Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
Table of tables 4
THE FUTURE DECODED 5
INTRODUCTION: Packaging is a vital component of contemporary CPG brands and the emergence of sustainability compounds this reality 5
Sustainable packaging can mean a number of things, particularly as it is an evolving concept 5
Environmental consequences is one of a number of issues to be addressed in packaging 6
Sustainability is an issue the packaging industry is taking seriously but could do more to embrace 9
Political interest has further driven the cause of sustainable packaging 11
Reduce, reuse, recycle is a message of growing importance that brands must recognize 12
TREND: Ethics and ecological concerns drive the move towards sustainable packaging 14
Ethicality and sustainability are associated with a sense of wellbeing 15
Consumers are overwhelmingly convinced of the merits of environmental concern and protection 18
The extent to which consumers are actively buying environmentally friendly products does not reflect their stated concern for the environment 20
Key takeouts and implications: acting in an ecologically responsible manner is a key draw for consumers that brands need to follow with ever more sustainable forms of packaging 23
TREND: The global economic downturn is having, and will continue to have, an impact on sustainable packaging issues 23
The global economic downturn will compel producers to be more efficient in packaging 24
In some instances, recycling has become less commercially attractive in the global economic downturn 26
Trading down may mean fewer purchases of packaged food and drinks while additional value consciousness is like to make consumers more sensitive to package shrinkage tactics 26
Key takeouts and implications: reducing 'packaging footprints' also has additional revenue boosting benefits beyond satisfying changing consumer expectations 29
INSIGHT: Sustainable packaging fits well with consumers' desire to 'de-clutter' 29
Almost three quarters of consumers 'globally' would like to live a less complicated lifestyle 30
Key takeouts and implications: consumers are very much interested in streamlining their lives to make life simpler and less cluttered and this is a need that more sustainable forms of packaging can capitalize on 32
INSIGHT: Localism and online shopping are key consumer trends with implications for sustainable packaging 33
The importance of the link between sustainable packaging and 'localism' becomes apparent wherever examples of over-packaging in supermarket aisles are visible 33
Consumers in India, Australia and France are most likely to value local grocery products 34
Localism matters more to consumers as they enter later life stages 36
Online grocery shopping potentially offers another route to drive sustainable packaging options 36
Key takeouts and implications: local production and consumerism has the potential to reduce the need for long-distance transport and packaging making all goods consumed under such a trend more sustainable 37
INSIGHT: Consumers take good packaging design for granted, showing only mild interest 37
Younger consumers are more influenced by packaging design when buying groceries 38
Packaging has a greater influence on grocery purchases in the BRIC countries 40
Consumers take the role of brand image for granted 42
Key takeouts and implications: the relative indifference that consumers show towards packaging design suggests that sustainable packaging benefits could take on added importance from a branding perspective 43
INSIGHT: Consumers believe that grocery products are excessively packaged but their behavioral response does not fully reflect this perception 44
There is a widespread perception among global citizens that grocery products are over-packaged 44
Agreement that grocery products are over-packaged does not necessarily translate into deep rooted concern for purchases made at the category level 48
Many consumers report considering alternatives when they perceive a product has too much packaging 50
Issues surrounding packaging and waste are comparatively lower down the list of environmental concerns, and basic product attributes of influence, which partly explains the attitude behavior gap 54
Younger consumers are most likely to have altered their behavior in 2008 57
Some consumers are willing to pay more for environmental packaging which reflects its' growing importance 59
Key takeouts and implications: consumers feel that grocery packaging is excessive and are making consumption adjustments in response so producers must react to ensure packaging is more sustainable 60
INSIGHT: The desire for more product information and the need to feel confident in product safety potentially conflicts with the desire for less packaging 61
Consumers are more aware of the environmental and social impact of the manufacturing process than ever before and therefore aspire for sustainable products that align with their environmental concerns. In recognition of this, industry players are now incorporating sustainability into every aspect of the manufacturing and production cycles-ranging from how materials are sourced to how materials are ultimately used and disposed of. However, there are several contradictions relating to labeling and packaging: 61
The growing interest in labeling highlights the importance of health and wellness and knowing the details 62
Good packaging ensures that products are moved from source or production to their destination in the best possible condition 64
Key takeouts and implications: sustainable packaging does bring other potential compromises 66
ACTION POINTS 67
ACTION: Ensure that all the routes towards sustainable packaging are evaluated and contribute to broader efforts to educate consumers 67
Make decisions that work for individual companies, brands and regions but try to adopt a broad approach 68
Explore the possible future rewards derived from the vast range of sustainable packaging tactics that exist 68
Commit to measurable sustainable packaging goals 70
Educate consumer to awareness and add impact to the changes being made 72
ACTION: Maximize the potential of packaging as a vehicle to communicate an ethicality or sustainability message 75
Use packaging to highlight brands' ethical credentials, particularly sustainability themed causes that it supports 75
