General, Innovation, Preformed Pouches, Sustainable Packaging / July 8, 2019
For all the big talk, are consumers actually buying sustainable products? Many company executives have doubted the follow-through of buyers and discouraged investing in sustainable supplies, packaging, and processes. If consumers don’t put their dollars where their mouths are, does it justify the business costs?
But it turns out that the grumbling is misplaced. After extensive research into the actual buying habits of consumers in the United States, we now know that half the growth in sales of consumer-packaged goods (CPG) over the past 5 years came from products in the sustainability space. Products claiming—clearly on the packaging—that they were sustainable generated $114 billion in sales in 2018, an increase of 29% over 5 years prior. And the growth rate of the sustainability market itself was 5.6x faster than CPG outside the space.
Among the fastest growing categories are paper products, dairy, coffee, snacks, and juices. Some categories could be expected to perform better but still need to win consumer trust of their effectiveness compared to familiar brands. As they do so, they are experience rapid growth as well.
Ultimately, consumers have proven with the way they spend their dollars that they are actively seeking and supporting sustainable products and business practices. Established corporations willing to make the shift are being rewarded alongside startups and niche brands that have highlighted their responsibility since launch. Other established corporations clinging to old practices and betting on consumers failing to make the jump to sustainable purchasing are losing out—not just missing sales but actually being called out by sustainability-minded consumers.
Many forward-thinking corporations are transforming longstanding product lines and acquiring smaller brands that have gained good standing in the marketplace. The opportunities, then, for new companies to make an impact and both successfully compete with and attract the attention of bigger players means that this exploding trend is a win for manufacturers and consumers alike. Plus, it’s not too late for any company to improve its impact on the environment.
Packaging is certainly a significant part of the sustainability equation, and it’s no surprise that flexible packaging has been embraced by so many sustainable brands. With a much-lower carbon footprint and many recyclable and even compostable options, flexible packaging is an ideal match both in convenience and brand consistency.
Explore our sustainable packaging solutions and give us a call or contact us to discuss your packaging needs and how you can be even more effective and beneficial in your marketplace.
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