Consumers have been sending the message to the beverage industry for decades that plastic is bad. In response, the industry is addressing health concerns, environmental concerns, and shifting consumer expectations by utilizing everything from refillable packaging to bio-based materials. Something that was a marketing angle is now a market imperative, driving innovation from bottle design to government regulation.

Consumer Demand Drives Change

Environmental awareness is greater than ever. According to the 2023 Buying Green Report, 82% of consumers say they’re willing to pay more for sustainably packaged beverages. Among Gen Z, that figure rises to 90%. In practice, 71% of consumers reported choosing a product in the past six months because of its eco-friendly packaging, and 80% expressed interest in refillable options¹.

Beyond Plastic: Rethinking Beverage Packaging

Plastic is incredibly difficult to recycle. According to research by ClimateIntegrity.org:

… Big Oil and the plastics industry have deceptively promoted recycling as a solution to plastic waste management for more than 50 years, despite their long-standing knowledge that plastic recycling is not technically or economically viable at scale.

With less than 9% of global plastic successfully recycled, traditional packaging solutions are under scrutiny². The industry is responding with a wave of new materials and technologies:

– rPET (recycled PET) is now widely adopted, helping brands reduce reliance on virgin plastic and lower carbon footprints³.
– Compostable bioplastics, like polyhydroxyalkanoates (PHA), are in early-stage use among functional beverage brands such as Mad T™⁴.
– Fiber-based bottles, made from renewable sources like bamboo or sugarcane bagasse, offer biodegradability and visual differentiation, and are gaining traction as an alternative to glass⁵.
– Glass packaging, long valued for its recyclability and aesthetic appeal, is seeing renewed interest, particularly in premium and on-premise settings⁶.

The Rise of Reuse and Refill Models

While recyclable packaging helps, reuse is emerging as a more powerful sustainability lever. Reuse models—such as bottle return programs and bulk dispensers—can cut packaging production by 90% and reduce greenhouse gas emissions by up to 80%². Beverage companies are piloting large-scale reuse initiatives in event venues, hospitality settings, and retail markets in the U.S., Mexico, and Europe².

Corporate and Government Action Accelerates

Major beverage producers are investing in sustainability as a competitive advantage:

– PepsiCo was among the first to launch a plant-based PET bottle and reduce the weight of its Aquafina bottles by 40%⁷.
– Every Bottle Back, a 2025 initiative from Coca-Cola, PepsiCo, and Keurig Dr Pepper, is working to increase plastic recovery across the U.S.⁸.
– A recent industry report found that 68% of beverage manufacturers plan major equipment upgrades to support sustainable packaging at scale⁹.

Governments are reinforcing this momentum with extended producer responsibility (EPR) laws, deposit return systems (DRS), and bans on non-recyclable materials:
– California’s SB54 mandates that all packaging sold in the state be recyclable or compostable by 2032 and includes a $5 billion fund for plastic pollution reduction¹⁰.
– European-style DRS systems now boast container return rates of up to 90% globally¹¹.

What This Means for the Business 

For beverage brands and operators, environmental responsibility is no longer optional. Sustainability is shaping consumer loyalty, driving product innovation, and prompting long-term regulatory shifts. Forward-thinking businesses are investing in reusable formats, low-impact materials, and closed-loop systems—not just to keep up with policy or public sentiment, but to lead with purpose.

1. Buying Green Report 2023 – Trivium Packaging: https://triviumpackaging.com/sustainability/buying-green-report-2023
2. Reuters – To End the Plastic Crisis, We Need New Business Models Based on Reuse
3. BeverageDaily – rPET Innovation
4. Food & Wine – Compostable Packaging Trends
5. BeverageDaily – Fiber-Based Bottle Development
6. Grand View Research – Glass Bottled Beverage Market
7. PepsiCo – Sustainable Packaging Timeline
8. Every Bottle Back – ABA Earth Day Announcement 2025
9. PMMI – 2025 Beverage Industry Outlook
10. California Legislative Info – SB54
11. Ellen MacArthur Foundation – Deposit Return Systems Performance