Drawing on expert interviews with CGF members, alongside market analysis and case studies, the research shows that 30% of businesses are already using AI to unlock value across the packaging lifecycle, from reducing material use at the design stage to improving sorting quality. The design of plastic products is where AI can have the biggest impact, according to 70% of companies, while 40% noted that AI could help map where and why material loss occurs.
Titled Exploring AI for Packaging Circularity, the report was developed in collaboration with Bain & Company. Building on case study data, the research reveals the five main ‘pain points’ preventing businesses from accelerating the scale up of circular packaging solutions:
- Overcoming technical limitations on new packaging materials
- Making the packaging portfolio recyclable, and actually recycled
- Incorporating and getting access to more recycled content
- Setting up refillable and reusable packaging systems
- Staying up to date with regulations, getting accurate data and developing required reporting
Emphasising the importance of partnerships between brands, retailers, solution providers and tech experts, the report sets out 15 of the most impactful AI solutions to support circular packaging. Among these, four use cases stand out as the most advanced and actionable:
- Packaging design optimisation
- Generative new design
- Advanced sorting
- Material traceability
These solutions are already demonstrating tangible benefits, including reduced material use, improved recyclability, enhanced data transparency and greater operational efficiency.
As regulatory expectations on packaging continue to rise globally, companies are facing increasing complexity, from material innovation and recyclability trade-offs to data gaps, reporting burdens and supply constraints. At the same time, packaging decisions made early in the value chain can lock in environmental and cost impacts for years.
Cedric Dever, Managing Director, Plastic Waste Coalition, The Consumer Goods Forum, said:
“Packaging circularity requires a step change, and AI can be a powerful tool to help unlock it. This paper provides a practical, industry-informed view of 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.”
Magali Deryckere, Partner at Bain & Company said:
“AI has proven its ability to drive efficiency and innovation across industries. Packaging circularity is uniquely intricate, requiring trade-offs across recyclability, convenience, carbon performance, safety, and multiple stakeholder needs. For challenges with this level of complexity, AI can significantly accelerate the path to viable solutions.”
The paper has been supported by members of the Plastic Waste Coalition of Action, reflecting a shared commitment to exploring innovative, scalable solutions that support the transition to a circular economy for packaging.
Mario Abreu, Chief Sustainability Officer, Ferrero and Co-Chair of the Plastic Waste Coalition of Action added:
“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.”
The Exploring AI for Packaging Circularity paper is intended as a practical resource for CGF members and the wider industry, supporting companies in identifying relevant AI use cases, prioritising action and engaging with the right partners to advance packaging circularity.