Why are brands slowly shifting to eco-friendly packaging? Eco-friendly packaging is used by brands for various reasons, such as corporate social responsibility, lowering their carbon footprints, decreasing waste, boosting sales, and because merchants want it.
The number of sustainable development goal statements in the annual reports of 400 of the top companies in the world has more than doubled, according to the 2018 Global Sustainability Index Institute Report. What causes the increase? We will uncover this for you…
Why are Brands Slowly Shifting to Eco-friendly Packaging?
1. Sustainable Packaging Shows Corporate Social Responsibility
A company that strongly emphasizes corporate social responsibility is dedicated to improving society and the environment rather than adding to its deterioration. Walmart, one of the biggest retailers in the world with more than 11,300 stores in 27 nations and ten e-commerce websites, is aware of its power and is moving in the direction of taking the lead in eco-friendly packaging.
Doug McMillon, the chief executive officer of Walmart, noted in Walmart’s 2018 Global Responsibility Report that one of Walmart’s objectives is to develop into a reputable business that adds value to society.
According to Recruiter.com, Walmart employs a chief sustainability officer, a position that has grown in popularity since 2010. Since then, more than 120,000 new CSO positions have been added. According to Kathleen McLaughlin, CSO of Walmart, the company wants to reform the retail industry aggressively for sustainability. For example, Walmart wants all of its packaging to be 100% recyclable, reused, or compostable by 2025.
2. Retailers Expect Sustainability From Brands They Carry
Target established five new sustainable packaging goals in 2017 and credited customer expectations as the main driving force. Eliminating polystyrene is one objective that helps customers and the environment by reducing the amount of plastic waste that ends up in the ocean.
More Target packaging will have the How2Recycle label so customers may more easily understand how to recycle each piece of packaging. Target’s revenue increased from $69.5 billion in 2017 to $75.36 billion in 2019 due to the targets being made public.
3. Decrease Carbon Footprint, Lower Shipping Costs
Since most notebooks are delivered to the American and European markets, HP, a manufacturer of almost 40 million notebooks annually in China, needed to find a sustainable packaging solution. HP intended to employ packaging that is both strong enough to safeguard its products during their long trips from the factory to end customers, especially in humid environments, and that minimizes the environmental impact of their business operations.
HP began using fluting and liner created with virgin fiber obtained from sustainably managed forests by collaborating with Billerud. The fiber’s incredible strength resulted in a 29% reduction in packaging materials while maintaining protection. HP also gains from the box’s lighter weight, which lowers shipping costs and reduces emissions from the transportation industry.
4. Optimize Packaging, Save Millions
Business processes can be improved by using sustainable packaging to reduce inefficiencies that hurt the environment. IKEA is one well-known example of a retailer of home goods that did this. A 50% change to the packaging for one of its products led to annual savings of 1.2 million Euros.
HP teamed up with Billerud to lessen its carbon footprint, it also reduced shipping costs and made significant financial savings. For example, HP changed to a higher-quality packing material, which costs about the same as the old boxes, but the lighter weight of the new packages saves $3 to $5 million a year on air freight.
5. Meet Growing Consumer Demand
Customers are eager to spend their money on environmentally friendly goods. According to market research firm GlobalWebIndex, 42% of consumers in the United States and the United Kingdom look for recyclable products made with sustainable materials when making regular purchases.
Consumers concerned about the environment are interested in sustainable packaging and eager to support businesses that share their concerns. For example, consumers in the US are 61% more likely to support companies that promote environmental protection. In addition, 56% of shoppers in the UK wish to support environmentally responsible businesses.
We Have The Perfect Eco-Friendly Packaging For You!
Why are brands shifting to eco-friendly packaging? At SupplyCaddy, we are committed to helping our customers find the best packaging for their business needs. We offer a wide range of sustainable packaging options, from biodegradable containers to paper plates! Contact us at [email protected] to find the perfect eco-friendly packaging for your business!