Sustainability Sells: How Environmentally-Pleasant Packaging is a Win-Win for Companies and the Planet

Last updated on June 23rd, 2023 at 02:08 pm

Sustainable options have a reputation of being better for the planet, but often at the cost of quality and profit margins. That narrative is shifting, however, as sustainable solutions are now at scale and users are proving ready to spend with companies using them.

From stages at conferences across the country and conversations with others in the industry, colleagues lament that businesses won’t invest in sustainable options until they are both cheaper and better than their current solution, and, let’s face it, if these options were available at a lower cost and with improved durability, then they would have already become industry standards. The hesitation stems from a shared experience, and people tell market researchers that the environment is important to them. However, when it came time to check out, consumers prioritized convenience and cost above sustainability, even purchasers who identify as especially environmentally conscious.

Consumer behavior is changing. A new study suggests sustainability commitments can lead to outsized market growth.

However, that tide appears to be turning, and consumers are starting to back what they’ll share in a focus group when it comes time to pull out their wallets. A recent McKinsey and Nielsen IQ study comparing five-year growth for a group of products making various environmental, social, and governance (ESG) related claims versus a group making so such claims revealed the products making ESG claims averaged 28% cumulative growth, outperforming the other product group’s 20% growth.

These results show there may be an edge to be gained in the market by thoughtfully embracing processes and materials that have benefits beyond your business’s balance sheet.

Now, not all claims are equal, nor are all companies or products that will market them. The referenced study looked at companies focused on social and governance claims in addition to those that were focused on environmental impacts.

Messaging claims spanned from “vegan” or “carbon zero” to “sustainable packaging” and “plant-based.” Every business will need to consider the ROI specific to their situation. While the study did not reveal a specific winning formula to maximize outsized growth or eco-benefits, building a strategy across a business’s product portfolio and incorporating it into multiple levels of the organization was a key factor. Simply put, adding a recyclable label to your packaging or placing an updated mission statement on your website is not enough to beat out your competitors. The chosen approach should be incorporated into product design, sourcing, packaging, and marketing, all part of an organized strategy to reduce the environmental footprint.

Companies must take thoughtful action to achieve growth benefits and integrate visible change into their supplies and processes.

Doing the work required to lessen the environmental impact is key, as consumers are savvy and will spot companies that add sustainability messaging without updating their processes. “Greenwashing,” as the practice is called, is seen negatively by consumers. They are viewed as attempts by brands to deceive the consumer and will erode trust in the product, brand, and company. Brands unwilling or unable to adjust their processes are better served to continue focusing on their existing key selling propositions instead of supplying unsubstantiated messaging around their environmental impact.

For companies ready to do that work, the question of where to start might seem overwhelming. The impact can be made anywhere from the cultivation of raw materials to how the product is disposed of after its use. Many companies, including Mattel and Gillette, see the lowest-hanging fruit is often the product packaging. According to the Wall Street Journal, both of these companies saw benefits in customer satisfaction with the packaging based not only on the sustainability message but because they were easier to open. These additional benefits stem from the packaging’s multiple functions and high visibility to the consumer. Some other potential benefits include:

1. Removing waste from your packaging by reducing its size or eliminating the need for non-functional inner or outer components. This reduces the amount of waste generated per unit sold and could reduce your packaging costs
2. Switching to a new packaging style to improve the lifespan of your product or the amount of carbon needed to transport it. These types of changes can have the added benefit of reducing damages, spoilage, and your business’s overall transportation costs

It is easy for companies of any size to begin their sustainable transformation with UPrinting.

The level of effort to incorporate new packaging will depend on how sophisticated your packaging process may be. If you are packaging things by hand, adjusting the process is much simpler than if you are running machine-driven packaging lines that would require retooling. However, the higher the level of effort, might also mean the higher the reward.

If you’re looking to get started, our products at UPrinting can support small businesses and startups with everything, including boxes in custom sizes and structures. We’re also the go-to for mid-sized businesses, with pricing benefits for larger runs and the flexibility to create samples and prototypes for test or limited edition releases.