Blockchain in Soft Packaging: Traceability for Circular Economy Success

March 26,2025

1. Tracking Material Origins and Recycling Flows via Blockchain  

The soft packaging industry faces mounting pressure to adopt circular economy principles, and blockchain traceability is emerging as a game-changer. By creating immutable records of raw material origins, manufacturers can verify recycled content percentages (e.g., 30% post-consumer resin) while enabling real-time tracking of waste streams. For example, smart contracts automate compliance certificates when materials reach recycling partners, reducing administrative costs by up to 22% (Accenture, 2023).  


 2. Pilot Project Spotlight: IBM’s Plastic Waste Reduction Program  

IBM’s blockchain-powered platform in Southeast Asia partnered with 12 CPG brands to trace 8,000+ tons of plastic waste. Key outcomes:  

- 40% increase in recycling participation via consumer token rewards  

- 15% reduction in virgin material use through granular recycling analytics  

- 90% audit accuracy for EPR reporting vs. manual methods  

 

3. Enhancing EPR Compliance Through Decentralized Accountability  

Extended Producer Responsibility (EPR) regulations now drive 85% of soft packaging innovation in Europe (Smithers, 2024). Blockchain automates fee calculations based on real-world recycling performance. Unilever’s pilot in France achieved 99.6% EPR audit compliance by linking packaging QR codes to blockchain records of recycling facility receipts.  

 

4. Optimizing Collection Systems with AI-Driven Insights 

Blockchain datasets reveal geo-specific leakage hotspots (e.g., 63% of flexible packaging waste in urban India escapes collection). Coupled with AI, companies optimize bin placements and route planning, boosting collection rates by 18-35%.  


 5. Addressing Privacy and Standardization Challenges 

While GDPR-compliant zero-knowledge proofs (ZKPs) encrypt sensitive supply chain data, competing blockchain protocols (Ethereum vs. VeChain) create fragmentation. The Circular Packaging Alliance is piloting GS1 standards for cross-platform interoperability, aiming to cut integration costs by 40% by 2025.  


About HohuiFlex

Founded in 1995, HohuiFlex is a global leader in food and liquid packaging —working in partnership with customers to create a safer and more sustainable future. HohuiFlex is committed to delivering high-quality, innovative flexible packaging solutions that offer reliable product protection. Headquartered in ShenZhen,(China), the company is inspiring change around the world, working as one across 3 global locations powered by a dedicated workforce of nearly 250 employees.

Our mission is simple; to help the world’s leading brands deliver their products in the best way possible. We do this by combining films, pouch, and label to help you go-to-market simply and quickly with a total packaging solution tailored to your specific needs.

With a strong history of success over the past 30 years, you can count on us to help you deliver your products where they need to go, while empowering you on your journey through the circular economy.

For more information, contact Steve Guo, General Manager at steve@hohui-china.com.

LinkedIn: https://www.linkedin.com/in/steve-guo-hohuipack/

Related pages

Let’s
connect

From greater sustainability to higher performance, we’re here to deliver what your business needs most.

  • * I understand that this information will be used to address my inquiry and to receive updates from HohuiFlex.

  • This field is for validation purposes and should be left unchanged.