2025 Midyear Reflections on Sustainability and Packaging

Posted By on Jul 28th 2025

2025 Midyear Reflections on Sustainability and Packaging

Saloni Doshi
by Saloni Doshi  • published July 29, 2025 • 7 min read
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From Purism to Pragmatism: Shift Towards Material Agnosticism and Tradeoff-Based Decision Making

In the early 2020s, "plastic-free" dominated the sustainable packaging conversation. But in 2025, the tide is shifting. Brands that once led the charge to eliminate plastics are revisiting decisions with a more nuanced lens. Why? Because the tradeoffs have become more evident and more acute.

A corrugated shipper may align with plastic-free goals but carries a higher carbon footprint, increased cost, and fulfillment complexity. Poly mailers often win on emissions and operational simplicity but face end-of-life scrutiny. Vela Bags and other paper-based alternatives offer brand-forward differentiation, but come with questions around functionality and customer presentation.

We’re seeing a shift towards material agnosticism: selecting the most eco-forward solution based on functional, aesthetic, environmental, and economic goals. For brands, this means having a framework to clarify top priorities and make informed, intentional tradeoffs. Sustainability cannot be achieved through silver bullet thinking or material selection alone.

a person is using a pos machine in a store

Source: Unsplash

2. In Uncertain, Emotional Times, Purpose-Led Brands Are Poised to Win Long-Term

It’s no secret that consumer spending has tightened in 2024 and 2025. Inflation, economic anxiety, and political polarization have pushed many shoppers to become more price-conscious than ever. However, within that landscape, a powerful counter-trend is emerging: Values-driven buyers are becoming more loyal and willing to pay.

According to a recent McKinsey study, 41% of U.S. consumers are willing to pay a little more for sustainable packaging. More importantly, 13% are willing to pay a lot more.

This small but mighty segment is growing in conviction. Purpose—led brands are a goldmine for revenue, loyalty, advocacy, and brand-building.

At EcoEnclose, we’ve seen this firsthand. Our customers who lead with a mission and talk openly about climate, equity, and transparency outperform.

Don’t chase everyone. Clarity of purpose is your edge in a noisy, divisive, and cost-conscious world. Focus on your base customers who care most and give them something worth caring about.

person holding cardboard box on table

Source: Unsplash

3. EPR Is Here. Today, It's Compliance. But It Needs to Be More

Extended Producer Responsibility (EPR) is no longer just an idea; it’s an active policy in the US.

Six states—California, Colorado, Oregon, Maine, Maryland, and New Jersey—have passed packaging EPR laws. For brands selling into Oregon, Colorado, and California, the compliance deadlines are already underway.

Right now, most brands are focused on:

  • Gathering packaging weights and materials

  • Submitting state-by-state reports

  • Meeting filing deadlines

This has taken tremendous effort, but it still feels like a spreadsheet exercise, not a sustainability strategy for most.

When Oregon sent out its first round of fee invoices earlier this year, many brands were surprised: The costs were lower than expected—in some cases, too low to drive real change.

While reporting is essential, and we want to see EPR set a strong baseline for minimum sustainable packaging expectations, EPR will only have a positive impact when it moves from compliance to incentivizing environmentally forward decision-making. In the EU and Canada, we’ve seen what’s possible when ambitious targets, meaningful penalties, and clear design guidance back EPR. That’s the version of EPR we should be building toward.

an open cardboard box sitting on top of a table

Source: Unsplash

4. Material Health Is Moving from Afterthought to Priority in Packaging Policy

For years, recyclability has dominated sustainable packaging conversations. But in 2025, a new mandate is emerging: material health—the safety and toxicity of the substances that make up packaging. Across the country, legislators are shifting their attention from “what can be recycled” to “what chemicals can be allowed in packaging at all.”

PFAS (per- and polyfluoroalkyl substances), long associated with grease-resistant coatings and water-repellent materials, were the early focus of material health legislation. Now, bills are expanding their scope to address a far wider array of chemicals. Vermont’s House Bill 601 (introduced in 2024) proposed banning a sweeping list of “chemicals of concern” in packaging, including: Ortho-phthalates, Bisphenols (including BPA), Oxo-degradable additives, Benzophenone and its derivatives, Antimony trioxide (used in PET plastics), Formaldehyde and perchlorate, and Chlorinated paraffins (short, medium, and long-chain).

California’s AB 1290 also signaled a powerful move, calling for greater transparency and regulation of chemical additives in consumer-facing packaging, even if those substances are considered safe under current federal guidelines.

Today’s packaging policies are expanding beyond recyclability, carbon, and compostability. They are beginning to ask: Is this material actually safe for humans and ecosystems?

Material health is becoming the next frontier of packaging regulation and brand leadership. Start asking what’s in your primary (product-touching) packaging, not just what happens after it’s used. Material safety is becoming table stakes for responsible, regulation-ready packaging.

red and black plastic crates

Source: Unsplash

5. Tariffs Rocked Q2. Geopolitics Is Now a Supply Chain Variable.

The second quarter of 2025 blindsided many brands with a sharp escalation in packaging-related tariffs, including new 25% duties on plastic bags and packaging components from China, Vietnam, and Thailand. What began as a policy whisper quickly became a sourcing crisis. Entire departments spent weeks scrambling to reroute supply chains, reprice SKUs, or rework packaging specs.

EcoEnclose supported dozens of customers in pivoting fast: reshoring poly mailers to U.S. manufacturing and strategically absorbing cost increases on top-tier SKUs while reengineering lower-margin items.

