Target Misses 2025 Packaging Goals, Shifts Sustainability Strategy

Retail Giant Acknowledges Packaging Sustainability Shortfalls

In a sobering announcement that reflects broader industry challenges, Target Corporation has revealed it will not meet several key 2025 packaging sustainability targets. The retailer's latest sustainability report shows significant gaps in its ambitious goals, prompting what company executives describe as an 'evolving' approach to packaging sustainability.

'We've encountered headwinds that require us to rethink our timeline and approach,' said Amanda Nusz, Target's senior vice president of corporate responsibility. 'While we haven't met our 2025 targets, we remain deeply committed to reducing packaging waste and improving recyclability across our supply chain.'

The Numbers Tell a Challenging Story

Target's 2025 sustainability report reveals stark realities: the company achieved only 34% of its goal to make all owned brand plastic packaging recyclable, compostable, or reusable by 2025. This falls dramatically short of the 100% target set just a few years ago. Additionally, Target missed its goal to reduce virgin plastic use by 20% from 2020 levels, with current usage still about 10% above baseline.

Perhaps most concerning is the decline in post-consumer recycled (PCR) content usage, which dropped from 15% to 13% in owned brand packaging—well below the 20% target. 'The economics of PCR materials have been challenging, particularly with fluctuating commodity prices and supply chain constraints,' explained John Mulligan, Target's chief operating officer.

Consumer Priorities Shift Amid Economic Pressures

Target's announcement comes as new research reveals changing consumer attitudes toward sustainable packaging. According to McKinsey's 2025 global packaging survey, while 77% of U.S. consumers identify recyclability as the most important sustainable packaging trait, environmental concerns now rank behind quality, price, and convenience in purchasing decisions.

'Consumers still value sustainability, but they won't pay premiums unless it's tied to performance,' noted Sarah Johnson, a packaging analyst at McKinsey. 'The economic realities of 2025 have forced both retailers and consumers to make difficult trade-offs.'

The survey, which included 1,000 U.S. consumers, found that only about one-third now consider environmental impact 'very important' when making purchasing decisions. This represents a significant shift from pre-pandemic priorities.

Supply Chain and Regulatory Challenges

Target cited multiple factors contributing to its missed targets, including regulatory challenges, supply chain constraints, industry measurement changes, affordability trade-offs, and increased sales volumes. The company noted that technical feasibility limitations and inconsistent recycling infrastructure across different regions have complicated efforts to standardize packaging materials.

'What's recyclable in one municipality may not be in another, and that inconsistency creates real challenges for national retailers,' said environmental policy expert Dr. Michael Chen. 'We're seeing this play out across the industry as companies struggle with the patchwork of state and local regulations.'

Industry-Wide Reckoning

Target is not alone in facing packaging sustainability challenges. Several major corporations, including Walmart, Nestlé, Mars, Mondelēz, and L'Oréal USA, have recently withdrawn from the U.S. Plastics Pact as the initiative transitions from its 2025 targets to more ambitious 2030 goals.

The pact, launched in 2020 as part of the Ellen MacArthur Foundation's network, had achieved mixed results by 2023—only 50% of member companies' plastic packaging was reusable, recyclable, or compostable, with just 11% average recycled content. 'These departures highlight the significant gap between sustainability aspirations and practical implementation,' Chen added.

Silver Linings and Future Directions

Despite the setbacks, Target highlighted several successes in its report. The company has implemented plastic-reducing packaging innovations and now offers over 280 refillable items across various categories. Target also remains committed to eliminating problematic plastics and continues to participate in industry initiatives.

'We're not stepping back from our commitment—we're evolving our approach based on what we've learned,' Nusz emphasized. 'This includes focusing on material-specific goals rather than material-agnostic approaches and working more closely with suppliers to drive innovation.'

The company pointed to the 2025 Sustainable Packaging Trends Report, which identifies refill systems making a comeback and material health taking center stage as key developments. Target plans to align its strategy with these emerging trends while addressing the practical realities of its massive supply chain.

The Road Ahead

As 2025 marks a watershed moment with the first Extended Producer Responsibility (EPR) laws taking effect and states redefining 'recyclable' standards, retailers face increasing pressure to adapt. The Sustainable Packaging Coalition has urged immediate action, stating 'The time for action is now.'

For consumers, the message is mixed: sustainable packaging remains important, but economic realities have reshaped priorities. For retailers like Target, the path forward involves balancing ambitious environmental goals with practical business considerations—a challenge that will define the next era of retail packaging.

'This isn't about abandoning sustainability—it's about finding smarter, more achievable ways to make progress,' concluded Mulligan. 'We're learning that sustainable packaging requires not just good intentions, but also robust systems, clear regulations, and consumer partnership.'