Sustainable Packaging 2024

About the study

The topic of sustainability has become a permanent megatrend in the food market in recent years. Consumers, as well as government institutions and NGOs, are increasingly demanding that food manufacturers produce their products as sustainably as possible and minimise the negative impact of production, use and disposal on the environment. In addition to the food itself, this requirement also applies to the food packaging used.

With regard to the opportunities that the use of particularly environmentally friendly food packaging can offer companies in the food industry, it is often discussed, among other things, that companies may be better able to attract and retain some customer groups in the market through particularly sustainable packaging concepts. Furthermore, they may be able to positively change and exploit their willingness to pay more than is the case when using less environmentally friendly packaging concepts.

For many food manufacturers, however, increasing the environmental friendliness in the use of packaging is also a real challenge.

Against this backdrop, many companies in the food industry are currently faced with the question of how they should organise their activities to increase the environmental friendliness of the packaging they use. The following three questions in particular are also at the centre of attention:

In order to meet this need for information, the DLG (Deutsche Landwirtschafts-Gesellschaft - German Agricultural Society), in cooperation with Prof. Dr. Holger Buxel (Münster University of Applied Sciences), produced the study "Sustainable Packaging 2024". A consumer and a company survey were conducted with the aim of gaining an insight into the status quo of the importance and implementation of environmentally friendly packaging concepts for food products. The main results are summarised in three publications.

Summary

1. The environmental friendliness of the packaging is a relevant characteristic in the evaluation of food, but it is also only one of many.
2. Environmental aspects of packaging often play only a limited role in product selection.
3. There is only a limited willingness to pay more for environmentally friendly packaging.
4. The ability to recognise when food products are packaged in an environmentally friendly way and when they are not is severely limited.
5. Materials characterise the assessment of the environmental friendliness of packaging; plastic packaging is regarded as particularly environmentally harmful.
6. Consumers see potential for improvement in their own behaviour, but see themselves as only secondarily responsible for increasing the environmental friendliness of packaging used for food.
7. Reusable packaging meets with consumer acceptance.

Conclusion

The study focused on the question of the importance of environmentally friendly food packaging from the consumer's point of view and what role the topic of environmentally friendly packaging plays in everyday consumer behaviour and the handling of food products. The results of the study can be summarised in the following seven key statements:

The environmental friendliness of the packaging is a relevant characteristic in the evaluation of food, but it is also only one of many.

The results of the study show that the environmental friendliness of the packaging used for food products is a relevant topic for many consumers, who see a need for improvement. For example, four out of five people surveyed (79 %) agree with the statement that the environmental friendliness of the packaging used for food products urgently needs to be improved.

However, the environmental friendliness of the packaging is often just one of many characteristics when deciding in favour of or against a food product. Other product characteristics play an equally important or in some cases even significantly greater role in both product selection and the evaluation of the packaging itself. For example, 40 % of the people surveyed stated that they make a conscious effort to ensure that the food they buy for themselves is packaged in an environmentally friendly way. The proportion of those surveyed who consciously pay attention to flavour (83 %), quality (61 %) and price (58 %) is significantly higher.

Environmental aspects of packaging often play only a limited role in product selection.

For many consumers, the environmental properties of packaging play a role in their purchasing decisions. However, the importance of environmental characteristics when choosing which product to buy is limited. Only 37 % of those surveyed stated that they consciously look at the environmental friendliness of the packaging before trying a new food product in the grocery store. And only 6 % of those surveyed stated that they very often make a conscious decision not to buy otherwise attractive food products because their packaging is not environmentally friendly enough.

There is only a limited willingness to pay more for environmentally friendly packaging.

When asked how much extra those surveyed would be prepared to pay for the use of more environmentally friendly packaging, only 15 % said that they would be prepared to pay more than 10 % extra for the use of more environmentally friendly packaging. One in three people surveyed (33 %) are not prepared to pay any additional charge at all. 

These results are also consistent with the results of a dummy test, which examined whether references to the positive environmental characteristics of packaging lead to an increase in the willingness to buy and pay for food products. The influence on the willingness to buy and pay is low (see study part 2).

The ability to recognise when food products are packaged in an environmentally friendly way and when they are not is severely limited.

The results of the survey suggest that most consumers' expertise and ability to distinguish between packaging with favourable and unfavourable environmental properties is clearly limited. Only 38 % of those surveyed agree with the statement that they know which food packaging is more environmentally friendly and which is not. The proportion of people surveyed who fully agree with the statement is only 10 %.

