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The New Bottom Line: Sustainable Packaging and Your Business

February 10, 2010

Image source: ybwines.com

With consumers becoming increasingly environmentally conscious, and with the costs of materials and transport continually rising, sustainable packaging solutions are becoming increasingly relevant to businesses both large and small. Where, in the past, eco-friendly design and packaging might have been something to think about in the future, or an expensive way to reach a certain consumer demographic, these solutions now represent a larger and more cost effective business trend toward reducing environmental impact––without sacrificing growth. At the forefront of this trend, as we'll see, are innovative ways to combine the two: growing your business via your embrace of sustainable packaging.

But before we get onto that, we need to define what exactly sustainable packaging is. The internet is awash with information on the topic, and it can all feel a little overwhelming sometimes. So let's break it down. 

What is sustainable packaging exactly?

Put simply, sustainable packaging is a way of packaging goods that takes into account the finite nature of natural resources and the need to preserve them. In this more holistic conception of packaging, packaging's impact on the environment is looked at across its whole life cycle, from the sourcing of materials and their manufacture, through to the use (and possible reuse) of the packaging and its eventual disposal.

For the manufacturer, sustainable packaging means using innovative ways to cut back on packaging and energy use, and using, wherever possible, recycled and/or sustainably sourced materials and renewable sources of energy.

For consumers, buying sustainably packaged products means less packaging for them to deal with, and the greater overarching feeling of making eco-conscious buying choices––an increasingly important factor in today's market. Consumers increasingly want product packaging to be limited to what's necessary to deliver (and maintain) the product in a resilient, functional way, with as much of the packaging as possible being readily recyclable or biodegradable.

Which is perfectly fine in theory, but what does it mean for your bottom line? In a recent vodcast, Jörgen Haglind, Senior Vice-President of Communications at progressive manufacturing giant Tetra-Pak, spoke about what's called 'decoupling'. Decoupling, in terms of sustainable packaging, is about generating less waste (both physically and in terms of emission) while still growing the business. In other words, reducing your footprint while still making money.

Sustainable packaging in practice

So how does this work in practice? Tetra-Pak recently put decoupling into action with their packaging for the Melbac Yellow + Blue organic wine range, which used lightweight cardboard instead of traditional glass. Yellow + Blue also bought the wine from its wine makers pre-bottling, which allowed them to package it themselves closer to the wine's eventual destination. The net result: 93% wine and 7% packaging and an overall 54% reduction in the business' carbon footprint across the life-cycle of the product––the sourcing of the material, the packaging and shipping of the products and their eventual recycling. In terms of transport and material costs, this kind of step forward makes real business sense.

With big businesses like Coca-Cola starting to move toward sustainable packaging, this once niche industry has truly entered the mainstream. As more businesses embrace a less-is-more approach, we can expect to see prices of sustainable and recycled materials continue to come down. And we can also expect to see more innovative solutions, such as the wine carton developed by Tetra Pak, become more readily available to an increasingly eco-conscious public.

Packaging is advertising. If your brand and packaging are both eye-catching and sustainable, you can expect to tap into that most lucrative of consumer buying patterns: the impulse purchase. In a recent white paper, the Evenson Design Group laid out Nine Design Strategies for making decoupling work in business. And what was number one? Branding for emotional impact. 'Emotion is what sells,' they wrote, citing studies that show up to 85% of 'consumer good sales occur on impulse alone.'

In an age where the mainstream is becoming more emotionally involved in reducing their environmental impact, it's hard to understate the value of incorporating some readily recognisable sustainable elements to your packaging and brand altogether. Such a move can help you reduce your footprint while improving your bottom line at the same time. 

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