Circular Packaging: Definition, Benefits, and Strategies

Circular packaging is a key priority in ongoing global work toward a more sustainable economy. By rethinking how packaging is designed, sourced, and disposed of more holistically, businesses can reduce their environmental impact and drive ESG progress. As recyclable and biodegradable packaging options become more widespread, businesses that embrace circularity will be well positioned in the emerging “circular economy.” 

In this article, we define circular packaging, explain its benefits for energy efficiency and waste reduction, and explore best practices for improving circularity in packaging design.

What Is Circular Packaging?

Circular packaging refers to solutions designed to systemically reduce the “virgin” (non-recycled) raw material consumption associated with manufacturing packaging. These solutions may include reducing manufacturing waste, incorporating recyclable materials, or employing biodegradable materials.

The “circular” concept is directly related to the broader goal of a “circular economy” where post-consumer materials are continuously recaptured to generate raw materials for new production. Because packaging is used in high volumes and often discarded after a single use, it is a high priority in the pursuit of a more circular and sustainable global economy.

Circular Packaging Examples

Different approaches can be used to achieve the end goal of more circular packaging. For example:

• More efficient packaging design can work to reduce the amount of raw materials needed to achieve the features and characteristics needed for consumer use in a given application.
• Packaging designed for safe and effective reuse can enable multiple use cycles before recycling is required.
• Biodegradable materials can allow for packaging to be recycled through natural processes.
• Incorporating more recycled materials can help both mitigate waste streams and reduce raw material needs for new manufacturing.

Due to this variety of approaches, examples of circular packaging range from fresh food containers made from recycled plastic to early-stage research materials made from mushrooms and algae. It is important to recognize that while some of these advanced technologies may sound like science fiction, circular packaging based on existing recycling technologies is already a proven solution for improving sustainability.

Circular Economy Packaging vs. Linear Packaging

Comparing circular packaging to traditional “linear” packaging can be helpful for differentiating this important sustainability concept.

• Design: While linear packaging design focuses only on features and cost, circular packaging design also works to reduce the amount of material used while ensuring that these materials are recyclable or sourced from recycled content to the greatest extent possible, given the end use case.

• Raw Materials: Traditional linear packaging sources newly manufactured raw materials like wood, metal, or plastic. While the recycled material employed in circular packaging may require some processing, the energy costs for recycled materials are generally much lower. In the case of plastic, for example, recycled material can reduce energy consumption by at least 79%.

• Material Qualities: In a linear process, materials and/or treatment processes are sourced based on the desired product characteristics. For circular packaging, recycled content can also be mixed with virgin materials as needed to achieve the desired characteristics.

• Waste: While linear packaging heads toward its endpoint — a landfill (or worse, an ocean or waterway) — circular packaging is ready to be reincorporated into new packaging (or other products) and restart the cycle as a raw material. It is important to note that packaging may be recycled either industrially (through reprocessing) or biologically, through the natural decomposition of biodegradable materials, which return their constituent nutrients to the ecosystem.

Circular packaging contributes to progress toward true “closed-loop recycling,” an ongoing manufacturing cycle that does not require additional raw material inputs. 

The Emerging Plastic Circular Economy for Food Packaging

A variety of the most commonly used plastics are readily recyclable, which makes plastic packaging a great example of the emerging circular economy in action. In addition to reducing the energy consumption from manufacturing virgin plastic resins, recycled materials help reduce the consumption of the fossil fuels used as the raw material for plastic production — ultimately driving greenhouse gas savings as high as 70%.

For plastic packaging, it all starts with post-consumer regrind (PCR) plastic, plastic material reprocessed and ground into a polymer resin pellet that can be used in thermoforming and other plastic manufacturing processes just like virgin material. Recycled plastics are so broadly used because they offer most of the same attractive qualities as virgin plastics. For example, a range of PCR plastics are approved by the FDA for food-safe use. 

We take a deeper look at the recycling process for one of the most widely used recycled plastic materials, rPET here. 

While there is a long way to go toward achieving complete circularity, evidence suggests that a robust circular economy for recycled plastics is already emerging; over 5 billion pounds of plastic were recycled in North America in 2022.

The Business Case for the Plastic Circular Economy

Food sellers can benefit from embracing the accelerating transition to circular packaging. First, consumers are expressing a growing preference for sustainable packaging, and circular packaging design will be increasingly important for gaining a competitive edge by standing out on store shelves. Second, regulatory pressure for improved sustainability will only grow, and circular packaging is a great way to make tangible strides toward both internal ESG goals and external sustainability standards.

The imperative to reduce waste, energy consumption, and carbon footprint will remain strong for the foreseeable future, and businesses can benefit from moving now to establish leadership in both sustainable package design and brand perception.

Sustainable Design Strategies for More Circular Food Packaging

As you embark on the journey toward implementing more circular food packaging, the following strategies can help:

1. Start by identifying critical features for the end user, such as microwavability, material clarity, and/or shelf life.
2. Based on these features, work with your packaging vendor to pinpoint the right mix of recycled materials to achieve the desired characteristics.
3. If necessary, develop a custom packaging design tailored to achieve the right balance of cost, capability, sustainability, and aesthetic appeal.
4. Implement best practices for educating consumers on reuse, recycling, and selecting more circular products and packaging.

If you are just getting started identifying the right strategy for improving circularity in packaging design, Lacerta is here to help. We are dedicated to a more sustainable future, including a commitment to full-circle sustainability from material sourcing, to manufacturing, to the product’s end-of-life. Now, our ReCERTA™ PCR-blend material makes it easier than ever to source food packaging made using recycled content.