Plastic packaging is facing rising pressure from both consumers and lawmakers due to concerns over pollution and limited recyclability. As a result, paper-based alternatives are gaining traction for their environmental benefits and compliance with evolving regulations.
For companies, switching to paper packaging is no longer optional—it’s a timely move to meet sustainability demands while enhancing brand value and operational resilience.
Why is there a need to shift from plastic packaging?
Plastic packaging carries several environmental and practical drawbacks that are driving the search for sustainable packaging solutions.
Fig 1. The potential drawbacks of plastic packaging
- Limited recyclability: A large share of plastic packaging is not successfully recycled, often ending up in landfills or as litter. The difficulty of recycling many plastics means plastic waste accumulates and pollutes land and oceans.
- Pollution and microplastics: Discarded plastics can persist for decades, breaking into tiny particles. Microplastics pollution has become a serious issue – these particles are now found in water, soil, and even within human bodies.
- Consumer pressure: As awareness grows, consumers are increasingly favoring brands with eco-friendly packaging. Many people now actively seek products with less plastic, pressuring companies to switch to sustainable alternatives.
- Regulatory pressure: Governments worldwide are implementing policies to curb plastic pollution. EPR laws require producers to pay for the environmental impact of their packaging, often charging higher fees for materials that are not easily recyclable. Additionally, many regions have introduced bans or taxes on single-use plastics, targeting items like disposable bags, straws, and non-recyclable packaging.
"Regulations and EPR fees on non-recyclable plastics are pushing companies toward paper, a widely accepted and lower-cost alternative."
How is paper packaging a sustainable solution?
Paper is widely accepted in recycling systems and is recycled at much higher rates than plastic. This means paper packaging is more likely to be reclaimed and reused, rather than ending up as waste. In many places, consumers have access to curbside paper recycling, making paper a convenient recycling material.
Fig 2. The key advantages of paper packaging
Paper is biodegradable
Unlike plastic, which can linger for centuries, paper is biodegradable and breaks down relatively quickly if it does escape into the environment. Its “fast degradation rates” mean that a discarded paper package will disintegrate and assimilate back into nature far sooner than a plastic one. This significantly reduces the long-term pollution footprint and eliminates the risk of microplastic formation.
Paper is sourced from renewable materials
Paper comes from renewable resources. It is typically made from wood pulp (trees) or even non-wood sources like agricultural residue, which can be continuously replenished. In contrast, most plastics are derived from fossil fuels. Using paper allows companies to source packaging from sustainably managed forests or recycled fibers, aligning with corporate sustainability goals.
Paper faces lower compliance fees
Because of its recyclability, paper packaging often incurs lower fees under EPR regulations compared to plastic. Lower compliance fees can partly balance out the higher initial cost of paper materials.
Real-world examples: Leading companies making the transition
Several major companies have started shifting from plastic to paper packaging, illustrating how this transition yields tangible environmental benefits. Here are some key examples:
Nestlé
The food and beverage giant has begun using paper packaging for certain products. Nestlé switched the wrapper of its YES! snack bar from plastic to a paper-based material, leading to an emissions reduction of up to 30% for that product’s packaging.
Marks & Spencer (M&S)
The UK retailer replaced plastic packaging with paper for its top-selling Vanilla Fudge Bar in 2025, responding to direct customer demand for less plastic waste. This move to paper is projected to eliminate about 1.4 million plastic units per year from just that one product line. In addition to improving recyclability for consumers, the initiative supports M&S’s long-term sustainability goals, including aggressive targets to reduce plastic use.
Duracell and Energizer
In the battery industry, Duracell and Energizer moved to all-paper blister packaging for their batteries in 2025, phasing out the plastic clamshell packs. This packaging change makes the battery packs much easier to recycle and significantly cuts down on plastic waste.
Duracell’s rollout in Walmart stores alone is eliminating about 850,000 pounds of packaging waste and reducing carbon emissions by 170 metric tons annually. Customers and retailers also saw practical benefits: the new paper-based battery packages are easier to open and take up less shelf space compared to the old plastic versions. Both companies viewed this shift as a “quick win” on sustainability that could be achieved without compromising the product.
Download our complete report to view more real-world examples, including Amazon’s AI-driven transition to paper packaging.
Overcoming barriers to adoption of paper packaging:
Paper packaging offers many sustainability advantages, yet switching from plastic presents a few challenges. Addressing these concerns requires innovation, stronger supplier partnerships, and early adaptation across production systems.
