Sustainable Packaging Boost Image
Inverto, a subsidiary of the Boston Consulting Group, has shed light on the challenges and opportunities of sustainable packaging. The market analysts recommend that companies interested in switching to sustainable packaging or raising their share should first determine their priorities and get an overview of the market. The reason for this is that packaging solutions vary in nature depending on whether the emphasis should be on renewable raw materials, recyclability or carbon footprint. In addition to the cost of materials, calculations should also take into account additional expenses incurred, for example, through the use of new machines, says Inverto.
"Those who invest now will secure competitive advantages and image gains in the future," claims Rudolf Trettenbrein, Managing Director of Inverto Austria. "On top of that, prices for conventional packaging will continue to rise due to planned taxes and duties. So in the long run, sustainability pays off."
Around 50 per cent of Future Packaging Will Be Environmentally Friendly
Inverto's recommendations are based on a study in which the consultants surveyed retailers, consumer goods and packaging manufacturers and consumers on the subject of sustainable packaging. Most retailers and manufacturers currently estimate the proportion of sustainable packaging in their company at a maximum of 25 per cent. In five years, it is expected that at least half of all goods will be packaged in an environmentally friendly way. However, over half of the participants in the study also complained about the complexity of the issue. For companies operating on an international scale, the challenge is compounded by differing legal requirements. Around two-thirds of respondents indicated having only limited expertise and capacity in their purchasing departments.
Consumers Willing to Pay More for Sustainability
Inverto's survey of consumers did, however, prove that the effort could pay off. According to this survey, 72 per cent of participants stated that they would accept price increases that were at least 10 per cent for a product that was sustainably packaged. Even a premium of over 20 per cent would be appropriate for just under 30 per cent of all respondents. Overall, the indication is that manufacturers and retailers are able to pass on higher costs to consumers if they can credibly justify the price increase, according to Inverto.
Source: Inverto, photo: Adobe Stock / Goffkein