Huhtamaki

Packaging a Sustainable Future: Huhtamaki's packaging mission

Production careers

Authors

Ronit Ray

Ronit Ray

Kushal Varandani

Kushal Varandani

Keshav Bhatnagar

Keshav Bhatnagar

Devshree Shah

Devshree Shah

School

Goa Institute of Management

Goa Institute of Management

Professor

Abhishek Naresh

Abhishek Naresh

Global Goals

9. Industry, Innovation and Infrastructure 12. Responsible Consumption and Production 14. Life Below Water

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Summary

Huhtamaki has introduced ground-breaking sustainable packaging innovations, focusing on recyclable single-material structures and compostable paper-based products. These innovations aim to address plastic pollution by replacing multi-layered packaging with eco-friendly alternatives while maintaining functionality and circularity in the packaging lifecycle. It aims to reduce flexible packaging due to its multi-layered structures and replace them with a single polymer structure, which is circular in nature and can be recycled easily, much like milk pouches today made of LDP or the PET bottles used by Coca-Cola. 

Innovation

Huhtamaki’s innovation centres around creating sustainable packaging solutions that align with global and local environmental needs. A primary focus is on single-material (monomaterial) structures, which replace multi-layered packaging commonly found in products like chip packets. Multi-layered packaging often combines materials like plastic and aluminium foil, making it incompatible with existing recycling infrastructure. By transitioning to single-material solutions, such as polyethylene (PE) or polypropylene (PP)-based packaging, Huhtamaki ensures recyclability without compromising on essential functionality, such as resistance to oxygen and moisture. Not only does it focus on carbn neutrality but actively participates in waste water reduction, reducing it by 14% this year, alongside transitioning into renewable sources of energy.

Additionally, the company has developed compostable and biodegradable paper-based packaging, tailored to regional needs. For instance, India’s single-use plastic ban spurred the creation of compostable paper cups, now widely used by brands like Starbucks and Indigo Airlines. These cups decompose effectively in India's composting infrastructure.

Another notable innovation is the OmniLock paper, a single-material, paper-based solution designed to replace traditional plastic packaging. It features special coatings that maintain barrier properties, offering protection against moisture and oxygen.

Huhtamaki’s innovations are driven by the Blue Loop strategy, which emphasizes circularity and sustainable practices across its global operations. By focusing on solutions tailored to specific regional infrastructures and regulations, Huhtamaki contributes to reducing plastic waste while setting a benchmark for innovation in sustainable packaging.

Not only does the company practice sustainability, it encourages its entire supply chain and distributorship to do the same and companies that practice unethical means of doing business environmentally, are not partnered with by the purchase and procurement team for example. The company means what it says and reduced its GHG (greenhouse gas) emissions by 11,000 tons across the country, in 2023. This year, the company aims to move towards 15,000 tons.

Packaging a Sustainable Future: Huhtamaki's packaging mission

Inspiration

The inspiration behind Huhtamaki’s innovations stems from a combination of cultural values, market needs, and environmental responsibility. Rooted in Finland, where sustainability is an intrinsic way of life, the company’s ethos reflects the Scandinavian commitment to circular economies and resource conservation. Finland’s leadership in sustainability, such as initiating the World Circular Economy Forum, serves as a foundation for Huhtamaki’s strategic focus on sustainable packaging.

The primary source of inspiration comes from a deep desire to contribute to a sustainable environment free from plastic, which creates incredible amounts of pollution in the worlds seas and oceans, harming and killing marine life, the burning of these plastics causes toxins to be released into the air harming damage to all land species as well. Multi-layered packaging consists of 2-3 layers of polymers, plastics and an aluminium foil combined to form the final layer. The existing technology in India called mechanical recycling is not fit for breaking this packaging down to each layer and recycling the plastic as the aluminium foil turns to carbon granules which is poor in quality and cannot be recycled.

Looking at the business aspect of it, market demands also played a crucial role in driving these innovations. Key customers like Unilever, L’Oréal, and Nestlé, all of which have ambitious sustainability goals, motivated Huhtamaki to develop packaging solutions that align with these objectives. These partnerships foster collaboration, ensuring that the company’s innovations meet both technical and commercial expectations.

