If you’re considering a move toward eco-friendly packaging for your business, you’re joining a wave of companies that recognize sustainability as both an ethical choice and a smart one. Yet the transition isn’t always straightforward. Recent insights from industry leaders reveal that thoughtful preparation can make all the difference between a seamless shift and costly setbacks.
Here are five key considerations to guide you, drawn from the latest research as of early 2026.
1. Understand the Real Financial Picture
Sustainable materials often come with a higher upfront price tag, and that’s one of the biggest hurdles. Innovations like high-performing polyhydroxyalkanoates (PHA) for rigid plastics can cost four to five times more than traditional polyolefin, potentially raising the final packaged good’s price by 2 to 5%, according to McKinsey experts in their 2025 analysis of barriers for packaging purchasers.
That premium reflects limited supply chains and complex production, but many brands find long-term value through reduced waste, stronger customer loyalty, and eventual economies of scale. Weigh these costs carefully against potential savings. This investment will undoubtedly pay dividends when aligned with your market.
2. Test Performance and Compatibility Thoroughly
Eco-friendly options don’t always match conventional packaging in durability or functionality right away. Challenges like lower thermostability or the need for new machinery can arise when incorporating recycled content. Industry interviews highlight that “understanding and adopting the production equipment and processes needed to accommodate sustainable materials can also be a challenge,” as noted in McKinsey’s 2025 report on sustainable packaging barriers.
Before committing, rigorously test materials for shelf life, transportation resilience, and compatibility with your existing lines. Innovations in mono-materials and paper-based solutions are closing the gap, but proactive evaluation prevents disruptions.
3. Stay Ahead of the Evolving Regulations
Regulations are accelerating, particularly with Extended Producer Responsibility (EPR) laws now in effect across several U.S. states. The Sustainable Packaging Coalition’s 2025 Trends Report describes 2025 as a “watershed moment,” with the first of six EPR laws taking effect and states redefining recyclability standards.
In places like Oregon (enforcement starting mid-2025) and California (with reporting underway), non-compliance brings fees and penalties. Global players face even more variation, from EU mandates to emerging Asia-Pacific rules. Monitor these developments closely. Compliance isn’t optional, and early adaptation can turn requirements into competitive advantages.
4. Secure Reliable Supply Chain Sources
Availability remains a persistent challenge, especially for scaled production. Demand for recycled content often outstrips supply, with projections showing potential shortages that could triple costs in some categories. McKinsey’s interviews reveal brands struggling to source enough material even for limited lines, highlighting the need for strong supplier partnerships.
Build relationships with dependable providers and consider domestic or diversified sourcing to buffer against volatility, including geopolitical factors.
5. Align with What Consumers Truly Value
Consumers still care about sustainability. Environmental impact influences decisions for about 51% globally, but priorities like recyclability top the list. McKinsey’s comprehensive 2025 global survey of over 11,000 consumers across 11 countries found that recyclable packaging and content from recycled materials rank highest, with many willing to pay more, especially younger and higher-income groups.
In the U.S., 77% deem recyclable packaging extremely or very important. Transparent communication about recyclability builds trust and loyalty, keeping in line with what resonates most in today’s value-conscious market.
Switching to eco-friendly packaging is a meaningful step toward a more responsible future, but success hinges on preparation. By addressing these realities head-on, you position your brand not just to comply, but to thrive in an increasingly sustainability-driven world.
