Berry Global Group, Inc. (BERY) PESTLE Analysis

Berry Global Group, Inc. (Bery): Analyse de Pestle [Jan-2025 Mise à jour]

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Berry Global Group, Inc. (BERY) PESTLE Analysis

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Dans le monde dynamique de l'emballage mondial, Berry Global Group, Inc. (Bery) se dresse au carrefour de l'innovation, de la durabilité et de l'adaptation stratégique. Cette analyse complète du pilon dévoile le paysage complexe des défis et des opportunités qui façonnent la trajectoire de l'entreprise, des tensions géopolitiques et des incertitudes économiques aux progrès technologiques et aux impératifs environnementaux. Plongez dans une exploration de la façon dont Berry Global navigue dans l'interaction complexe des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui définissent son avantage concurrentiel dans l'industrie des emballages en évolution rapide.


Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques et tarifs commerciaux sur la fabrication mondiale des emballages

Berry Global Group fait face à des défis importants des politiques commerciales internationales. En 2024, les États-Unis maintiennent des tarifs sur les importations en plastique et en emballage en provenance de Chine allant de 7,5% à 25%. Les opérations mondiales de la société sont affectées par ces restrictions commerciales.

Pays Taux tarifaire Impact sur Berry Global
Chine 25% Augmentation des coûts de production
Union européenne 6.5% Complexité de la chaîne d'approvisionnement
Mexique 0% Avantage de fabrication potentiel

Tensions géopolitiques affectant les opérations internationales de la chaîne d'approvisionnement

La chaîne d'approvisionnement internationale de Berry Global fait face à des perturbations des tensions géopolitiques en cours. L'entreprise opère dans 16 pays avec des environnements réglementaires complexes.

  • Conflit de la Russie-Ukraine: augmentation des frais d'expédition de 22%
  • Tensions commerciales américaines-chinoises: 18% des frais de reconfiguration de la chaîne d'approvisionnement
  • Instabilité politique du Moyen-Orient: 15%

Changements réglementaires dans les mandats de conformité environnementale et de durabilité

Les réglementations environnementales ont un impact significatif sur les processus de fabrication de Berry Global. La directive d'emballage en plastique de l'UE nécessite un taux de recyclage de 55% d'ici 2030, affectant directement les stratégies de production de l'entreprise.

Règlement Coût de conformité Chronologie de la mise en œuvre
Directive d'emballage en plastique de l'UE 47,3 millions de dollars 2025-2030
Mandat de recyclage de Californie 22,6 millions de dollars 2024-2027

Incitations gouvernementales pour la fabrication des technologies de l'innovation et du recyclage

Les incitations gouvernementales fournissent un soutien financier aux innovations manufacturières durables. Berry Global peut tirer parti de ces programmes pour compenser les coûts de conformité.

  • GRANTIF DE L'INNOVATION DU DÉPARTEMENT DE L'ÉNERVIR U.S.
  • Fonds européen de la technologie verte: 9,7 millions d'euros
  • California Recycling Technology incitative: 6,5 millions de dollars

Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs économiques

Les coûts de matières premières fluctuants ont un impact sur les dépenses de production d'emballage

En 2023, Berry Global Group a connu une volatilité importante des prix des matières premières. Les prix du polypropylène variaient de 1 100 $ à 1 450 $ par tonne métrique. Les coûts de polyéthylène téréphtalate (TEP) ont fluctué entre 1 250 $ et 1 600 $ par tonne métrique.

Matière première Range de prix 2023 ($ / tonne métrique) Impact moyen des coûts
Polypropylène 1,100 - 1,450 + 12,7% d'augmentation des coûts de production
Polyéthylène téréphtalate 1,250 - 1,600 + 15,2% d'augmentation des coûts de production

Incertitude économique mondiale influençant la demande d'emballage des consommateurs

La taille du marché mondial des emballages était estimée à 909,5 milliards de dollars en 2023, avec un taux de croissance prévu de 4,2% par an. Les revenus de Berry Global pour l'exercice 2023 ont atteint 16,8 milliards de dollars, reflétant les défis du marché.

Indicateur économique Valeur 2023 Changement d'une année à l'autre
Taille du marché mondial des emballages 909,5 milliards de dollars +4.2%
Berry Global Revenue 16,8 milliards de dollars +3.5%

Pressions inflationnistes affectant les coûts opérationnels et de transport

Le taux d'inflation américain en 2023 était de 3,4%. Les coûts de transport pour Berry Global ont augmenté de 7,2%, les prix du carburant diesel d'une moyenne de 4,15 $ le gallon.

