Research: Sustainable packaging is an emerging issue

London / UK. (dm) A new report from independent market analyst Datamonitor identifies that sustainable packaging is a growing consumer issue that has the potential to benefit numerous stakeholders. At present consumer interest in packaging is relatively low in general, but with a high proportion of consumers interested in the sustainability aspect of packaging.

Sustainably-oriented packaging is becoming a consumer expectation, albeit not a primary purchase motivator. It is one of a growing number of issues driven by ethics, economics and environmentalism. Economic imperatives, as well as possible greater regulation, mean that more brands need to consider sustainable packaging in order to adapt their present approach comments Matthew Adams, Consumer Analyst at Datamonitor and author of the report.

The global economic recession is universally recognized as a negative and traumatic event for countries and individuals. If some crumb of comfort can be gained from the recession is that it will change consumers lifestyles and some of the changes could be deemed to be for the better. While recession means that consumers often have to act in a more self-serving manner for the sake of self-preservation, for instance consumers buying fewer Fairtrade groceries, many of the recession-inspired consumer behaviours could be said to be beneficial for the natural environment. Recession makes everyone act more efficiently and potentially less waste is created from fewer purchases being made. Rising fuel costs have also made numerous consumer packaged goods companies question their current practices and seek cost savings by reducing packaging to reduce the amount of weight that is transported from factory, to shop, to the end consumer. However, producers must consider the diverse elements of packaging in order to continue to protect products throughout their life cycle, while making credible adjustments to packaging that benefits all.

The results of Datamonitor´s consumer survey in the second half of 2008 showed within selected countries of Europe between 39 percent and 67 percent of consumers felt that packaging design has a medium or high level of influence over their choice of food and drink products. The highest rate of influence was found in France with consumers in Sweden also demonstrating high levels of importance. Consumers’ relationship with packaging in many ways is complex because few will admit to its importance because it is often taken for granted, but increasing consumer concern about ecological matters means packaging is an issue that is rising to prominence.

Table 1: Consumer survey: stated influence of packaging design on food and drink and alcoholic beverage purchase, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008.

Influence	Medium amount of	High amount of	Very high amount
France	41%	20%	06%
Germany	33%	07%	02%
Italy	35%	12%	03%
Netherlands	34%	08%	01%
Spain	47%	11%	05%
Sweden	37%	09%	05%
UK	30%	07%	02%
–
US	32%	11%	06%
–
Australia	30%	10%	03%
Brazil	37%	19%	10%
China	45%	25%	08%
India	26%	33%	29%
Japan	39%	10%	00%
Russia	41%	16%	08%
South Korea	46%	22%	04%
–
Overall	37%	14%	06%

Source: Datamonitor Consumer Survey, August 2008

Of the seven countries in Western Europe surveyed by Datamonitor, the UK was the country where the greatest proportion of survey respondents showed high levels of concern about over packaging of products in the household goods market. Of course this does not necessarily mean that people in the UK are the most ecologically-minded of consumers, but instead are showing greatest concern due to media influence and the possibility that such products are wastefully packaged in the UK or are perceived as such. This is a threat to unresponsive producers in the household goods market if consumers choose to react to continued excessive pacakging with their own pro-active, pre-emptive methods. Consumers in France and Spain also showed high levels of concern.

Table 2: Consumer survey: stated concern about over-packaging in household good categories, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008.

	Somewhat concerned	Extremely concerned	Total concerned
France	32%	18%	50%
Germany	23%	09%	32%
Italy	29%	09%	38%
Netherlands	33%	10%	43%
Spain	32%	21%	52%
Sweden	38%	12%	51%
UK	43%	17%	60%
–
US	25%	09%	34%
–
Australia	38%	14%	52%
Brazil	15%	12%	27%
China	47%	09%	56%
India	31%	21%	53%
Japan	35%	05%	40%
Russia	20%	07%	27%
South Korea	33%	06%	39%
–
Overall	32%	12%	44%

Source: Datamonitor Consumer Survey, August 2008

One of the most obvious methods consumers can use to bring about change is to exercise their right to boycott products that do not meet their requirements or expectations. With this in mind Datamonitor surveyed consumers from across Western Europe in 2008 to see what proportion reports to have changed their buying behaviour due to their concern about excessive packaging. In 2008, 51% of French and Spanish respondents agreed they seek alternative products if they deem the one they were considering buying is excessively packaged in any way. This proportion is slightly ahead of the rest of Western Europe and markedly higher proportion than in the US. Consumers in the Netherlands are less likely to take such minor boycotting action.

Table 3: Consumer survey: extent of seeking alternative products due to perceived excessive packaging, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008.

	Tend to agree	Strongly agree	Total agree
France	36%	16%	51%
Germany	30%	15%	45%
Italy	32%	14%	46%
Netherlands	23%	10%	33%
Spain	35%	16%	51%
Sweden	37%	10%	47%
UK	28%	12%	40%
–
US	24%	11%	35%
–
Australia	34%	13%	48%
Brazil	32%	21%	54%
China	49%	19%	68%
India	40%	27%	67%
Japan	30%	07%	37%
Russia	29%	12%	40%
South Korea	50%	19%	69%
–
Overall	34%	15%	48%

Source: Datamonitor Consumer Survey, August 2008

With this in mind all consumer packaged goods companies will continue to evaluate their packaging in order to align themselves with an emerging consumer trend. Sustainable packaging need not only be seen as a worthy environmental issue but more so as a «win-win situation» where consumers, producers and the environment all reap the benefits. Updating packaging can also be a more credible way to make cost savings without having to indulge in such methods as «package shrink» or more accurately «portion shrink» where a smaller amount of the product is sold at the same price.

About: Datamonitor PLC is the world´s leading provider of online data, analytic and forecasting platforms for key vertical sectors. The researchers help their clients to address complex strategic issues. Through the company´s proprietary databases and wealth of expertise, it provides clients with unbiased expert analysis and in-depth forecasts for seven industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Pharmaceuticals and Healthcare, Technology, Transport and Logistics.