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Paper Packaging: A Green Fix or a False Hope?

July 21, 2026 · Reuters

Companies are switching from plastic to paper packaging, but experts say the change is more complicated than it looks.

Many companies are ditching plastic packaging and switching to paper instead. They hope paper will be better for the planet because it can be recycled more easily and comes from trees that can be replanted. But scientists, designers, and business experts say the switch is not as simple as it sounds — and paper packaging has its own set of problems.

Paper is already recycled at a very high rate. Across Europe, about 87% of paper gets recycled, which is much better than most plastics. A survey found that 72% of people in the UK prefer cardboard packaging over plastic, which shows that many consumers are ready for a change.

Governments are also pushing companies to change. The European Union has a new law called the Packaging and Packaging Waste Regulation, or PPWR. It requires packaging to be more recyclable, to use more recycled materials, and to avoid harmful chemicals.

However, switching to paper is not always the right answer. A report by a group of environmental organizations warned that paper food packaging can be a 'false solution.' Many paper packages need plastic coatings to hold wet or oily food, and those coatings make the package hard to recycle.

One exciting new development is the paper bottle. Big brands like Carlsberg and Coca-Cola have been testing paper bottles for years. The biggest challenge is finding a coating that keeps liquids inside without adding plastic that ruins recycling.

A technology called dry moulded fibre, or DMF, may be the breakthrough the industry needs. Most paper packaging today is made using a wet process — similar to papier-mâché — that needs huge amounts of water and energy to dry. DMF skips the water entirely, using heat and pressure to shape fluffy wood fibre quickly and cheaply.

The speed difference between the two methods is striking. It takes about three seconds to form a yogurt pot with DMF, compared to 50 seconds the wet way. PulPac, the Swedish company behind DMF, says it can produce packaging with up to 80% lower carbon emissions than plastic.

DMF bottles still need a thin plastic liner inside, but it is not bonded to the paper. This means the two materials separate easily during recycling, so neither stream gets contaminated. PulPac licenses the technology to other companies and earns money when those companies sell DMF products.

Big brands like Diageo, Haleon, and Opella are already working with PulPac. The technology is still more expensive than regular plastic, so partnering with large companies helps it grow and improve. Premium brands also like that DMF bottles can be printed with bright colours and designs.

Deforestation is a big concern whenever paper packaging expands. Most of PulPac's customers currently use virgin wood fibre because recycled fibre is rarely approved for food contact. New EU rules will require companies to prove their wood did not come from recently deforested land, though experts say the rules alone will not fully solve the problem.

For companies deciding whether to switch to paper packaging, the situation is still confusing. Costs are higher, the regulations are still being worked out, and the technology keeps changing. Even so, many experts are hopeful that paper packaging — especially DMF — will keep improving and eventually become a real, large-scale alternative to plastic.

"Low water, low energy, high-speed throughput, low cost — those are the keys you need for this technology to be galactically massive and take over the world."

Comprehension quiz preview

1. What percentage of paper is recycled across Europe, according to the article?

  • A52%
  • B72%
  • C87%
  • D95%

2. What does the name DMF stand for in the article?

  • ADigital Manufacturing Framework
  • BDry Moulded Fibre
  • CDurable Material Forming
  • DDense Moulded Film

3. Which company owns the dry moulded fibre technology described in the article?

  • APA Consulting
  • BSystemiq
  • CDiageo
  • DPulPac

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