Composant coût Valeur 2023 Impact de l'inflation
Taux d'inflation américain 3.4% Pression économique modérée
Frais de transport +7.2% Dépenses opérationnelles importantes
Prix ​​du carburant diesel 4,15 $ / gallon Dépenses logistiques plus élevées

Risques potentiels de récession dans les principaux segments de marché

Le segment des emballages de biens de consommation a montré une résilience avec une croissance de 3,8%. Le marché de l'emballage industriel s'est contracté de 2,1% en raison des incertitudes économiques.

Segment de marché 2023 taux de croissance Niveau de risque économique
Emballage de biens de consommation +3.8% Risque
Emballage industriel -2.1% Risque élevé

Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs sociaux

Préférence croissante des consommateurs pour les solutions d'emballage durables et respectueuses de l'environnement

En 2023, 74% des consommateurs sont prêts à payer plus pour un emballage durable. Berry Global Group a répondu en développant des solutions d'emballage respectueuses de l'environnement, avec 1,2 milliard de dollars investis dans la recherche et le développement des emballages durables.

Segment du marché des emballages durables Valeur marchande (2023) Taux de croissance projeté
Emballage recyclable 268,5 milliards de dollars 6,8% CAGR
Emballage biodégradable 122,7 milliards de dollars 8,3% CAGR

Demande croissante de matériaux d'emballage légers et recyclables

Berry Global Group a rapporté Réduction de 37% du poids de l'emballage entre les lignes de produits. Le marché des emballages légers devrait atteindre 303,5 milliards de dollars d'ici 2025.

Type de matériau d'emballage Part de marché Taux de recyclage
Emballage en plastique 42.3% 14.2%
Emballage papier 33.6% 68.7%

Changements de travail démographique et dynamique du marché du travail

Berry Global Group emploie 19 300 travailleurs dans 130 emplacements de fabrication. La composition de la main-d'œuvre montre:

  • Millennials: 42% de la main-d'œuvre
  • Gen X: 33% de la main-d'œuvre
  • Baby-boomers: 18% de la main-d'œuvre
  • Gen Z: 7% de la main-d'œuvre

Conscience des consommateurs à l'impact environnemental dans la conception des emballages

La conscience environnementale des consommateurs a conduit Augmentation de 45% de la demande de solutions d'emballage durables. Berry Global Group s'est engagé à 50% de contenu recyclé en emballage d'ici 2030.

Métrique d'emballage environnemental Performance actuelle Année cible
Contenu recyclé 28% 2030
Réduction des émissions de carbone 22% 2030

Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs technologiques

Investissement dans les technologies avancées de recyclage et d'économie circulaire

Berry Global Group a investi 45,2 millions de dollars dans les technologies de recyclage en 2023. Les initiatives de l'économie circulaire de la société se sont concentrées sur le développement de capacités de recyclage avancées, avec un objectif de contenu recyclé 25% dans les matériaux d'emballage d'ici 2025.

Catégorie d'investissement technologique Montant d'investissement (2023) Impact projeté
Technologies de recyclage avancées 45,2 millions de dollars 25% de contenu recyclé d'ici 2025
Infrastructure de recyclage chimique 22,7 millions de dollars Réduire l'utilisation du plastique vierge de 15%

Automatisation et transformation numérique dans les processus de fabrication

Berry Global a mis en œuvre l'automatisation des processus robotiques dans 67 installations de fabrication, entraînant une augmentation de 12,3% de l'efficacité opérationnelle. La société a déployé 423 robots industriels en 2023, représentant un investissement de 38,6 millions de dollars dans l'automatisation de la fabrication.

Métrique d'automatisation 2023 données
Installations de fabrication totale 67
Robots industriels déployés 423
Investissement d'automatisation 38,6 millions de dollars
Augmentation de l'efficacité opérationnelle 12.3%

Implémentation de l'IA et de l'apprentissage automatique dans l'optimisation de la chaîne d'approvisionnement

Berry Global a investi 16,5 millions de dollars dans l'IA et les technologies d'apprentissage automatique pour l'optimisation de la chaîne d'approvisionnement. La société a mis en œuvre des systèmes d'analyse prédictive qui ont réduit les coûts de transport des stocks de 8,7% et amélioré la précision des prévisions de la demande de 14,2%.

