Berry Global Group, Inc. (BERY) PESTLE Analysis

Berry Global Group, Inc. (BERY): Análisis PESTLE [Actualizado en enero de 2025]

US | Consumer Cyclical | Packaging & Containers | NYSE
Berry Global Group, Inc. (BERY) PESTLE Analysis

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En el mundo dinámico de Global Packaging, Berry Global Group, Inc. (Bery) se encuentra en la encrucijada de la innovación, la sostenibilidad y la adaptación estratégica. Este análisis integral de mortero revela el intrincado panorama de los desafíos y las oportunidades que dan forma a la trayectoria de la compañía, desde tensiones geopolíticas e incertidumbres económicas hasta avances tecnológicos e imperativos ambientales. Sumérgete en una exploración de cómo Berry Global navega por la compleja interacción de los factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que definen su ventaja competitiva en la industria del envasado en rápida evolución.


Berry Global Group, Inc. (Bery) - Análisis de mortero: factores políticos

Impacto potencial de las políticas comerciales y las tarifas en la fabricación global de envases

Berry Global Group enfrenta desafíos importantes de las políticas de comercio internacional. A partir de 2024, Estados Unidos mantiene aranceles sobre las importaciones de plástico y envases de China que van del 7,5% al ​​25%. Las operaciones globales de la compañía se ven afectadas por estas restricciones comerciales.

País Tarifa Impacto en Berry Global
Porcelana 25% Mayores costos de producción
unión Europea 6.5% Complejidad de la cadena de suministro
México 0% Ventaja potencial de fabricación

Tensiones geopolíticas que afectan las operaciones internacionales de la cadena de suministro

La cadena de suministro internacional de Berry Global enfrenta interrupciones de las tensiones geopolíticas en curso. La compañía opera en 16 países con entornos regulatorios complejos.

  • Conflicto de Rusia-Ukraine: aumento de los costos de envío en un 22%
  • Tensiones comerciales entre Estados Unidos y China: 18% de gastos de reconfiguración de la cadena de suministro
  • Inestabilidad política de Medio Oriente: 15% de la logística de riesgo prima

Cambios regulatorios en los mandatos de cumplimiento ambiental y sostenibilidad

Las regulaciones ambientales afectan significativamente los procesos de fabricación de Berry Global. La Directiva de Empaca de plástico de la UE requiere una tasa de reciclaje del 55% para 2030, afectando directamente las estrategias de producción de la compañía.

Regulación Costo de cumplimiento Línea de tiempo de implementación
Directiva de embalaje de plástico de la UE $ 47.3 millones 2025-2030
Mandato de reciclaje de California $ 22.6 millones 2024-2027

Incentivos gubernamentales para la innovación de la fabricación y las tecnologías de reciclaje

Los incentivos gubernamentales brindan apoyo financiero para innovaciones de fabricación sostenible. Berry Global puede aprovechar estos programas para compensar los costos de cumplimiento.

  • Subvención del Departamento de Innovación Energética de los Estados Unidos: $ 15.2 millones
  • Fondo Europeo de Tecnología Verde: € 9.7 millones
  • Incentivo de tecnología de reciclaje de California: $ 6.5 millones

Berry Global Group, Inc. (Bery) - Análisis de mortero: factores económicos

Fluctuando los costos de las materias primas que afectan los gastos de producción del empaque

En 2023, Berry Global Group experimentó una volatilidad significativa de los precios de las materias primas. Los precios de polipropileno oscilaron entre $ 1,100 y $ 1,450 por tonelada métrica. Los costos de tereftalato de polietileno (PET) fluctuaron entre $ 1,250 y $ 1,600 por tonelada métrica.

Materia prima Rango de precios 2023 ($/tonelada métrica) Impacto de costo promedio
Polipropileno 1,100 - 1,450 +12.7% de aumento de costos de producción
Tereftalato de polietileno 1,250 - 1,600 +15.2% de aumento de costos de producción

Incertidumbre económica global que influye en la demanda de envases de los consumidores

El tamaño del mercado global de envasado se estimó en $ 909.5 mil millones en 2023, con una tasa de crecimiento proyectada del 4.2% anual. Los ingresos de Berry Global para el año fiscal 2023 alcanzaron los $ 16.8 mil millones, lo que refleja los desafíos del mercado.

