Paper Clips

Once viewed primarily as a shipping solution, corrugated packaging is increasingly recognized as a strategic component of modern supply chains. Driven by sustainability requirements, digital technologies and changing brand expectations, fibre-based packaging is gaining renewed importance across industries. From recycling to circular innovation Corrugated packaging’s environmental credentials have long been well established. It is recyclable, renewable and often produced with a high proportion of recycled fibres. By combining established materials with advanced manufacturing and digital technologies, the corrugated packaging sector continues to demonstrate that sustainability and innovation can progress together—well beyond the box.

Extended producer responsibility continues to dominate packaging policy discussions. While major changes to policy trends might be hard to spot year to year, industry groups see opportunities to take some lessons from the earliest examples of EPR implementation in the U.S. to further inform legislative discussions this year. Last year saw the adoption of EPR bills in Maryland and Washington, each of which called for producers to ultimately reimburse 90% of recycling costs, following a similar approach in Minnesota the prior year. In 2026, much attention on state EPR activity centers on the Northeast, including ongoing discussions in New Jersey, Rhode Island and New York.

AMERIPEN, the American Institute for Packaging and the Environment, has launched the new Power of Packaging website. This interactive, complimentary online platform serves as a broader, public audience to complement the organization’s industry advocacy. It does so by addressing all stakeholders across the entire packaging value chain — including consumers. Content includes real-world examples and insights from across the packaging value chain. The website aims to expand public understanding of the value of packaging.  Visit the Power of Packaging website at https://powerofpackaging.org/ to see how these features advance AMERIPEN’s — and the packaging industry’s — progress in resolving critical challenges.

International Paper announced Thursday it plans to split into two independent, publicly traded companies based on geography, following its acquisition of U.K.-based DS Smith in January 2025. Going forward, IP would be comprised of the current North American business, which includes legacy assets from both IP and DS Smith. The Europe, Middle East and Africa business would include legacy assets from both companies in that region. IP’s current EMEA business operates in 30 countries across the region. IP expects to complete the spinoff in the next 12 to 15 months, pending board and regulatory approvals in both the United States and United Kingdom.

Fortune names Smurfit Westrock as one of the world’s most admired companies The prestigious corporate reputation ranking considers several criteria including investment value, quality of management, products, social responsibility and ability to attract talent. Companies also must have revenue greater than $10bn to be included. Tony Smurfit, Smurfit Westrock President and Chief Executive Officer, said: “We’re honored to be included on the Fortune World’s Most Admired Companies list. This recognition is testament to the skills, talent and dedication of the people at Smurfit Westrock that I’m privileged to work with.” The latest accolade follows on from Smurfit Westrock being recognized both as one of Forbes’ Global 2000 most successful companies and one of TIME Magazine’s World’s Best Companies in 2025.

Analysts expected at least one increase this year as operating rates rise following a 10% capacity pullback in North America. Cascades also announced an increase for corrugating medium in December. The containerboard sector had a rough ride in 2025, with demand decreases playing into closures that resulted in an approximately 10% loss of North American production capacity. The last of those closures is set for next month, and the full impact to the industry should be realized at that time. Already in the past couple months, the capacity cuts have resulted in producers’ operating rates ticking up into the low 90s, with multiple analysts projecting mid-90s this year. That fueled predictions for containerboard price hikes in 2026.

As a part of its long-term ambition to develop the world’s most sustainable food package2, Tetra Pak has introduced an innovative solution in its aseptic beverage cartons where the traditional aluminium foil layer is replaced with a new paper-based barrier. This innovation increases the paper content in beverage cartons to approximately 80% and, when combined with plant-based polymers, increases the traceable renewable content of a carton up to 92% – cutting the carbon footprint by up to 43%1. By simplifying the material structure from three to two main materials: paper and polymers, further benefits are anticipated for recycling infrastructure. These include maximising the recovery of paper content during the recycling process of carton packages and delivering high-quality fibre and non-fibre fractions. To accelerate the development of this innovative aseptic packaging material, Tetra Pak is investing €60 million in a new paper-based barrier pilot plant in Lund, Sweden. This facility will also provide its customers with valuable insights into the new solution across the entire manufacturing journey – from barrier creation to packaging material and filled package production.