ACTION: Look for opportunities to reduce 'packaging footprints' by reducing materials 77
Test the impact of ergonomic adjustments and try to communicate packaging reduction with broader functionality benefits such as saving space 79
Some forms of sustainable packaging need customer buy-in, in order to work properly 80
Light-weighting is a specific approach towards reducing material footprints 81
Do not compound portion shrinking with wasteful packaging and be careful about consumer backlash to package shrink more generally 83
Actual product formulation innovation can also potentially drive sustainable packaging efforts through material reduction while also creating a more justifiable reason for package shrink 84
The concentration of products into smaller packs possibly highlights the problem of 'greenwashing' in touting sustainable packaging efforts 85
Develop packaging solutions that facilitate more environmentally friendly ingredient formulations 86
Target specific gifting occasions and products as these are often times of intensified focus in the media 87
Recognize that waste reduction also extends to the core product and not just the packaging materials 87
Material savings can also be a broader goal of the wider advertising industry as initiatives such as paperless coupons demonstrate 88
ACTION: Consider biodegradable packaging alternatives 88
Using biodegradable materials can help reduce usage of plastic especially in convenience channels 90
Recognize that bio-plastics are also open to criticism 91
ACTION: Incorporate more reusability and 'returnability' into packaging 91
Obtain inspiration from business models and product concepts that promote package re-use 91
Consider deposit and return schemes to encourage consumers to be more conscious in post-usage 93
Make more packaging reusable by design 93
Use refills only where appropriate 95
Industry commentators predict carton will be the wine packaging of the future 96
Support consumer efforts to recycle 97
ACTION: Combine sustainability with traditional core packaging elements 98
Ensure that sustainable packaging is a supporting feature and that sustainable packaging facilitates other more important benefits 99
ACTION: Monitor the inevitable progress made in sustainable packaging innovation using Datamonitor's Product Launch Analytics 100
APPENDIX 101
Additional data 101
Definitions 113
Methodology 114
Further reading and references 114
Online resources/databases 115
Ask the analyst 116
Datamonitor consulting 116
Disclaimer 116
List of Tables
Table 1: Consumer survey: stated importance of living an ethical or sustainable lifestyle in creating a feeling of wellbeing, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 17
Table 2: Consumer survey: stated importance of protecting the environment, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 19
Table 3: Consumer survey: stated prevalence of seeking environmentally-friendly products, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 22
Table 4: Consumer survey: the changing propensity to choose food and beverages, cosmetics and toiletries, household and laundry care and alcoholic drinks on the basis of value/cost, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 28
Table 5: Consumer survey: stated importance of living a less complicated lifestyle, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 31
Table 6: Consumer survey: stated importance of buying locally-produced products, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 35
Table 7: Consumer survey: stated influence of packaging design on food & drink and alcoholic beverage purchase, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 41
Table 8: Consumer survey: the importance consumers attach to being seen with the right brand, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 42
Table 9: Consumer survey: consumers' perception of the extent of grocery product over-packaging, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 46
Table 10: Consumer survey: consumers' perception of the extent of grocery product over-packaging, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 47
Table 11: Consumer survey: stated concern about over-packaging in household good categories, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 49
Table 12: Consumer survey: extent of seeking alternative products due to perceived excessive packaging, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 52
Table 13: Indexed importance of various environmental issues in nine European countries, 2005 54
Table 14: Consumer survey: extent of seeking more sustainably packaged products, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 58
Table 15: Consumer survey: willingness to pay more for various packaging features in the US, 2008 60
Table 16: Consumer survey: importance of living an ethical or sustainable lifestyle in creating a feeling of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 101
Table 17: Consumer survey: importance of protecting the environment, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 102
Table 18: Consumer survey: agreement of having purchased eco-friendly groceries more often, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 103
Table 19: Consumer survey: importance of choosing locally-produced grocery products, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 104
Table 20: Consumer survey: stated importance of living a less complicated lifestyle, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 105
Table 21: Consumer survey: level of concern about the amount of packaging of household products, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 106
Table 22: Consumer survey: extent of having sought products with more environmentally friendly packaging more often, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 107
Table 23: Consumer survey: level of agreement that consumers will consider alternative products to those excessively packaged, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 108
Table 24: Consumer survey: perceived influence of packaging design on food and drink purchases, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 109
Table 25: Consumer survey: perceived influence of packaging design on alcoholic drink purchases, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 110