Indicador económico Valor 2023 Cambio año tras año
Tamaño del mercado global de envasado $ 909.5 mil millones +4.2%
Berry Global Ingress $ 16.8 mil millones +3.5%

Presiones inflacionarias que afectan los costos operativos y de transporte

La tasa de inflación de EE. UU. En 2023 fue de 3.4%. Los costos de transporte para Berry Global aumentaron en un 7,2%, con los precios del combustible diesel con un promedio de $ 4.15 por galón.

Componente de costos Valor 2023 Impacto de la inflación
Tasa de inflación de EE. UU. 3.4% Presión económica moderada
Costos de transporte +7.2% Gastos operativos significativos
Precio de combustible diesel $ 4.15/galón Mayores gastos logísticos

Posibles riesgos de recesión en segmentos clave del mercado

El segmento de envasado de bienes de consumo mostró resiliencia con un crecimiento del 3,8%. Mercado de envasado industrial contratado en un 2,1% debido a las incertidumbres económicas.

Segmento de mercado Tasa de crecimiento 2023 Nivel de riesgo económico
Embalaje de bienes de consumo +3.8% Bajo riesgo
Embalaje industrial -2.1% Alto riesgo

Berry Global Group, Inc. (Bery) - Análisis de mortero: factores sociales

Creciente preferencia del consumidor por soluciones de empaque sostenibles y ecológicas

A partir de 2023, el 74% de los consumidores están dispuestos a pagar más por los envases sostenibles. Berry Global Group ha respondido desarrollando soluciones de empaque ecológicas, con $ 1.2 mil millones invirtieron en investigación y desarrollo de envases sostenibles.

Segmento de mercado de envasado sostenible Valor de mercado (2023) Tasa de crecimiento proyectada
Embalaje reciclable $ 268.5 mil millones 6.8% CAGR
Embalaje biodegradable $ 122.7 mil millones 8.3% CAGR

Aumento de la demanda de materiales de embalaje livianos y reciclables

Berry Global Group ha informado Reducción del 37% en el peso del envasado en las líneas de productos. Se proyecta que el mercado de envasado liviano alcanzará los $ 303.5 mil millones para 2025.

Tipo de material de embalaje Cuota de mercado Tasa de reciclaje
Embalaje de plástico 42.3% 14.2%
Embalaje basado en papel 33.6% 68.7%

Cambiante la demografía de la fuerza laboral y la dinámica del mercado laboral

Berry Global Group emplea a 19.300 trabajadores en 130 ubicaciones de fabricación. La composición de la fuerza laboral muestra:

  • Millennials: 42% de la fuerza laboral
  • Gen X: 33% de la fuerza laboral
  • Baby Boomers: 18% de la fuerza laboral
  • Gen Z: 7% de la fuerza laboral

Conciencia del consumidor sobre el impacto ambiental en el diseño de envases

La conciencia ambiental del consumidor ha impulsado Aumento del 45% en la demanda de soluciones de envasado sostenible. Berry Global Group se ha comprometido al 50% de contenido reciclado en el embalaje para 2030.

Métrica de envasado ambiental Rendimiento actual Año objetivo
Contenido reciclado 28% 2030
Reducción de emisiones de carbono 22% 2030

Berry Global Group, Inc. (Bery) - Análisis de mortero: factores tecnológicos

Inversión en tecnologías avanzadas de reciclaje y economía circular

Berry Global Group invirtió $ 45.2 millones en tecnologías de reciclaje en 2023. Las iniciativas de economía circular de la compañía se centraron en desarrollar capacidades avanzadas de reciclaje, con un objetivo de contenido reciclado del 25% en materiales de embalaje para 2025.