Smurfit Westrock has once again demonstrated its leadership in paper-based packaging by picking up 15 WorldStar awards. Stand-out solutions amongst this year’s trail-blazing haul included an eye-catching point-of-sale protein pack, whisky packaging which created a delightful unboxing experience and a cleverly designed pack for interlocking 10-litre bottles. One winning packaging solution, an innovative pack for an industrial washing machine, replaced expanded polystyrene (EPS) buffers with corrugated alternatives, eliminating 3.3 tonnes of plastic annually.  Another winner, which also replaced EPS in the packaging, enables solar panels to be transported upright leading to a 33% reduction in CO2 emissions. Commenting on Smurfit Westrock’s success, Saverio Mayer, CEO of Smurfit Westrock EMEA & APAC, said: “The WorldStar awards celebrate the best of what our industry has to offer, so to win so many is both an honour and a privilege. At Smurfit Westrock we have a relentless commitment to making industry-leading packaging that out-performs for our customers.”

To buy or not to buy other companies’ assets: That is the question for packaging executives in 2026. Commentary from company executives at the end of 2025 suggested muted outlooks for M&A activity in 2026 compared with previous years. “Sentiment after Q3 was fairly tepid” for 2026, said Cael Pulitzer, managing director who leads the packaging investment banking practice at Brown Gibbons Lang & Co. Activity could be more concentrated in certain adjacent sectors with tailwinds — such as with distribution services and packaging machinery — as opposed to packaging converters, he said. But analysts don’t expect a wholesale pullback in M&A activity this year. They anticipate the pace of packaging mergers and acquisitions will at least hold steady, or more likely pick up a bit in 2026.

The Biodegradable Products Institute is focusing on bringing more clarity to compostable packaging’s future in California, dually advocating for rulemaking at USDA as well as new state legislation. At a meeting last week, the U.S. Department of Agriculture’s National Organic Standards Board recommended against unanimously against adding synthetic compostable materials as compost feedstocks to the National List of Allowed and Prohibited Substances. How the board got to that vote was a multi-year process. USDA determinations on what’s allowed in organic compost would hold notable weight in California. Under California’s 2021 compostables law AB 1201, products labeled “compostable” would have to be an allowable agricultural organic input under the requirements of USDA’s National Organic Program.

Huhtamaki is raising its climate ambition and adopting more rigorous short-term emission reduction targets. The updated Scope 1 and 2 targets are aligned with the Paris Agreement goal of limiting global warming to 1.5°C. By 2030, the company aims to reduce Scope 1 and 2* GHG emissions by over 50% and Scope 3 emissions** by 25% compared to 2022 levels. The Science Based Targets initiative (SBTi) has approved Huhtamaki’s near-term science-based emissions reduction targets. In addition, Huhtamaki has committed to setting long-term emissions reduction targets with the SBTi, in line with reaching net-zero by 2050.

The Russian government has seized control of assets in that country owned by Canpack, a metal canmaker with corporate offices in Wayne, Pennsylvania, and Krakow, Poland. Canpack’s operations have been put under “temporary external administration by Presidential Decree,” according to a company news release. Canpack said in the release that it doesn’t understand the government’s action because it has operated in Russia for 30 years in adherence with all regulations, and it has provided jobs for more than 500 Russian employees. A wave of global companies discontinued operations in Russia following the latter country waging its ongoing war on Ukraine starting in 2022. Packaging manufacturers that exited Russia include Amcor, Ball and International Paper.

en percent might not seem like a lot in certain contexts, but it’s notable when describing the loss of North American containerboard production capacity in 2025. On the heels of that extraordinary pullback, analysts project a more positive 2026 for containerboard, although they have different opinions on the likelihood of a bona fide recovery. Overall, analysts expect containerboard demand at the beginning of 2026 to remain in the depressed state where it ended 2025, with some incremental improvements throughout the year. Analysts expect the halt to falling demand will translate to fewer production capacity cuts. The “historic” 10% pullback in 2025 resulted in the “largest annual downward adjustment the sector has seen,” according to a Fastmarkets RISI analysis released last year. As such, it would be difficult for the containerboard sector to match that level of single-year loss again in 2026, although a few closures of older, less efficient facilities or production lines are still likely, analysts say.

