BENTONVILLE — Walmart has fallen short of some of its private-brand packaging sustainability targets by the 2025 deadline, according to its latest FY2026 ESG Report. The retailer said product protection, food safety, costs, regulations and availability of recycled materials are competing demands that have impeded progress.
Walmart had set targets for recyclability of packaging, reduction of virgin plastic and use of post-consumer recycled (PCR) content . Some things improved. Others went further away from the company’s original goals.
The issue of recyclable packaging remains
Walmart’s private brand packaging that is recyclable, reusable or industrially compostable fell to 64.3% in FY2026 from 66.1% in FY2025 and 68.2% in FY2024.
The retailer also aimed for a 15% reduction in virgin plastic use from its fiscal 2021 baseline. But Walmart still used more virgin plastic than its baseline, although it said the intensity of virgin plastic packaging fell when measured against net sales.
The company said it missed its overall 2025 packaging targets, but said it had made strides in some areas, including greater use of recycled materials.
More recycled content in private label packaging
Walmart is ramping up its use of recycled post-consumer plastic.
FY2024 private-brand plastic packaging used 7.4% PCR content, increasing to 7.6% in FY2025 and 10.7% in FY2026.
Its share in North America increased from 7.3% to 8.2% and then 12% over the same period.
However, these numbers fall short of Walmart’s initial targets of 17% PCR content globally and 20% in North America.
The retailer said expanding the use of recycled materials is dependent on a range of factors including material availability, performance, quality, cost and regulatory considerations.
Package redesign still in progress.
Walmart is continuing to retool its private-brand packaging to use less material and be more recyclable.
A prime example of this is the transition to label-free packaging for the Great Value 40-pack bottled water. The move is intended to reduce the use of plastics and to make the packaging easier to recycle.
Walmart plans to expand the new format, which was launched in 2026 in three distribution centers.
The retailer also plans to ditch packaging not needed for safety, shipping, storage or regulatory purposes. Other efforts include rightsizing e-commerce packaging, reducing plastic in home goods and encouraging reusable bags.
Three principles will guide the packaging efforts of the future
Walmart’s packaging strategy is based on three fundamental principles: eliminate unnecessary packaging, design for recyclability and increase the use of post-consumer recycled content.
The company is also working with suppliers and other partners to improve access to recycled materials and increase the use of PCR content where technical and commercial conditions permit.
Walmart said packaging decisions are often a balancing act between sustainability goals and pragmatic considerations like product protection, food safety, regulatory compliance and cost.
The retailer has missed some of its 2025 targets but says it will continue to monitor its performance and proceed with packaging initiatives as it seeks to reduce waste and dependence on virgin plastic.