Categoría de inversión tecnológica Monto de inversión (2023) Impacto proyectado
Tecnologías avanzadas de reciclaje $ 45.2 millones 25% de contenido reciclado para 2025
Infraestructura de reciclaje químico $ 22.7 millones Reducir el uso de plástico virgen en un 15%

Automatización y transformación digital en procesos de fabricación

Berry Global implementó la automatización de procesos robóticos en 67 instalaciones de fabricación, lo que resultó en un aumento del 12.3% en la eficiencia operativa. La compañía desplegó 423 robots industriales en 2023, que representan una inversión de $ 38.6 millones en automatización de fabricación.

Métrico de automatización 2023 datos
Instalaciones de fabricación totales 67
Robots industriales desplegados 423
Inversión de automatización $ 38.6 millones
Aumento de eficiencia operativa 12.3%

Implementación de IA y aprendizaje automático en la optimización de la cadena de suministro

Berry Global invirtió $ 16.5 millones en IA y tecnologías de aprendizaje automático para la optimización de la cadena de suministro. La Compañía implementó sistemas de análisis predictivos que redujeron los costos de transporte de inventario en un 8,7% y mejoraron la precisión de la previsión de la demanda en un 14,2%.

Aplicación de tecnología de IA Inversión Mejora del rendimiento
Análisis predictivo de la cadena de suministro $ 16.5 millones Reducción de costos de inventario: 8.7%
Demanda de pronóstico de IA $ 7.3 millones Pronóstico Precisión: 14.2%

Desarrollo de materiales de embalaje innovadores y tecnologías de diseño

Berry Global asignó $ 53.4 millones a la investigación y el desarrollo de tecnologías de envasado innovadoras en 2023. La compañía desarrolló 17 nuevas soluciones de empaque sostenibles con un impacto ambiental reducido, centrándose en materiales livianos y diseños reciclables.

Categoría de innovación de empaque Inversión de I + D Nuevas soluciones desarrolladas
Tecnologías de empaque sostenibles $ 53.4 millones 17 nuevas soluciones
Desarrollo de materiales livianos $ 22.1 millones 9 innovaciones materiales

Berry Global Group, Inc. (Bery) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones ambientales internacionales

Berry Global Group ha invertido $ 85.3 millones en iniciativas de sostenibilidad para cumplir con las regulaciones ambientales internacionales en 2023. La compañía mantiene el cumplimiento de:

  • Embalaje de la UE y regulación de residuos de embalaje
  • Ley de transparencia de California en las cadenas de suministro
  • Ley de conservación y recuperación de recursos (RCRA)
Regulación Costo de cumplimiento Estado de cumplimiento
Directiva de embalaje de la UE $ 42.6 millones 100% cumplido
Regulaciones de la EPA de EE. UU. $ 23.7 millones 98% de cumplimiento
Normas de reciclaje global $ 19 millones 95% de cumplimiento

Protección de propiedad intelectual para innovaciones de embalaje

Berry Global posee 287 patentes activas a partir de 2024, con una cartera de propiedades intelectuales valoradas en $ 163.4 millones. La distribución de patentes incluye:

Categoría de patente Número de patentes Valor estimado
Tecnología de envasado 156 $ 89.2 millones
Materiales sostenibles 73 $ 41.6 millones
Procesos de fabricación 58 $ 32.6 millones

Posibles riesgos de litigios relacionados con la sostenibilidad ambiental

Riesgos de litigio actuales y gastos legales asociados:

Tipo de litigio Gastos legales estimados Nivel de riesgo
Disputas de cumplimiento ambiental $ 7.3 millones Medio
Desafíos de sostenibilidad de la cadena de suministro $ 4.9 millones Bajo
Controversias de gestión de residuos $ 5.6 millones Medio-bajo

Adhesión a los estándares mundiales de comercio y fabricación

Berry Global demuestra el cumplimiento de los estándares de fabricación internacionales en 17 países, con una inversión total de cumplimiento de $ 62.5 millones en 2023.

Estándar Inversión de cumplimiento Cobertura global
ISO 9001: 2015 $ 18.3 millones 14 países
ISO 14001: 2015 $ 22.7 millones 12 países
Alcanzar regulación $ 21.5 millones unión Europea

Berry Global Group, Inc. (Bery) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en los procesos de fabricación

Berry Global Group se ha comprometido a reducir las emisiones de gases de efecto invernadero de 50% Para 2030 en sus operaciones globales. Las emisiones actuales de carbono de la compañía se encuentran en 1,2 millones de toneladas métricas anualmente.

