It’s a new material world. As end users move toward greener packaging materials, OEMs are adapting their machinery to deliver innovative solutions without compromising performance. 

By Rebecca Marquez, Director of Custom Research, PMMI

Packaging’s main purposes are to market a product and protect it from damage. Neither function can be dismissed to satisfy sustainability needs. Any changes made to a package to achieve sustainability must be coordinated with product filling systems, distribution channels, and consumer demands, according to 2025 The New Material World: Packaging’s Path Toward Sustainability, a research report from PMMI, The Association for Packaging and Processing Technologies. 

During interviews with end users, the lack of strong federal guidance on sustainability has resulted in packaging decisions shaped not by federal regulations but by more immediate pressures such as state mandates and retailer requirements. For example, California is more aggressive in its legislation, prompting end users to prioritize its laws, along with retailer demands, while monitoring federal activity.

Original equipment manufacturers (OEMs) also feel the ripple effects of these pressures. As governments and retailers push consumer packaged goods (CPG) companies toward more sustainable practices, end users turn to OEMs for equipment capable of handling sustainable materials. Additionally, as carbon footprint reporting expands to include OEMs, they are increasingly drawn into the sustainability equation.

However, barriers to sustainability are still in play

As companies transition to sustainable materials, the most common challenges they face include higher production costs, as well as diminished product protection and product quality. These findings were echoed in interviews, where CPG firms of all sizes cited cost and performance risks as top concerns. 

In fact, economic pressure, especially cost implications, has been the primary barrier to the adoption of sustainable formats. End users are wary, not only of direct material cost increases but also of downstream risks such as product damage or failure. Whether rooted in experience or perception, these risks remain key deterrents to accelerating sustainability efforts.

As end users move toward sustainability, they must juggle trade-offs while adopting new strategies and materials. In response, OEMs and suppliers are adapting their machinery and parts to work with sustainable materials.

From the OEM perspective, the most common trade-offs end users face are packaging performance and equipment performance. Both often require innovations or modifications to handle current and emerging materials. Other trade-offs OEMs observe include shortened product shelf life, slower return on investment, and reduced machinery flexibility. 

Material Priorities Are Changing

Study participants were asked to select up to three materials their company will replace in the next three to five years, if any. The top 10 materials targeted for replacement include polystyrene (PS); foams such as polyurethane, PS and polyethylene; polyvinyl chloride; multi-material flexible, SBS paperboard non-certified, multi-material rigid, low-density PE rigid, PP rigid, HDPE rigid; and compostable. 

The material most likely to remain in usage is recycled paperboard with forestry certification (FC). The rest of the top 10 materials unlikely to be replaced in the next three to five years include corrugate FC; SBS paperboard FC; kraft paperboard FC; reusable; post-consumer recycled (PCR) rigid; PCR flexible; steel; clear glass; and aluminum. 

Some companies are planning to adopt paper for their packaging materials, and more than 80% of respondents indicated that their company is likely to increase the use of recyclable materials within the next five years. Quantitative findings confirm that recyclable materials remain the top sustainability priority for most companies, particularly in cases where retailers require their use. While adoption is expected to grow, cost remains a significant barrier – especially for smaller or cost-sensitive brands – unless material prices decline or regulatory pressures intensify.

Reusable Packaging Usage Remains Flat, Composting Stalls

From 2022 to 2023, the likelihood of increasing the use of reusable packaging materials remained relatively constant. A key hurdle for reusable materials, highlighted in PMMI’s 2023 Packaging Compass report, is the lack of reusability infrastructure. While interest in building this infrastructure is growing, cost and development remain major barriers.

Although reusable options are employed in select applications, they still present structural, logistical, and cost-related challenges that hinder broader implementation. Consequently, recyclable materials continue to be the primary focus for packaging innovation and sustainability initiatives.

