UPM is already seeing leading brands starting to think about what this means for their future packaging designs. Taylor adds that they are already exploring available innovative packaging that will help them, for instance, promote recyclability or increase the share of recycled content, replace fossil based raw materials with renewables.  

Ripple effect

The PPWR regulations, while being introduced in Europe, will have a larger ripple effect across the world. 

For example, Taylor explains, brands placing packaging on shelves in Europe generally follow similar principles of circularity and recyclability for products intended for the UK market. Likewise, any packaging produced in the UK and sold in Europe must comply with the regulations set by European authorities. Over time, it's likely that Europe's stringent standards will exert a strong influence on packaging practices in the UK.

Creating a sustainable future demands teamwork across the entire value chain—designers, manufacturers, brands and policymakers. With new regulations such as the PPWR approaching, now is the time to act. 

Bad Spirits chooses UPM's Ocean Action labels 

Italian liquor factory founded by Andrea and Alessandro de Cinque in 2015 in Bologna, Bad Spirits, has grown from its artisanal roots to a company with a strong environmental ethos. With sustainability in mind, Bad Spirits started the search for the perfect label to be used in its Seawake Gin bottles. 

‘Our goal was to create a more sustainable liquor that could contribute to the environmental cause. We chose recycled glass for the bottles and a cap made of cork and activated carbon, which naturally neutralizes unwanted substances, allowing less use of water, chemicals and energy,’ says Alessandro.  

‘After careful research for the label material, together with our label printer Rotocel, we discovered the Ocean Action labels, which represent exactly what we were looking for – a direct impact in the fight against marine pollution.’ 

UPM Raflatac’s Ocean Action labels are the first of its kind, made with plastic waste that could otherwise end up in the oceans. This waste is collected within 200 meters of shorelines and 50 kilometers of waterways, specifically in areas where waste management is lacking or ineffective. By repurposing ocean bound plastic waste, the collection and reduction of plastic entering the ocean is incentivized. The plastic is then chemically recycled using a mass balanced approach to be used as label materials, giving it a new life.   
The decision to use Ocean Action label for Seawake Gin represents a tangible contribution to the fight against marine pollution.  

‘Ocean Action has made it possible for us to create a more sustainable liquor packaging that reflects our values and actively contributes to the protection of the oceans, while also spreading awareness to the consumers,’ Alessando de Cinque says.  

The label on each bottle of the brand features a unique illustration of marine life, created by a local artist. 
Seawake Gin represents a comprehensive and integrated commitment to sustainability, involving not only Ocean Action labels, but every aspect of the product.  

‘Whenever possible, we use recyclable and biodegradable materials for our packaging and select local, Italian suppliers who practice sustainable agriculture and minimize waste,’ Alessandro de Cinque says.  

The company also collaborates with Marevivo, an organization dedicated to protecting the sea and the environment. With every bottle bought, Bad Spirits gives 5 percent to Marevivo, helping them with its projects.  

Bad Spirits has found the partnership with UPM Raflatac fruitful. 

‘UPM Raflatac has provided us with access to the latest technologies and solutions for more sustainable, high-quality labels. Their experience and expertise help us ensure that our labels meet the highest standards. Working with UPM Raflatac adds credibility to our project, gives confidence to our customers and helps us consolidate our position in the market,’ Alessando de Cinque explains.  

The feedback from customers has been positive.  

‘Many of our customers appreciate that we take concrete steps to reduce our impact on the environment and contribute to its conservation. This kind of feedback inspires us to keep going and urges us to constantly seek new ways to enhance our environmental performance. The satisfaction of our customers is very important to us and pushes us to persist on our journey towards a more sustainable future for everyone,’ Alessandro de Cinque concludes.