A lack of knowledge about environmental characteristics, e.g. the fact that people often do not know exactly when a product is packaged in an environmentally friendly way or not, or in which bin packaging should be disposed of correctly, is also seen as a significant barrier to increasing the environmental friendliness of the packaging used in their own purchasing and disposal behaviour.

Materials characterise the assessment of the environmental friendliness of packaging; plastic packaging is regarded as particularly environmentally unfriendly.

For many consumers, the perception of whether or not packaging for a food product is environmentally friendly is strongly influenced by the packaging material used and the related associations.

Plastic packaging is categorised as particularly harmful to the environment. Only 7 % of those surveyed perceive plastic packaging as more environmentally friendly. On the one hand, this packaging is strongly associated with the characteristics "poorly recyclable" and "a lot of waste". In addition, this packaging is also associated with other (negative) characteristics such as "polluted oceans and animal suffering" and "microplastics", and in some cases also with the characteristic "unhealthy".

Packaging made of glass or paper is perceived as being significantly more environmentally friendly.

Consumers see potential for improvement in their own behaviour, but see themselves as only secondarily responsible for increasing the environmental friendliness of packaging used for food.

Many consumers personally believe that there is great potential for improving the environmental friendliness of the packaging they use. For example, 67 % of those surveyed consider the potential for improvement in the choice of food products they buy to be very great or rather great. In terms of how they dispose of packaging from the products they buy, 60 % consider the potential for improvement to be very great or rather great.

Irrespective of this, many consumers believe that other groups, such as packaging and food manufacturers, are much more responsible and able to contribute to an overall increase in the environmental friendliness of packaging used for food than they are themselves.

Reusable packaging meets with consumer acceptance.

Overall, it is clear that there is a fundamental willingness and openness among consumers to use reusable solutions. This is probably due to the fact that many consumers believe that reusable packaging in particular plays a key role in improving the environmental friendliness of packaging.

Outlook

Overall, the study results show that increasing the environmental friendliness of the packaging used for food products is a relevant issue for many consumers. However, it is currently likely to play only a limited role in purchasing behaviour and the choice for or against a product.

Many consumers have only limited expertise in recognising packaging with more favourable environmental properties. The assessment of the environmental friendliness of packaging is strongly influenced by the packaging material used and the associated environmental properties. It also shows that many consumers see other groups as being more responsible and able to contribute to an overall increase in the environmental friendliness of packaging used for food than themselves.

In the area of conflict between consumer interest and market opportunities through the use of particularly environmentally friendly food packaging on the one hand and economic feasibility on the other, a key challenge for companies in the food industry is therefore likely to be to develop more environmentally friendly packaging concepts that are geared towards consumers' willingness to pay and their willingness to change their own purchasing and disposal behaviour.

Another key challenge is likely to be communicating the environmental properties and benefits of the packaging used in a targeted manner and making them "tangible" for consumers, as many consumers are unable to recognise ecologically beneficial packaging without specific information on packaging or other information carriers when shopping for food. This ultimately requires the development of suitable communication concepts.

In order to provide an orientation basis for the design of such communication concepts, part two of the study (Labelling) looks at the current information behaviour of consumers with regard to the environmental properties of food packaging and how different packaging-related environmental claims are perceived by consumers.

Summary

1. The ability to recognise when food products are packaged in an environmentally friendly way and when they are not is severely limited.
2. The most frequently used source of information on the environmental aspects of packaging is the packaging itself.
3. Consumers want more information about the environmental aspects of packaging on food products.
4. Consumers prefer specific information about the environmental aspects of packaging.
5. Packaging claims on the topics of reusability/recyclability and recycling are particularly relevant.
6. Packaging claims only have a minor influence on the willingness to buy and pay for products.
7. Many labels/seals on the subject of environmentally friendly packaging and disposal are not widely recognised.

Conclusion

Part 2 of the study focused on the question of how familiar consumers are with the environmental properties of packaging, what information behaviour on environmental aspects of packaging looks like and how different packaging-related environmental claims and seals are perceived by consumers. The results of the study can be summarised in the following seven key statements:

The ability to recognise when food products are packaged in an environmentally friendly way and when they are not is severely limited

The results of the survey suggest that most consumers' expertise and ability to distinguish between packaging with favourable and unfavourable environmental properties are clearly limited. Only 38 % of those surveyed agree with the statement that they know which food packaging is more environmentally friendly and which is not. The proportion of people surveyed who fully agree with the statement is only 10 %.

