No matter how we think about it now, there’s no denying that plastic has long been an essential material in food and beverage packaging due to its versatility, durability, and cost-effectiveness. But as we know, plastic use can have both negative environmental and physical impacts. In turn, this has led to stricter regulations around its production, disposal, and recycling. 

The global food packaging market size is projected to grow from USD 505.27 billion in 2024 to USD 808.40 billion by 2032, according to Fortune Business Insights—that’s a rise of 60% over eight years. Fortune also notes rising concerns about packaging waste, low plastic recycling rates, and growing plastic pollution. We only need to look in our own recycling bins to understand what this problem could look like at scale. As such, food and beverage manufacturers need to not only be aware of how regulations affect them, but also understand what consumers are looking for as awareness of plastic issues increases and as demand for alternative packaging and transparent environmental policies rises. 

The Prevalence of Plastic in Food and Beverage Packaging

Plastic packaging dominates the food and beverage industry, and its historic popularity is understandable. It protects products from contamination, maintains freshness, preserves food quality during storage, and offers convenience to consumers. Whether it's bottled water or other beverages, shrink-wrapped fresh food products or snack bags, plastic provides a low-cost barrier against moisture, air, and bacteria. Plastics are found everywhere, but this has led to significant environmental challenges as plastic waste accumulates.

Environmental Concerns: Solving Plastic Recycling 

In response to the environmental challenges posed by plastic waste, governing organizations around the world are enacting stricter regulations to manage its lifecycle. Many of these regulations focus on the food and beverage industry due to its substantial use of plastic packaging. Some key measures, among the many being implemented, include:

• Extended Producer Responsibility (EPR): Beyond Plastics explains that EPR “is a policy tool making producers legally and financially responsible for mitigating the environmental impacts of their products and packaging.” Adoption is growing throughout the European Union and Canada, but only a few states so far in the U.S. have used this EPR policy approach. Well-implemented EPR policies can reduce plastic waste from a variety of industries, including food and beverage. 
• Recycling Targets: Government agencies are setting higher recycling targets for industries that use significant amounts of plastic. For example, the European Union's Single-Use Plastics Directive requires member states to collect 90% of plastic beverage bottles by 2029 and ensure that all bottles contain at least 30% recycled plastic by 2030. Here in the States, the Department of Energy’s Plastics Innovation Challenge aims to develop plastic recycling solutions that address 90% of plastics. While this initiative may slow slightly in the coming four years, it is expected to just slow, not stop.
• Plastic Bans and Levies: Some countries have implemented bans or taxes on certain types of single-use plastics. ”Plastic Bans Around The World” in Solinatra shares that more than 130 countries have implemented plastic bans to combat pollution, and 175 nations are working together to develop a Global Plastics Treaty to address plastic waste on a global scale.
• Deposit Return Schemes (DRS): To encourage recycling, many places have introduced DRS, where consumers pay a small deposit when purchasing a product in plastic packaging and receive a refund when they return the packaging for recycling. This initiative has shown success in increasing recycling rates, particularly for plastic bottles.

Industry Response and Innovations

Increasing regulations for environmental practices surrounding plastics have pushed the food and beverage industry to explore new materials and strategies to reduce its reliance on plastic. But that is not the only reason. Consumers are also looking for alternatives as their concerns about sustainability move to the forefront of their buying decisions.

As noted in Food Industry Executive, some companies are shifting toward bioplastics, which are made from renewable resources like cornstarch or sugarcane and are designed to degrade more quickly than traditional plastics. However, bioplastics come with their own challenges, including limited industrial composting facilities and concerns about the environmental impact of their production.

Some companies are investing in circular economy models, where products are designed for repeated use or recycling as explained in “Plastics and the circular economy.” For example, reusable packaging programs offer consumers the option to purchase products in durable containers that are returned, cleaned, and refilled, reducing the need for single-use plastics. 

Another emerging area to combat plastic waste is chemical recycling, a process that breaks down plastic waste into its original components, which can then be used to create new plastics. This method has the potential to recycle plastics that are traditionally hard to process, such as multi-layered packaging used in food products.

Understanding Consumer Preferences Surrounding Plastics

These are the kinds of innovations that consumers will be looking for as the environmental impact of plastic continues to grow. But when switching to a new and potentially more expensive packaging model, food and beverage companies need to understand what will be successful with their consumers as they implement change. As companies seek consumer insights on changes away from plastic packaging, they might consider:

• Conducting competitive analysis to uncover key packaging strategies used by competitors.
• Using a mix of qualitative and quantitative consumer interviews during shopping experiences to pinpoint essential packaging features.
• Developing and testing packaging prototypes with consumers in both real-world and simulated shopping scenarios.
• Performing shelf and in-home tests to evaluate final packaging materials against competitors and optimize for market success.

The transition away from plastic, particularly single-use plastic, will not be easy, but companies are going to need to respond both to government regulations and consumer demand for sustainable practices. Market research will play a key role in packaging changes. This research will guide strategies for adopting alternatives like bioplastics or reusable packaging while ensuring consumer satisfaction and staying competitive in the market. Because, after all, consumers want to see evolution, not more plastic pollution.