Scaling up molded fiber packaging: Opportunities and challenges in a global market

The transition of molded fiber products from traditional uses like egg cartons and coffee cup trays to more advanced applications in food and beverage packaging, made from new, unused (virgin) fibers, is gaining momentum. This shift is driven by increasing regulatory pressure to reduce single-use plastic packaging waste; advancements in technology, such as barrier coatings and production processes; and growing demand from consumers and brands for more sustainable packaging options in key foodservice and retail categories.

Despite its potential, the scale-up of molded fiber packaging production faces several challenges. Packaging performance and functionality, higher associated costs, and competition from other alternatives to single-use plastics are headwinds to widespread adoption. Currently, innovative technologies are under development, and projects to add production capacity are underway. However, continued advancements in barrier coating technology and improved processing efficiency are still needed to lower costs. We expect to see faster adoption of molded fiber in US foodservice and in niche, high-margin retail categories. Once regulations are in place, particularly in North America and Europe, they will provide the market with the certainty needed to scale up molded fiber packaging production and increase its adoption in other categories.