The most frequently used source of information on the environmental aspects of packaging is the packaging itself

The most frequently used source of information about the environmental characteristics of food products is the packaging itself. Information in grocery stores (e.g. information boards) also still plays a relevant role in information behaviour about environmental characteristics. However, websites, social media sources or personal enquiries are used much less frequently as sources of information.

Consumers want more information about the environmental aspects of packaging on food products

For many consumers, obtaining information about the environmental properties of packaging when shopping for food is not the rule. Nevertheless, two out of three of the consumers surveyed would like to see more information on the environmental aspects of packaging on food products - using a standardised system.

Consumers prefer specific information about the environmental aspects of packaging When it comes to the design of information on the environmental aspects of packaging, consumers seem to favour those design variants that are specific and quantify the estimated environmental effect.

Packaging claims on the topics of reusability/recyclability and recycling are particularly relevant

In the context of the use of claims on the environmental properties of packaging, it can be seen that consumers assign a high level of relevance to environmental protection and also to their purchasing behaviour to claims that deal with the topics of "reusability/recyclability" and "recycling". By contrast, the topic of "climate protection" is categorised as comparatively less relevant - despite its high profile in general discussions and the media. In general, there is a strong positive correlation between the comprehensibility of a claim on the one hand and the perceived importance of environmental protection and the willingness to purchase on the other. The more comprehensible a claim is, the higher the purchase relevance tends to be.

Packaging claims only have a minor influence on the willingness to buy and pay for products

The dummy test showed that claims about the environmental friendliness of packaging can have a clearly positive influence on perception. However, the test did not show that this influence on environmental perception is automatically reflected in a statistically significant increase in the willingness to buy and pay for a product.

Many labels/seals on the subject of environmentally friendly packaging and disposal are not widely recognised

In Germany, there are several seals or labels that say something about the environmental friendliness and/or environmental properties of the packaging (e.g. whether or not it is recyclable). The existing seals and labels on the market show clear differences in their familiarity, with many of them still having a very low degree of familiarity (< 10 %). The seals or labels with the greatest familiarity are the green dot (76 % familiarity), the reusable label (76 %) and the recycling triangle (74 %).

Outlook

Overall, the study results show that many consumers have only limited expertise in distinguishing packaging with favourable environmental properties from packaging with unfavourable environmental properties.

As part of the development and use of environmentally friendly packaging concepts, a key challenge for many companies in the food industry is therefore likely to be communicating the environmental properties and benefits of the packaging used in a targeted manner and making them "tangible" for consumers.

Communication measures that make the environmental characteristics visible and tangible on the packaging itself appear particularly promising. In addition to the choice of packaging materials used, working with claims or seals/labels on the packaging is particularly useful here.

The claims that companies can use vary greatly in terms of their comprehensibility and relevance to consumers. As a result, the selection of the specific claims and seals/labels used will ultimately play a key role in determining the extent to which the environmental benefits of packaging can be made visible and understandable and translated into increased acceptance of the product. In view of the widely varying acceptance and impact of different claims, companies in the food industry are advised to carefully examine which claims and labels/seals should be used in individual cases in order to maximise the market potential of using environmentally friendly packaging.

The results of this part of the study can hopefully provide an initial orientation basis for the selection of suitable claims and seals/labels.

Summary

1. Increasing the environmental friendliness in the use of packaging is an important goal in most companies.
2. The purchasing relevance of the environmental friendliness of packaging is categorised as limited by both consumers and retailers.
3. The improvement approaches pursued are diverse, with a particularly frequent focus on increasing recyclability and the proportion of recycled materials.
4. Systematic methods for packaging assessment are not yet widespread.
5. Only a few companies have used packaging-related sustainability certifications or seals to date.
6. The main obstacles to the use of more environmentally friendly packaging solutions are economic considerations, problems with the availability of materials and conflicts with product protection

Conclusion

The study focussed on the question of the importance of increasing the environmental friendliness of the packaging used in companies in the food industry and how the increase in environmental friendliness is implemented in the companies. The results of the study can be condensed into the following six key statements:

Increasing the environmental friendliness in the use of packaging is an important goal in most companies

Improving the environmental friendliness of the packaging used is a relevant and important topic for most food manufacturers. Just under one in two companies (49 %) already has a strategy for increasing the environmental friendliness of the packaging used, while a further 24 % of the companies surveyed are currently developing such a strategy. The most important reason for the companies is the improvement of environmental protection itself (84 %), although sales-related reasons such as image improvement and increased competitiveness are also very important.

