Packaging Industry Update: International Paper Restructuring and Sustainability Claim Transparency

Packaging Industry Update: International Paper Restructuring and Sustainability Claim Transparency

In the first quarter of 2026, significant developments emerged across the global packaging industry, reflecting ongoing strategic adjustments and intensified scrutiny of sustainability practices.

1. International Paper Announces Strategic Split
International Paper, a leading global packaging solutions provider, confirmed on January 29, 2026, that it will reorganize its operations by spinning off its Europe, Middle East and Africa (EMEA) business into a standalone publicly traded company, while retaining a dedicated North America entity.

The planned separation follows International Paper’s acquisition of UK-based packaging firm DS Smith in 2025. According to the company’s official communication, the new regional structures are expected to enhance operational focus, tailored investment strategies, and long-term value creation for both business units. The transaction is anticipated to complete within the next 12 to 15 months, subject to regulatory approvals.

In reaction to the announcement, International Paper’s stock price rose sharply, recording a nearly 7% increase in pre-market trading, underscoring investor confidence in the restructuring strategy.

2. Transparency Concerns Around Recycled Packaging Claims
Recent investigation by European media outlets reveals that numerous products labeled as using “recycled” or “circular” plastic packaging still contain predominantly virgin fossil-based plastic, raising concerns over consumer transparency.

Experts have criticized certain accounting practices, such as mass-balance allocation, which can allow minimal recycled input to be marketed as fully recycled content. With planned EU regulatory changes in 2026 and similar UK legislation in 2027, concerns persist that current rules may inadvertently allow such practices to persist, potentially undermining sustainability efforts.

The findings highlight ongoing challenges in ensuring authenticity in sustainability claims, and emphasize the need for clearer standards and verifiable metrics in recycled content communication.

📌 Key Takeaways for Packaging Exporters:

• Strategic reorganizations among major multinational players reflect an industry trend toward regional specialization and structural efficiency.

• Increased scrutiny on sustainability claims signals a shift toward greater policy and consumer demand for transparency.