On May 23, 2025, major consumer goods giants—Walmart, Mars, Mondelēz, Nestlé, and L’Oréal USA—withdrew from the U.S. Plastics Pact (USPP), a coalition formed in 2020 under the Ellen MacArthur Foundation to promote sustainable plastic packaging. The exits, occurring as the USPP transitions from its 2025 targets to a new 2030 roadmap effective January 1, 2026, reflect concerns over high costs, infrastructure delays, and limited return on investment (ROI). By 2023, only 50% of members’ packaging was reusable, recyclable, or compostable, and post-consumer recycled (PCR) content averaged 11%, falling short of 2025 goals. Departing companies are pivoting to alternative coalitions like the EPR Leadership Forum and Circular Action Alliance, emphasizing Extended Producer Responsibility (EPR). With global plastic production at 400 million metric tons in 2024 and only 12% recycled, can the USPP’s 2030 roadmap restore momentum, or will corporate fragmentation and regulatory gaps hinder sustainable packaging progress?

USPP Goals, Progress, and Membership Dynamics

2025 Targets:

• 100% reusable, recyclable, or compostable packaging.

• 30% PCR or biobased content.

• 30% reduction in virgin plastic use.

• Elimination of problematic materials (e.g., PVC, polystyrene).

• 2023 Progress: Achieved 50% recyclability, 11% PCR content, 15% virgin plastic reduction, and eliminated 5% of problematic materials, per USPP’s 2024 annual report.

2030 Roadmap:

• Extends 2025 goals to 2030, targeting 30% PCR content, 100% recyclable or compostable packaging, 20% reusable systems, and full phase-out of 12 problematic materials by 2026.

• Allocates $50M for 10 new recycling facilities by 2028, aiming to process 500,000 metric tons annually, per USPP’s Eric Downing.

Corporate Exits:

• Walmart, Mars, Mondelēz, Nestlé, L’Oréal USA, and nonprofits like National Stewardship Action Council (NSAC) exited.

• NSAC’s Heidi Sanborn cited $10,000-$50,000 annual membership fees and insufficient ROI as reasons for departure.

• Walmart stated in February 2025, “Growth in food categories increased virgin plastic use, making 2025 goals unattainable.”

Mars noted, “Delays in packaging redesign and recycling infrastructure impacted progress.”

Current Membership:

• Over 100 “activators” remain, including “activator accelerators” like Aldi, Kraft Heinz, Avery Dennison, Church & Dwight, and Charter Next Generation, committed through 2030.

• New members include Clysar and Tipa, per USPP’s updated website.

Alternative Coalitions:

• EPR Leadership Forum: Co-founded by Walmart, Mars, Nestlé, Mondelēz, and L’Oréal USA, focuses on state-level EPR policies, targeting 20 states by 2028.

• Circular Action Alliance: Leads EPR implementation in California, Colorado, and Oregon, with $1B planned for recycling projects by 2028, covering 20% of U.S. plastic waste.

READ MORE: Nepenthe Wines Tackles Recycling with New Aluminum Capsule

Strategic Context

Aligns with global sustainability and circular economy trends:

• Nepenthe Wines Redesign: Enhanced bottle recycling systems mirror USPP’s packaging innovations.

• STOXX ICE Indices: Sustainable investments fund plastic waste reduction initiatives.

• Oxford ESG Course: Improved sustainability reporting tracks plastic-related emissions.

• Antibiotic Pollution: Reducing plastic waste mitigates environmental contamination risks.

Challenges and Risks

• Recycling Infrastructure Gaps: U.S. plastic recycling rates remain at 12%, with only 8% of global 400M metric tons recycled in 2024. Scaling facilities requires $5B by 2030, per EPA and OECD.

• Cost Pressures: PCR packaging costs 20-30% more ($1.5M/year for large firms), reducing margins by 2-3%, per Packaging Dive.

• Regulatory Fragmentation: Absence of federal EPR laws and state-level variations (e.g., California’s SB 54) impose $100M in compliance costs, per USPP. Global Plastics Treaty negotiations, delayed to 2026, face opposition, risking $100B in waste management costs by 2030, per UNEP.

• Shareholder Scrutiny: Walmart faces a shareholder proposal at its June 5, 2025, annual meeting, led by the National Legal and Policy Center, urging a reassessment of plastics strategy, per SEC filings.

• Policy Risks: Potential U.S. deregulation, such as $1.5B Army Corps cuts, may weaken EPR and recycling incentives, impacting 10% of initiatives.

Explore OneStop ESG Marketplace: Waste management

What’s Next?

The USPP’s 2030 roadmap, launching January 1, 2026, aims to achieve 30% PCR content and 100% recyclable or compostable packaging, with $50M funding 10 new recycling plants by 2028, creating 5,000 jobs and processing 500,000 metric tons annually, per USPP projections. Remaining members like Kraft Heinz and Aldi plan to deploy 500M reusable packages by 2030, covering 10% of their portfolios. Departing companies, through the EPR Leadership Forum and Circular Action Alliance, target $1B in EPR projects across 10 states by 2028, managing 20% of U.S. plastic waste. Walmart’s June 5, 2025, shareholder meeting could shift its plastics commitments, with a decision expected by Q3 2025. A Global Plastics Treaty, if finalized in 2026, may mandate 20% PCR content globally, adding $10B in compliance costs, per UNEP. The global plastic waste management market could reach $120B by 2035, per BloombergNEF.

“Collaboration remains key,” said USPP’s Eric Downing.

With 36 Gt CO2e emitted globally in 2024, USPP’s efforts could reduce emissions by 0.05 Gt by 2030 through enhanced recycling and waste reduction. Will restructured coalitions drive systemic change, or will costs, regulatory gaps, and corporate realignments derail sustainable packaging progress?

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