Table 26: Product launches with sustainable packaging attribute claims by category, as a proportion (%) of overall launches, Asia Pacific, 2003-2008 111
Table 27: Product launches with sustainable packaging attribute claims by category, as a proportion (%) of overall launches, Europe, 2003-2008 112
Table 28: Product launches with sustainable packaging attribute claims by category, as a proportion (%) of overall launches, US, 2003-2008 113
List of Figures
Figure 1: Sustainable packaging can be identified narrowly or broadly and is one of a multitude of issues must be addressed in packaging as a growing number of trends simultaneously shape consumers' packaging expectations 8
Figure 2: Political interest in sustainable packaging has helped to boost the media profile of the issue which will, in turn, boost consume awareness 12
Figure 3: Sustainable packaging has become an issue of consumer activism in some instances 13
Figure 4: Understanding both the drivers and inhibitors of sustainable packaging will allow for better decision making regarding an issue that could potentially re-shape how a company operates 14
Figure 5: Ethicality and sustainability are associated with a sense of wellbeing 16
Figure 6: Women are slightly more likely to appreciate an ethicality/sustainability in their lives than men 17
Figure 7: Protecting the environment is an important value across demographic groups 20
Figure 8: More than half of consumers across age and gender groups claim to be actively seeking out environmentally friendly products 22
Figure 9: Broader economic forces will have many counter-balancing effects on sustainable packaging 24
Figure 10: Shoppers will become more savvy to shrinking pack sizes which makes the ethical stance all the more important 27
Figure 11: More than 70% of consumers across 15 countries consider it important to lead a less complicated lifestyle: an issue that relates to sustainable packaging 31
Figure 12: The stores facilitating top-up shops should appeal to the overwhelming majority of consumers who are attracted by the idea of living a less complicated lifestyle 32
Figure 13: Consumers are expressing a growing preference for things produced locally-something that could have an impact on packaging given the supply chain implications 35
Figure 14: The importance of locality as a feature of grocery products increases with age 36
Figure 15: Innovative packaging gas been a key feature of premium brands in the last decade 38
Figure 16: Younger consumers are more influenced by packaging design when buying groceries 39
Figure 17: Consumers in most countries do not perceive packaging design to be a major influence on FMCG purchase choices 40
Figure 18: The importance global consumers place on "being seen with the right brand" diminishes with age 43
Figure 19: Spanish, Russian and Italian consumers are least conscious of grocery products having "too much packaging" 46
Figure 20: The feeling that many grocery products are over-packaged varies by age and less so by gender 47
Figure 21: The packaging of household goods is of greatest concern to consumers in the UK 49
Figure 22: Over two-fifths of respondents feel the quantity of household goods' packaging is concerning 50
Figure 23: Consumers are not willing to compromise hygiene and protection for environmental benefits 51
Figure 24: Though UK consumers express concern about excessive packaging, they are less likely to actively hold industry players to account over the issue 53
Figure 25: Consumers across demographics report considering alternatives if they perceive a product has too much packaging 53
Figure 26: Ethics/sustainability benefits have a comparatively low degree of influence over global consumers' food and beverage choices 55
Figure 27: Ethics/sustainability benefits have a comparatively low degree of influence over global consumers' personal and household care choices 56
Figure 28: A notable segment of consumers in most countries actively sought more environmental packaging more frequently in 2008 58
Figure 29: More than a third of consumers in the 15 countries actively sought products with more environmentally friendly packaging more often in 2008 59
Figure 30: Intensifying health concerns lead to more considered choices governed by a heightened reliance on food labels to ascertain the broader benefits can be attained from purchase and usage 63
Figure 31: Labeling is not just a food issues: consumers are also influenced by the desire to know about the formulation specifics in personal care choices 64
Figure 32: More than half of consumers across four regions show some degree of attentiveness towards the integrity of food purchased in the grocery store 65
Figure 33: There are numerous innovation platforms in sustainable packaging 70
Figure 34: Educating consumers about sustainability policies increases awareness and adds impact to the changes being made 75
Figure 35: Ethical/sustainability themed packaging does not necessarily have to focus on material efficiencies in the supply chain 77
Figure 36: Waste reduction is the principle area for implementing sustainable packaging principles 78
Figure 37: The Unpackaged store in London harks back to traditional retailing but may not be transferable to a mass-market model 79
Figure 38: The trial of new packaging by Kellogg's is one of several developments in the breakfast category 80
Figure 39: Some forms of sustainable packaging need customer buy-in, in order to work properly 81
Figure 40: The container principle is a useful guide for all sustainable packaging decisions 86
Figure 41: Concentrated detergents are touted as sustainable but could do more to justify their claims 86
Figure 42: Cardboard is a viable sustainable packaging material if taken from managed sources and if it is recycled post use 90
Figure 43: Reuse of materials can be more sustainable than just recycling alone 92
Figure 44: Deposit schemes could make packaging more sustainable 93
Figure 45: Sustainable packaging could allow consumers to reuse containers for various uses 94
Figure 46: Refill packaging can be sustainable if the facilities exist to recycle it 95
Figure 47: Refills are now moving into more product categories 96
Figure 48: Recycling bins are one way to encourage recycling, especially in convenience channels 97
Figure 49: Method products show that sustainable packaging can be stylish as well as laudable 99
