The Retailer Autumn 2017_v1

insights

insights

A majority of consumers will pay more for packaging sustainability

Tom Hallam Business Development Director BillerudKorsnäs

“Differentiating your brand with sustainability

“Consumers are more and more aware of the effects of packaging on the environment, from litter on the streets to pollution in the oceans,” says Jon Haag. “They want to take action and so empowering them to recycle more is already paying off. Increasingly, we’ll see this as a brand differentiator. As well as the design and feel of packaging, shoppers will choose products with packaging that is easier to recycle. Collaboration will be key to solving the challenges of the future and we encourage all stakeholders to reach out to find those partnerships.” The consumer survey was performed in megacities such as Jakarta, Shanghai, London, Berlin and Karachi and shows regional differences in the level of customer dedication to sustainability. Most notably Manila, Mumbai and Delhi score very high. There are also other indications. “We discovered that packaging sustainability is particularly important to Asian consumers,” says Jon Haag. “You normally see 5 to 7% of respondents making the effort to add an additional comment to a survey, but we had over 20% globally and 31% in Asia. That’s a remarkable level of engagement.” “Differentiating your brand with sustainability benefits in packaging will have a quick impact in Asia today, and will happen shortly in Europe and the US. So brands have to start taking action now.”

“What we discovered is that consumers are ready for action. They want packaging that helps them change behaviour and they are ready to pay for it. But they want to see some benefits in return.” This might include avoiding food waste. On average 15% of the contents of a jar of mayonnaise, for example, will be wasted because the packaging isn’t well designed. “Consumers want to avoid wasting food like this,” says Jon Haag. “According to our survey, the top two dream results from better packaging are clearly to ‘reduce food waste’ and ‘make it fun and easy to recycle’.” To achieve this BillerudKorsnäs has recently collaborated with engineering company Bosch Packaging Technology to create a new variety of consumer bag for dry foods made entirely from mono-material paper. These are easier to recycle because consumers and recycling plants don’t have to separate out its different constituent parts. The solution directly impacts brand owners by leading to lower packaging waste fees. The consumers get paper-based dry food packaging that has sustainable benefits in addition to being dust-free, which both gives a better experience and minimises food waste. The solution is called “The world’s first sealed paper packaging” and is ideal for free-flowing goods such as sugar, flour, pasta, grains or powders. “It’s an exciting example of Bosch’s packaging technology and our expertise in packaging papers,” says Jon Haag. “The result is that you get a better consumer experience, you save on production costs and waste less natural resources.” To meet consumer demand for easier recycling, BillerudKorsnäs is also creating packaging that can be used up or consumed once the product is finished, and is already enjoying considerable success in the construction sector with its award-winning product D-Sack. Developed with building materials manufacturer LafargeHolcim, this cement packaging goes into the concrete mixer, along with its contents, minimising litter and cement waste at the same time as helping to create a cleaner, healthier and safer workplace. The disappearing paper sack optimises time needed for handling and mixing, and as an added benefit there are no costly waste- disposal requirements. Similar products to D-Sack are set to enter the consumer market.

CONSUMERS WANT PACKAGING THAT HELPS THEM BECOME MORE SUSTAINABLE – HELPFUL BRANDS WILL BE THE FIRST TO RESPOND. The BillerudKorsnäs Consumer Panel asked citizens in 16 megacities all over the world about their view on the role of packaging in everyday life and as a contributor to a sustainable future. The answers are as clear as they are enlightening: Packaging sustainability is top of the agenda for many consumers. Product packaging is set to play an increasingly important role in creating a more sustainable global economy and consumers are ready to play their part in this world-spanning movement. They are increasingly keen to choose brands that help them make sustainable choices – with packaging as a key factor. This is one outcome from the BillerudKorsnäs Consumer Panel on packaging sustainability, where consumers from cities all over the world described their view on the role of packaging in their everyday life and as a contributor to a sustainable future. “Consumers are ready for action. They want packaging that helps them change behaviour and are ready to pay for it.” The consumer panel used an NPA (Net Positive Attitude) index to measure trends in attitudes. The scale goes from -100 to +100, with +30 as an indication of a very positive attitude. “Packaging sustainability” got a global score of +54.1, a very high indication that this is something consumers are passionate about. In the overall analysis of the Consumer Panel, it is clear that some 72% of consumers around the world are willing to pay more for products with packaging that brings sustainable benefits. The research was conducted by BillerudKorsnäs, a leading developer of sustainable packaging materials and solutions for the global consumer goods market. These include world-leading paper and board material, and innovative solutions that increase brand profitability while reducing environmental impact. “We conducted one of the first consumer panels on packaging sustainability because we wanted to really understand how aware consumers are of packaging sustainability and how willing they are to act, and we were very encouraged by the results,” says Jon Haag, Director of Consumer Insights at BillerudKorsnäs.

benefits in packaging will have a quick impact in Asia”

TOM HALLAM // +44 (0) 7942 800 160 // tom.hallam@billerudkorsnas.com // www.billerudkorsnas.com

36 | autumn 2017 |

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