AI is key enabler for circular packaging design, sorting and traceability – report highlights

GLOBAL – Artificial intelligence is emerging as a critical tool for advancing packaging circularity, according to a new report by The Consumer Goods Forum’s (CGF) Plastic Waste Coalition of Action.

The study, Exploring AI for Packaging Circularity, developed in collaboration with Bain & Company, outlines how AI can help companies redesign packaging, improve waste sorting and strengthen material traceability across complex global supply chains.

Based on market analysis, case studies and expert interviews with CGF member companies, the report identifies four “advanced and actionable” AI use cases with immediate relevance to the packaging industry.

Chief among these is optimized and generative packaging design, cited by 70% of respondents as the area where AI can have the greatest impact, particularly in reducing material use while maintaining performance, safety and cost efficiency.

Advanced sorting and material traceability also feature prominently. Around 40% of companies surveyed believe AI can play a decisive role in identifying where and why materials are lost along the value chain, from production through to end-of-life.

Machine vision and data-driven analytics are already being used to enhance sorting accuracy at material recovery facilities and to improve transparency around recycled content flows.

The report notes that adoption is already under way, with roughly 30% of companies using AI at some point in their packaging life cycle.

Current applications range from early-stage material reduction and design optimization to improving end-of-life outcomes by boosting sorting quality and reducing contamination.

Despite this progress, the study highlights five persistent pain points limiting scale-up. These include technical constraints around new packaging materials, the gap between recyclability in theory and recycling in practice, limited access to high-quality recycled content, challenges in establishing refillable and reusable systems, and the growing burden of regulatory reporting and data accuracy.

Cedric Dever, managing director of Plastic Waste at CGF, said packaging circularity requires a fundamental shift.

“AI can be a powerful tool to help unlock it,” he said, adding that collaboration across the value chain will be essential to move from pilots to system-wide impact.

Bain & Company partner Magali Deryckere said AI is particularly well suited to packaging’s inherent complexity, where trade-offs between recyclability, carbon performance, convenience and safety must be carefully balanced.

“For challenges at this level, AI can significantly accelerate the path to viable solutions,” she said.

The findings align with wider industry developments. Brand owners, packaging suppliers and recyclers are increasingly investing in AI-driven tools, from predictive material design to digital watermarking and AI-enabled sorting systems such as those being trialled in Europe and North America.

At the same time, debate is growing around the environmental footprint of AI itself, particularly the energy demands of data centres and hardware.

Overall, the report positions AI not as a standalone solution, but as a catalyst that, when applied strategically, can help the packaging industry overcome structural barriers and accelerate progress toward a more circular economy.

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