How do brands cope with the high costs of producing sustainable packaging?

How do brands cope with the high costs of producing sustainable packaging?
How do brands cope with the high costs of producing sustainable packaging?

With the global trend toward adopting practices to reduce environmental impact and greenhouse gas (GHG) emissions, as well as eliminating single-use plastic, large-scale adoption of sustainable packaging remains a challenge, as brands They seek to create economically viable products.

Packaging is designed and manufactured to fulfill many important functions for its users, consumers and producers of packaged items, however, being often single-use it represents a challenge for nature.

The packaging industry presents other challenges to being sustainable and competitive, as manufacturers must address the costs associated with environmentally responsible production without compromising product quality, convenience, freshness and safety.

“Numerous initiatives are emerging around the world to adopt sustainable practices, which aim to reduce emissions and eliminate single-use plastic. While these goals are excellent, large-scale adoption will be a challenge unless brands make economically viable products,” reveals a survey by the firm Clean Hub.

The same survey by the organization focused on promoting the reduction of plastic use worldwide reveals that 75 percent of respondents considered that the food and beverage industry generates more plastic waste.

While a fifth of those surveyed thought that brands do enough to combat plastic pollution and 78 percent disagreed.

Is it easy to produce sustainable packaging?

Specialists argue that although the intentions to move towards the production of sustainable packaging is not easy, it poses challenges.

The production of these types of products is usually expensive and, in most cases, companies transfer this effect to the final product, which could discourage many buyers.

Likewise, developing sustainable packaging materials generally requires extensive research, which involves more costs, this can be an obstacle for companies that do not see immediate financial benefits in investing.

The main purpose of packaging is to ensure that the quality of the protected product is not affected, but sustainable packaging, although recyclable and biodegradable, could compromise the shelf life of the product.

The above could result in long-term losses if the packaging is not effective and durable enough during transit.

Additionally, each country has its own regulations that must be followed to create more environmentally friendly packaging. For example, in the United States, Extended Producer Responsibility (EPR) legislation establishes mandates to reduce the negative footprint of a product and its packaging on the environment.

Companies that adopt sustainable packaging will gain a competitive advantage, as by informing customers about their efforts towards sustainable packaging and their commitment to the planet, they promote a positive brand image.

Consumers willing to pay more for sustainable packaging

The same survey indicates that about 50 percent of participants are willing to pay more for sustainable packaging, while many feel limited by the cost of doing so.

“Those who said they earned more than $150,000 a year were 53% more likely to pay for sustainable packaging than people who earned less than $24,999,” the survey adds.

Despite this provision and due to awareness of the negative impacts of plastic, 33% of people surveyed consider it impossible to avoid single-use plastics.

So for Clean Hub, “businesses urgently need to step up” and increase customer loyalty by adopting sustainable packaging, supporting environmental initiatives and taking a proactive approach to caring for the planet.”

Due to the obstacles to producing packaging under this category, such as the high costs of materials, in 2023, 29.88 billion tons of flexible and sustainable packaging were used worldwide.

The size is expected to reach $490.73 billion in 2032, growing at a CAGR of just 6.6 percent between 2023 and 2032.

With the strong growth of e-commerce and home deliveries of products, greater demand for high-performance, low-waste packaging is anticipated.

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