The bigger picture? Tariffs are not a rare political anomaly to wait out; they’re a structural risk to plan against. With the U.S. election season heating up and bipartisan appetite for China tariffs still strong, further trade actions are not just possible, they’re likely.

Key Actions for Brands:

  • Audit Tariff Exposure: Understand which components (especially plastic-based or overseas-manufactured items) carry elevated risk.

  • Diversify Origin Locations: Build redundancy into your supply chain — across geographies, materials, and manufacturing types.

  • Evaluate Domestic Options: Although U.S.-made packaging may not be cheaper, it offers advantages in lead time, tariff, and carbon.

  • Push for Transparency: Ensure suppliers are clear about country of origin and material classifications, so you're not caught off guard.

While Section 301 reviews and tariff extension proposals are ongoing, the current outlook suggests more volatility before stability. Brands that treat tariff resilience as a core procurement strategy, not a one-off fire drill, will be best positioned to adapt and lead.

American flag image

Source: Unsplash

6. While Plastic-Free July Felt Quieter This Year, The Consumer Perception vs. Impact Dilemma Persists

This year’s Plastic-Free July came with a drop in the typical number of inquiries and questions we receive. But while the movement’s visibility may be fading, consumer sentiment hasn’t changed. Plastic remains the villain in the court of public opinion. And most preference materials that are easily recyclable (like paper and aluminum) or reusable (like glass).

We recognize that LCA data tells a more complex story. In many cases, thin-gauge plastics have a lower carbon footprint and require less water and energy to produce than paper, glass, or aluminum.

But consumers aren’t reading LCAs. They’re reacting to visuals: ocean plastic, overstuffed landfills, and images of microplastics in their bodies. They are responding to the fact that they have to dispose of packaging and are, therefore, most concerned with its end-of-life options.

As a result, they feel better about paper and reusable glass. This disconnect puts brands in a tough spot. We help our brands navigate this tension. We bring LCA data, but can couple that data with clear information about the paper’s increased post-consumer waste and recyclability.

A person holding a bag of soil in a garden setting.

Source: Sway

7. From Novel to Normal: Circular Innovations Are Growing Up

Five years ago, seaweed mailers and mushroom foam sounded like science fair experiments. Today, they’re landing on national retailers' shelves and powering innovation-minded brands' packaging strategies.

At EcoEnclose, we’ve helped early adopters pilot and scale:

And it’s not just about materials. Circular systems are maturing, too:

  • Estée Lauder now offers elegant refillable pods for its high-end skincare lines.

  • Craft spirits and wine brands are embracing aluminum and glass refill systems, with companies like CLEAN RESERVE offering fragrances in refillable vessels and ecoSPIRITS pioneering closed-loop solutions for premium alcohol.

  • Grove Collaborative and BlueLand have normalized concentrated, refill-at-home cleaning products that cut plastic waste by over 90%

These innovations no longer feel niche. They are:

  • Operationally feasible – Compatible with high-volume fulfillment and shipping

  • Cost-competitive – Especially when factored across the product lifecycle

  • Consumer-loved – Enhancing brand perception and driving loyalty

Yes, scalability and infrastructure are still catching up. But the narrative has shifted. Novel is no longer fringe.

A bunch of parcels that highlights a custom reusable packaging bag.

Source: EcoEnclose

8. Mail-In Take-Back and Reuse Programs Are Scaling Fast

Circular logistics is here. From Ridwell’s mail-in hard-to-recycle kits to Trashie’s textile recovery program to Crocs’ take-back initiative, we’re seeing a growing wave of brands building systems for reuse, return, and recovery, especially for waste streams that aren’t accepted curbside.

These programs reflect a key shift: circularity isn’t just about materials. It’s about infrastructure.

At EcoEnclose, we’re proud to support this shift through our Kitting & Fulfillment services.

We help brands build ready-to-use return kits with:

Are these programs perfect? No. They don’t reduce resource consumption at the source nor necessarily guide brand action related to material and design choices.

But they do:

  • Provide a real, actionable pathway for hard-to-recycle items

  • Engage customers as active participants in circularity

  • Create differentiated brand experiences that build loyalty and trust

More importantly, they’re a gateway: a signal that brands are willing to invest in systems rather than just claims.

People interacting in a warehouse filled with boxes and colorful materials.

Source: Marie Davison

9. Reframe the Language. Rebuild the Community.

Terms like “net zero,” “plastic-free,” and “zero waste” were created to drive change. But they’re starting to backfire. For many, these phrases feel polarizing, overly technical, or out of reach. Instead of inspiring action, they can stall it.

It’s time to shift how we talk about sustainability:

  • Resilience over perfection

  • Health and safety over recyclability

  • Progress over purity

  • Wildlife protection, climate stability, and human well-being as shared, unifying outcomes

As Annie Agle powerfully said in a recent post, which she expanded upon in our June fireside chat, “Future generations depend on our field’s success; we cannot afford to be so selective in terms of audience.” Her words are a call to action: if we want impact, we need a broader appeal. That starts with more inclusive, relatable, and emotionally resonant language.

But it’s not just language. It’s a community. Today’s exciting innovations, such as algae ink, seaweed-based packaging, refill and reuse infrastructure, were made possible by collaboration across brands, scientists, policymakers, and suppliers.

At EcoEnclose, we’re proud to be connectors and co-creators. Because when we expand our language and build a more open community, we multiply our momentum and bring a regenerative future closer to reality.


Top Image Source: Marie Davison


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