In the category of “Why Didn’t They Think of This Sooner,” the Heinz Dipper fry box for foodservice has restored my faith in packaging design as a bringer of delight. The new foodservice fry container uses a flap that pulls out to create a small storage area for ketchup, Heinz Ketchup if you please, or other condiment. Starting January 13, the Heinz Dipper is currently in trial in 11 countries, including six US cities, at participating restaurants and sports stadiums. According to the Heinz press release, the trial will run while supplies last.

The U.S. Department of Agriculture’s National Organic Standards Board on Tuesday voted unanimously against adding synthetic compostable materials as compost feedstocks to the National List of Allowed and Prohibited Substances. That list in part stipulates which substances can be used in organic crops or processed organic products. The board determined that the broad classes of materials it was evaluating did not meet necessity, environmental and human health, and sustainable agriculture criteria for the National List. But going forward, the group said it’s open to evaluating individual substances, as some showed potential to meet those criteria. It would also consider allowing broader classes of substances with more restricted use patterns, such as for fruit stickers or collection bags. Many composters are screening out compostable polymers altogether, Lewis said, to avoid contamination from other plastic lookalikes diverted by confused consumers. “We are not hearing them asking for more compostable polymers. We are hearing them ask for less contamination in the food waste they accept,” said Lewis, the vice chair of NOSB’s crops subcommittee. NOSB’s decisions on what’s allowed in organic compost hold particular weight in California. Under a 2021 law aimed at tightening “compostable” labeling, the item would have to be an allowable agricultural organic input, as defined by NOP. That requirement was set to take effect Jan. 1 of this year, but CalRecycle granted an extension to June 30, 2027.

Consumer packaging has long been a minefield of greenwashed sustainability claims plagued by recycling pitfalls that vary from state to state. A new bill introduced by Congressman Randy Weber (TX-14) is poised to harmonize the issues by creating a consistent federal framework under the Federal Trade Commission (FTC) with the overarching goal of an improved circular economy. The aptly named Packaging and Claims Knowledge (PACK) Act of 2025 specifically targets unverified claims like “recyclable,” “compostable,” and “reusable” claims that appear on consumer packaging, which, in combination with the pothole-laden state of recycling and composting infrastructure, makes it hard to know what can actually be recycled. The PACK Act was introduced in December. Rep. Weber said it’s been referred to the House Energy and Commerce Committee, where he serves as a member. “While the legislative process takes time, my office is actively engaged in moving this bill through committee and advancing it through Congress,” he commented. “We are committed to moving this pro-consumer, pro-commerce legislation to the President’s desk.”

The UK Department for Environment, Food & Rural Affairs (Defra) has published new fee proposals for the second year (2026/2027) of extended producer responsibility (EPR) for packaging. For the first time, the plans include modulated fees (green, amber, red), which are linked to the recyclability of packaging and are based on the Recyclability Assessment Methodology (RAM). Defra cautions that the currently published fees are preliminary; the final fees are to be set in June 2026, taking into account the data that obligated companies must submit by 1 April 2026. Click on the link to see the fee schedule ranging from $225 to $540 per metric ton. Depending on material.

Although many companies have publicly toned down their sustainability messaging, they’re still investing in sustainability initiatives — especially for packaging — according to a report that Bain & Co. released Thursday. Losing momentum on sustainability would be “a serious strategic miscalculation” for paper and packaging, especially as regulation is “now shaping economics at scale,” it says. Despite curbing some external messaging, numerous businesses are still prioritizing sustainability behind the scenes. Sustainability also is a leading purchasing criterion for packaging customers, with 59% of the 125 respondents to a 2025 survey saying they would switch suppliers within three years if their sustainability metrics weren’t being met.

