SUSTAINABLE PACKAGING MARKET ANALYSIS

Consumers across the world are becoming aware about the pressing need to reduce plastic pollution and move towards sustainable alternatives that minimize environmental footprint. This change in mindset is getting reflected in their purchasing decisions as these seek out brands that use sustainable and recycled materials in their packaging.  Many consumers, especially millennials and generation Z who research products online, check social media platforms of brands to see what initiatives these are undertaking to reduce waste. These look for terms like recycled, reusable, compostable, and biodegradable on the packaging to feel good about their purchase. This conscious consumerism is nudging big corporates to overhaul their packaging strategies and cater to the rising demand for sustainable choices. However, making the switch from conventional plastic and non-recycled materials to more environment-friendly alternatives requires reworking of entire supply chains and production lines. It involves huge capital investments and risks which restrains quick transition for some players. The shift is also constrained by lack of widespread recycling infrastructure and programs especially in developing nations. When consumers are unable to properly dispose off or recycle the sustainable packaging post-use due to insufficient local waste management systems, it discourage them to opt for green options.

 Opportunity: Increased government legislation against single-use plastics

Increased government legislation against single-use plastics will drive packaging innovation. More companies are committing to sustainability goals which will raise demand. Consumers, especially millennials and Gen Z, indicate a strong willingness to pay extra for eco-friendly products.