Top Packaging Trends 2025: AI-enhanced “Connected Platforms” to advance circular economy
Innova Market Insights has revealed its Top Packaging Trends 2025, with “Connected Platforms” taking center stage. Connected technologies are widely expected to transform the packaging value chain, from waste management to brand-consumer engagement, by converting packaging into digitalized platforms. The emergence of AI systems will enhance and expedite this industry shakeup.
Meanwhile, the ever-increasing regulatory and consumer demand for improved environmental outcomes in packaging will incentivize innovation in more sustainable materials and systems this year. Innova’s remaining top trends reflect this overriding industry focus: “Paperization Shift,” “Monomaterial Movers,” “Natural Solutions,” and “Reusable Rollouts.”
Packaging Insights explored Innova Market Insights’ Top Packaging Trends 2025 in an exclusive webinar, which you can watch here. We were joined by leading packaging experts Edward Kosior, CEO and founder at Nextek, and Tey Bannerman, partner at McKinsey & Company, as they debated the industry’s latest big developments, from the emergence of AI in waste management to innovation in sustainable materials and systems.
Connected Platforms
Connected packaging will continue to proliferate across FMCG industries but at an accelerated rate. Digital technologies like RFID, QR codes, augmented reality, and invisible watermarks hold the power to revolutionize the circular packaging economy, supply chain transparency, and digital marketing.
Regulators are increasingly incentivizing the transition to smart packaging. In the EU, for instance, the European Commission is expected to propose Digital Product Passports as part of its Ecodesign for Sustainable Products Regulation to advance transparency and sustainability. Digital product passports can specify packaging characteristics, including material type and grade, and recyclability credentials.
Akhil Aiyar, innovation consultant at Innova, says: “Digital passports will combine with AI sorting to provide accurate material separation, improving supply chain efficiency and transparency while elevating the circular economy.”
This month, Henkel, Korozo Group, and R-Cycle revealed they are trialing digital product passports for supply chain improvements.
Connected packaging will also increasingly serve as a bilateral communication channel between brands and consumers, helping companies optimize or personalize products and services through big data analysis.
“I always pay attention to sustainability claims on packaging.”According to Innova’s consumer survey (2024), 64% of global consumers interact with QR codes on packaging. The market researcher’s data also indicates that there has been a 32% growth in global F&B launches with QR codes on the product packaging (2020–2024) (CAGR).
UAE cooking oil brand Sunny leveraged connected technology this year by launching an AI-driven, interactive packaging experience with digital marketing firm Appetite Creative. The web app connects users to unlimited ingredient recipes for cooking inspiration.
Paperization Shift
The “paperization” or “fiberization” transition will continue to gather pace this year amid increasingly stringent regulations targeting non-recyclable packaging. Paper-based packaging is significantly easier to recycle through existing recycling infrastructure, incentivizing businesses to replace plastics and avoid penalties.
The UN Global Plastics Treaty, which remains inconclusive, will aim to end plastic pollution by 2040 through a circular economy. In the EU, the Packaging and Packaging Waste Regulation (PPWR), which entered into force this month, requires all packaging to be recyclable or reusable economically by 2030, and imposes restrictions on some single-use plastics.
Global consumers recognize paper-based packaging’s environmental credentials. According to Innova’s survey, 41% of global consumers say paper has “excellent” recyclability, and a further 33% rate it as “good.”
Aiyar comments: “More and more businesses will embrace paper-based packaging to mitigate EPR costs and entice increasingly eco-conscious consumers.”
“Innovation in paper-based packaging will continue to advance as new regulations create a bedrock for product development and investment. Innovation in advanced barrier coatings will be crucial in extending paper-based packaging to more technically challenging applications, like fresh foods.”
Food delivery leaders are increasingly exploring plastic-free solutions. Notably, Uber Eats has invested in Releaf’s leaf-made paper bags as part of a new global sustainability initiative.
Monomaterial Movers
Plastic packaging remains dominant in numerous F&B categories, notably perishable foods, partly due to the material’s shelf life extension and hygiene qualities. According to Innova’s survey, food quality preservation and product safety remain the most common concerns for global consumers, slightly ahead of sustainability.
Nonetheless, more stringent regulations will require plastic packagers to improve their relatively poor recycling performance, paving the way for further innovation in monomaterial packaging this year. The EU PPWR, for instance, pushes for standardized recycled content, incentivizing manufacturers to develop simplified, single-material solutions for easier recycling.
