DHL: How Packaging Supply Chains are Becoming Circular

The logistics sector is facing mounting pressure to transform packaging practices across global supply chains, as companies seek to balance environmental responsibility with operational efficiency.

DHL has outlined key developments expected to shape sustainable packaging throughout 2026, offering supply chain leaders insight into emerging materials, circular systems and technologies that could redefine how products move from manufacturer to consumer.

The predictions arrive amid regulatory shifts, including the recently introduced Packaging and Claims Knowledge (PACK) Act in the US Government, which aims to standardise regulations on recyclable packaging claims across the country.

Congressman Randy Weber, who introduced the PACK Act, says the legislation will help consumers recycle their packaging: "Americans want to do the right thing, but misleading labels make that harder."

These regulatory changes reflect growing pressure on businesses to demonstrate genuine environmental credentials while maintaining operational efficiency across their supply chains.

Material innovation in logistics operations

DHL anticipates a significant shift away from traditional plastic packaging within supply chains during 2026, with paper-based and biodegradable alternatives gaining traction. The logistics provider highlights bio-based materials including polylactic acid (PLA), a compostable plastic made from cornstarch, and mushroom-based packaging grown from mycelium.

These materials offer supply chain managers alternatives to conventional plastic with a reduced environmental footprint, breaking down in compost conditions within months.

Leendert Van Delft, Vice President Global Sales Programmes, Marketing & Global E-Commerce at DHL, says: "Thanks to growing demand, these materials are no longer just for big-budget brands either. Today, small and medium-sized enterprises (SMEs) can source them through specialised packaging suppliers, co-packing partners or even in ready-to-use formats designed for ecommerce."

Lightweighting represents another opportunity for supply chain optimisation, using less material while preserving durability through thinner cardboard, different folding designs or new materials engineered for strength. These modifications could reduce shipping costs while cutting emissions throughout packaging production and distribution.

The adoption of these innovative materials requires careful consideration of supply chain compatibility and end-of-life disposal infrastructure to ensure environmental benefits are fully realised.

Implementing circular systems across networks

DHL predicts a decline in single-use packaging as circular packaging models gain momentum, with deposit return schemes creating potential for customer retention while reducing waste. These systems require coordination across multiple stakeholders, from manufacturers to retailers and consumers.

Smurfit Westrock demonstrates this through its closed loop manufacturing model using renewable raw materials to create paper-based packaging alternatives. The company has developed solutions including paper-based alternatives to shrink wrap on bottles and punnets for fresh produce, which are 100% recyclable, renewable and biodegradable.

Tony Smurfit, President and Group CEO of Smurfit Westrock, says: "As a company we are focused on bettering the planet, supporting our people and the communities in which we operate, while delivering impactful business. Smurfit Westrock aims to create the 'go-to' packaging partner of choice, helping our customers deliver on their sustainability goals."

The transition to circular systems demands investment in reverse logistics infrastructure and collaboration with partners throughout the value chain to ensure packaging materials are effectively recovered and reprocessed.

Technology-enabled packaging solutions

Smart packaging technology represents an emerging tool for supply chains in 2026, according to DHL. QR codes and near-field communication (NFC) tags could enable better end-user engagement while providing data on disposal patterns across distribution networks.

Danone began rolling out smart packaging in 2024 on its Silk milk products, featuring a QR code-enhanced How2Recycle Plus label. The cartons include a Recycle Check QR code providing localised recycling information to customers across different regions.

Katherine Huded, Vice President of Recyclability Solutions at The Recycling Partnership, says: "With a How2Recycle label already inside nearly every home in America, the new label, featuring Recycle Check, delivers real-time information on what is accepted for recycling locally to people across the country.

"Reducing confusion on what can be recycled is essential to improving the US recycling rate. Real-time, location-specific education is a critical tool for recovering the 76% of what could be recycled but is instead sent to landfills or incinerators."

For supply chain leaders, these developments signal the need for strategic partnerships with sustainable packaging suppliers and investment in circular infrastructure to meet both regulatory requirements and evolving consumer expectations throughout 2026.