New research from Trivium Packaging and Boston Consulting Group, in their "2020 Global Buying Green" report provides some encouraging news on customer insights about sustainable packaging.
For years consumers have proclaimed that although they want to choose products with sustainable packaging, they were not willing to pay more for it. This consumer position is changing at a faster pace than ever. As quoted in the report, "74% of consumers said they would pay more for sustainable packaging and 25% are willing to pay an additional 10% or more".
"Willingness to pay was consistent across all income categories, but how much more consumers are willing to pay correlates positively with income."
Customers willing to pay more for sustainable packaging translates especially well to Costco members who have some of the highest income in the industry.
The 2020 Global Buying Green report provides further data on how consumer education is leading to changing viewpoints on packaging and especially the demand for reduced use of plastics.
US consumers are:
"49% are less likely to buy products in packaging harmful to the environment."
"46% associate plastic with "harmful"
Globally the US has always lagged behind Europe and South America for customer awareness of packaging's impact on the environment. Even though this gap in awareness continues, the US is closing that gap.
News reports and images of the effects of especially plastics in our environment are resonating with customers. Corporations committing to real change in their packaging will further accelerate change as customers see that there are better options available and will start to demand widespread change. Data shows that companies leading this charge will be rewarded by customers. Almost half of Americans are less likely to buy products in packaging harmful to the environment and we expect this will continue to trend upward.
As quoted on PackagingEurope.com, Michael Mapes, CEO, Trivium Packaging says:
"Consumer focus is on sustainable living now more than ever, and they’re willing to pay to protect the planet. This presents brands a real opportunity to impact purchasing decisions by offering environmentally friendly options for their consumers.”
Getting out of plastic can be complicated on both your primary or secondary packaging but, there are solutions and the time to do it is now.
Design and material selection is critical to ensure you can execute without risk. Use of infinitely recyclable steel or aluminum in primary packaging along with paper based packaging in the forms of paperboard, corrugated and molded fiber have the unique ability to drive sales and do the right thing for the planet.
Work with an expert who has experience to limit your risk and as always, reach out to us for advice.
The full report can be accessed here: 2020 Global Buying Green Report
Until next time.
Cheers,
TCPG