Mondelez faces hurdles in meeting 2025 packaging sustainability goals

USA – Mondelez International, the company behind household snack brands like Oreo, Ritz, and Clif, has disclosed that it may not meet its 2025 targets for virgin plastic reduction and design-for-recycling.

In its latest “Snacking Made Right” sustainability report, covering the period from December 1, 2023, to November 30, 2024, the company reported stagnation in recyclable packaging progress and a reversal in its virgin plastic reduction efforts.

In 2024, Mondelez used 875,800 metric tonnes of packaging, with fiber-based materials continuing to dominate its portfolio.

Corrugated cardboard accounted for 49%, paper for 27%, flexible plastics for 15%, and rigid plastics for 6%, the latter down from 2023.

Glass and metal each made up about 1%. Despite a long-standing commitment to reducing virgin plastic, the report revealed a 4.6% increase in virgin plastic use compared to 2020 levels, without comment from the company on the setback.

Packaging-related activities contributed 5% of Mondelez’s total greenhouse gas emissions in 2024, the report noted.

While Mondelez emphasized its ongoing efforts to reduce packaging, introduce recyclable materials, and eliminate problematic components, the company acknowledged significant obstacles remain.

These include fragmented policy environments, supply chain complexities, and challenges sourcing high-quality, cost-effective recycled materials.

“While we believe we have a strong pipeline of projects for 2025, we anticipate facing challenges in sourcing new materials and overcoming technical challenges to qualify and implement new solutions,” the company stated.

Some progress was highlighted. Mondelez is gradually incorporating recycled PET into rigid cookie trays in North America, reaching up to 50% recycled content, and has eliminated plastic trays from its cookie portfolio in Southeast Asia. The supply of recycled content for flexible film is also growing, albeit slowly.

The company expressed support for regulatory mechanisms that can strengthen packaging sustainability, including extended producer responsibility (EPR) and a legally-binding global plastics treaty, stating, “We hope to see progress toward a ratified agreement over the year ahead.”

However, Mondelez did not clarify whether it will revise its 2025 targets or extend its timelines. The report’s cautious tone reflects the broader industry struggle to achieve packaging sustainability amid complex global systems and rising material costs.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE