Food packaging improves shelf life and allows longer transportation distances in global food supply chains, but it is also responsible for huge volumes of waste. The transition to sustainable packaging by food companies has often been slow and inconsistent. How decisions on (sustainable) packaging are made within companies in the food sector remains mostly opaque to research. To explore the decision-making process and identify barriers for cleaner, more resource efficient food packaging, we carried out 17 interviews in four European countries across different food sectors using the theoretical decision-making process of Nutt (1984) as an analytical framework. Through qualitative content analysis, we found that decision-making processes often lack structure and extend over long stretches of time. Frequently, they are initiated in response to packaging material manufacturers or suppliers. Switching to more sustainable packaging often implies costly investments into new machinery. Economic sustainability takes precedence over ecological sustainability. We recommend companies move to life-cycle cost models for packaging decisions, commit to mono- and other recyclable materials, and establish structured decision-making processes with clear cut-off criteria so as to streamline implementation decisions. Our results further support a call for progressive legislation towards a circular economy in the packaging sector.