Año Emisiones de carbono (toneladas métricas) Porcentaje de reducción
2022 1,200,000 Base
2023 1,140,000 5%
2024 (proyectado) 1,080,000 10%

Desarrollo de soluciones de embalaje reciclables y biodegradables

Berry Global ha invertido $ 45 millones en el desarrollo de tecnologías de envasado reciclable. La compañía actualmente produce 3.200 millones Unidades de embalaje reciclables anualmente.

Tipo de embalaje Volumen de producción anual Porcentaje de reciclabilidad
Recipientes de plástico 1.500 millones de unidades 85%
Embalaje biodegradable 750 millones de unidades 95%
Embalaje sostenible 950 millones de unidades 90%

Inversión en economía circular e iniciativas de reducción de residuos

Berry Global ha asignado $ 78 millones para iniciativas de economía circular en 2024. La compañía tiene como objetivo desviar 65% de desechos de fabricación de vertederos.

Iniciativa Monto de la inversión Objetivo de reducción de desechos
Infraestructura de reciclaje $ 35 millones 40%
Programas de residuos a la energía $ 23 millones 15%
Recuperación material $ 20 millones 10%

Alineación con los objetivos globales de sostenibilidad y protección del medio ambiente

Berry Global se ha comprometido con los Objetivos de Desarrollo Sostenible de las Naciones Unidas, con un enfoque específico en la acción climática y el consumo responsable. La compañía ha logrado 30% de sus 2030 objetivos de sostenibilidad.

Meta de sostenibilidad Porcentaje de progreso Año objetivo
Adopción de energía renovable 35% 2030
Conservación del agua 25% 2030
Neutralidad de carbono 20% 2040

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Social factors

You're looking at how public sentiment is reshaping the packaging game, and for Berry Global Group, Inc., that means sustainability isn't just a nice-to-have; it's the core business driver now. Honestly, the pressure from consumers and regulators is intense, pushing the entire market. We are seeing consumer demand for sustainable packaging increasing, which is driving a reported 45% market shift toward eco-conscious options. That's a massive pivot you need to account for in your strategy.

It's not just about vague greenwashing, either. Shoppers are putting their money where their mouth is; a 2023 study showed that 71% of shoppers deliberately chose products with sustainable packaging. This isn't a fleeting trend; it's the new baseline for brand trust. It's a tough environment, but it's also where the biggest growth opportunities live.

Strategic Focus Post-HHNF Spin-off

The spin-off and subsequent merger of Berry Global Group, Inc.'s Health, Hygiene and Specialties Global Nonwovens and Films business (HHNF Business) with Glatfelter Corporation, creating Magnera Corporation, was finalized on November 4, 2024. This move was strategic, allowing Berry Global to sharpen its focus squarely on consumer-facing packaging solutions. So, the emphasis is now heavily weighted toward Fast-Moving Consumer Goods (FMCG) packaging, where consumer scrutiny on materials is highest. Here's the quick math on their current FMCG commitment: they ensured 93% of FMCG packaging is either recyclable or has a validated recyclable alternative as of their 2024 report. What this estimate hides is the ongoing work to get that final 7% across the line.

This focus means capital and R&D dollars are flowing into areas that directly impact the shelf appeal and end-of-life story for everyday products. You can see this commitment in their material sourcing changes.

  • Increased Post-Consumer Resin (PCR) purchases by 43% year-over-year.
  • Bioplastics purchases jumped by 130% year-over-year.
  • PCR now makes up 5.1% of total volume.

Evolving Design Preferences: Mono-Material and Refillable

Consumers are actively rejecting packaging that looks overly complex or wasteful, demanding designs that are inherently easier to manage post-use. This translates directly into a preference for mono-material structures-think packaging made entirely of polyethylene or polypropylene-because they are simpler to recycle than multi-layer options. Plus, the desire for reuse is strong; data suggests 79% of consumers are likely to purchase a product based on a refillable packaging claim. You need to be designing for this reality, not for the packaging of five years ago.

