Innovation in materials and packaging design has continued to shape the sector in early 2026.
Researchers at Aimplas have been working with five species of microalgae, including Spirulina and Nannochloropsis, to develop bio-based packaging solutions, natural colourings, and protein-rich ingredients for food and feed.
These initiatives aim to combine sustainability with performance, while also testing market acceptance and technical feasibility across Europe.
Meanwhile, Peak Nano reported progress in developing biodegradable nanolayer films intended as alternatives to traditional plastics in food packaging.
The films are designed to deliver the same barrier and protective qualities as conventional materials but can decompose under industrial composting conditions, supporting circularity and reducing environmental impact.
Recycling infrastructure also expanded across Europe and North America in February. Provider of packaging, components and insulation solutions, BEWI, opened Norway’s first extended polystyrene recycling facility at its Fredrikstad site, capable of processing 3,500 tonnes of material annually into raw components for insulation and packaging products.
The facility allows the company to reuse collected material directly in production, supporting circular packaging and compliance with regulatory targets.
Collection access
At the same time, PP cups used for cold drinks in the US received a Widely Recyclable designation from How2Recycle, extending collection access to more than 60 per cent of households. This recognition reflects joint efforts with partners such as Starbucks, The Recycling Partnership, and WM to enhance recycling capacity and consumer guidance.
Researchers at Newcastle University in England have also been busy developing a reversible glue suitable for labels and laminates, allowing materials to be separated on demand and streamlining recycling processes.
The water-based emulsion works on both PP and PE, maintains strength in humid environments, and has a shelf-life of at least a year, providing a practical solution for packaging manufacturers seeking improved recyclability.
Highlighting ongoing challenges in the recycling sector, Tomra Recycling announced a reduction of 175 jobs amid weaker market demand.
The cost reduction programme is expected to deliver annual savings of €16 million ($18.9m), following a 27 per cent drop in fourth-quarter revenue compared with the previous year.
Consumer behaviour has also underlined the growing market for recycled content. A survey by Amcor across six major European countries found that 76 per cent of shoppers have knowingly purchased products packaged with post-consumer recycled plastics.
Nearly four in five respondents viewed recycled content as an effective way to reduce environmental impact, and most expressed a desire for independent certification and clear recycled content labels.
Such attitudes appear to be reinforcing the business case for packaging makers to integrate recycled materials while providing transparent consumer communications.
Alignment in Germany
Regulatory developments, of course, also continue to shape packaging practices. Germany has made efforts to align its Packaging Act with the forthcoming EU Packaging and Packaging Waste Regulation, requiring higher recycled content in packaging and strengthened Extended Producer Responsibility obligations.
And, in Africa, Ethiopia has introduced a nationwide ban on single-use plastics bags into force, imposing strict fines and prison sentences for non-compliance while also establishing obligations for producers to finance collection and recycling systems.
Decarbonisation and industrial resilience have remained a priority for major producers. Ineos received a €300m ($354m) grant from the French government to upgrade its Lavera cracker plant, aiming to cut carbon dioxide emissions by 331,000t annually.
The investment will introduce proven energy-efficient technologies, support more sustainable feedstocks, and help secure around 2,000 direct jobs along with thousands in the wider supply chain.
Daicel, by contrast, postponed the start-up of its new cyclic olefin copolymer plant in Leuna, Germany, citing weaker sales and rising construction and labour costs. The 25,000t facility, intended to complement its Oberhausen plant, is now expected to commence operations in early 2027. The delay highlights the challenges of balancing investment plans with volatile market conditions.
Strategic growth
Corporate activity, however, reinforced sector capabilities and strategic growth. Inteplast acquired STA, a Tennessee-based coatings and adhesive tape producer, broadening the company’s BOPP Films division into custom coatings.
And Zeus Packaging expanded its European and US reach by acquiring Koex Packaging Solutions, strengthening logistics, production, and design capabilities for foodservice and retail clients.
Investment in new facilities has also continued, with Georg Utz announcing a $40m plant in Sumter, South Carolina, producing rigid returnable plastics packaging with operations expected to start in 2028.
The facility will create 50 jobs and enhance service delivery for clients including Airbus, Audi, and Walmart, while benefiting from local infrastructure upgrades supported by county grants.
The packaging sector has also been strengthened by financial restructuring in the past month, with Klöckner Pentaplast successfully emerging from US Chapter 11 bankruptcy. This eliminated €1.3 billion ($1.53bn) of funded debt, while it also secured €349m ($412m) in new capital.
The group, operating 27 plants across 16 countries, believes it is now well-positioned to maintain operations and support its global customer base, including the pharmaceutical, medical device, and food sectors.
