There’s no denying that sustainable packaging is becoming the new norm. More than 40% of consumers say it’s a key decision-making factor, and about half are willing to pay more for products that feature eco-friendly packaging. Fueled by customer sentiment, corporations and retailers alike are embracing sustainable materials. In a global survey from McKinsey, nearly 75% of companies said they have already committed to sustainable packaging. Meanwhile, retailers aren’t just using recycled or recyclable materials in their own packaging; they’re often requiring the brands they stock to do the same. 

From building trust with customers to meeting corporate ESG goals, sustainable packaging can bring many benefits. However, it must also make business sense in terms of cost and performance. Recycled and recyclable materials aren’t always the most cost-effective choice. And without the right expertise, you could choose a material that doesn't prevent product damage — a scenario that wastes significant resources. Branding must also remain consistent even as your packaging materials change.

How are companies navigating all these variables? By finding savvy ways to balance cost, performance and the carbon footprint. Specialized sustainable packaging expertise is key.

The Driving Forces Behind Sustainable Packaging Adoption

Sustainable packaging materials are recyclable, made from recyclable content, reusable or compostable. Think: Recyclable paper honeycomb, paper cushioning products, biodegradable packing peanuts, plant-based plastics and beyond. Overall, sustainable products have experienced 2.7 times faster growth than traditional goods, with more options than ever for brands looking to utilize eco-friendly materials. The green packaging market is now valued at nearly $307 billion, with expected annual growth of 6.5% through 2030.

Why the record growth and rapid adoption? Because companies, consumers, competitors and legislators alike are all prioritizing packaging materials that lower the carbon footprint.

Company goals

A growing number of corporations are doubling down on sustainability as a vehicle for success. And it’s not just about optics: In a McKinsey study, 40% of respondents expect their company’s sustainability programs to generate measurable value in the next five years. 

For product-driven sectors like food and beverage, retail and manufacturing, packaging can be a significant contributor to the overall carbon footprint. That makes it a key component of value-driven sustainability programs.

Customer sentiment

In one study, 35% of companies say customers are a key driving factor pushing them toward sustainability. And for good reason: Today’s consumers are steadfast in their preference for eco-friendly materials. Worldwide, 75% of people support banning single-use plastic packaging. In the U.S., consumers continue to prioritize sustainable packaging even amid economic uncertainty. Support is highest among Gen Z, which represents the next wave of consumers, with some willing to pay up to 10% more for products featuring eco-friendly packaging.  

Competition from peers

Sustainable packaging has become a key competitive advantage. As more companies embrace environmentally friendly packaging materials, brands that don’t run the risk of losing customers and market share. 

Local and federal legislation

Policymakers and regulatory bodies alike are responding to consumer sentiment with sustainability-focused packaging regulations. Although Europe is currently leading the way, regulatory development worldwide is now accelerating. Industry experts are eyeing developments in North America and Asia. They’re also tracking an uptick in regulations that extend beyond plastics, which was the most common focus of early legislation.

Pressure from retail partners

In today’s omnichannel world, selling more places can equal more revenue. But to do so, brands must navigate various retailers’ packaging requirements — many of which include sustainability. One example? The Target Zero program, through which the retail giant prioritizes brands with eco-friendly packaging. In the battle for shelf space, sustainable packaging is a clear value-add.

Key Considerations for Sustainable Packaging Materials

Your customers want it. Your competitors already feature it. Your company sees it as a key sustainability driver. With the convergence of these forces, it’s no surprise that more brands are embracing sustainable packaging materials. However, doing so is about more than just replacing single-use plastic with recycled materials.

If you’re ready to enhance the sustainability of your packaging materials, keep these considerations in mind. 

Product protection

Whether it’s primary, secondary or tertiary, your packaging must prevent product damage. There’s nothing less sustainable than shipping a replacement item after the original got damaged during shipping. Damaged products also negatively impact the customer experience. Packaging engineers use their specialized expertise to identify which sustainable materials will meet your form, fit and functionality requirements. 

Packaging costs

Recycled or recyclable materials often drive up packaging material costs, putting pressure on margins. However, material costs are just one aspect of your overall packaging budget. A savvy packaging engineer can help you reduce overall spend through optimizations such as increasing the number of packages that fit per palette. 

(Read this case study to see how Victory Packaging helped a manufacturer replace plastic with sustainable materials — and reduce its overall costs.) 

Visual appeal

Beyond sustainability, shelf appeal is still a key decision-making factor for modern customers. When choosing sustainable packaging materials, it’s helpful to work with packaging engineers and designers who can help you maintain brand consistency and eliminate differentiation that could arise from adopting eco-friendly materials. 

How the Right Packaging Partner Can Help

It can be challenging to balance your packaging’s costs, performance, visual appeal and carbon footprint. That’s why brands partner with Victory Packaging. Our experienced packaging engineers know how to develop custom packaging solutions that leverage recycled, recyclable, reusable and/or compostable materials while meeting your unique performance requirements. We also have a vast network of suppliers that allows us to design and source the right sustainable products, no matter your specifications. 

Sustainable Packaging Engineering

• Ideate, design and validate sustainable packaging for your products
• Design the most appropriate recycled, recyclable, reusable and/or compostable materials to meet your objectives
• Ensure performance requirements — both protective and visual — are not sacrificed when designing your sustainable solution
• Engineer solutions that reduce your total packaging cost, like the ones we developed for this automotive parts manufacturer

Sustainable Packaging Sourcing

Without the right partner in your corner, it can be challenging to source sustainable products. Victory Packaging has spent decades building a robust, reliable supply chain that includes the industry’s widest selection of sustainable solutions. With vast supplier partnerships and a vendor-neutral approach, we’re equipped to prescribe and source the best products for the job. We also leverage the sustainable innovations developed by our parent company, WestRock, to help customers meet their packaging goals. That includes extensive fiber-based products that deliver proven economic and environmental value.

In today’s business landscape, sustainable packaging materials are becoming the new norm. Contact Victory Packaging today to explore how we can help your brand achieve eco-friendly packaging without sacrificing cost, performance or shelf appeal. Then, stay tuned for more insights into sustainable packaging, including the role of the packaging supply chain in reducing your carbon footprint.