Berry Global Group, Inc. is actively responding to this by redesigning components, such as switching Heinz ketchup closures to a mono-material polypropylene design to eliminate silicone, which aids recyclability. This shows they are moving beyond just using recycled content to fundamentally changing the material makeup of their products.

Social Governance and Investor Perception

Social factors aren't just about the end consumer; they heavily influence who is willing to invest in your company. A key indicator of strong social governance (the 'S' in ESG) is how rating agencies view your operations and stakeholder management. Berry Global Group, Inc. saw its MSCI ESG rating upgraded to AA in its March 2025 report, a significant step up from the 'A' rating it held previously. This upgrade signals to socially conscious investors that the company is managing its financially relevant ESG risks effectively. This is a big win for attracting capital from funds increasingly mandated to prioritize high ESG performers.

Here is a snapshot of some of the key metrics driving this social and environmental perception as of the latest reporting:

Metric Value/Status (as of 2024 Report) Significance
MSCI ESG Rating AA Attracts ESG-focused institutional capital.
FMCG Packaging Recyclable/Alternative 93% Meets high consumer/brand owner expectations.
Scope 1 & 2 Emissions Reduction (vs. 2019) 28.3% Surpassed the 2025 target of 25% early.
Consumer Preference for Refillable Claims 79% Likely to Purchase Directly impacts product demand.

The shift in consumer values is non-negotiable, and it directly impacts your cost of capital and customer retention. If your product portfolio isn't visibly aligning with these social demands, your market share will erode. Finance: draft the 13-week cash view by Friday, specifically modeling the capital expenditure required to accelerate mono-material line conversions.

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Technological factors

You're looking at how Berry Global Group, Inc. is using science and engineering to navigate the massive shift toward sustainability and digital integration in packaging. Technology isn't just about efficiency here; it's about survival and meeting brand owner demands for circularity. The company's tech investments are directly tied to its ability to deliver on its ambitious 2025 circularity goals.

Proprietary CleanStream® technology is used for mechanically recycling household polypropylene waste

Berry Global's proprietary CleanStream® technology is a game-changer for polypropylene (PP) recycling. This mechanical recycling process takes domestically recovered household PP waste and turns it into high-purity recycled material suitable for contact-sensitive applications, like food and beauty packaging. This is crucial because, until recently, only rPET (recycled PET) achieved that high standard at scale. The facility in Leamington Spa, U.K., is a major asset, capable of recycling nearly 40% of all UK domestic PP waste collected in recycling bins. The resulting material offers a significant environmental benefit, boasting approximately 35% lower carbon dioxide (CO₂) emissions compared to virgin plastic, which translates to a net CO2 saving of over 13,000 tonnes annually from the material produced at that site alone. That's real, quantifiable impact.

R&D investment of $53.4 million (2023 data) focuses on lightweight and recyclable materials

Research and Development spending is the engine for future product design. While the last reported figure you have is $53.4 million from the 2023 fiscal year, the focus remains squarely on material science innovation to meet sustainability mandates. For context, the company reportedly scaled this investment to $100 million in 2024, specifically targeting eco-friendly packaging. This capital is deployed to develop lighter-weight solutions-reducing material use and shipping costs-and to engineer packaging that fits seamlessly into established recycling streams. Think of it as spending money now to avoid future regulatory fines and capture premium, eco-conscious customers. It's a defintely necessary expense.

Development of mono-material packaging, like the redesigned Heinz ketchup closure, enhances recyclability

The industry is moving away from complex, multi-layer laminates that are difficult to recycle. Berry Global is responding by pushing mono-material structures-packaging made from a single type of polymer, like all-polypropylene or all-polyethylene. A concrete example of this is the redesigned Heinz ketchup closure, which eliminated non-recyclable silicone in favor of a mono-material polypropylene design, making the whole unit easier to process. Furthermore, Berry unveiled ClarityGuard™ shrink film in February 2025, which is a mono-PE collation wrap containing 50% post-consumer resin (PCR). This focus on single-polymer design is a direct response to market signals and recycling infrastructure capabilities.

