How AI Is Starting to Transform Circular Packaging

AI can accelerate circularity in packaging—improving recyclability, access to recycled content, and innovation in sustainable materials. Yet adoption is still early. In our recent interviews, all value chain stakeholders reported considering AI in their packaging strategies, but fewer than one-third have moved beyond consideration to pilots or implementation.

There’s plenty of opportunity to make progress deploying the 15 high-potential use cases mapped below.

What’s getting in the way—and how to unblock it

Executives point to data fragmentation (70%), change management (60%), and required investment (55%) as the top barriers to AI deployment. But a vibrant ecosystem of start-ups and tech providers is emerging, capable of helping consumer packaged goods companies, retailers, and converters scale their AI experiments.

Live deployments are already delivering measurable outcomes:

• Generative new design: Packaging development time reduced from 18–24 months to roughly 100 days
• Packaging design optimization: 7% reduction in shipping costs after redesigning packaging for shipment
• Material discovery: Faster processes and shorter development cycles reduced R&D costs by approximately 25%
• Automated compliance, audit, and reporting: Administrative workload reduced by 50%
• Supplier scoring and selection: 15% lower procurement costs with AI-enabled supplier evaluation

AI in packaging is past the starting line but far from finished. Most teams are deploying a handful of use cases today, leaving plenty of unexplored white space. Leaders who tackle the barriers and start testing new use cases will convert potential into measurable circularity and business impact.

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Exploring AI for Packaging Circularity

AI is already creating value across the packaging lifecycle, from optimising design and reducing material use to improving sorting and traceability.