How US consumers view sustainability in packaging

The COVID-19 pandemic has rapidly transformed consumer behavior in several ways: sparking higher price sensitivity, accelerating online shopping across all categories, and causing shoppers to focus even more on health, wellness, and hygiene. Consumer attitudes about sustainable packaging have also changed significantly. Before the pandemic, public awareness that packaging can leak into the environment had increased a good deal. Fast-moving-consumer-goods (FMCG) companies and retailers were making big commitments to sustainable packaging, and regulatory bodies were moving decisively on the issue.

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To understand how consumer thinking has evolved since then, we launched a survey in ten countries around the world to explore consumers’ attitudes toward sustainable packaging. Responses from the US consumers who took part in the survey have uncovered five key findings. First, consumers actually rank overall sustainability relatively low as a buying criterion among end-use factors; they regard price, quality, brand, and convenience as more important. Indeed, even when we look specifically at packaging, it seems that hygiene, shelf life, and convenience rank significantly higher than environmental impact. The pattern is similar in the other countries we surveyed.

Second, more than half of US consumers are nonetheless highly concerned about the environmental impact of packaging in general. They worry about a wide range of issues, not one single factor, such as marine litter. Third, consumers are willing to pay more for green, but they would also buy additional sustainably packaged products if more of them were available and they were better labeled. Fourth, if you ask consumers what they want to see going forward, they are almost equally interested in recyclable and recycled plastic packaging and in fiber-based substitutes. Fifth, the COVID-19 crisis has significantly heightened consumer sensitivity to hygiene and food safety, which are new strong preferences for packaging materials.

To respond to these changing consumer sentiments, the whole packaging value chain will have to adjust rapidly. Here we suggest three actions packaging converters can take immediately to jump-start their response. Above all, they should take a holistic approach to sustainability by acting in multiple areas and make sustainable packaging not only available but also apparent to consumers. A granular understanding of end-user segments will also be critical: there is no universal solution, and consumers do not necessarily know what to expect about sustainability in packaging. To be proactive, packaging converters should collaborate with their value-chain partners sooner rather than later, adopting an experimental approach to developing solutions and communicating narratives about them clearly. Finally, converters shouldn’t address sustainability in isolation, without taking into account COVID-19’s ramifications for hygiene and food safety, not to mention other megatrends, such as e-commerce.

Sustainability reemphasized and redefined

Over the past three years, the forces pushing for sustainability—especially demands from regulators—have strengthened around the world. FMCG companies and retailers have made bold commitments responding to public concerns about single-use packaging waste. More recently, the COVID-19 pandemic has further reshaped sustainability sentiment by heightening consumers’ concerns about hygiene and food safety.

What lies ahead for sustainability? We found some answers in our global survey. This paper is based not only on the responses from US consumers but also on interviews with executives at retailers and FMCG companies, as well as packaging-industry executives in major end-user markets and across the main packaging substrates.

When we asked US consumers about the most important factors influencing their purchasing behavior, they gave a relatively low rank to the environmental aspects of products and their packaging. Indeed, across all end-use areas we surveyed, price, quality, and brand rank well ahead of packaging or environmental concerns (Exhibit 1).

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Looking deeper into what US consumers expect from product packaging, we found that hygiene and food safety, shelf life, and ease of use are the top-ranked factors. The environmental impact is actually one of the lowest of seven, after appearance and durability (Exhibit 2). Forty-three percent of surveyed US consumers cited environmental impact as extremely or very important for packaging, compared with 77 percent for hygiene and food safety, 67 percent for shelf life, and 61 percent for ease of use. The relatively low importance US consumers attribute to environmental factors is certainly not unique; we see similar sentiments in China, France, and the United Kingdom. In Japan, environmental factors are actually significantly less important than they are in the United States. However, they rank somewhat higher in Germany and Italy and significantly higher in Brazil, India, and Indonesia.

