The Growing Importance of Sustainable, Eco-Friendly Products and Packaging
Is sustainability part of your product strategy? If not, it should be.
A focus on sustainability is vital if you hope to retain your market share and attract new generations of consumers.
The importance of eco-friendly products and packaging is rapidly outpacing the importance of any other factor in consumer purchasing decisions (including brand name and cost), especially among younger generations of consumers. And retailers themselves are increasingly demanding environmentally-friendly products and sustainable packaging materials from the brands they purchase.
Let’s take a closer look at the growing importance of sustainability in today’s market and how working with Flywheel Sourcing can help you meet your environmental objectives.
Consumer Demand for Eco-Friendly Products and Packaging Is on the Rise
Shoppers no longer base their purchases primarily on brand or price; sustainability is now a critical determining factor in the products they choose to buy. According to a survey from McKinsey & Company, 66% of all respondents (and 75% of millennial respondents) said they now consider sustainability when making a purchase.
Among today’s consumers, there is a significant movement toward purchasing environmentally safe products that are manufactured and packaged using eco-friendly practices.
In a 2019 study by Accenture, 72% of respondents said they’re currently buying more environmentally friendly products than they were five years ago, and 81% said they expect to buy more over the next five years.
In a 2020 study by the Economist Intelligence Unit, 52% of C-level executives in the fashion and textile industry said consumer demand is driving their brands to increasingly focus on sustainability factors, including sourcing sustainably produced raw materials to create their apparel. This trend can also be seen in other sectors, including food, cosmetics, and pharmaceuticals.
What’s more, more than a third of consumers worldwide are willing to pay more for environmentally-friendly alternatives. This holds true across generations, with Gen Z and Millennials leading the charge.
In general, customers today are much more likely to align themselves with brands that are compatible with their values and priorities. But while many consumers actively seek out brands and businesses that share their values, they’re also more willing to switch products or brands when those products or companies no longer reflect their values.
To retain their market share, brands today need to focus on creating more sustainable products and packaging—and they need to be transparent and authentic about that.
For Millennials and Gen Z, the Environment Is Priority #1
Most members of Gen Z are now in their mid-20s, and are predicted to be the “most disruptive generation ever” in coming years—both in their own purchasing choices as well as in their influence over their parents and grandparents. And Millennials have become the largest generation in U.S. history.
It’s impossible to understate the impact these generations will have on the future of retail.
One 2021 study found that Gen Z consumers have an outsized influence on all other generations (including both their Gen X parents and their Boomer grandparents) when it comes to sustainable shopping. One example of this: nearly 90 percent of Gen X consumers now say they would be willing to spend 10 percent extra (or more) for sustainable products, compared to just 34 percent two years ago.
Both Millennials and Gen Z are tech-savvy generations who are accustomed to making informed purchasing decisions. And they’re more likely to base their purchasing decisions on their values and principles (including environmental concerns) over any other factor.
In fact, three-quarters of Gen Z consumers state that sustainability is more important to them than brand names when making purchase decisions.
Younger generations are leading the charge in demanding products and packaging made with eco-friendly materials using sustainable manufacturing practices. If you want to reach them and retain their business, you need to ensure that not only are your products and packaging eco-friendly, but also that you’re working with manufacturing partners who use sustainable practices.
Retailers Are Increasingly Adopting Higher Sustainability Standards
And it isn’t only consumers who are increasingly demanding sustainability in their product choices. Retailers are also becoming more involved to meet higher requirements for sustainability in their products and packaging.
While convenience and product safety will continue to be an important factor in packaging choices, environmental concerns are coming to the forefront for retailers nationwide. Retailers are beginning to adopt ambitious sustainability goals that a product owner must meet to earn a position on their store’s shelves.
For example, Target has set goals for eco-friendly products and packaging as part of their overall sustainability strategy. Brands that hope to sell their products at one of the largest retailers in the U.S. will be responsible for meeting Target’s promises to improve sustainability in packaging.
One aspect of sustainability many retailers are committed to is reducing plastics in their stores. This includes eliminating plastic bags or offering plastic bag recycling, banning styrofoam from store shelves, and reconsidering single use items in favor of more sustainable packaging solutions. Many are also prioritizing reusable containers, post-consumer content, and renewable bio-based resins in packaging.
Taking it a step further, today’s retailers are also considering what it means to be fully sustainable throughout the entire life cycle of a product or package. Responsible sourcing and eco-friendly manufacturing practices will continue to become more and more important to retailers in the future.
Flywheel Sourcing Can Help You Meet Your Sustainability Goals
One of the best ways to ensure you’re producing eco-friendly products and packaging is to work with a manufacturing partner like Flywheel Sourcing who can help you keep sustainability a priority.
At Flywheel Sourcing, sustainability is a key focus:
Sourcing: Our team will work with you to achieve your sourcing and sustainability goals while keeping a keen eye on minimizing cost implications.
Experience: We have worked with clients with sustainability as a key focus or selling point.
Packaging Resources: We are currently sourcing sustainable packaging (including plant-based) for our clients, and can help you do the same.
Product Testing: We can help facilitate tests for your products to ensure they’re biodegradable.
Our organization is built to support the needs of our clients, including eco-friendly manufacturing processes, products, and packaging. If your goals include an increased focus on sustainability, contact us to discuss your needs and learn how our team can help you reach your objectives.