Turning Packaging Into a Digital Asset: The Power of Technology in a Circular Economy
Edward Whitehead
Chief Executive Officer | Managing Director | Entrepreneur | Non-Executive Director Business Strategy | Operations | GTM | Global Supply Management | Start-Up Advisory
Packaging is an invisible asset
Historically, we care about product, not the packaging, Remember unwrapping your first Nintendo, brushing the box aside, and diving straight into Wii Sports? That packaging was just background noise.
Lately, though, packaging has become harder to ignore. Netflix’s Buy Now! The Shopping Conspiracy documentary unpacks how brands use packaging to fuel consumerism – and the environmental toll is staggering. It’s worth a watch.
By making packaging a visible asset, businesses create an opportunity to unlock cost savings, engage with consumers, meet compliance obligations, and reduce their impact on people and the planet. And technology is the key.
We Use a Lot of Packaging
In 2025, global businesses will spend over $1.01 trillion on packaging, a figure that will rise to $1.4 trillion by 2034. Yet, packaging is often overlooked, with its impact on downstream systems largely not acknowledged by businesses historically.
Growth is inevitable – I get it
I recently listened to an interview with Jeff Bezos, where he suggested that the United States could tackle its national debt by driving economic growth faster than debt accumulation. It’s not a new idea – most developed economies are chasing the same strategy. The flip side of perpetual growth comes with trade-offs. It fuels rising debt, excessive market speculation, unchecked resource consumption, and all too often, economic crashes. So, while it may solve one problem, it inevitably creates another.
(Jeff might want to pick up a copy of Doughnut Economics for a different perspective!)
The Packaging Sector is Doubling Down on Growth
Recent mergers and acquisitions activity shows just how serious the industry is about expansion:
Industry consolidation is expected to drive efficiencies, spark innovation, and ultimately, fuel further growth. But with it comes the possibility of other, less predictable outcomes. 'Centralised' control of upstream materials is a debate for another day – while it creates opportunities to consolidate material groups, it may also limit downstream agility, especially if the producers also control the recycling infrastructure
Predicted Growth of Packaging Materials:'
Material 2025 2034
Flexible Packaging $200B $300B
Rigid Plastic Packaging $250B $350B
Fibre-Based Packaging $410B $540B
Metal Packaging $150B $200B
Total Market (USD) $1 Trillion $1.4 Trillion
Visibility is the Unlock for a Circular Economy
If you don’t know what’s coming, how can you prepare?
Think about your child telling you they need ingredients for a cooking class – just five minutes before leaving for school. With no time to prepare, it’s a scramble. But with even an hour’s notice, you could plan ahead and grab what’s needed.
The same applies to packaging waste. Downstream waste management and recovery companies – Cleanaway Waste Management, Visy Recycling, SUEZ Recycling & Recovery, Veolia Environmental Services and Bingo – need early visibility to optimise their processes, invest in the right infrastructure, and drive innovation.
If we’re serious about achieving a circular economy, we must prioritise transparency – and that starts upstream. Digitising packaging is the key to making it possible.
Tech is the enabler
In the same interview, Bezos compared artificial intelligence (AI) to electricity, calling it a “fundamental, transformative technology with the power to revolutionise industries.” He believes AI will become as ubiquitous as electricity, driving innovation and unlocking new possibilities across nearly every sector. I have no doubt he’s right.
He also suggested that we move all polluting industries off the planet and into space. While I admire his ambition, I’m not convinced that relocating the problem is the same as solving it.
The building blocks of Technology
Technology evolves in a continuous cycle – each breakthrough builds on the last, turning concepts into realities.
Measuring & tracking impact and change
Digital Product Passports (DPPs) are transforming how we collect and share data about products and their supply chains. By offering stakeholders deeper insights into the materials used and their environmental impacts, DPPs enable smarter decisions and greater accountability across the value chain.
Product Carbon Footprints (PCFs) measure the total greenhouse gas (GHG) emissions generated throughout a product’s lifecycle – from raw material extraction to end-of-life disposal. They track how carbon moves through the system and help retailers, brand owners, and manufacturers understand, report, and act on their impact.
Downstream Technologies - recovery and recycling
Downstream technologies already play – and will increasingly play – a critical role in improving visibility within recovery and recycling facilities. By embedding patterns or identifiers into materials during the design phase, we enable easier sorting and recovery at end of life.
This is where upstream and downstream data work together. Upstream data ensures we place the right materials into the system. Downstream data helps us track and circulate them more effectively at the end of their lifecycle. Digitising packaging processes not only enhances current recovery systems – it also creates room for future materials to be adopted at scale. And that time is fast approaching.
Technology as a Driver of Sustainability
Technology isn’t just enhancing packaging – it’s reshaping the very materials we use. I’m fortunate to work with next-generation polymers and materials that are designed to improve end of life outcomes by reducing physical mass, lowering carbon footprints, and enabling low-energy manufacturing. These advancements are only possible through continuous innovation in technology, and it's crucial that we harness this power to ensure these materials can be used at scale. However, fully realising their potential depends on our ability to identify and track these materials effectively – from design through to end of life.
Digital tools, such as material identification systems, are critical for optimising material selection and ensuring traceability across the entire product lifecycle. The easier it is to separate materials, the faster we move toward a truly circular economy. Digital tools, such as material identification systems, are critical for optimising material selection and ensuring traceability across the entire product lifecycle. When materials can be easily separated, recovery becomes more efficient — accelerating our progress toward a truly circular economy.
Conclusion
The future of packaging lies in rethinking its entire lifecycle, through the power of technology. As businesses face growing pressure to reduce environmental impact, making packaging visible, actionable, and intelligent is essential. Technology not only enables better material identification and recovery, but also drives efficiencies that unlock cost savings, enhance sustainability, and support a thriving circular economy.
The time to act is now. By embracing these technological advancements, we can transform packaging from a hidden cost into a valuable asset – delivering positive change for businesses, consumers, and the planet. The next chapter in packaging innovation is just beginning, and technology will be the catalyst for a smarter, cleaner, and more sustainable future.