How Sustainable Packaging Influences Consumer Choices – And Why It Matters for Your Brand
Brands consider various factors in packaging, from cost and functionality to sustainability and consumer appeal. As consumer preferences evolve, sustainable packaging is becoming a key differentiator in the market.
A PwC survey, Voice of the Consumer Survey 2024: Asia Pacific, reveals that Philippine consumers are willing to pay an average premium of 13.4% for sustainable products. This surpasses the global average of 9.7%, highlighting a strong local commitment to mindful, sustainable purchases. This shift presents a unique opportunity for businesses that champion eco-friendly practices.
Influence of Sustainable Packaging to Consumers
The shift towards sustainable packaging is influenced by several key market drivers. Among these market drivers are consumer demand, regulatory pressure, retailer influence, technological advancements, and economic benefits.
Consumer Demand: Increasing environmental awareness has led consumers to prefer eco-friendly packaging. Notably, 50% of consumers are willing to pay a premium for products with sustainable packaging, according to McKinsey's Sustainability in Packaging 2023 report.
Regulatory Pressure: Governments worldwide are implementing stricter environmental regulations, compelling businesses to adopt sustainable packaging solutions to comply with new standards. In the Philippines, the Extended Producer Responsibility (EPR) Act of 2022 (RA 11898) places greater accountability on companies for the environmental impact of their product packaging. This law requires businesses to manage plastic waste recovery, ensuring they take responsibility for collecting and recycling a portion of their output. By aligning with regulations like the EPR Act, businesses not only comply with legal requirements but also position themselves as responsible brands that prioritize sustainability.
Retailer Influence: Major retailers are pushing suppliers to use sustainable packaging, responding to both consumer preferences and corporate social responsibility goals.
Nestlé Philippines has adopted paper straws for its ready-to-drink products in response to retail demands for sustainable packaging. This shift aligns with growing pressure from major retailers to reduce single-use plastics.
Technological Advancements: Innovations in materials science have made sustainable packaging more accessible and cost-effective, encouraging businesses to transition from traditional packaging methods.
Unilever’s Love Beauty and Planet has integrated innovative technology by introducing bottles made from 100% post-consumer recycled (PCR) plastic, improving sustainability without compromising product quality.
Economic Benefits: Adopting sustainable packaging can lead to cost savings through reduced material usage and improved brand image, attracting environmentally conscious consumers.
Coca-Cola has expanded its returnable glass bottle program in Asia, reducing the need for single-use plastics and cutting long-term costs through reusable packaging systems.
Michael Cheng and Rakesh Mani, Asia Pacific Consumer Markets Co-Leaders, emphasize that “Asia Pacific consumers are confronted with many consequential forces at once—financial, ecological, and technological. Success in today’s market hinges on building a deeper trust with consumers that transcends mere transactions and fosters deeper loyalty.” For businesses, this means that investing in sustainable packaging isn’t just an environmental commitment but a strategic move to align with evolving consumer expectations, strengthen brand trust, and drive long-term loyalty.
Partnering with a sustainable packaging solution provider like Manbrella is your first step toward connecting with your audience and building a loyal customer base. Whether you're in FMCG, Food & Beverage, Pharmaceutical, or Retail, choosing eco-friendly packaging can be your most powerful competitive advantage. Contact us to learn more.