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Sustainability concerns for end-use segments and packaging substrates

Nevertheless, 55 percent of US survey respondents report that they are extremely or very concerned about the environmental impact of product packaging, so consumers remain very focused on these issues. A deep dive into their concerns shows, significantly, that they are spread almost equally across several factors (Exhibit 3). Consumers rank marine litter and other factors (such as deforestation and natural-resource depletion) at similar levels, despite extensive reporting in the media about how packaging leaks into the environment. Since consumers don’t focus on any single area, companies acting on sustainability must address a broad range of concerns.

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When we ask US consumers about the importance of sustainable packaging when they purchase products for various end-use areas, some 38 percent say it is extremely or very important. Moreover, the responses are quite consistent across different end-use segments. The level of concern is somewhat higher for dairy products and lowest for foodservice.

As for packaging substrates, some 57 to 60 percent of US consumers rank glass, paperboard, and paper as extremely or very sustainable. Interestingly, they rank these three only a little higher than compostable plastic films or fully recyclable plastic films and bottles: 53 to 57 percent of consumers see plastics as extremely or very sustainable. Metal containers rank a bit lower, at 48 percent, while aluminum foil and laminated packaging rank lowest, rated as extremely or very sustainable by only 37 percent and 32 percent of US consumers, respectively.

What do US consumers want going forward?

Many industry participants are asking themselves whether consumers will pay for green. Our survey on US consumers has three important findings here:

• Across all end-use segments, 60 to 70 percent of consumers said they would pay more for sustainable packaging. A willingness to pay more was relatively equally distributed across end-use segments.
• Fifty-two percent of consumers said they would buy more products with sustainable packaging if those products didn’t cost more than conventionally packaged ones.
• Approximately 35 to 36 percent of respondents would buy additional sustainably packaged products if they were more available in stores, available for more products, and better labeled (to indicate green packaging).

The last point is interesting because it indicates that price isn’t the only thing that drives volume; you must also ensure that consumers know they are buying more sustainable packaging and that sustainable choices are widely available across products and categories.

Our survey also assessed what kind of sustainable packaging US consumers expect to see more often. Preferences vary across the different end-use areas surveyed. Although not all consumers have strong specific preferences, a few common themes can guide players in the packaging value chain as they get to grips with consumer priorities:

• Consumers are more or less equally interested in recyclable and recycled plastic packaging and in fiber-based packaging. Their specific preferences depend on the end use.
• Overall, consumers want plastic film and rigid packaging to be recyclable or to include higher levels of recycled content.
• Consumers expect more compostable packaging to be introduced.

For example, in foodservice, consumers now see large amounts of paper-based containers and flexible paper. Going forward, they want plastic films or containers that are fully recyclable or films that are compostable (Exhibit 4). We can identify several similar trends in other food and nonfood segments:

• Produce (fresh fruit, vegetables, fresh meat). Consumers want more recyclable or compostable films and more paper- and board-based packaging.
• Beverages. The most important request is for plastic bottles that are more recyclable or entirely made from recycled content. In this segment, consumers also ask for more metal and glass packaging.
• Packaged dry food. This segment similarly has a high level of interest in both recyclable and recycled plastic packaging, as well as in fiber-based packaging.
• Dairy products. We found strong demand for plastic packaging (both flexible and rigid) that is either fully recyclable or compostable or includes recycled content.
• Frozen food. US consumers want plastics with more recycled content.
• Pet food. US consumers who have a preference want much more paper-based packaging.
• Household products. As with beverages, US consumers ask for plastic packaging with more recycled content and high recyclability. They also want more glass packaging.

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Picking up on the consumer voice from the survey, we can map out the likely way ahead in the categories mentioned above. Expect some substrate shifts for selected end uses; for others, continue to use the same substrates but improve them incrementally so that your products have a better sustainability profile.