The 2023 Packaging Compass report also noted a growing momentum in the industry toward the adoption of compostable materials. But by 2025, that trajectory slowed, perhaps due to limited infrastructure. The most notable shift was an 8% drop since 2022 in those somewhat likely to adopt compostable packaging within the next five years, reflecting growing uncertainty.

During the interviews, most CPG professionals expressed an overall reluctance to implement compostable materials because of material performance limitations under food-grade conditions, lack of cost competitiveness, inadequate composting infrastructure, and limited consumer demand. As a result, the industry trend currently favors recyclable materials, with compostables remaining a developing and exploratory area.

End Users and OEMs Must Collaborate to Meet Sustainable Mandates

Existing packaging machinery is one of the biggest technical barriers to adopting sustainable materials in end-user operations. Until equipment is updated or replaced, or materials evolve to become more compatible with legacy lines, companies will continue to make incremental changes rather than transformative shifts in sustainable packaging.

To meet end-user needs, nearly two-thirds of OEMS are currently manufacturing machinery that has been redesigned or modified to accommodate more sustainable materials. Close to half of OEMs say up to 25% of their machinery is designed or modified to enable usage with more sustainable materials.

CPG companies interviewed for 2025 The New Material World: Packaging’s Path Toward Sustainability listed their top three sustainability priorities as:

• Reducing the amount of packaging used for products
• Adopting more recyclable packaging materials
• Reducing packaging waste in operations Meanwhile, OEMs’ top three strategies include:
• Designing or modifying machinery to reduce the amount of packaging used for products
• Designing or modifying machinery to work with recyclable packaging materials
• Reducing packaging waste in end-user operations

End users and OEMs cited the same factors when listing their top three greatest influences on packaging over the next five years: 

• Consumer preference
• Cost
• Legislation/regulation

As sustainability efforts continue, OEMs and end users face connected but distinct pressures. For end users, the rising costs of sustainable materials – paired with concerns about product quality and performance – make packaging decisions increasingly difficult. OEMs, meanwhile, are tasked with modifying or redesigning equipment to handle these new and emerging materials without compromising machine performance or production efficiency. 

Adding to this complexity is a fragmented regulatory landscape. State laws and retailer mandates now carry more influence than federal guidelines, and sustainable packaging strategies are becoming regionally reactive rather than nationally consistent. 

This shifting policy environment demands greater agility from both equipment manufacturers and their customers. End users are seeking more than technical fixes; they need strategic insight, foresight, and partnership. OEMs are uniquely positioned to step into that role by helping customers navigate material transitions, anticipate future machine requirements, and co-develop solutions that align with emerging standards and consumer expectations.

Consequently, to move forward, both groups must shift from operating in parallel to working together for strategic planning. With this partnership, OEMs and end users can move beyond reactive adaptation to become leaders in building a more sustainable and resilient packaging future.

Material sustainability solutions will be front and center at PACK EXPO International 2026 (Oct. 18-21; McCormick Place, Chicago). Targeted pavilions and curated planning tools make it easier than ever to find exactly what your operation needs.

Attendees can gain expert insights from thought leaders and industry pioneers in free, on-floor sessions at the Innovation Stage, Food and Beverage Processing Innovation Stage, Industry Speaks, Sustainability Central, and the Reusable Packaging Learning Center, sponsored by the Reusable Packaging Association.

With 48,000 professionals from 40+ vertical markets in attendance and more than 2,600 exhibitors, PACK EXPO International is the industry’s best platform to evaluate equipment, identify emerging trends, and make informed investment decisions – all in one place. Held only once every two years, the event offers a critical opportunity for companies to stay competitive and improve operational efficiency.

Discover what’s possible by registering for PACK EXPO International 2026 and experience the largest, most comprehensive packaging and processing event in North America. Attendees can explore the widest range of materials, plus packaging and processing technologies, and complete project research in just a few days.

Learn more and register at
www.packexpointernational.com.
Registration for the show is $30 until Sept. 25, after which it increases to $130.