Additionally, growing awareness among consumers, investors, and regulators regarding environmental degradation has amplified the demand for sustainable solutions. This external pressure aligns with Huhtamaki’s vision of being the leading supplier of sustainable packaging solutions.

On a broader scale, the company recognizes its responsibility as a packaging producer to address global challenges like plastic pollution. By integrating life-cycle assessments and adopting a data-driven approach, Huhtamaki ensures its innovations not only meet current sustainability goals but also anticipate future environmental needs. This multi-faceted inspiration underscores the company’s commitment to creating packaging solutions that are not only functional but also environmentally transformative.

Overall impact

Huhtamaki’s innovations in sustainable packaging have significantly influenced the global packaging industry. By transitioning from non-recyclable multi-layer packaging to recyclable mono-material structures and compostable alternatives, the company has addressed pressing environmental concerns like plastic pollution. In the short term, these efforts have reduced greenhouse gas emissions, improved waste management, and aligned the company with regional regulations, such as India's single-use plastic ban. For instance, in 2023, Huhtamaki reduced its GHG emissions in India by approximately 10,000–11,000 tons while improving energy efficiency by 14%.

Long-term effects include fostering a circular economy and reducing dependency on virgin plastics. Innovations like the OmniLock paper, which provides barrier properties for food packaging, demonstrate the potential for recyclable and sustainable alternatives without compromising functionality. Huhtamaki’s leadership in developing sustainable solutions has also paved the way for future scalability and adoption across global markets, reinforcing its role in addressing environmental challenges and enhancing systemic sustainability.

Business benefit

The business itself is built on providing sustainable packaging alternatives to as many companies as possible Huhtamaki’s sustainability-focused innovations are their business model and they grow by working with some of the biggest brands like Unilever, Nestlé, and L'Oréal. These global clients, with their own sustainability ambitions, rely on Huhtamaki's recyclable and compostable packaging solutions. By meeting customer demands, Huhtamaki has secured partnerships that not only enhance revenue streams but also position the company as a trusted industry leader in sustainable packaging.

The innovations have opened new markets by catering to region-specific needs, such as compostable products in India and recyclable structures in Europe. The company’s Blue Loop strategy, which emphasizes circularity, has also positioned it to tap into growing investment opportunities. Internally, linking employee performance and variable pay to sustainability metrics has fostered engagement and accountability, improved retention and cultivating a purpose-driven workforce committed to long-term success.

Social and environmental benefit

Huhtamaki’s innovations have positively impacted society and the environment by addressing critical issues such as waste management and plastic pollution. The development of mono-material, recyclable packaging and compostable products reduces the environmental burden of non-recyclable waste while supporting waste pickers and recyclers by creating a commercial value chain. For example, single-polymer milk pouches have become economically viable for recycling, enabling better livelihoods for waste collectors. The burning of multilayered packaging releases toxic gases which are injurious to health and cause a significant decline in air quality, especially during winters.

Environmentally, the innovations contribute to reduced greenhouse gas emissions and material usage. In 2023, Huhtamaki's efforts in energy efficiency and renewable energy transition reduced its GHG emissions by 11000 tons each year and they aim to reduce it further to 15000 tons in 2024. These advancements also encourage systemic change in the packaging industry, promoting circular economies and sustainable resource use. The company’s innovations help mitigate environmental degradation by replacing single-use plastics with alternatives that align with local infrastructures, such as compostable products in India and recyclable packaging in Europe.

Interview

Rahul Nene, Head of Sustainability - India

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Business information

Huhtamaki

Huhtamaki

Espoo, FI
Business Website: https://www.huhtamaki.com/en/
Year Founded: 1920
Number of Employees: 1001 to 5000

Huhtamaki is a global leader in sustainable packaging solutions, specializing in innovative products for food, beverage, and consumer goods industries. With operations in over 35 countries, the company is committed to driving a circular economy by designing safe, recyclable, and bio-based packaging materials. Founded in Finland, Huhtamaki leverages its strong heritage and cutting-edge technology to meet the evolving needs of customers while prioritizing sustainability and environmental responsibility. Its 2030 strategy focuses on carbon-neutral production, reducing waste, and fostering partnerships to create a greener future.