The landscape of consumer attitudes toward sustainability is undergoing a shift post-COVID-19, with distinct variations in opinions on packaging materials and environmental priorities across different countries.
Sustainability has become an increasingly crucial concern within the packaging value chain, paralleled by a rise in consumer awareness. As societies transition from the pandemic’s hygiene-centric focus, a nuanced understanding of evolving consumer sentiments is essential. To gain insights into this shift, we analyzed a survey across 11 countries, delving into consumers’ perspectives on sustainable packaging. The survey was conducted by McKinse&Company (source: https://www.mckinsey.com/industries/packaging-and-paper/our-insights/sustainability-in-packaging-2023-inside-the-minds-of-global-consumers)
This 2023 survey encompasses a statistically significant sample size, representing 66 percent of global GDP and 50 percent of the global population. Demographically diverse responses were collected from over 11,500 consumers, revealing three key findings. Firstly, across all countries, factors such as hygiene and shelf life remain paramount in consumers’ purchasing decisions. Secondly, concerns regarding the environmental impact of product packaging are most pronounced in Europe, Japan, and the United States, particularly in relation to ocean litter. In contrast, consumers in other Asian countries and Latin America exhibit heightened concerns about different forms of pollution. Lastly, global consumers display varying opinions on the most sustainable packaging, though consensus exists on identifying the least sustainable options.
We will go over five critical questions that these companies need to address while formulating their future approaches.
Packaging Sustainability Trends Post-COVID-19
In the initial phases of the pandemic, concerns about hygiene temporarily slowed down the push to eliminate single-use packaging across various regions. However, a notable shift is now underway. The majority of consumers are exhibiting decreased apprehension regarding hygiene and food safety, although their level of concern remains elevated compared to pre-COVID-19 times. Despite the significant decline in COVID-19-related worries, consumers still prioritize hygiene, food safety, and shelf life as the two most crucial aspects of product packaging.
Similar to trends observed in 2020, price and quality remain the paramount factors influencing consumers when making purchasing decisions. Notably, the importance of overall price as a decision criterion has surged by 11 percent compared to 2020. In developed nations such as France, Germany, Italy, Japan, Sweden, the United Kingdom, and the United States, the significance of price as a decision criterion has experienced double-digit growth. Conversely, in developing nations like Brazil, China, India, and Mexico, price remains significant, but its importance has risen by low to mid-single digits compared to 2020.
The Evolving Landscape of Sustainability in Packaging
As the world moves past the initial impact of COVID-19, sustainability gains momentum. Manufacturers and retailers of fast-moving consumer goods are actively innovating packaging for circularity, focusing on recycled content like post-consumer resin. This aligns with industry commitments driven by consumer expectations, NGO influence, and new packaging regulations.
Global sustainability regulations for packaging are expanding, covering recycling proportions and recycled content. These regulations are now a global phenomenon with varying stringency levels. Consumer concerns about environmental impact differ by region, with developing economies (China, Brazil, India) emphasizing air and water pollution, while developed nations (Europe, Japan, U.S.) prioritize ocean litter.
Across surveyed countries and industries, a majority express willingness to pay more for sustainable packaging, notably pronounced in developing nations. Highest willingness is observed for fresh fruit/products and fresh meat/poultry. In most countries, higher-income groups show a greater willingness to pay for sustainable packaging.
Tailoring strategies to regional preferences is crucial. In Europe, enhanced labeling and incentive programs could drive sustainable choices, while in other countries, increased availability and improved pricing may be more effective. Companies are advised to adopt a nuanced, adaptable approach to cater to unique sustainability dynamics in each country.
Global Consumer Perspectives on Packaging Substrates: A Sustainability Inquiry
Recent research focusing on packaging and sustainability reveals that no single packaging type—whether plastic, glass, metal, or paper—emerges as an unequivocal leader across all aspects of packaging sustainability. Each type exhibits a mix of positive and negative features that vary in terms of sustainability, application, and regional considerations. Despite this, a common inquiry persists: which packaging substrate do consumers globally perceive as the most sustainable? Our survey indicates a lack of complete consensus among consumers worldwide regarding the most sustainable packaging materials:
Compostable and plant-based packaging, such as those derived from sugar cane and cornstarch, tend to receive higher rankings in several countries, with the exception of Japan. In Japan, consumers perceive plastics made from recycled content or fully recyclable plastics as equally sustainable to compostable packaging.
Globally, plastic films manufactured from renewable or compostable materials also secure high rankings.
Paper consistently scores well on average, with particularly high favorability in countries such as India and the United Kingdom.
Five Critical Questions for Packaging Suppliers and Consumer Companies
We recommend that packaging suppliers and consumer companies adopt a strategic perspective when evaluating their portfolios, paying careful attention to assess them in light of five critical questions:
- What are the distinctive generational trends that may impact products in the coming five to seven years?
- Which products face the highest risk based on anticipated regulatory changes and evolving consumer perceptions?
- What innovations and disruptions are being pursued by competitors and innovators in key product areas?
- What potential growth opportunities exist where the company could uniquely offer winning solutions in terms of sustainability and circularity?
- What are the demographic nuances that can enhance product alignment with specific end-market segments?