SupplyOne announced that it has acquired Wertheimer Box, a Chicago-area corrugated packaging provider known for custom shipping boxes, branded packaging, e-commerce mailers, and specialty retail displays. Founded in 1939 by Ernest Wertheimer, Wertheimer Box is located in a modern, 303,000-square-foot facility in McCook, Illinois, a near southwest suburb of Chicago. The company makes and ships stock and custom corrugated shipping boxes, point of purchase displays, and custom branded boxes across the United States.

Do you remember the first time you heard the term “circular economy”? While it’s been around since the 1990s, Packaging Digest first started reporting on it in 2014, which really isn’t that long ago. Even now, sustainability experts are still trying to fully understand it (think zero waste) and its impact on packaging decisions. Well, think harder. Delivering packaging ideas that support a circular economy will take priority in 2026, says Lauren Ryder, Mintel’s Global Packaging Analyst. Briefly, her predictions for the New Year: • Brands will focus on creating a circular economy for packaging. • Americans will learn from European packaging waste regulations, as the US emphasizes Extended Producer Responsibility (EPR). • We’ll need more transparency and consumer education about recycling and circularity. Her advice for packaging professionals? • Collaborate across the industry to develop strategies for the circular economy. • Establish backup suppliers and contingency plans. • Stay connected within the industry through trade shows and networking. • Remain flexible and knowledgeable about industry players.

The votes are in, and the packaging industry has spoken. The 2025 Readers’ Choice for Best Package of the Year goes to Kind Snacks, a Mars subsidiary, for its retail pilot to test a recyclable paper wrapper for snack bars. The design has captivated professionals and consumers alike with its innovative functionality and sustainability. This standout package has earned its place as the top choice among Packaging Digest readers, solidifying its status as a benchmark for excellence in the industry.

Green Bay Packaging has launched construction on its $1 billion Project PowerPack at the Arkansas Kraft Division in Morrilton, marking the largest capital investment in Central Arkansas history. Project PowerPack focuses on a full renewal of the mill’s power and recovery systems, including upgraded recovery and biomass boilers and a new electric turbine generator designed to reduce Scope 1 and Scope 2 greenhouse gas emissions. These improvements are expected to enhance reliability and lower the mill’s carbon intensity per ton of output. Green Bay Packaging has also acquired 300 additional acres to support future development, with plans to add 35 new jobs to its existing workforce of more than 620 employees in Conway County. The project could ultimately more than double the mill’s production capacity.

Many stakeholders want to align aspects such as producer definitions and covered materials. But other areas must consider state individuality and await data from U.S. implementations, sources say. Organizations representing brand owners and packaging companies are calling for greater harmonization across extended producer responsibility laws and legislation, where proliferation has added layers of complexity to compliance. The spread of packaging EPR in the United States happened slowly — then very quickly. “It took years to get to the first two states” — Maine and Oregon — but then within a period of a few years, “it went from two states to seven states with enacted laws,” said Danielle Waterfield, Ameripen’s policy director.

Food companies should not take EPA’s latest risky move as permission to allow chemicals of concern in packaging. In November 2025, the US Environmental Protection Agency authorized the use of  pesticides containing cyclobutrifluram and isocycloseram, which are perfluoroalkyl or polyfluoroalkyl substances (PFAS). Confused and disheartened? You are not alone. The packaging sector works hard to eliminate many chemicals of concern that may migrate from packaging into food. Allowing the use of a “forever chemical” to grow food and contaminate waterways and land is mystifying.  It is easy to get bogged down in the debate on whether PFAS is defined as a single or double fluorinated carbon. This is because in 2023, the EPA classified PFAS as those chemicals containing two (not one) fluorinated carbons, even though the scientifically accepted definition of PFAS adopted by more than 24 states and the Organization for Economic Co-operation and Development (OECD) is for at least one.   In 2020, the US military banned the use of PFAS in packaging, while PFAS in infant formula packaging was outlawed in 2021. Long- and then short-chain PFAS were authorized for use by the FDA. Then, in January of 2025, the FDA ruled to abandoned the use of 35 food contact notifications (FCNs) pertaining to PFAS-containing food contact chemicals as grease-proofers applied to paper and paperboard food packaging. This followed a voluntary market phase-out of PFAS.  Now, 13 states have adopted, and nine states have introduced policies governing PFAS in packaging. These regulations limit PFAS from 0 to 100 parts per million. In California, any level of PFAS is “banned” because safe harbor limits do not exist for PFAS.

