Sustainable packaging: more expensive?
It’s been 5 years now that plastic bags have started to disappear from the landscape. Nowadays, it is very rare to leave a store with a plastic bag after shopping.
Today, 85% of the retailers no longer offer plastic bags to their customers since new governmental decisions. Retailers had to make the transition to more sustainable packaging.
But what does it really cost to make that transition?
It’s all about supply and demand.
One of the biggest problems with plastic bags, in addition to the environmental impact, is that they have been the norm for too many years across the globe. Human perception makes us think that the packaging we see the most is the cheapest.
It’s a classic case of supply and demand .
One of the reasons why plastic bags are cheaper is because they are used the most in the world. The production of plastic still represents a large share of the market, which allows this material to keep its price low.
But this trend is slowly changing. Governments and independent organizations are producing more and more impactful environmental awareness campaigns. Mentalities are changing and the world’s population is becoming aware of the dangers that plastic represents for biodiversity in particular.
We can already notice a decrease in the consumption of plastic by companies but also by consumers.
You just have to search the word “plastic” on google images to realize it.
Thanks to environmental laws, awareness campaigns and scientists who are constantly innovating to reduce the production cost of sustainable materials, this «supply and demand» curve is switching to the other side.
The real cost remains the cost to the environment.
Is the price the only indicator of profit?
According to a survey conducted by Raconteur, 43% of retailers who do not use sustainable packaging yet hesitate because of the price.
However, retailers should not limit themselves to this factor alone when making their decision, as there are other less tangible factors to take into account.
The benefits that a brand can gain from sustainable packaging are numerous.
One of the biggest benefits is that it adds a responsible and caring dimension to the brand image of the company that uses sustainable packaging.
It will attract an environmentally conscious demographic that shares the same values. This environmentally conscious demographic is growing and is making its purchasing decisions based on their beliefs and values.
According to Unilever in an international study, “one third of consumers today choose to buy from brands that act in a social or environmental interest”.
Not including this demographic today is giving the opportunity to the competition to win them over. Taking this demographic into consideration makes is a worthy long term investment.
In conclusion, the advantages of sustainable packaging are numerous and will multiply in the coming years.
One tip to getting a good price is to order your packaging in large quantities.
When ordered in large quantities, the price becomes similar to other options available on the market.