Substrate shifts will probably include a move to more compostable films or to fully recyclable monomaterial plastic films (for example, in foodservice and produce) and to more fiber-based products (in pet foods and in produce). The speed of this shift will probably depend on the industry’s ability to introduce compostable, recyclable, or fiber-based packaging with the performance profile of incumbent solutions and at competitive (or close to competitive) prices. Today, the main challenges are the performance of barriers and the price of packaging, so these issues could delay the shift to different or improved materials. That shift may happen first in product lines where performance or cost are not limiting factors.

Existing substrates could probably be incrementally improved and introduced more rapidly across most of the end-use areas surveyed—for example, a move to packaging with higher recycled content for frozen foods, dairy products, beverages, packaged foods, and household-cleaning products. Again, we would expect these changes to happen more quickly in product lines where they will have little or no impact on operating costs, capital expenditures, and functionality, or on the attractiveness of the packaging.

Another issue will also have an impact on future substrate choices: significantly heightened consumer sensitivity to hygiene and food safety. In our survey, 71 percent of US respondents said they are more concerned about them than they were before the pandemic. Consumers rank glass as the safest packaging substrate (33 percent). Most others (including plastic, metal, and paper) rank at around 22 to 26 percent. US consumers rank aluminum foil and laminated packaging as the least safe substrate. These concerns and consumer preferences for different packaging materials will probably be a major consideration when the industry selects substrates to buttress its sustainability efforts.

Three immediate actions

To align with evolving consumer behavior, the whole packaging value chain must quickly consider and act on a number of issues. We suggest three immediate ways for packaging converters to jump-start their response:

1. Packaging converters must take a holistic approach to sustainability rather than focus on just one thing. The survey results show that consumers demand action across multiple environmental areas. When packaging players address them, it will be necessary to use clear labeling and more generally available options to help consumers see and understand the sustainability narrative. As our results show, consumers are willing not only to pay more for sustainable packaging but also to buy more products that use it if they are available and clearly labeled.
2. A granular understanding of end-user segments will be critical. In some of them, consumers rank fiber packaging highest; in others, compostable plastic film. There is no universal solution, and in any case consumers do not necessarily know what to expect for sustainability in packaging. To act proactively, packaging players must understand, at a granular level, how consumers buy and use the products in a given category and how consumers dispose of the packaging now in use. These insights can serve as a starting point for an analysis of which kinds of sustainable packaging fit a given value chain and the range of improvement levers available. Companies will probably find it helpful to try sooner rather than later, taking an experimental approach to developing solutions with partners and then perfecting the packaging along the way. Attempts to second-guess consumer preferences in packaging-design labs probably increase the risk of market failure.
3. Finally, sustainability needs to be redefined to include hygiene concerns. It will also be important to address other key megatrends, such as e-commerce. Packaging converters that can combine sustainability and hygiene with additional requirements (such as costs, performance, and convenience) are more likely to succeed than converters that focus on one or two factors.

Although sustainability remains a key industry-shaping trend, pre-COVID-19 approaches will not be enough to address it. An understanding of today’s consumer preferences gives packaging converters a unique opportunity to help downstream customers reshape their packaging portfolios, drive growth, and capture value.

Understanding Eco-Friendly Packaging

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Eco-friendly packaging aims to reduce environmental impact and promote sustainability by using materials that are biodegradable or recyclable. Kraft paper bags are a popular choice for eco-friendly packaging due to their recyclability and minimal environmental footprint. Some key points to understand about eco-friendly packaging include:

• Biodegradable: Eco-friendly packaging materials break down naturally into the environment without causing harm.
• Recyclable: These materials can be collected, processed, and reused to create new products, reducing waste and conserving resources.
• Sustainable Sourcing: Eco-friendly packaging often comes from sustainable sources, such as responsibly managed forests or recycled materials.
• Reducing Carbon Footprint: Opting for eco-friendly packaging helps lower greenhouse gas emissions and overall environmental impact.