Incorporating smart packaging features (e.g., RFID, QR codes) is an emerging industry trend for traceability

Packaging is becoming a digital interface, not just a container. This trend, known as smart packaging, uses embedded tech like RFID tags and QR codes to provide traceability, monitor conditions, and engage consumers. The global smart packaging market was valued at approximately $24.28 billion in 2025, showing significant capital flow into this area. For Berry's customers, especially in the highly regulated healthcare sector-which holds about 30% of the smart packaging market share-these features are becoming non-negotiable for anti-counterfeiting and compliance. Honestly, the ability to offer QR codes that capture direct consumer data is now a marketing must-have, with reports suggesting 95% of businesses use QR technology for data capture as of 2025.

Here's a quick look at how these technological advancements stack up:

Technology Initiative Key Metric / Value Year of Data Impact Area
CleanStream® Capacity (UK) Nearly 40% of UK domestic PP waste 2024/2025 Circular Economy / Material Supply
CleanStream® CO2 Reduction ~35% lower emissions vs. virgin plastic 2024/2025 Sustainability / ESG Performance
R&D Investment (Reported) $53.4 million 2023 Innovation Pipeline / Material Science
ClarityGuard™ PCR Content 50% post-consumer resin 2025 Mono-Material Recyclability
Global Smart Packaging Market Size $24.28 billion 2025 Industry Trend / Digital Integration

What this estimate hides is the capital expenditure required to scale these proprietary systems globally, which is a major factor in the post-merger entity's future cash flow projections. Still, the technology itself is sound and addresses the biggest external pressure point: plastic waste.

Finance: draft 13-week cash view by Friday

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Legal factors

You are navigating a legal landscape that is rapidly shifting from suggestion to strict requirement, especially around packaging waste. For Berry Global Group, Inc., this means compliance isn't just about good PR; it's about avoiding real financial penalties and securing future feedstock supply. The legal environment is now dictating material science choices.

North American state-level Extended Producer Responsibility (EPR) laws mandate recycled content use.

The proliferation of Extended Producer Responsibility (EPR) laws across the U.S. is a major legal headwind that directly impacts your operational costs. These laws shift the financial burden of end-of-life packaging management from municipalities back to you, the producer. As of late 2025, seven states have enacted comprehensive packaging EPR laws, including Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington.

These laws often come with teeth. For instance, in Oregon, enforcement began July 1, 2025, with noncompliance penalties potentially reaching up to $25,000 per day. To stay ahead of these mandates and the associated fees, Berry Global Group, Inc. previously committed to securing access to 600 million pounds of post-consumer recycled content by 2025. This is a direct, quantifiable response to the legal pressure to increase material circularity.

EU Plastic Packaging Directive requires a 55% recycling rate for plastic packaging by 2030.

Over in Europe, the legal framework is even more prescriptive. The EU's Packaging Waste Directive sets a material-specific recycling target for plastics at a minimum of 55% by the year 2030. This is part of a broader goal to recycle at least 70% of all packaging waste by that same year.

To put this in perspective against Berry Global Group, Inc.'s internal goals, the company had set a target to use 10% post-consumer recycled (PCR) resin by 2025, which it has since surpassed with a 2030 goal of 30% circular plastics use. The EU's 55% plastic target for 2030 means that relying solely on mechanical recycling for all plastic types, especially polyolefins, will be insufficient; advanced recycling solutions will be legally necessary to meet the food-grade requirements that are also being tightened.

Here's a quick look at the EU plastic recycling targets:

Material Category 2030 Minimum Recycling Target (by weight)
All Packaging Waste 70%
Plastics 55%
Glass 75%
Paper and Cardboard 85%

Proliferation of state laws classifying advanced recycling as a manufacturing process creates regulatory clarity.

The regulatory treatment of advanced recycling-chemical processes that break down plastic waste into feedstock-is a critical legal differentiator for capital investment. The classification determines whether a facility is subject to less burdensome manufacturing permitting or stricter solid waste disposal regulations. As of 2025, 27 states have designated advanced recycling as a form of manufacturing, which exempts these facilities from certain solid waste disposal requirements.

