Drinking Up Sustainable Packaging

What goes around now comes around. Sustainable manufacturing and recyclable packaging give new life to containers: glass and plastic, cardboard and canned.

But changing the manufacturing of packages to be more sustainable can be expensive, especially if using eco-friendly materials means retrofitting the production line. The payback, however often comes down the road in two ways:

1. More efficient packaging packs more volume on the truck, reducing transport costs.
2. Manufacturers may see sales volume increase because lower prices can be passed along to consumers. Also, greater appeal of recycled and recyclable packaging among select customers may drive more purchases.

To find out how much packaging and manufacturing matter to green-buying consumers, we analyzed the latest wave of Eco-Insights (Spring 2009) within the beverage category, an industry where sustainability initiatives have sparked considerable innovation. Eco-Insights tells us the whys behind consumer purchases of eco-friendly beverages (along with motivators for 130+ other products measured in the newest survey wave).

No surprise here: taste leads the pack as a motivator for buying one product over others. At the other end of the spectrum, we found that sustainable packaging is rarely a primary driver of green purchasing, though for some beverages consumers tell us manufacturing practices are a factor in their selection. (They do not necessarily make the connection between the manufacturing process and one of its key purposes: packaging the product.)

Top Reasons Consumers Buy Their Drinks “Green” Packaging is Rarely a Primary Driver
Reason for Buying it Green	Bottled Water	Fruit Juice	Punch Juice	Milk	Wine
Taste	37%	48%	53%	42%	62%
Lifestyle	28%	35%	24%	32%	27%
Price	28%	19%	28%	23%	22%
Brand	23%	11%	21%	16%	21%
Packaging	22%	8%	15%	8%	9%
Future health	21%	33%	21%	27%	13%
Availability	21%	17%	17%	17%	16%
Source	15%	14%	8%	15%	20%
Ingredients	15%	36%	31%	26%	24%
Current health	13%	16%	13%	16%	9%
Manufacturing	13%	19%	12%	21%	21%
Recommended	11%	14%	12%	13%	11%
Source: Eco-Insights, Spring 2009 Earthsense *Percentages do not sum to 100% because up to three reasons could be selected.

Manufacturing and packaging are not high salience green purchase drivers in the beverage category (with the modest exception of bottled water). As we would expect, it’s what’s in the package that has a major influence on the decision to buy green.

Despite the apparent low salience of packaging as a driver of these decisions, containers and how they are made still have potential for driving green purchase decisions. They can become a differentiator – all other things being equal – to attract and stand out, of course. They can leverage the assets of other drivers: how does the package guarantee (or even enhance) taste? Down the road they may even become a dissatisfier as green product purchasers become increasingly more aware of the impact of packaging on the environment.

Beverage companies that invest in greener packaging alternatives – and use these packages to educate customers in engaging ways – are ripe for causing a stir and making a splash in this not top-of-mind (for now) reason to buy.

In considering where – and why – products fit into the green landscape, Eco-Insights offers an important lesson: know what matters to consumers throughout every aspect of your offering.

The Takeaways

• Understand the extent to which consumers are making buying decisions because of packaging. Prioritize products for eco-treatment – not all beverages (or other products) will benefit equally.
• Identify consumers for whom packaging can be a draw. Target them wisely by learning about motivations central to their buying behaviors.
• Innovate packages with eco-power to create a new value proposition and to differentiate yourself on crowded shelves.
• Check your business case so investments in changed production practices pay off down the road.

Headed to San Francisco for the Food Marketing Institute's Sustainability Summit this month? Join us as we share the stage with Mike Erlandson (VP, SUPERVALU) and Tiger Beaudion (Founder, Ecobonus) for the “Effectively Communicate Green Initiatives” panel. Visit fmi.org for more information and to register for this exciting and important event!

This article provides a small sample of Earthsense research findings. Want to learn more? Let us know.