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Benefits of Kraft Paper Bags

Kraft paper bags are an eco-friendly packaging option that offers many benefits. Here's why they are a great choice:

• Kraft paper bags are biodegradable and compostable, making them environmentally friendly.
• These bags are durable and sturdy, able to hold a variety of products without tearing or breaking easily.
• They are reusable and recyclable, reducing waste and promoting sustainability.
• Kraft paper bags are cost-effective, often being more affordable than plastic or non-biodegradable options.
• They provide a natural and organic look, appealing to consumers who prefer eco-friendly products.

Environmental Impact of Kraft Paper Bags

Kraft paper bags are an eco-friendly packaging option that can help reduce waste and lessen the impact on the environment. They are biodegradable and recyclable, making them a sustainable choice for businesses looking to reduce their carbon footprint. Kraft paper, made from wood pulp, is unbleached and does not contain harmful chemicals, making it a safer option for the environment. By opting for kraft paper bags, you are contributing to the reduction of plastic waste and promoting a greener planet.

Design and Customization Options

When it comes to design and customization options for kraft paper bags, you have a range of choices to make your packaging unique to your brand. Here are some key points to consider:

• Kraft paper bags can be custom printed with your logo, brand colors, and any specific design elements you want to include.
• You can choose from different sizes and shapes to fit the products you are packaging.
• Some customization options include handles, gussets, and window cut-outs for a more personalized touch.
• Recycled paper content and eco-friendly ink choices are available to align with your sustainability goals.
• Discussing your design ideas with a specialized packaging supplier can help you bring your vision to life efficiently.

Cost-Effectiveness of Kraft Paper Bags

Kraft paper bags are known for being eco-friendly and budget-friendly too. These bags are an economical choice for businesses looking to reduce packaging costs while staying environmentally conscious. Compared to other packaging options, kraft paper bags are often more cost-effective, especially when bought in bulk. They provide a balance between affordability and sustainability, making them a popular choice for many businesses aiming to go green without breaking the bank.

Sustainability of Kraft Paper Bags

Kraft paper bags are eco-friendly and sustainable options for packaging. They are biodegradable and recyclable, making them a better choice for the environment. Kraft paper bags are made from natural materials, reducing the impact on the planet compared to plastic bags. Their sustainable properties make them a preferred choice for businesses looking to reduce their carbon footprint.

Uses and Applications of Kraft Paper Bags

Kraft paper bags are versatile and eco-friendly alternatives. They are commonly used for grocery shopping, gift wrapping, packing lunches, and carrying various items. These bags are sturdy and offer a sustainable option for reducing single-use plastics. Recycling and upcycling kraft paper bags are also popular, making them a favorite among environmentally conscious individuals.

Comparison with Traditional Packaging

Traditional packaging is usually made from materials like plastic, foam, or metal, which are not biodegradable and can harm the environment. In contrast, eco-friendly packaging, such as kraft paper bags, is made from recycled materials and is biodegradable. Kraft paper bags are a sustainable option that helps reduce waste and lessen the environmental impact of packaging materials. Additionally, they can be easily recycled and are an excellent alternative to traditional, non-recyclable packaging.

Tips for Choosing the Right Kraft Paper Bags

When choosing Kraft paper bags, consider the following tips to find the right ones for your needs:

• Look for bags made from 100% recycled materials for a more eco-friendly option.
• Check the bag's strength and durability to ensure it can hold your items securely.
• Consider the size and shape of the bags to accommodate your products comfortably.
• Opt for bags with reinforced handles for convenient carrying.

Conclusion: Embracing Sustainability with Kraft Paper Bags

When it comes to embracing sustainability with kraft paper bags, the switch to eco-friendly packaging is a simple yet impactful choice. By opting for kraft paper bags, you are contributing to reducing environmental harm and promoting a greener future. Kraft paper bags are biodegradable, recyclable, and compostable, making them an excellent alternative to traditional plastic bags. They are durable, versatile, and can be customized to fit your branding needs, all while showcasing your commitment to the environment. Making the choice to use kraft paper bags is a small step that can have a big impact in promoting sustainability in packaging practices.

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