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CPG Goes Green

CPG Goes Green

CPG MBA
June 27, 2023

According to a recent study by IBM and the National Retail Federation, nearly 70% of consumers in the US value the eco-friendliness of a brand when making purchasing decisions.

With consumer spending accounting for more than $14 trillion dollars annually (two-thirds of the U.S. GDP), that’s a big deal. But are consumers actually spending according to their values? McKinsey and NielsenIQ examined spending of more than 100,000 U.S. households to find out.

And now, the data is in: “Products making [environmental, social, and governance]-related claims averaged 28 percent cumulative growth over the past five-year period, versus 20 percent for products that made no such claims.”

Right now, 75% of CPG companies continue to use plastic packaging, but a new study from PMMI and AMERIPEN predicts a major shift in the next 10 years as businesses make the change to sustainable alternatives, with compostable materials leading the pack.

Source: PMMI/AMERIPEN 2023 Packaging Compass

Another report from market intelligence company CB Insights identified four sustainable packaging methods that stand out among major CPG corporations: recycled plastics, reusable/refillable packaging, paper-based packaging, and biodegradable plastics.

As a small business owner, you should also consider options such as:

Plant-Based Materials - Plastic-free alternatives for CPG packaging
Cold Seal Packaging - This method of sealing allows you to use 100% paper materials alongside an eco-friendly adhesive
Micro-Perforated Films - Increases shelf life and reduces food waste

Choosing a new packaging material really depends on your product, budget, etc. Regardless of method though, the data all says the same thing: if you’re presented with the opportunity to switch to eco-friendly packaging, it may very well be worth the effort.

A WORD OF WARNING…

Sustainable packaging is on the rise, but so is greenwashing, the act of exaggerating the environmental benefits of a product with the goal of gaining more sustainability-driven customers. This can lead to negative press, though this most commonly occurs with major corporations.

The solution, though, is simple: be genuine.

As an entrepreneur, your business is a reflection of your core values. If you truly believe in making a positive impact on the world through sustainable changes, then you’re on the right track.

CPG Goes Green

A WORD OF WARNING…

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