5 Reasons Why Your Business Should Be Using Sustainable Packaging

At Ernest Packaging Solutions, we’re big proponents of environmentally friendly, sustainable packaging.

Why is sustainable packaging important?

In addition to the multitude of environmental benefits green packaging offers, such as decreasing landfill waste, preserving natural resources, and reducing your carbon footprint, sustainable packaging offers other, business-focused benefits that directly support your bottom line. Here are 5 reasons why using sustainable packaging materials should be part of your business strategy.

1. Increased Market Demand

In recent years, consumers and businesses alike have become increasingly aware of climate challenges and the environmental impact of their actions. This has led to a growing desire for eco-friendly, sustainable options in everyday life, which many retail and eCommerce brands are embracing. Now, the focus has expanded to include sustainable packaging solutions, too.
According to the Sustainable Packaging Market Outlook for 2024 to 2034, the market is projected to grow exponentially over the next decade — from $285.3B in 2024 to $490.5B by 2034. That’s a staggering jump! Forward-thinking brands can take advantage of this incredible opportunity by incorporating sustainable packaging materials and solutions into your business strategy now. It’s a smart way to increase revenue and market share.

2. State & Federal Mandates

For packaging-heavy industries, such as food and beverage, cosmetics and pharmaceuticals, sustainable packaging is fast becoming a business imperative due to state and federal regulations. For example, the National Environmental Policy Act (NEPA) requires the Food and Drug Administration (FDA), which is also responsible for ensuring packaging safety, to assess the impact of its potential actions on the environment. This includes packaging for the products the FDA oversees and approves, making sustainable food packaging even more important.

Just last year, the General Services Administration passed a new acquisition regulation aimed at reducing single-use plastic packaging. The rule calls for the identification of packaging that’s free from single-use plastic where available for all federal supply chain procurement. As the government agency responsible for managing and supporting the basic functioning of all federal agencies, this new rule will likely have a significant and far-reaching impact.

At the state and local levels, regulations vary. Five states have already passed legislation around extended producer responsibility (EPR) for packaging, which holds companies responsible for making packaging and manufacturing processes more sustainable: California, Colorado, Maine, Minnesota and Oregon. Eleven more have EPR bills under consideration or have passed partial bills, including Hawaii, Illinois, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Rhode Islands, Tennessee and Washington.

Many municipalities and countries are also starting to set forth sustainability regulations and requirements. For example, California’s “Truth in Recycling” law, which requires packaging materials to meet specific criteria before they can be labeled as recyclable, goes into effect this year. The ongoing shift towards sustainability is likely to continue in the years to come, making sustainable packaging a strategic long-term investment.

3. Corporate Social Responsibility

As more and more consumers show a preference for green shopping, businesses have taken note. However, many are simply jumping on the sustainability bandwagon, leading to consumer concerns over “greenwashing,” whereby corporations make empty claims about sustainability and environmental awareness in order to win over eco-conscious shoppers.

Consumers take these claims very seriously, and so should you. Rather than making empty promises, take a simple first step by adopting green packaging. Using sustainable packaging materials is one way to actually demonstrate your commitment to corporate social responsibility. Clearly label sustainable food packaging, as well as green packaging for other products, as reusable, recyclable, compostable, etc., to show your customers that you care.

4. Improved Brand Image

Packaging is often the first thing customers see, sometimes even before they know what your product is. Adding an earth-friendly message to your packaging not only grabs the attention of eco-conscious shoppers, it can help turn browsers into buyers. One recent survey found that 82% of consumers across age demographics are willing to pay more for products that use sustainable packaging, with younger consumers even more willing at 90%.

Packaging your products in a sustainable solution takes the burden off of consumers, who want to be eco-friendly but don’t want to be responsible for taking the extra steps to return or recycle packaging materials. In an increasingly green market, it’s an easy way to boost your brand reputation, driving retention and loyalty.

5. Cost Reductions

While you may think sustainable packaging solutions will cost you more, the truth is, going green can actually help you reduce costs in a number of ways. Eco-friendly packaging solutions are designed to minimize material use and waste production. This can lower expenses two ways: by reducing the cost of raw materials on the front end and by decreasing waste management fees on the back end, because you’ll have less waste to take to the landfill.

Related reading: Is Zero Waste Packaging Possible?

If you opt for recyclable materials, you might even be eligible for rebates for recycling any excess, damaged or returned packaging materials instead of paying to take it to the landfill. With many companies now setting out sustainability goals for vendors and suppliers, they might also offer incentives. Talk to your partners and find out how going green by using sustainable packaging materials can benefit you both.

When sustainability and savings are in the same equation, that’s a big win for both you and your customers. If you’re looking to tap into the benefits of sustainable packaging for your business, let’s talk about what Ernest’s team of experts can do for you.