Consumers are buying into sustainable packaging

As dairy processors continue to set sustainability goals, sustainable packaging is a big part of the solution to achieve these directives. Many dairy processors have pinpointed 2030 as a date to significantly reduce greenhouse gas emissions in their products.

These directives are certainly not new. But what has changed is consumer interest in sustainable packaging. According to Aurora, Ill.-based Shorr Packaging Corp.’s “2025 Sustainable Packaging Report,” 90% of the 2,016 American consumers surveyed stated they are more likely to buy from brands with sustainable packaging. Among those surveyed, 59% of millennials and 56% of Gen Zers consciously purchased products with sustainable packaging in the last six months.

“Older generations are also embracing sustainability. More than half of Gen X (52%) and nearly half of boomers (49%) have recently purchased products with sustainable packaging,” according to the report.

Perhaps even more revealing is that consumers are willing to pay more for sustainably packaged products, Shorr’s research notes. More than two-in-five consumers (43%) state they are willing to pay extra for a product with sustainable packaging, and 39% of consumers say they have switched to competing brands because they offer sustainable packaging.

“In our consumer-facing surveys and research, we have found that more than 25% of retail ice cream consumers say sustainability is important or very important to them as they make purchase choices in the ice cream category,” adds Ilja Orre, head of FMCG Sales, North America, Huhtamaki, De Soto, Kan. “In general, these consumers seem to favor paperboard as the most sustainable alternative. We do believe sustainability plays a role in the decision process for some consumers, but we know consumers place higher emphasis on quality, taste and overall value of an indulgence item like ice cream.”

ORBIS Corp.’s Strategic Account Manager-Dairy Matthew Lochmann concurs: “In some situations, conscientious packaging will have an impact in a person’s buying decision. I believe the push for healthy and sustainable go hand in hand in many cases, and the jump can be made from a product with sustainable packaging is of higher quality, or even a healthier option.

“That may be enough to sway a buying decision toward a product with sustainable packaging, even if the price point is higher, due to the assumption of higher quality for a product that takes the time to care about sustainable packaging,” the executive for the Oconomowoc, Wis.-based company adds.

“A bold commitment to sustainability can make all the difference, with 70% of consumers preferring packaging with clear sustainability labels,” the Shorr report states, “However, awareness varies: 20% boast they always notice labels, 25% claim they never do, and 55% say they only notice them sometimes. Notably, one in five shoppers (20%) actively avoid products without sustainability labeling, suggesting that brands could benefit from communicating their eco-friendly practices more clearly.”

How processors can attain sustainability goals

So how can dairy processors meet sustainable goals via packaging? According to Huhtamaki’s Orre, these goals can be diverse and include greenhouse gas (GHG) emissions, material reductions, circularity and leakage/pollution.

“We are focused on helping our customers make the right choice for the markets they serve to ensure packaging does what it was intended to do first — protect consumers, preserve products and promote the brand — and then, we help them define and meet the sustainability goals that are most important to them,” Orre relays.

“Today, many dairy processors are focused on reducing the amount of plastic that is used in their products,” the Huhtamaki executive continues. “As an example, paperboard packaging can reduce the use of plastic by 80% or more while offering similar protection of the product and greater promotion of the brand.”

ORBIS Corp.’s Lochmann notes that reusable packaging is a great way to save on expenses and be environmentally friendly. He says, “If that reusable packaging can be made from recycled materials, it becomes a real metric mover for sustainability goals and overall environmental impact.”

With sustainability goals just five years away, can these goals set forth by dairy processor goals be met?

Lochmann suggests the continued drive to eliminate one-way packaging and reduce environmental impact “is not going away and will likely only intensify. Many processors are already doing many sustainable practices because they are cost effective and good for the environment. Working with a trusted packaging supplier to assist in finding new opportunities to transition to more reusable packaging that can also affect the bottom line favorably will help meet the 2030 goals.

“When a project helps move the sustainability metrics forward, and shows a net profit, those projects are the ones that are implemented and have staying power,” Lochmann continues. “Changes for sustainability metrics alone without a good financial impact story may become challenging to implement and maintain.”

Orre recommends dairy processors find a packaging partner that is focused on designing and delivering sustainable packaging that best meet their sustainability targets, including the reduction of carbon emissions.

“Huhtamaki has set science-based targets, which are focused on the reduction of Scope 1 and Scope 2 emissions. Today, more than 55% of our electricity usage comes from renewable sources, and we are committed to achieving 100% by 2030,” Orre maintains. “This positively impacts our customer’s Scope 3 emissions. Additionally, we look for opportunities to assist dairy processors with unique designs, like our Convocan and Bulkan, which are shipped flat and in-plant formed, which reduces transportation costs and emissions.”

The future of plastic

Plastic reduction is often considered a key to sustainable packaging, but the material is extremely difficult to replace. Lochmann states plastic can still be part of a sustainable packaging solution. “[Because] plastic it is so hard to replace due to its many uses, we need to continue to find ways to recycle plastic packaging, so it is no longer seen as a consumable and becomes an asset to be reclaimed and repurposed,” he says.

However, Orre stresses that according to consumer research, poly-coated paperboard packaging “is preferred and viewed as a sustainable packaging choice by consumers. It is an effective and efficient packaging type, but we recognize that there is work to do to ensure this packaging can be recycled in curbside bins,” Orre stresses.

“We are working through coalitions, partnerships, and associations toward this end. With the efforts of collective industry partners, we do believe we will be successful in ensuring poly-coated packaging is a sustainable packaging choice,” Huhtamaki’s head of FMCG Sales, North America, continues.

The future of sustainable packaging

So, where do we go from here? What is the future of sustainable packaging?

“Packaging suppliers will continue their journey to design packaging to be recyclable and compostable,” Orre predicts. “The biggest impact will be seen with infrastructure investment including collection, sortation and end-use markets of packaging for circularity and more efficient use of raw materials.”

With how fast the world changes and technology advances, Lochmann has no doubt the packaging world will continue to do the same.

“Whether it be through chemical recycling, biodegradable packaging and customer desire for sustainable packaging, changes will be constant, not occasional,” he concludes. “Finding ways to eliminate consumables in a supply chain and be able to reclaim those assets in some form though reusability or recycling will be an ongoing focus in all industries. When innovation, sustainability and profitability meet, changes will come quickly.” DF