Sustainable packaging can establish stronger brands

Sustainability has become a mandate for corporations globally. Embedding it into an organisation’s business philosophy makes it easier for companies to cater to a larger demand.

The Indian fast-moving consumer goods (FMCG) market is projected to reach USD 616 billion by 2027. As the industry evolves and expands, packaging will become a powerful tool, as it ensures products are delivered to the end consumer in the best condition and the brand’s commitment to social, environmental, and governance (ESG) principles.

Companies are investing in efficient manufacturing and supply chains as the need for responsible and sustainable packaging is on the rise. Manufacturers are exploring innovative packaging solutions by experimenting with materials and design. By embracing the principles of circular economy, brands are looking to transform their packaging footprint, and meeting the ever-evolving consumer demands becomes crucial. Manufacturers also need to innovate, keeping in mind shifting sensibilities, consumer demand and how they interact with packaging.

Reuse, reduce and recycle isn’t new to Indian consumers, but there is a gap between intent and action. The majority of Indian consumers are in favour of sustainable packaging, but when it comes to making an eco-friendly purchase, there is hesitation. Convenience and cost influence purchasing decisions, which outweigh environmental concerns.

Speaking to WhatPackaging?, an industry expert said, “Indian consumers make price-sensitive choices; if the cost of packaging increases the cost of a product without any changes, it discourages the customer from making the purchase.”

Indian packaging companies are investing in innovation and R&D to stay abreast with the latest developments in sustainability. This is being done so that when the transformation (moving away from plastic) does happen in the Indian market, the sector is prepared for the shift.

This is a challenge as well as an opportunity for brands. With a better understanding of consumer behaviour and choices, brands can rise to the occasion and innovate in the direction of sustainability, while influencing consumer demand and behaviour. This can drive the change in consumer buying choices and push them closer to action, as consumers are a part of the solution, but they cannot drive it. Consumers expect brands to take the initiative and lead the way, and if it isn’t done, they lose focus.

Packaging is more than just a container to deliver the product intact to the consumer; it can become a powerful communication tool that brands and companies can leverage effectively. ESG messaging can be conveyed through packaging demonstrating the brand’s commitment to sustainability through material choices and building trust with consumers to align with the values.

To effectively leverage packaging as an ESG messenger, brands need to quantify the impact of such measures. It goes beyond the environmental footprint of packaging, requiring a comprehensive approach on how the brand is perceived, consumer behaviour and business performance. Measurement strategies should also take into account sales data, consumer engagement, recycling programmes and research on real-time purchasing decisions.

Packaging, if done correctly, has the potential to go beyond messaging, delivering a positive impact on the long-term assets of the brand. When innovating with packaging, brands should consider the opportunities to strengthen the brand’s position amongst potential consumers.

FMCG brands can meet the demands of the changing dynamics of the market with a holistic and consumer-centric approach. It will help unlock new opportunities for the brand and help with brand loyalty growth.

With additional inputs from Campaign India.