This regulatory clarity is what spurs investment. For example, some states have explicitly defined advanced recycling facilities as manufacturing facilities that convert post-use polymers using processes like pyrolysis. However, this is not universal; states like Maine, New Jersey, and New Mexico have taken the opposite route, treating it as solid waste processing, which creates operational hurdles. For Berry Global Group, Inc., the trend toward a manufacturing classification in a majority of states provides the necessary legal certainty to pursue large-scale chemical recycling partnerships.

The legal landscape for advanced recycling facilities:

  • Manufacturing Classification: 27 states exempt facilities from solid waste disposal rules.
  • Solid Waste Classification: Maine, New Jersey, and New Mexico subject facilities to stricter environmental rules.
  • Benefit: Classification as manufacturing encourages private investment in recycling infrastructure.

Finance: draft a memo by next Tuesday outlining the projected compliance cost increase for any packaging sold in Oregon and California based on the 2024 shipment volumes.

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Environmental factors

When we look at the environmental side of the ledger for Berry Global Group, Inc., the story in 2025 is one of aggressive target-hitting, especially on the climate front. You need to know that they've already moved the goalposts on their own targets, which is a strong signal to the market about their operational focus.

Scope 1 and 2 Absolute Emissions Reduction

Berry Global Group, Inc. has made real headway in cutting down the emissions coming directly from their operations (Scope 1) and the power they buy (Scope 2). They have reduced their absolute Scope 1 and 2 emissions by 28.3% when compared to their 2019 baseline. Honestly, this is a big deal because it means they have already surpassed their stated 2025 reduction target of 25%, hitting it two years early. This kind of performance suggests that investments in energy efficiency and renewable sources are paying off faster than planned. That's a clear win for near-term risk management related to carbon exposure.

Post-Consumer Resin (PCR) Integration

The push for circularity is visible in their material sourcing, specifically with post-consumer resin (PCR). They reported a significant jump in using this recycled material. Purchases of PCR increased by 43% year-over-year, pushing its share to 5.1% of their total resin volume. This shows they are actively working to reduce reliance on virgin, fossil-based plastics, which is a key lever for managing future regulatory and reputational risk. Still, you should note their stated goal for PCR content in their single-use consumer goods portfolio is 10% by 2025, so they still have ground to cover in the final stretch of the year.

Packaging Recyclability and Design for Circularity

For the consumer-facing side of the business, the focus is on making sure the packaging they produce can actually be recycled. As of 2024, 93% of their Fast-Moving Consumer Goods (FMCG) packaging is either recyclable or has a validated recyclable alternative. This is a tangible metric that speaks directly to brand owner demands and evolving Extended Producer Responsibility (EPR) schemes across Europe and North America. It's not just about the material inside; it's about the entire package lifecycle. Here's a quick look at how some of these key environmental metrics stack up:

Environmental Metric Value/Status Reporting Period/Baseline
Scope 1 & 2 Emissions Reduction 28.3% Reduction vs. 2019 Baseline (2025 Target Surpassed)
Post-Consumer Resin (PCR) Usage 5.1% of Total Volume 2024 Data (43% YoY Increase)
FMCG Packaging Recyclability 93% Recyclable/Validated Alternative As of 2024
Renewable Energy Usage Increase 31% Year-over-Year Latest Report

Investment in Recycling Infrastructure

To secure the supply of high-quality recycled material needed to meet those PCR targets, Berry Global Group, Inc. is putting capital to work. A prime example is the significant investment in the Berry Circular Polymers facility located in the U.K. This site uses their proprietary CleanStream® technology to process domestically recovered polypropylene waste into recycled plastic suitable for contact-sensitive applications. The facility is designed to recycle nearly 40% of all polypropylene waste collected from domestic recycling bins in the U.K. This move de-risks their supply chain for circular materials and positions them as a key enabler for their large consumer goods customers.

If the onboarding of new PCR suppliers slows down due to material quality issues, the internal capacity at the U.K. facility becomes even more critical for hitting the 10% PCR goal for 2025. Finance: draft a sensitivity analysis on the cost of virgin vs. internal PCR sourcing for Q3 2025 by next Tuesday.


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