As the sustainability movement gains momentum, the packaging industry is saying its final goodbyes to an era of single-use plastics. Even customers are raising their voices in favor of alternative packaging.
McKinsey & Company shares that customer support increasingly shifts towards brands with Environmental, Social, and Governance (ESG) claims. This encompasses the product life cycle, including its packaging.
It is one area that has become pivotal in terms of making a positive impact on the environment and customers. Brands that uphold corporate responsibility towards sustainability are likely to corner the market and retain customers.
How exactly does sustainable packaging help? In this article, we will discuss three ways in which this simple move can improve a brand’s image and drive customer loyalty.
Regulatory Compliance
Rules and regulatory requirements in business are boundaries that keep both companies and customers safe. Would you trust an individual who lives life without a moral code of conduct? The same ethical concerns apply in the business world. Customers cannot trust brands that fail to display a high regard for regulations surrounding the quality and safety of their products.
As of today, the US government has laid down a number of regulatory guidelines and industry standards for packaging. Perhaps the most revolutionary one was last year’s announcement regarding PFAS in food packaging. The Food and Drug Administration (FDA) banned these grease-proofing agents due to their toxicity.
The chemicals, per- and polyfluoroalkyl substances, were used in manufacturing Aqueous Film Forming Foam (AFFF) or Class B firefighting foam. Following direct exposure to AFFF foam, cancer cases among firefighters skyrocketed.
According to TorHoerman Law, multiple institutions and agencies immediately took action to limit the use of PFAS in firefighting foam. By 2026, these chemicals are to be phased out entirely. The FDA-led ban was directed at eliminating food contamination and related health risks.
Since it’s a government mandate, all brands must comply, but the truth is not all do so. Some of the common reasons for non-compliance include cost, complexity, and perceived lack of benefits. No matter the reason, its consequences are grave, usually leading to fines, legal suits, and a loss of customer trust.
Since regulatory compliance is not optional, brands need to ensure they live by all the recent standards for sustainable packaging. Here are ways to do so –
- Implement and maintain a robust quality management system.
- Practice strict adherence to documentation requirements, including plans, specifications, and changes.
- Utilize a comprehensive training software system.
- Stay prepared for regulatory audits.
- Appoint a reliable compliance officer.
- Develop comprehensive policies that address specific compliance areas identified during audits.
Competitive Advantage
Every business wants to stand out in the market, particularly when it is cutthroat. Investopedia defines competitive advantage as factors that enable a brand to produce better products more cheaply than its rivals.
Such a move will impact sales numbers with superior margins. Brands that gain a competitive advantage can make their goods more desirable in the eyes of their customers.
In a world where climate change is the central topic of discussion, sustainability is a major competitive advantage for any company. Many brands discover during competitor analysis that sustainability can become a unique selling point to attract eco-conscious customers.
Through the right sustainable packaging materials, brands can reduce costs too. For instance, materials like recycled paper and plant-based alternatives are generally cheaper than traditional plastics. They also make the package lighter, which may help cut corners in shipping.
Companies enjoy a more efficient supply chain where waste generation is minimal. This also reduces waste disposal costs. A brand sets itself apart in the eyes of its customers when it follows these sustainable packaging criteria –
- Manufactured with the help of clean production technologies
- Made from non-toxic and recyclable materials
- Physically designed to optimize materials and energy
- Produced using renewable energy sources
- Beneficial and safe throughout its lifecycle
- Effectively recovered and utilized in industrial or biological closed-loop cycles
Alignment With Customer Values
A strong bond of trust and loyalty with customers is built only when their needs are heard and considered. The adage is still relevant: customers do not care how much a brand knows until they know how much a brand cares.
Despite the technological advancements, customers want to experience the human side of a brand. They wish to feel connected and emotionally attached to a point of shared values. After all, trust that fosters retention is a deeply human and emotional process that cannot be established willy-nilly.
If there is one value that customers hold dear and actively seek out in their favorite brands, it is sustainability. A recent report made the shocking discovery that customers were willing to pay a 9.7% sustainability premium even amid inflationary pressures. Around 85% cited first-hand experience of climate change effects as their motivational force.
Not only are customers aware of climate change and its detrimental effects, but also of the fact that sustainable brands are authentic. Their commitment to ethical practices appears to be an extension of personal commitments that many customers make towards the environment.
Trusting such a brand and looking up to it as a domain authority then becomes natural. However, some concrete steps are needed to align brand values with those of customers for sustainability. They are as follows –
- Set clear and realistic sustainability goals, like reducing carbon emissions, sourcing ethical materials, etc.
- Be open and honest about the whole process, both the successes and challenges.
- Conduct regular audits to ensure your supply chain is aligned with sustainability values.
- Keep your products’ lifecycle in view when calculating the environmental impact.
- Train employees with the knowledge and skills needed to implement sustainable practices.
As brands make efforts to switch to sustainable packaging, transparency is of the utmost importance. Sustainability allows you to communicate your values clearly and authentically.
You can do so through transparent labels and certifications. Offer your brand advocates a glimpse into the supply chain so they know exactly where their products come from.
Finally, remember that all your efforts should be a way of doing business, not a one-and-done thing. A brand’s reputation is not built in a day. Trust requires consistency, which means you must stick to sustainability for life.
Demonstrate your commitment through ongoing packaging improvements. That is the only surefire way to ensure brand image and customer loyalty stay intact.
