Reasons Brands Are Shifting To Sustainable Packaging
There are many reasons brands turn to sustainable packaging. Those reasons include the need to reduce carbon footprint, social responsibility, waste reduction, and increased consumer demand.
In this article, we will discuss why businesses are turning to sustainable packaging in detail.
Corporate social responsibility
Corporate social responsibility refers to the commitment a brand shows to enhance the environment and society instead of contributing to its destruction. Wal-Mart, which is one of the top retailers in the world, has recognized this responsibility and has been playing a leader’s role by setting sustainable packaging standards.
The chief executive of Wal-Mart Doug McMillon said in 2018 that one of the company’s goals was to become a company that creates value for society.
With large companies like Wal-Mark making bold statements about sustainability, it becomes necessary for brands associated with them to take notice. It means that if you are committed to doing business with Wal-Mart, you have to make sure to have a sustainable packaging strategy in place.
Retailers expect sustainability from brands they carry
A study in 2017 cited customer expectation as the primary inspiration for any operational modification. One of several goals has been to reduce the production of polystyrene to lessen the amount of waste in the oceans. This movement also lessens the burden on consumers to try figuring out the way to recycle packaging materials.
Another goal is to add the How2Recycle label for a more targeted audience. It allows customers to know what to do with a particular product packaging after using the product.
Several online retailers in the US have set high expectations by necessitating sustainable packaging for the products they sell.
Decreasing carbon footprint and lowering shipping costs
The good thing about this era is that brands are more concerned about the amount o greenhouse gases they produce. For those who do not know, greenhouse gases contribute to global warming.
One of the brands working on this cause is HP. The production center of HP is set up in China, and it produces over 40 million notebooks every year. A majority of these notebooks are shipping to the US and European markets, meaning that they have to pack every unit with an adequate amount of packaging material.
HP wanted to go with the most sustainable packaging solution as their notebooks had to ship to other countries. They also had to make sure that their packaging was durable enough to keep their notebooks safe during transit. So, they sourced corrugated boxes made of virgin fiber, which is more recyclable and eco-friendly than other packaging products available.
Optimizing product packaging
The best thing about packaging optimized to address environmental deficiencies is that it can also help optimize business operations. One of the examples to discuss here is a Home Goods retailer IKEA. They adjusted the packaging of one of their products by 50%, and it resulted in them saving 1.2 million euros a year.
Meeting growing consumer demand
Consumers want to spend money on sustainable products. According to a market research company GlobalWebIndex, 42% of consumers in the US and UK look for products that can be recycled or use sustainable packaging materials.
