packResearch reveals that consumers today are more inclined to pay more for products and services from sustainable companies. In connection to this, the 2018 Global Sustainability Index Institute Report found that the biggest businesses in the world are becoming more and more serious with their sustainability goals. The reasons for this increase include better company performance and increased interest in sustainability among stakeholders.
Nowadays, brands are shifting to environmentally friendly packaging due to many reasons and here are some of the most significant ones.
Higher sense of corporate social responsibility
Businesses that focus on their corporate social responsibility commit to contributing to the welfare of the environment and society. International retail giant Walmart, for instance, is implementing a massive shift to sustainable packaging. By 2025, the company aims to have 100% recyclable, reusable or compostable packaging. As one of the leaders in the industry, Walmart is influencing other brands to do the same. When companies endeavor to create value for both society and the environment, they are able to build a better image, which is key to their growth as a business.
Retailers expect sustainability from their partner brands
In 2017, retailer brand Target announced five new sustainable packaging goals, highlighting customer expectations as the main inspiration. They plan to eliminate polystyrene in an effort to minimize plastic contamination and make it easier for customers to figure out how to recycle it. Another goal of the company is to add a “How2Recycle” label to their products’ packaging. After these goals were announced, the retail company saw their revenue rising from $69.5 billion in 2017 to $75.36 billion in 2019.
In this light, companies that plan to sell their products at Target must commit to meeting the retailer’s standards in responsible and sustainable packaging. As a result, more and more brands are influenced to take the greener path towards sustainability.
Less carbon footprint, lower shipping costs
With global movement to eco-friendly living, brands become increasingly concerned about their greenhouse gas emissions that cause global warming. HP, for instance, began using notebook packaging made with virgin fiber sourced from responsibly managed forests. This fiber is known for its strength and minimized packaging materials by 29% while keeping the products safe and protected. The box also weighs less, which translates to lower shipping expenses and less transport emissions. In just a year, HP was able to lower their total fiber usage by almost 2,500 metric tons and their carbon dioxide emissions by 5,000 metric tons. The result is a much lower carbon footprint each year.
Better packaging means bigger savings
Sustainable packaging not only reduces inefficiencies that result in environmental harm but also optimizes business operations. IKEA, for instance, was able to save 1.2 million Euros per year after adjusting the packaging for one of their products. Sustainable packaging does a lot more than decreasing carbon footprint and shipping expenses, it allows for companies to save significant amounts of money that can be used in some other aspects of running the business. When done properly, improving product packaging can translate to millions of dollars of savings annually.
Respond to changing and growing consumer demand
As mentioned earlier, consumers these days are willing to buy sustainable products. Research reveals that 42% of consumers in the US and UK look for products that are recyclable or made from sustainable materials when making daily purchases.
As consumers are becoming more eco-conscious, businesses must endeavor to meet their sustainability and green goals. By implementing sustainable practices and using smart and responsible sustainable packaging, they are not only giving value to their image as a business but to their customers and to the planet as well.