According to a new report from Fortune Business Insights, the global molded pulp packaging market size was valued at USD 5.44 billion in 2024 and is projected to grow from USD 5.78 billion in 2025 to USD 9.43 billion by 2032, exhibiting a CAGR of 6.30% during the forecast period. Asia Pacific dominated the global market with a share of 46.32% in 2024. Molded pulp packaging refers to eco-friendly packaging materials made primarily from recycled paper, cardboard, and other natural fibers. These materials are molded into various shapes to protect and cushion products during storage and transportation. Unlike plastic-based alternatives, molded pulp offers biodegradability and compostability, aligning with global sustainability goals. The packaging is widely used for food service items, electronics, healthcare products, and consumer goods due to its durability, cost-effectiveness, and recyclability. Leading manufacturers, such as Huhtamaki, UFP Technologies, Sonoco Products Company, Sabert Corporation, and Brodrene Hartmann A/S, are focusing on automation, capacity expansion, and material optimization to strengthen their market growth presence.

A total of 28.1 million tonnes of specialty papers will be consumed in 2025, according to Smithers, the global authority on the paper and packaging industries. Competing factors will push overall consumption to 31.3 million tonnes in 2030, equivalent to a compound annual growth rate (CAGR) of 2.1% for the next 5 years. Flexible packaging papers are increasingly important to the industry. Demand is rising fastest for machine-glazed papers, already around half of global sales. Sales will also be strong for coated (C1S) packaging papers over the forecast period; several machine rebuilds are set to be completed in the US, and new machines coming on stream in China. The replacement of plastic by paper in packaging requires the development of better functional and barrier coatings. Most companies active in this space are investing in new coating chemistries, advanced substrates, and innovative ways to apply the barrier material. In addition to the coatings, using nano-cellulose to enhance both substrates and coatings is increasingly common.

Peak season means a surge in order volume, rising shipping costs and tighter timelines. Limited labor and warehouse space further heighten the challenges. For many operations and supply chain leaders, efficiency, speed and accuracy dominate the agenda. Meanwhile sustainability goals often fall by the wayside. Yet this is precisely when packaging choices are most visible and impactful. During the 2024 holiday season, U.S. consumers spent a record $241.4 billiononline—an 8.7% increase from the prior year. At the same time, customer expectations for responsible packaging have never been higher: in one study, over 60% of consumers said they’d be willing to pay more for a product with sustainable packaging. And 77% of executives report that sustainability initiatives increase customer loyalty.  A key challenge, however, is that sustainability practices are often deprioritized amidst peak season demands. The solution is to embed sustainability into everyday operations, so it delivers value automatically. With the right approach, companies can cut waste, lower total cost of ownership (TCO) and strengthen brand loyalty—all without adding extra work when it matters most.

Graphic Packaging International announced late Monday it will undertake a series of changes in the coming weeks, including bringing in a new CEO and conducting layoffs in 2026. Mike Doss, president and CEO for 10 years, will depart as of Dec. 31, and Robbert Rietbroek will take over on Jan. 1, according to a securities filing. Doss will also leave his position on the company’s board at that time, and Rietbroek will join the board. GPI did not offer a reason for Doss’ departure. Separately, GPI announced that it will lay off an undisclosed number of employees in 2026 as part of a plan to cut costs by $60 million. Doss had alluded to the company examining cost-cutting opportunities during the company’s Q3 earnings call in November.

Cincinnati-based flexible packaging specialist ProAmpac agreed to acquire Chicago-based TC Transcontinental Packaging from parent company TC Transcontinental for approximately $1.51 billion, the companies announced Monday. ProAmpac says the acquisition will help it grow in dairy, meat, medical and pharmaceutical end markets, in addition to advancing the development of barrier films, monomaterial structures and fiber-based solutions. The deal is expected to close in the first quarter of 2026, subject to customary conditions.