What is driving growth in moulded pulp?

The moulded pulp packaging market is entering a pivotal growth phase. According to the latest Smithers research, the global market is forecast to expand at a compound annual growth rate (CAGR) of 4.1% through 2030. This a trajectory shaped not by consumer preference alone, but by regulatory pressure, brand owner initiatives, and accelerating innovation.

To understand the forces at play, we spoke with Alexander Koukoulas, one of the most experienced strategic advisors in the pulp and paper sector. With over 35 years of hands-on leadership spanning Fortune 500 corporations, entrepreneurial ventures, and national research centres, Koukoulas has guided decision-making across pulp and paper, nonwovens, advanced materials, biofuels, and biochemicals. 

The regulatory push intensifies
Regulatory measures are accelerating the shift towards sustainable packaging alternatives. The European Union’s Packaging and Packaging Waste Regulation (PPWR) enters its first full implementation phase in August 2026, while Extended Producer Responsibility (EPR) schemes continue their gradual expansion across US states, and around the world. These frameworks are creating new compliance requirements that favour recyclable and compostable materials.

In Asia, China is tightening sustainable-packaging rules in 2025, including penalties for single-use plastics that are not recyclable or compostable. Moulded fibre is well positioned as an alternative, particularly for takeaway and other disposable food-contact applications.

As governments tighten packaging regulations and consumers demand greater transparency, moulded fibre’s position as a viable sustainable alternative to conventional plastics continues to strengthen. 

Koukoulas explains, “Brand owners have made commitments to sustainability. In the United States, we’ve seen some relaxation at the federal level due to the current administration’s reduced emphasis on sustainability. That creates some tension. In Europe, however, we have the Single-Use Plastics Directive and packaging waste reduction regulations. There’s a regulatory trend that could accelerate the adoption of moulded fibre, provided we stay the course.”

However, the industry needs constancy, Koukoulas says. “Regulations need to be consistent. They can’t change every six months or every year. Stability sends a market signal that encourages investment and innovation. Without that certainty, there’s significant risk for manufacturers entering the market.”

Sustainability vs commercial viability
The core tension in sustainable packaging development is balancing environmental performance with commercial viability. Material choices must be evaluated across their full lifecycle: how they are sourced, whether they contain plastic, and how recoverable, reusable, or recyclable they are. Regulatory compliance adds further requirements around biodegradability and compostability that must be built into product engineering. These are critical considerations, according to Koukoulas.

“To meet regulations, you need certain performance characteristics, such as biodegradability or compostability. Product engineering must address these requirements. At the same time, the product must be priced appropriately. You can design a product that meets all performance requirements, but if it’s too expensive, it won’t succeed in the market.”

Listen to the full discussion with Alexander Koukoulas in our latest podcast, and discover how the industry is tackling these challenges in the years ahead.