Application technologique AI Investissement Amélioration des performances
Analytique prédictive de la chaîne d'approvisionnement 16,5 millions de dollars Réduction des coûts des stocks: 8,7%
Demande de prévision de l'IA 7,3 millions de dollars Précision des prévisions: 14,2%

Développement de matériaux d'emballage innovants et de technologies de conception

Berry Global a alloué 53,4 millions de dollars à la recherche et au développement de technologies d'emballage innovantes en 2023. La société a développé 17 nouvelles solutions d'emballage durables avec un impact environnemental réduit, en se concentrant sur les matériaux légers et les conceptions recyclables.

Catégorie d'innovation d'emballage Investissement en R&D De nouvelles solutions développées
Technologies d'emballage durables 53,4 millions de dollars 17 nouvelles solutions
Développement de matériaux légers 22,1 millions de dollars 9 innovations matérielles

Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales internationales

Berry Global Group a investi 85,3 millions de dollars dans des initiatives de durabilité pour respecter les réglementations environnementales internationales en 2023. La société maintient la conformité:

  • Réglementation des déchets d'emballage et d'emballage de l'UE
  • California Transparency in Supply Chains Act
  • Loi sur la conservation des ressources et la récupération (RCRA)
Règlement Coût de conformité Statut de conformité
Directive d'emballage de l'UE 42,6 millions de dollars 100% conforme
Règlements de l'EPA américains 23,7 millions de dollars 98% conforme
Normes de recyclage mondial 19 millions de dollars 95% conforme

Protection de la propriété intellectuelle pour les innovations d'emballage

Berry Global détient 287 brevets actifs en 2024, avec un portefeuille de propriété intellectuelle d'une valeur de 163,4 millions de dollars. La distribution des brevets comprend:

Catégorie de brevet Nombre de brevets Valeur estimée
Technologie d'emballage 156 89,2 millions de dollars
Matériaux durables 73 41,6 millions de dollars
Processus de fabrication 58 32,6 millions de dollars

Risques potentiels en matière de litige liés à la durabilité environnementale

Risques de litige actuels et dépenses juridiques associées:

Type de litige Dépenses juridiques estimées Niveau de risque
Contests de conformité environnementale 7,3 millions de dollars Moyen
Défis de durabilité de la chaîne d'approvisionnement 4,9 millions de dollars Faible
Controverses de gestion des déchets 5,6 millions de dollars Moyen-doux

Adhésion aux normes mondiales du commerce et de la fabrication

Berry Global fait preuve de conformité aux normes de fabrication internationales dans 17 pays, avec un investissement total de conformité de 62,5 millions de dollars en 2023.

Standard Investissement de conformité Couverture mondiale
ISO 9001: 2015 18,3 millions de dollars 14 pays
ISO 14001: 2015 22,7 millions de dollars 12 pays
Atteindre la réglementation 21,5 millions de dollars Union européenne

Berry Global Group, Inc. (Bery) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone dans les processus de fabrication

Berry Global Group s'est engagé à réduire les émissions de gaz à effet de serre de 50% d'ici 2030 dans ses opérations mondiales. Les émissions de carbone actuelles de la société s'élèvent à 1,2 million de tonnes métriques par an.

Année Émissions de carbone (tonnes métriques) Pourcentage de réduction
2022 1,200,000 Base de base
2023 1,140,000 5%
2024 (projeté) 1,080,000 10%

Développement de solutions d'emballage recyclables et biodégradables

Berry Global a investi 45 millions de dollars dans le développement des technologies d'emballage recyclables. L'entreprise produit actuellement 3,2 milliards Unités d'emballage recyclables chaque année.

Type d'emballage Volume de production annuel Pourcentage de recyclabilité
Récipients en plastique 1,5 milliard d'unités 85%
Emballage biodégradable 750 millions d'unités 95%
Emballage durable 950 millions d'unités 90%

Investissement dans l'économie circulaire et les initiatives de réduction des déchets

Berry Global a alloué 78 millions de dollars pour les initiatives de l'économie circulaire en 2024. La société vise à détourner 65% des déchets de fabrication des décharges.

Initiative Montant d'investissement Cible de réduction des déchets
Recyclage des infrastructures 35 millions de dollars 40%
Programmes de déchets d'énergie 23 millions de dollars 15%
Récupération des matériaux 20 millions de dollars 10%

Alignement sur les objectifs mondiaux de la durabilité et de la protection de l'environnement

Berry Global s'est engagé dans les objectifs de développement durable des Nations Unies, avec un accent spécifique sur l'action climatique et la consommation responsable. L'entreprise a atteint 30% de ses objectifs de durabilité 2030.

Objectif de durabilité Pourcentage de progrès Année cible
Adoption d'énergie renouvelable 35% 2030
Conservation de l'eau 25% 2030
Neutralité du carbone 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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