What are your key reasons for not using environmentally sustainable packaging?
Aiyar explains: “Expect to see the further elimination of multilayer, multipolymer packaging in 2025 as flexible and rigid plastics convert to monolayer for improved recyclability. At the same time, regulation will encourage eradicating hard-to-recycle materials, like PVC and polystyrene.”
Brands using monomaterial solutions increasingly want to communicate their packaging choices to consumers. Innova’s product data indicates there was a seven-fold increase in on-pack monomaterial claims, which still remain niche, between 2023–2024.
At the recent Packaging Innovations trade show in the UK, Coveris showcased MonoFlex Thermoform — a food-grade monomaterial thermoforming film offering high puncture resistance and recyclability.
Aseptic carton producers will also continue developing simplified structures for improved circularity. Tetra Pak, for example, is exploring plant-based alternatives to the conventional aluminum layer used as an oxygen, light, and moisture barrier in its cartons. The packaging leader has already introduced a beverage carton with a paper-based barrier.
Natural Solutions
Renewable packaging solutions will gain market share this year, particularly in foodservice, as more consumers reject petrochemical plastics in favor of increasingly scalable bio-based alternatives. Innova’s survey found that only 5% of global consumers perceive bioplastics as “unsustainable,” while 27% think these materials are “excellent” for reducing carbon footprint.
The European Chemical Industry Council predicts bioplastics production will effectively match fossil-fuel-based plastics production by 2035.
This year, European Bioplastics expects global bioplastics production to grow by 29%. In 2024, Asia produced the most bioplastics (59%), while packaging (flexible and rigid) remained the largest market segment (53%).
The expansion of bio-based material production is evident on supermarket shelves. Innova’s product data suggests there has been a 60% growth in the use of bio-based packaging materials for inner or outer packaging between 2020–2024 (CAGR).
Aiyar says: “Biodegradables and compostables are obvious replacements for small format items, like fruit stickers. Bio-based inks and adhesives will also support waste reduction by improving packaging recyclability.”
“However, bioplastic packaging producers must demonstrate that their larger format products can be effectively recycled to achieve more substantial growth. The industry-backed ReBioCycle initiative will aim to demonstrate that this year.”
Bio-based barrier coatings remain a core innovation focus for packaging developers. Novel coatings, like Notpla’s seaweed-based solution, can enhance the recyclability and functionality of fiber-based packaging as producers mount an increasingly serious challenge to conventional plastics.
Which of the following reusability models would you prefer using for your F&B products?
Reusables Expansion
Reusable and refillable packaging models have tentatively emerged in some F&B, personal care, and home care categories but remain scarce compared to deeply ingrained single-use systems. However, more decisive regulatory action against throwaway packaging will incentivize businesses to embrace reusables this year.
The EU PPWR, for instance, will require takeaway businesses to accept reusable containers at no additional charge, and offer 10% of products for sale in reusable packaging. European regulators also want to reach 10% reusable beverage containers by 2030, increasing to 40% by 2040.
Danone revised its plastics vigilance plan this week to include a greater focus on reuse solutions after NGOs launched a lawsuit against the food giant for failing to comply with France’s Duty of Vigilance law regarding its plastic use.
Consumer appetite for reusable packaging continues to grow. According to Innova’s consumer survey, 31% of global consumers have increased their use of reusable packaging in the last year. Moreover, 39% say they are willing to pay more for reusable packaging, and 30% for refillable packaging.
The market researcher’s data also suggests there has been an 18% growth in reusable packaging claims in F&B launches globally between 2020–2024 (CAGR).
Aiyar notes: “Our research suggests that consumers are ready to embrace reusable packaging, but not at the expense of convenience, cost, or hygiene. Operators must alleviate these concerns to attract the general public to F&B reuse and refill systems. The growing enthusiasm for reusable metal or glass water bottles, or returnable mailers for fast fashion, shows there is consumer appetite for practical solutions.”
Tapping into the reusability and “paperization” trends, Nestlé’s Nescafé has introduced a paper refill pack for its Gold Blend coffee. The brand claims to use 97% less packaging than the previous 200 g glass jars.
The Innova Market Insights consumer survey was conducted in Brazil, Canada, China, France, Germany, India, Indonesia, Spain, Mexico, the UK and the US.
