Packaging is evolving through more strategic, data-driven approaches and smarter material choices. A recent report by McKinsey & Company, "Sustainability in Packaging to 2025: Insights into Global Consumer Attitudes," captures this shift. The report highlights a key trend that Generation Z is willing to pay more for sustainable packaging, indicating that they not only actively call for attention to climate issues but are also willing to support this initiative through their consumption.
The five key findings of the report present a detailed picture. Price and quality remain the most crucial factors in global purchasing decisions, with price becoming increasingly important in recent years. Although environmental issues rank relatively low in most product categories, they are given higher importance in countries such as France and Italy. In packaging decisions, aluminium remains the top consideration. Environmental impact is still important but has declined in significance. Recyclability is the most valued sustainability-related attribute in global packaging. Other circularity-related characteristics, such as compostability and reusability, also maintain high rankings. Perceptions of sustainable materials vary across regions. Paper and glass are widely regarded as environmentally friendly, while opinions on materials like polyethylene terephthalate (PET) differ. In countries with well-established recycling systems, PET is considered more sustainable, while in regions lacking adequate infrastructure, its sustainability is perceived as lower. Willingness to pay more for sustainable packaging persists even when environmental issues are overshadowed by price or shelf life. This indicates that sustainability continues to influence consumer behavior in complex ways. What influences the packaging preferences of Generation Z? This study highlights generational differences in values. Generation Z and millennials are more willing to support sustainability through their consumption choices. Increased awareness of climate change, along with social media and online activism, has driven these attitudes. These consumers believe that brands should not only share their values in communication but also in their packaging strategies.
Transparency is of vital importance. Labels indicating whether a product is recyclable, compostable or renewable are becoming increasingly influential. Brands that fail to demonstrate genuine environmental responsibility may alienate this socially conscious generation. Gen Z is willing to pay a higher price for sustainable packaging, which shows that they actively evaluate this transparency in their purchasing decisions.
The impact on brands and manufacturers
Daniel Nordigarden, a partner at McKinsey, said that younger and wealthier consumers might be willing to pay higher prices, but there is no single solution. He emphasized that companies must adopt a proactive and fact-based approach to address the changing expectations.
Senior partner David Feber further pointed out that consumers are increasingly aware of sustainable packaging. However, in today's price-conscious environment, they must weigh these issues against particularly functional requirements, including food safety, shelf life and value.
Brands must stay competitive by making choices in materials, marketing, supply chain transparency and storytelling. Beyond meeting regulations, the goal is to win long-term loyalty and trust. However, they must avoid greenwashing. Vague or unsubstantiated "eco-friendly" claims can damage credibility. True progress requires actions supported by transparency and facts.
Regional and market differences
Consumer attitudes towards sustainability vary by region. The report found that in the following countries/regions: Mexico (44%), India (40%), France (37%), and the United Kingdom (37%), the majority believe that the responsibility for sustainable packaging lies with brands and packaging manufacturers, rather than the government or individuals.
This transformation has increased the pressure on enterprises to take the lead. Industries with high packaging turnover rates, such as food and beverages, cosmetics, and retail, are facing the most urgent pressure to adapt.
The Future of Packaging and Consumer Expectations
Sustainability has become a core part of brand image, especially for Generation Z. ESG standards and regulations are also constantly evolving.
McKinsey points out that in a rapidly evolving environment, companies that can rebalance their product portfolios, enhance marketing, maintain cost competitiveness, and collaborate along the value chain will be in a favorable position to succeed. Recognizing that Generation Z is willing to pay more for sustainable packaging could be a decisive advantage for brands looking to the future.
