Artificial intelligence is emerging as a powerful catalyst for packaging circularity, according to a new report launched by The Consumer Goods Forum’s (CGF) Plastic Waste Coalition of Action in collaboration with Bain & Company. Titled Exploring AI for Packaging Circularity, the paper examines how AI technologies can accelerate the transition toward more circular, efficient and sustainable packaging systems.

The report highlights that AI is already creating measurable value across the entire packaging lifecycle. From early-stage design and material optimisation to waste sorting and traceability, AI-enabled solutions are helping companies reduce material use, improve recyclability and enhance decision-making. Based on interviews with CGF members and market analysis, around 30% of companies are currently using AI in their packaging operations, while 70% report that the greatest impact is achieved during the design phase.

Packaging design optimisation and generative design are identified as two of the most advanced and actionable AI use cases. These technologies allow brands and packaging developers to simulate multiple design scenarios, reduce unnecessary material, improve performance and accelerate time to market. In parallel, advanced sorting systems powered by AI are improving the identification and separation of materials in recycling streams, increasing recovery rates and material quality.

The report also outlines five major barriers that continue to limit the scale-up of circular packaging solutions. These include technical constraints, recyclability challenges, limited access to high-quality recycled content, the complexity of refillable systems and increasing regulatory requirements across markets. AI, the authors argue, can play a key role in addressing several of these barriers by improving data visibility, traceability and system-level optimisation.

In total, the paper identifies 15 AI-enabled solutions relevant to packaging circularity, with four priority use cases standing out: packaging design optimisation, generative design, advanced sorting technologies and material traceability. These applications are already delivering tangible results and offer a clear roadmap for companies seeking to embed AI into their sustainability strategies.

As regulatory pressure intensifies and brands face growing expectations to reduce plastic waste, the report positions AI not as a future concept, but as a practical tool that can support faster, more scalable progress toward circular packaging systems.