Walmart Falls Short of Sustainability Goals Amid Industry-Wide Challenges
In a sobering announcement that reflects broader industry struggles, Walmart has confirmed it will not meet its ambitious 2025 packaging sustainability targets. The retail giant, which had pledged to make 100% of its private-brand packaging recyclable, reusable, or compostable by 2025, has only achieved 68% as of 2023. Similarly, its goal of incorporating 20% post-consumer recycled (PCR) content in North American plastic packaging reached just 8%, with the company reporting a 6% increase in virgin plastic use worldwide instead of the planned 15% reduction.
'Many factors outside our control have impacted our progress,' a Walmart spokesperson stated in the company's February 2025 sustainability update. 'We're facing challenges including legislative shortcomings, insufficient recycling infrastructure, limited availability of high-quality PCR materials, and consumer behavior gaps.'
Supply Chain Overhaul and Recycling Partnerships
The announcement comes as retailers across the globe are being forced to overhaul their packaging and supply chains due to new Extended Producer Responsibility (EPR) laws. California's SB 54 Plastic Pollution Prevention and Packaging Producer Responsibility Act, along with SB 343 'Truth in Labeling' legislation, are setting new standards that require packaging to meet a 65% recycling rate. According to Keefe Harrison, CEO of The Recycling Partnership, 'Retailers with private label brands will be responsible for collecting, reusing, and recycling their products under these new regulations.'
Walmart's struggles mirror those of other major consumer goods companies. Unilever, Coca-Cola, Colgate-Palmolive, and PepsiCo have all recently revised their sustainability timelines and targets. The industry faces a projected 5 million metric ton PCR shortfall by 2030, requiring an estimated $17 billion in infrastructure investment according to industry analysts.
Consumer Effects and Behavior Gaps
Consumer participation remains a critical factor in meeting recycling targets. A 2025 McKinsey global packaging survey reveals that while 72% of US consumers believe recycling is worth the effort, half of recyclable materials still end up in landfills due to behavior gaps. The survey also found that price and quality remain the most important factors in purchasing decisions, with environmental concerns ranking significantly lower.
'Consumers see packaging producers and brand owners—rather than themselves, retailers, or regulators—as primarily responsible for driving sustainability,' the McKinsey report notes. Despite this, most respondents claim willingness to pay more for sustainable packaging, with younger consumers (Gen Zers and millennials) and higher-income consumers showing the greatest willingness to pay premiums.
Industry Response and Future Outlook
While Walmart and others are missing targets, some retailers are pushing forward with ambitious new strategies. The Schwarz Group, a major European retailer, has launched its 'REset Resources' strategy mandating 65% recycled content in all private-label packaging by 2030, along with a 15% absolute reduction in primary raw materials for single-use packaging.
The challenges are multifaceted. Limited supply of food-grade PCR, high costs compared to virgin resin, inconsistent quality, and inadequate recycling infrastructure are creating significant barriers. As one industry expert noted, 'We're seeing a fundamental tension between growth objectives and sustainability goals, particularly in food categories where packaging is essential for safety and shelf life.'
Despite the setbacks, Walmart continues to make progress in specific areas. The company reported that 82% of its global private-brand plastic packaging is designed for recycling and has implemented initiatives like replacing plastic mailers with paper alternatives. Target, another major retailer that recently acknowledged missing its 2025 packaging goals, has reported some sustainability wins including plastic-reducing packaging innovations and over 280 refillable items.
The broader movement toward zero waste principles continues to gain momentum, with advocates calling for a shift from cradle-to-grave linear models to cradle-to-cradle circular systems where materials flow in closed-loop cycles. As regulatory pressure increases and consumer expectations evolve, retailers will need to balance ambitious sustainability goals with practical supply chain realities in the years ahead.