When it comes to trends, Innova Market Insights takes a 360-degree view of the world so we can evaluate and incorporate various factors that ultimately impact the food and beverage market.

At the top of the trends hierarchy are five macro forces that impact consumer needs and behavior: focus on health, increased cost of living, potential political and global threats, technology transformations, and health of the planet. This last force, health of the planet, inspires consumers to do what they can to manage their impact on the environment. Sustainable packaging is essential to health of the planet because it allows consumers to take action in a tangible way.

Environmental Concerns

Consumers consistently name health of the planet as their leading global concern. In our 2021, 2022, and 2023 Lifestyle and Attitudes Surveys, consumers indicated that health of the planet was of greater concern than health of the population, political instability, or economic uncertainty. Consumers also express their desire for the CPG industry to develop sustainable packaging solutions to help with growing environmental issues.

As part of our Innova Lifestyle & Attitudes Survey 2023, we asked consumers about how brands and companies could best help environmental and social causes. Sustainable packaging ranked second, after protection of nature. Three in five of those surveyed agree that they pay attention to nature protection-related claims in food and beverage packaging. One in four consumers globally indicated that environmental factors such as sustainability should drive the development of new products.

Innova’s 2024 Top 10 Trends considers the link between the food supply and the environment. The number two trend, Nurturing Nature, notes that business responsibilities go beyond sustainability—and require actions that positively protect nature. Supporting this trend are a number of consumer findings from our Trends Survey 2024. Nearly three-quarters of those surveyed agree or strongly agree that food and beverage companies should use only sustainable packaging. Three in 10 consumers globally say they are willing to pay extra for food and beverage products that are devoted to solving global environmental issues.

Consumers speak out

Packaging is an integral part of consumer sustainability demands. Consumers report that recycled materials are a leading driver of their purchases, followed by biodegradable packaging and reusable materials.

Plastic pollution is at the top of consumer environmental concerns. Nearly four in 10 respondents to Innova’s 2023 Packaging Survey name plastic pollution as an issue and 65% of those participating in the 2024 Trends Survey report being “extremely” or “very aware” of plastic waste. Ocean pollution and food waste were named as a top concern by three in 10 consumers surveyed.

The question always comes up regarding whether consumers are willing to use and pay more for sustainable packaging. In our most recent packaging survey, 40% of consumers globally said that they are willing to pay more for reusable packaging, compared to regular packaging.

We asked consumers to share their perceptions about the sustainability of various packaging materials. The highest percentages of consumers name paper as most sustainable, followed by cardboard, glass, and bioplastic. Cans and plastic were seen as less sustainable. Furthermore, more than one-third of those surveyed indicate that reusable raw materials in packaging influence their product choices.

Sustainable packaging demonstrates innovation

We actively look for sustainable packaging examples at trade shows, as well as in new product launches. In June 2023, Innova representatives were excited to attend Interpack 2023, which marked the return of this global exhibition for the first time in seven years. Our trend spotters actively cover the exhibit floor to identify emerging trends and seek examples of product innovation.

Based on Interpack 2023, Innova trend spotters identified four themes shaping the packaging world: circular economy, resource management, digital technologies and product safety. Two of these—circular economy and resource management—relate directly to sustainable packaging.

One area of innovation that supports a circular economy is packaging made from mono-materials, which are easier to recycle than composites. Examples include paper trays, polypropylene(PP)-based pouches that are impervious to water and oxygen, polyethylene (PE)-based films that can replace laminated non-recyclable packaging, refillable stainless steel containers that can be filled at “filling stations” in retail locations. Another example involves mono-material aluminum Nespresso-style capsules that protect coffee against oxygen exposure while they eliminate non-recyclable capsule components.

Additional innovations benefit recycling efforts. Wash-off labels help optimize the commercial glass bottle cleaning procedures. More CPG companies are moving away from removable and non-recyclable caps. Instead, they’re converting to tethered beverage bottle caps that can be recycled with the bottle. Packaging companies also are developing recyclable, fiber-based or paperboard packages, some with a removable, separately recyclable foil top.

Innovations in new bio-based materials under development include packaging made from wood pulp, seaweed, or a combination of plants, food waste, and air. These types of sustainable packages can help combat plastic waste while enabling reuse of materials. However, before they can develop new behaviors, consumers will need to be educated on new symbols and icons that define recyclability.

Resource management includes adaptation to the supply shortages and material scarcity that define today’s global economy. Not surprisingly, the packaging sector is focusing on resource efficiency through better energy management, minimization of waste materials, and increasing recycling rates. Companies globally are incorporating resource management into circular economies by offering alternative, recyclable solutions that are based on fossil fuel-free technology. Overall, we see the packaging industry moving toward a carbon-neutral economy with actions to reduce emissions, remove carbon, and capture carbon.

Sustainability strides 

Innova and its subsidiaries actively monitor packaging claims on new product launches and are encouraged by recent launches that incorporate sustainable packaging. Here are just a few examples.

Nissin Foods USA, Gardena, Calif., planned in early 2024 to discontinue its polystyrene cup for Cup Noodles and roll out new paper-based, microwaveable version made with 40% recycled fiber. Additionally, it no longer requires a plastic wrap and features a sleeve made with 100% recycled paper.

Waiakea Hawaiian Volcanic Water, Hilo, Hi., says it’s one of the only bottled waters to use high-grade 100% rPET, or post-consumer recycled PET. In comparison to regular virgin plastic bottles, these recycled bottles: use 85% less energy to manufacture, use 99% less water, and reduce carbon emissions by 79%.

In the UK, Kraft Heinz launched a ketchup bottle with the company’s first 100% recyclable cap. Officials say the mono-material, polypropylene cap took eight years of R&D and is estimated to save a potential 300 million plastic lids from landfills every year.

In 2022, Humble Snacks Inc., Guelph, Ont., introduced industrial compostable certified bags (certified by BPI North America), which means its bags compost in municipal or commercial compost facilities and decompose in 90-180 days.

Research also spans the globe. SEALPAC GmbH, Oldenberg, Germany, has developed paper-based, recyclable packaging for use with plant-based cold cuts and other plant-based proteins. In other news, South Dakota State University researchers created a biodegradable plastic film by extracting the lignocellulosic residue from spent coffee grounds. The film matches the performance of conventional plastic wrap and can biodegrade within 45 days.

Avoid greenwashing

The European Consumer Organisation (BEUC)—supported by environmental groups Client Earth and Environmental Coalition on Standards (ECOS)—has leveled “greenwashing” charges against major water bottle producers. They assert that packaging and advertising claims about recycled materials or recyclability can be misleading, and that such claims often are not fully valid. Furthermore, packaging that displays nature-related images suggests environmental friendliness, which may not be 100% true.

It will be important for companies to reduce greenwashing and communicate honestly about their actions toward the environment and sustainability. Only half of consumers we surveyed agree or strongly agree that they trust the sustainable claim on product packaging and nearly two-thirds would like to see straightforward communication about companies' efforts in sustainability on pack.

Four in 10 consumers tell us that they are willing to choose products with environmentally friendly packaging or less packaging when looking to reduce spending and cut costs. Actions that cause consumers to lose trust in packaging claims could reduce this willingness to support nature and health of the planet.

Lu Ann Williams is Global Insights Director at Innova Market Insights, provider of market research services including the Innova Database. With more than 25 years’ experience in the food industry, Lu Ann is a trend expert and frequent public speaker at events worldwide. She leads a team of analysts and works with global clients. Contact her at luann.williams@innovami.com.