Packaging’s Next Chapter? Huhtamaki Doubles Down on Fiber

Huhtamaki acquires Zellwin Farms to expand US fiber packaging amid rising demand and anti-plastic legislation

26 Apr 2025

Huhtamaki has acquired Florida-based Zellwin Farms for $18mn, expanding its molded fiber packaging operations in the US as regulators tighten restrictions on single-use plastics.

The Finnish packaging group said the deal would strengthen its position in fiber-based packaging, a segment gaining attention as states including California and Washington introduce legislation limiting disposable plastic products.

Zellwin Farms produces molded fiber packaging made from recycled paper and agricultural byproducts, including egg cartons and protective packaging. By integrating the company’s operations, Huhtamaki gains additional manufacturing capacity and a foothold in a market where demand for compostable packaging is rising.

“This acquisition supports our ambition to lead the transition to more sustainable packaging,” said Huhtamaki chief executive Charles Héaulmé. “Zellwin brings valuable expertise and capability that will help us serve our North American customers even better.”

Companies across the packaging sector have been increasing investment in fiber-based materials as governments and consumers push for alternatives to plastic. Molded fiber products, typically made from recycled pulp, are seen as one of the more scalable options because they can be composted or recycled in existing paper streams.

The purchase also gives Huhtamaki greater control over fiber supply and manufacturing in the US, allowing it to expand production as demand grows. Analysts say large packaging groups are gradually reshaping their portfolios to align with environmental standards and regulatory change.

However, scaling fiber packaging presents operational challenges. Maintaining product strength and consistency while keeping costs competitive has proven difficult for some manufacturers, particularly as demand rises.

Huhtamaki, which operates production facilities in more than 30 countries, has been increasing its investment in fiber and other renewable materials as part of its broader sustainability strategy.

The Zellwin acquisition highlights a wider shift in the packaging industry, where companies are repositioning themselves for a future in which fiber-based materials play a larger role in replacing conventional plastics.