Jagdeep Hira: How sustainable food packaging changes the game for brands

Ever since the world witnessed rapid urbanisation, it has inspired new ways to protect and preserve the environment. There has been a growing significance of sustainability, with climate change emerging as a global crisis. For businesses and brands, sustainability is no longer a choice. It is a necessity to make sure brands receive positive recognition in the global marketplace. Fortunately, eco-friendly concepts like that of a circular economy are gaining traction, indicating a gradual shift towards a sustainable way of business. But what is a circular economy, and why must brands lead the change? Let’s understand that.

What is ‘circular economy’?
A circular economy is an economic system aimed at eliminating waste and continuously using resources through reuse, recycling, and regeneration. It ensures that materials remain in circulation for as long as possible before returning safely to the environment. Looking to uphold their end of social and environmental responsibilities, businesses are rapidly adopting the circular economy model. In fact, brands have been instrumental in spearheading this shift in packaging awareness.

For instance, Nestle is making efforts to ensure that none of its waste from packaging ends up in landfills or as litter. Similarly, PepsiCo’s packaging strategy includes efforts to reduce plastic use and drive recyclability. The increased awareness has led to the sustainable packaging market picking up pace in growth. The industry is projected to grow to USD 11.1-billion by 2025, demonstrating a remarkable compound annual growth rate of 26.7%.

A future-ready approach to packaging
The Indian packaging industry is also booming. According to the Packaging Industry Association of India (PIAI), the packaging industry is the fifth-largest sector of the Indian economy. The modern-day consumer is well aware of the impact their choices have on the environment.

Further, as per a PwC report,  80% of consumers are willing to pay a premium for goods produced or sourced sustainably. Some consumers are even prepared to pay an average of 9.7% more for products meeting specific environmental and sustainability criteria, such as being locally sourced, manufactured from recycled or eco-friendly materials, or produced within a supply chain demonstrating a lower carbon footprint.

Moving towards sustainable packaging isn't about eliminating the aesthetic aspect of packaging but about embracing smarter, environmentally friendly alternatives. Brands can maintain their edge by opting for better designs and materials. In fact, brands adopting environment-friendly options often find their packaging to be more attractive, as consumers are increasingly leaning towards interactive, minimalist packaging designs with lighter colour tones, some of the key features of sustainable packaging materials. For instance, beauty brands often need to ensure that their packaging is aesthetically pleasing. Brands like Kiko Milano, The Body Shop India, Colorbar, and Love, Beauty and Planet are using packaging materials that are not only sustainable but attractive too.

Now, this brings us to the most important question: what are brands doing in terms of making their packaging more eco-friendly?

Businesses lead the shift in packaging while driving business growth
Leading corporations are showcasing how environmental responsibility and business success can go hand-in-hand. For instance, Unilever's ambitious commitment to achieve 100% recyclable or compostable packaging by 2025 is set to eliminate over 100,000 tons of virgin plastic annually. Similarly, ITC's “Better, Less, No Plastics” strategy has reduced plastic usage by more than 70% in specific product lines, proving that sustainable practices can be effectively integrated into existing business models.

The strategic advantages of sustainable packaging transcend the environmental benefits. Businesses investing in sustainable, eco-friendly packaging solutions are always preferred by consumers, enhancing brand reputation, increasing customer retention and loyalty, and reducing long-term operational costs. This approach positions brands as socially responsible entities in a highly competitive marketplace.

Businesses seeking to implement meaningful change need to adopt a strategic approach, including detailed audits of their packaging process and the materials used. Brands can build consumer trust by investing in research and development, collaborating with sustainable packaging innovators, viewing sustainability as an opportunity for progress and differentiation, and not just a mandatory compliance measure.

Fortunately, several brands have adopted innovative, sustainable packaging solutions. Zara stands out with its ambitious goal to contribute zero waste to landfills by 2025, focusing on reusing bags, boxes, and hangers. Puma's "clever little bag" approach dramatically reduces environmental impact, cutting water, energy, and diesel consumption by over 60% annually in shoe manufacturing. Similarly, luxury fashion house Gucci has achieved 100% recyclable packaging, balancing sustainability with luxury. PVH, the parent company of Calvin Klein, has committed to 100% sustainable and ethically sourced packaging by 2025. Currently, 74% of Calvin Klein's packaging is recyclable, and the company has eliminated over 200 tons of plastic annually by switching to thinner packaging materials.

Summing up
Sustainable packaging is a win-win situation for businesses and the planet. It’s an opportunity to forge meaningful connections between businesses, consumers, and the environment while adding value to the economy through innovative solutions. Brands that recognise and act upon their environmental responsibilities are better positioned to emerge as leaders in the global marketplace. Each thoughtfully designed package represents a step towards a cleaner, greener future.