Last month, Knockout attended a webinar organized by Beauty Packaging that featured insights and discussions about the latest industry packaging trends from Darshit Gandhi at McKinsey & Company. We also heard from Jaclyn Bellomo at Registrar Corp about the necessary steps and organizational mindset needed to navigate regulations like MoCRA.
In today’s blog, we will explore the critical insights that Darshit, from McKinsey, shared with the group.
The webinar started with us learning that consumers’ attitudes towards product packaging have significantly shifted since 2020. Environmental impact has now become more important to consumers as compared to the packaging’s appearance. In addition to this, McKinsey’s 2023 sustainable packaging survey found that consumers see brand owners as the group most responsible for driving packaging sustainability, an expectation likely to grow as sustainability requirements increase at every step of the product lifecycle.
McKinsey’s survey of US consumers found that 60 to 70 percent would pay more for sustainable packaging, and that eco-friendly packaging is especially important to Millennials, Gen Z and urban customers.
However, the study found that not all sustainability claims made are equally effective. The more specific brands can be with their claims, the higher the premium they can charge to achieve additional sales growth. Consumers value transparency over generic blanket statements which have become all too common and cannot be easily proven. For example, brands that market, and can prove, they are carbon-zero are seeing higher sales growth than those that only claim to be sustainable.
Consumer thoughts on what makes packaging sustainable have been changing over the last few years as well. They now believe that compostable and plant-based packaging is more eco-friendly as compared to 2020 which found that plastic films made out of renewable materials and glass bottles and jars were at the top of the list.
Today, as consumer preferences favor packaging sustainability, brands must also consider cost, speed to market, and personalized experiences. Knockout Packaging has the knowledge and experience to support brands looking to offer their customers impressive and unique packaging experiences without long production timelines or sacrificing their brand aesthetics. Please visit our website here to learn more.
Frequently asked questions
Do consumers care more about sustainable packaging than how it looks?
According to the McKinsey insights shared at the Beauty Packaging webinar, yes. Consumer attitudes have shifted significantly since 2020, and environmental impact has become more important to consumers than packaging appearance. Eco-friendly packaging is especially important to Millennials, Gen Z and urban customers.
Will consumers pay more for beauty products with sustainable packaging?
Many say they will. McKinsey's survey of US consumers found that 60 to 70 percent would pay more for sustainable packaging, though these are stated intentions rather than observed purchases. How much of a premium a brand can charge depends on how specific and provable its sustainability claims are.
Which sustainability claims drive the most sales growth?
Specific, provable claims perform better than generic statements. The study shared at the webinar found that the more specific a brand's claims, the higher the premium it can charge. Brands that market, and can prove, that they are carbon-zero are seeing higher sales growth than brands that only claim to be sustainable.
What packaging do consumers now see as most sustainable?
Consumers now see compostable and plant-based packaging as more eco-friendly. In 2020, plastic films made from renewable materials and glass bottles and jars topped the list. Brands also have to weigh cost, speed to market and personalised experiences alongside these shifting consumer preferences.
Sources
- Sustainability in packaging: Inside the minds of US consumers, McKinsey & Company
- Sustainability in packaging: US survey insights, McKinsey & Company