In two out of three (67 %) companies, the management is (jointly) responsible for the process of increasing environmental friendliness in the use of packaging; the topic has "top management attention" in many companies.

The purchasing relevance of the environmental friendliness of packaging is categorised as limited by both consumers and retailers

Even if sales-related reasons such as image improvement and increased competitiveness play a major role in efforts to improve environmental friendliness in the packaging sector, only a limited influence on purchasing relevance is seen. Less than half of the companies surveyed agree with the statement that the final consumers of their products pay close attention to how environmentally friendly the packaging is. And only 15 % agree with the statement that the final consumers of their products are prepared to pay a higher price for products packaged in a particularly environmentally friendly way. In the retail sector, only 8 % of the companies surveyed agree with this.

The improvement approaches pursued are diverse, with a particularly frequent focus on increasing recyclability and the proportion of recycled materials

The goals most frequently pursued by companies to increase environmental friendliness are increasing the recyclability of packaging (74 %), followed by reducing the amount of material (58 %) and the amount of energy used per packaging unit (53 %). The most common measure taken to achieve the goals is to increase the proportion of recycled input materials (48 %), followed by increasing the proportion of materials that come from sustainability-certified sources (42 %).

Efforts to increase the environmental friendliness of the packaging used also appear to be paying off in companies: 70 % of the companies surveyed have introduced new packaging in the last two years that is more environmentally friendly than the packaging they previously used.

Systematic methods for packaging assessment are not yet widespread

For the systematic and standardised evaluation of the environmental friendliness of packaging, 18 % of the companies surveyed use scorecards or checklists, and 12 % of the companies work with life cycle assessments (LCAs). Systematic evaluation of packaging from an environmental perspective is already standard practice in some companies, but is not yet widespread in many companies in the food industry.

Only a few companies have used packaging-related sustainability certifications or seals to date

Companies can use sustainability seals to visualise and communicate the environmental properties of packaging. Although the packaging itself is seen as the most important information medium for communicating with consumers, only 51 % of the companies surveyed use sustainability certifications or seals for the environmental friendliness of packaging.

Those companies that already have a sustainability label on their packaging most frequently use the FSC label. To date, most companies have used little or no other seals apart from the FSC seal that say something about the environmental properties of the packaging.

The main obstacles to the use of more environmentally friendly packaging solutions are economic considerations, problems with the availability of materials and conflicts with product protection

With regard to the bottlenecks in companies to further increase environmental friendliness in the use of packaging, 72% of the companies surveyed see a lack of willingness on the part of customers to pay for more environmentally friendly packaging as a major problem. Companies also face major problems with high additional costs when using alternative or recycled packaging materials (71 %) as well as system constraints and high investment requirements (56 %).

52 % of the companies surveyed also see the limited availability of alternative or recycled materials as a major problem in improving the environmental friendliness of the packaging they use. Product protection-related aspects are also frequently considered a problem area. 49 % of the companies surveyed see poorer product protection and/or poorer storage and transportability of products as obstacles to the use of more environmentally friendly packaging, while 36 % of those surveyed see conflicts with legal regulations regarding hygiene.

The development and introduction of more environmentally friendly packaging solutions therefore still poses major challenges for many companies.

Outlook

Overall, the results of the study show that increasing the environmental friendliness of the packaging used for food products is an important issue for the majority of companies in the food industry, which they are already working on actively and with some success.

However, it is difficult to estimate how quickly the proportion of those companies in the food industry that can significantly increase the environmental friendliness of the packaging used will grow in the near future. On the one hand, companies are working on numerous optimisation measures, but on the other hand, it seems to be a challenge for many companies to use more environmentally friendly food packaging in an economically viable way with their existing production facilities and processes. Other barriers to implementation include the limited availability of alternative or recycled materials and the ability to fulfil high product protection and hygiene requirements with modified packaging.

In this area of conflict between optimisation efforts and market-related sales and positioning opportunities on the one hand, and economic, product-appropriate feasibility on the other, it is to be expected that dealing with the possibilities, opportunities and risks of increasing the environmental friendliness of the packaging used in one's own company is a topic that will probably occupy many companies in the food industry intensively in the coming years.

This publication is intended to provide some data and insights as a basis for this debate and discussion.

In order to provide an orientation basis for the design of such communication concepts, part two of the study (Labelling) looks at the current information behaviour of consumers with regard to the environmental properties of food packaging and how different packaging-related environmental claims are perceived by consumers.