Original research in a new white paper from Avery Dennison explores how innovative pressure-sensitive labels help enable packaging circularity throughout the value chain.

Enhancing Packaging Sustainability: The Role of Pressure-Sensitive Labels in Achieving Circularity

A 1% increase in recycling rates can reduce approximately 2,000 tons of plastic waste annually in multi-billion bottling applications. Nearly all global consumer package goods (CPG) brands have a goal of 100% recyclable packaging by 203. Recycled rigid plastics are over 70% less emissions-intensive than their virgin plastic counterparts.

These are just a few of the metrics cited in a new white paper titled “Pressure-sensitive labels and their role in making packaging circular,” commissioned by Avery Dennison, a global materials science and digital identification solutions company. The white paper further reports that most CPG growth comes from green brands and shows how pressure-sensitive labels can be part of the solution. It explores the state of packaging sustainability among brand owners, including how future technological innovations can deliver tangible benefits. 

The new research shows that nearly all global CPG brands have a goal of 100% recyclable, reusable and compostable packaging by 2030. However, nearly 80% of companies in this sector are falling short of their waste and recycling targets. But breakthroughs in a perhaps surprising area – packaging labels – could offer hope.

“The white paper is a research-based reference document for CPG brands currently making sustainable packaging decisions.” said Ryan Yost, president, Materials Group at Avery Dennison. “CPG companies are facing growing pressure from consumers, retailers, regulators, investors and employees to prioritise the circular economy, and packaging innovations are part of their strategies to meet stakeholder expectations. Our white paper provides hard data based on independently conducted interviews with CPGs worldwide, as well as recognised source materials and insights from Avery Dennison teams working with customers, recyclers, legislative bodies and industry associations worldwide where the company operates. We see it as a practical tool for CPGs to address circularity challenges — a new source of research information.” 

Key Findings

• Brands are relentlessly pursuing circularity. Nearly all global CPG brands have a goal of 100% recyclable, reusable and compostable packaging by 2030.  
• Sustainable products represented about 31% of CPG’s growth between 2013 and 2023, despite only accounting for approximately 18.5% of CPG’s sustainable market share. 
• Consumers perceive packaging as one of a brand’s most controllable and visible sustainability elements. In fact, approximately 31% of consumers believe that “brands investing in sustainable packaging” is one of the top three ways to address environmental issues.  
• While progress continues to be made in packaging production, use and disposal, global plastic consumption has quadrupled over the past 30 years, accounting for 3.4% of global greenhouse emissions and 350 million tons of waste, 40% of which comes from packaging.³ 
• Legislation is driving changes in packaging. For example: Packaging and Packaging Waste Regulation (PPWR) in Europe is mandating that packaging is Designed for Recycling (DfR) and that at least 10% of beverage packaging is reusable by 2030.  
• The recycling of packaging and reuse/refill models can make a significant difference. For example, recycled rigid plastics such as PET and HDPE are over 70% less emissions-intensive than their virgin plastic counterparts.⁴  

• A new generation of pressure-sensitive labels has a novel “clean-release” functionality that allows superior and clean separation of the label and inks during the recycling process. This method ensures higher quality recycled materials, which in the case of rigid plastics, like PET and HDPE, allows the upcycling of the reused plastic for the production of new bottles, reducing the need for virgin materials and increasing brands packaging circularity. 
• Both regulators and consumers are pushing for companies across sectors to adopt more sustainable practices – and the consumer packaged goods (CPG) sector is no exception.
• Approximately 31% of consumers believe that “brands investing in sustainable packaging” is one of the top three ways to address environmental issues.
• A 1% increase in recycling rates for rigid plastics such as PET and HDPE can reduce approximately 2,000 tons of plastic waste per year for a beverage company producing 10 billion bottles.
• One impediment to improving recycling rates and getting closer to the circular economy is that labels often can’t be separated effectively from their packaging substrate.
• Breakthroughs in pressure-sensitive label (PSL) technology significantly improve recycled packaging’s quality and the efficiency of converting it into new products.

The Future of Packaging: Driving Sustainability Through Label Innovations

So, the global push for sustainability and circularity will transform the packaging industry in the next five to 10 years. Leading brands will shepherd in an era of dramatic increases in recycling and reduce carbon emissions and waste across the global economy. With evolving regulations, 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 labels play. As awareness of sustainability issues grows, so too will demand for sustainable and digital solutions.

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 CPGs determine what combination of label facestocks, adhesives, digital triggers and overall design best addresses specific CPG applications.

The power of pressure sensitive label solutions is continuously evolving. Brands that adopt new label innovations will benefit in their businesses and through their contributions to a more sustainable global environment.