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Shifting global consumer sentiment drives non-plastic packaging innovation

Consumer attitudes towards packaging are rapidly changing around the world, causing brands to respond with increasing claims of ‘eco-friendly packaging’.

Between December 2018 and November 2023, market intelligence agency Mintel found that the proportion of new food, drink, beauty & personal care, and household products with such a claim nearly doubled from 15% to 27%.

Driven by shifting consumer sentiment and a growing suite of environmental regulations, novel, non-plastic productions are clearly emerging as increasingly serious food and beverage packaging options. UK-based startup Xampla, which uses natural biopolymers to produce coatings, capsules, and films, is one example of a plastic alternative producer receiving a capital injection recently. The company raised €6.4 million in funding in January 2024 to expand the application of its brand Morro, which is already used by beverage retailer Britvic and meal-kit retailer Gousto.

But with plastic remaining cheap and easy to produce, consumer willingness to adopt unfamiliar alternatives – even if they might be more expensive or less convenient – will be a key factor in maintaining the momentum for more sustainable options.

Growing awareness of environmental impact

The good news is that consumer research shows shoppers are thinking more about the sustainability of packaging materials. Changing preferences clearly point to a rising demand for plastic alternatives and sustainable packaging and growing awareness of the environmental impact of different materials.

According to Mintel, only 15% and 19% of Thai consumers associate plastic pouches and plastic bottles as “environmentally friendly” – scoring much lower than any other packaging material. A 2022 McKinsey survey looking at US consumer views on sustainability in packaging found that more than half of consumers (52%) would buy products with more sustainable packaging “if those products didn’t cost more than conventionally packaged ones”. The survey also indicated consumer demand for more recyclable plastic packaging material and more fibre- and paper-based alternatives to plastic packaging.

Alternatives can be confusing

However, digging deeper reveals more complexity in terms of consumer attitudes, knowledge, and willingness to take packaging into account when making purchasing decisions. Mintel found that nearly two out of every five (39%) US food and beverage shoppers think brands should be responsible for the sustainability of their products, while only one out of every four shoppers (26%) would pay more for a more sustainable product.

The McKinsey study also found that 43% of US consumers found the environmental impact of product packaging “extremely or very important” – but this ranked as the least important factor behind food safety, ease of use, shelf life, durability, and appearance.

A 2020 Copenhagen Business School systematic review of consumer responses to environmentally-friendly food packaging also registered positive attitudes towards sustainable packaging, but identified a number of crucial challenges in terms of translating attitudes into effective behavioural change.

Firstly, an unfamiliarity with alternatives to plastics other than paper or glass and a lack of knowledge regarding key terms and labels – resulting in consumer perceptions that are misaligned with the actual environmental friendliness of packaging.

Secondly, the study aligned with other findings about packaging remaining less important that other product attributes such as price, functionality, appearance, and safety. Finally, there is a lot of variation within different consumer groups, with age, gender, and other consumer preferences significantly affecting consumers’ reactions to novel packaging options.

To replace plastic, novel packaging solutions need to address the relatively high costs of production and ensure that their product is as durable, safe, and hygienic as plastic – and they need to make sure that consumer perceptions are aligned with reality.