Championing Collaboration: A Leadership Imperative for Business Success
By Nick Colisto - Mar 11, 2025
April 3, 2025
President, Avery Dennison Materials Group
Originally featured on LinkedIn
Recent research into the ways sustainable pressure-sensitive labels unlock opportunities for circularity showed that nearly all global consumer packaged goods (CPG) brands are aiming for 100% recyclable, reusable and compostable packaging by 2030.
Achieving this goal requires a fundamental shift in operations, materials, design and best practices. It requires a strong commitment to innovation and deep collaboration with value chain partners. While the stakes are high, the potential rewards are even greater for companies that successfully incorporate circularity into their packaging strategies.
Customer loyalty. Companies can significantly enhance brand loyalty and create market differentiation by meeting expectations in the marketplace for responsible stewardship of the planet. Data shows that consumers perceive packaging as one of sustainability’s most controllable and visible elements.
Regulatory compliance. Many governments around the world are introducing regulations to promote circular economy principles. National, regional and even local governments are introducing regulations; the European Union's PPWR mandates 10% reusable beverage packaging by 2030, with an aspirational goal of 40% by 2040. Businesses that adopt circular packaging will be better prepared to meet these regulatory requirements.
The role of pressure-sensitive labels in circular packaging
Every packaging component plays a role in advancing circular packaging. Pressure-sensitive labels (PSLs) are an essential packaging component, one where noteworthy innovations are contributing to the packaging industry’s overall movement toward circularity.
One significant development centers on novel “clean release” PSL adhesive technologies. Historically, pressure-sensitive labels were sometimes misperceived as having a negative influence in recycling processes. However, clean release technologies are among the advancements that make PSLs an effective player in achieving circular packaging.
Clean release adhesives improve the quality of recycled rigid plastics and can be made durable to allow bottle reuse. Further, labels using clean release adhesives are lightweight, which supports brands’ total packaging emissions and waste initiatives. These highly sustainable decoration solutions are recognized by the Association of Plastics Recyclers (APR), RecyClass and other bodies to be compatible with standard rigid plastic recycling streams, such as HDPE and PET.
Leading beverage brands are already scaling reusable packaging models. Coca-Cola, Pepsi, and Heineken have achieved reuse volumes of approximately 10-15%, 10% and 40%, respectively—demonstrating that circular solutions are viable at scale.
In addition, there is evidence that consumers seek out reuse and refill options as sustainable alternatives. Retailers are also interested in increasing reusable packaging solutions to meet their own sustainability targets, and they are especially seeking solutions that drive foot traffic to their stores for refill.
Technology is further accelerating the shift toward circular packaging. Digitally enabled PSLs, including those embedded with RFID and QR codes, offer transformative benefits:
Supply chain transparency: Digitally enabled labels enhance inventory tracking, improve sorting efficiency and reduce waste.
Higher bottle return rates: QR codes printed on labels can provide consumers with clear, real-time instructions on how and why to return bottles.
Data-driven optimization: RFID-enabled labels allow brands to monitor where bottles dwell, optimize collection logistics, and reduce the total number of bottles in circulation by up to 10%—cutting costs and minimizing environmental impact.
Opportunities exist for gains in packaging circularity, and PSLs are an effective tool for capturing them.
Learn more in our new white paper, Pressure-sensitive labels and their role in making packaging circular.
By Nick Colisto - Mar 11, 2025
By Nick Colisto - Apr 01, 2024