Cutting Down Plastics in Packaging, Sustainable Solutions for Procurement.
In 2025, sustainability is no longer a nice-to-have but a must-have, especially in procurement. One of the key areas where companies are driving sustainability is through reducing plastic use in packaging. This change is not just about protecting the environment—it also impacts the bottom line, customer satisfaction, and brand reputation. From global retail giants to innovative startups, businesses are adopting sustainable practices, driven by consumer demand and regulatory pressure. Here, we explore companies that are leading the charge in reducing plastics and how these changes are affecting their procurement strategies.
Why the Shift to Sustainable Packaging?
Packaging waste, particularly plastic, is one of the largest contributors to global pollution. According to the Ellen MacArthur Foundation, by 2050, there could be more plastic than fish in the ocean. Governments worldwide have started implementing strict regulations on plastic use, further pushing companies to act. Additionally, studies show that consumers are more likely to support brands that align with their values—especially regarding sustainability.
Companies Leading the Change
Unilever Unilever has set a bold commitment to halve the use of virgin plastic in its packaging by 2025. They have already started integrating more recycled plastics into their products, with brands like Dove, Knorr, and Hellmann’s leading the charge. Unilever is also experimenting with alternative materials, such as reusable aluminium bottles and plant-based packaging.
Impact: Since adopting this strategy, Unilever has seen significant savings in procurement, reducing raw material costs while also boosting brand loyalty. The company's initiative has improved their sustainability ranking, making them more attractive to investors focused on Environmental, Social, and Governance (ESG) criteria.
Coca-Cola Coca-Cola has faced criticism in the past for being one of the world’s largest plastic polluters, but the company is now making strides to reduce plastic waste. Their "World Without Waste" initiative aims to collect and recycle every bottle they sell by 2030. They are also experimenting with 100% recycled plastic bottles in several markets.
Impact: The move towards recycled materials has streamlined Coca-Cola's procurement processes by reducing the reliance on virgin plastic, which is becoming increasingly expensive. The company has also partnered with local recycling initiatives, which has allowed them to cut logistics costs and create a more localized, circular supply chain.
IKEA IKEA is another leader in sustainable procurement, committing to phase out all plastic packaging by 2028. The company has already introduced alternatives such as biodegradable mushroom-based packaging and corrugated cardboard.
Impact: By shifting to these sustainable alternatives, IKEA has reduced transportation costs due to lighter packaging materials. The company’s procurement strategy now prioritizes suppliers who offer sustainable materials, reinforcing their commitment to the environment and aligning with their overall corporate social responsibility goals.
Loop Industries This startup is revolutionizing the plastic packaging industry by developing a proprietary technology that transforms waste plastic into high-quality PET plastic suitable for food packaging. Big brands like PepsiCo and L'Oréal have partnered with Loop to integrate recycled plastic into their supply chains.
Impact: Loop’s innovations have allowed their partner companies to reduce their environmental impact and procurement costs. By using recycled materials, companies are mitigating risks associated with volatile raw material prices and ensuring compliance with upcoming regulations.
The Role of Procurement in Driving Change
Sustainability starts with procurement. Many companies are now adopting a circular procurement model, which focuses on minimizing waste throughout the supply chain. Procurement leaders are shifting their focus to:
Material innovation: Sourcing packaging materials that are biodegradable or recyclable, reducing the need for virgin plastic.
Supplier collaboration: Building relationships with suppliers who prioritize sustainability, ensuring long-term partnerships that align with the company’s environmental goals.
Lifecycle analysis: Evaluating the entire lifecycle of packaging materials to identify opportunities for waste reduction, from production to disposal.
Technology in Reducing Plastic Waste
Advancements in technology are also playing a critical role in this transformation. AI and blockchain are helping companies optimize their procurement processes by offering better visibility into the supply chain and enhancing traceability. This ensures that companies can verify the sustainability claims of their suppliers and make data-driven decisions.
For instance, blockchain technology enables companies to track every step of the product lifecycle, ensuring that the materials used are sourced ethically and sustainably. Companies like Nestlé and Unilever are already investing heavily in such technologies to further their sustainability agendas.
The Financial Benefits of Cutting Down Plastic
The shift towards sustainable packaging isn’t just good for the planet—it’s also good for the bottom line. According to a McKinsey report, companies that prioritize sustainability outperform their peers financially. Reducing reliance on plastic can lower procurement costs, as the price of virgin plastic continues to rise due to resource scarcity and regulatory pressures.
Moreover, companies that adopt sustainable practices often see a boost in brand loyalty, allowing them to charge premium prices. Studies have shown that consumers are willing to pay more for products that are packaged sustainably, making this a profitable area for procurement innovation.
Cutting down plastics in packaging is no longer just a trend—it’s an essential part of future-proofing procurement strategies. Companies like Unilever, Coca-Cola, and IKEA are setting the standard by integrating sustainable materials into their supply chains, reducing waste, and optimizing procurement practices. As regulations tighten and consumer demand for eco-friendly products grows, adopting sustainable solutions in packaging will be crucial for maintaining competitive advantage and securing long-term profitability.