The Consumer Goods Forum’s (CGF) Plastic Waste Coalition of Action has published new research examining the barriers companies face in achieving packaging circularity and the role artificial intelligence (AI) can play in accelerating progress at scale.
Based on interviews with CGF member companies, alongside market analysis and case studies, the research finds that 30% of businesses are already using AI across the packaging lifecycle. Current applications range from reducing material use at the design stage to improving sorting quality. Around 70% of companies surveyed identified packaging design as the area where AI could have the greatest impact, while 40% said AI could help identify where and why material losses occur.
The report, Exploring AI for Packaging Circularity, was developed in collaboration with Bain & Company. It highlights five key challenges slowing the scale-up of circular packaging solutions: technical limitations on new materials, ensuring packaging is both recyclable and recycled, access to recycled content, establishing refillable and reusable systems, and keeping pace with evolving regulations, data requirements and reporting obligations.
The research also underscores the importance of collaboration between brands, retailers, solution providers and technology experts. It identifies 15 high-impact AI solutions that could support circular packaging, with four use cases emerging as the most advanced and actionable: packaging design optimisation, generative design, advanced sorting and material traceability. These applications are already delivering measurable benefits, including lower material use, improved recyclability, stronger data transparency and increased operational efficiency.
The findings come as regulatory scrutiny of packaging intensifies globally, increasing complexity for companies navigating material innovation, recyclability trade-offs, data gaps and supply constraints. Decisions made early in the packaging value chain, the report notes, can lock in environmental and cost impacts for years.
Cedric Dever, Managing Director of the Plastic Waste Coalition at the The Consumer Goods Forum, said the research provides a practical view of how AI can support progress. “Packaging circularity requires a step change, and AI can be a powerful tool to help unlock it. This paper shows where AI is already delivering value today and where collaboration across the value chain will be critical to scale solutions that can truly move the needle,” he said.
Magali Deryckere, Partner at Bain & Company, said AI is particularly well suited to complex challenges such as packaging circularity. “Packaging decisions involve trade-offs across recyclability, convenience, carbon performance, safety and multiple stakeholder needs. For challenges of this complexity, AI can significantly accelerate the path to viable solutions,” she said.
The paper was supported by members of the Plastic Waste Coalition of Action, reflecting a shared commitment to identifying scalable, innovative approaches to circular packaging. Mario Abreu, Chief Sustainability Officer at Ferrero and Co-Chair of the Coalition, said AI should be seen as an enabler rather than a standalone solution. “AI will not solve packaging circularity on its own, but used in the right way, it can significantly accelerate progress. This paper helps demystify where to start and how industry players can work together to turn potential into impact,” he said.