Higher costs and initial investment
The Problem: Cost remains a top concern, slowing paper packaging adoption among large consumer goods companies. Paper-based alternatives often carry higher production costs due to limited demand and smaller manufacturing volumes. The lack of scale prevents prices from falling, keeping paper at a premium compared to plastic.
“78% of respondents in a recent PackWorld survey identified cost as a major concern”
The Solution: This concern can be addressed by improving scale and showing long-term economic gains to decision-makers. As more businesses adopt paper, manufacturing volumes can rise, and prices will likely adjust. With paper packaging, companies can avoid plastic taxes and face lower EPR fees, which may help balance the upfront cost gap.
Production line compatibility
The Problem: Plastic and paper behave differently on production equipment, causing friction in high-speed environments. Paper can tear or misfeed, disrupting existing packaging systems during transition periods. This mismatch adds to operational delays and requires investment in new or updated machinery.
The Solution: To address this, companies are working early with equipment manufacturers and material suppliers. Adjustments to line speed and packaging angles improve paper compatibility without complete system overhauls. Pilot programs help assess paper behavior before full-scale conversion, reducing operational disruption.
Supplier readiness and availability
The Problem: Packaging supply chains have deep roots in plastic, with fewer suppliers experienced in working with paper. Manufacturers often lack suitable tools and processes to handle paper formats efficiently. This limits access to high-volume paper options, particularly for specialty or custom applications.
The Solution: Engaging suppliers early supports smoother onboarding and ensures adequate material is available for production. Brands now request hybrid formats, allowing partial transitions while supporting paper capability upgrades. These interim steps can boost confidence and promote supplier investment in paper technology.
Material sourcing constraints
The Problem: Demand for paper-based packaging increases pressure on pulp and fiber sources worldwide. Specific grades needed for strength or protection are not always produced in sufficient quantities. Without careful planning, demand spikes can drive prices upward and create localized shortages.
The Solution: Producers are investing in responsible forestry operations and alternative fibers to stabilize long-term supply. Strengthening recycling systems adds a second stream of usable paper, reducing dependence on virgin material. These steps help maintain consistent sourcing without increasing environmental strain.
Barrier property limitations
The Problem: Paper lacks the protective barriers found in traditional plastic, creating problems for moisture-sensitive products. Perishable, oily, or liquid-based items often require extra protection to maintain shelf stability. Without modifications, paper can’t provide airtight or greaseproof containment.
The Solution: New coatings using bio-based materials are making paper in packaging more water and grease resistant. These layers maintain recyclability and compostability, enabling better protection without plastic reliance. Product developers also explore structural enhancements to improve paper strength and durability.
Durability and structural weakness
The Problem: Compared to plastic, paper packaging can be more fragile and prone to tearing or collapsing. Heavy items, sharp edges, or irregular shapes place strain on packaging integrity. Fragile packaging increases product damage risk and affects overall customer satisfaction.
The Solution: Innovators have added reinforcement using layered paperboard, molded fiber inserts, or minimal plastic linings. These tweaks improve structural integrity without shifting fully back to conventional plastic. With thoughtful structural design, paper packaging can reliably support a wider product range.
Key technologies and methods enabling the plastic to paper transition:
A range of new technologies and practices is emerging to make paper a more viable replacement for plastic packaging. These enabling technologies are helping to address the barriers and ensure that paper-based packaging can meet industry needs.
Sustainable forestry practices
Ensuring that increased paper use doesn’t lead to deforestation is a priority. The good news is that packaging-grade paper can be scaled in a responsible way. In developed regions, paper producers are using sustainable forestry practices – for every tree harvested for pulp, new trees are planted, maintaining the cycle of renewable raw material.
“Up to 15% of plastic packaging applications could shift to paper without causing significant forest loss.”
Use of agricultural waste
Companies are expanding the use of agricultural waste as an alternative fiber source for papermaking. Materials like sugarcane bagasse, rice straw, and wheat straw (residues from agriculture) can be processed into pulp, reducing reliance on wood fibers.
This provides new raw material streams and gives farmers an outlet for by-products that would otherwise be burned or discarded. By tapping into non-wood sources and recycling more used paper, the industry is increasing the fiber supply in a sustainable manner.
Cleaner production processes
Modern paper production is also becoming cleaner and more efficient – today’s paper mills have significantly reduced their water and energy usage and emissions, often by upgrading equipment and using renewable energy in the process. These improvements in sourcing and production mean that paper packaging’s environmental profile continues to get better over time.
