The Future of Sustainable Alcoholic Beverage Packaging

Introduction
Well over half of consumers across 20 nations consider grocery products to be over-packaged. Although this sentiment varies depending on product sector, it is symptomatic of intensifying pressure for the packaging industry to develop more sustainable solutions across the supply chain. In short, sustainability remains an industry defining issue for packagers and their customers

Features and benefits
Obtain ‘evidence-led insight’: access multiple waves of primary consumers research data to support improved decision making
Develop compelling ‘on-trend’ products: better meet alcoholic beverage consumers’ packaging expectations with highly valued packaging features
Opportunity profiling: identify industry sentiment, consumer segments and best practice to better capitalize on an industry defining trend
Highlights
Widespread environmental concerns are driving the sustainable packaging agenda Indicative of just how significant the issue has become, about two-thirds of consumers globally are willing to endure some degree of economic burden to protect the environment a finding made even more relevant in the context of the global economic crisis

Negative public perceptions of packaging have driven much of the sustainable packaging debate so far. Packaging is often seen as a burden to consumers and the environment (with French and UK consumers most likely to perceive grocery products to be over-packaged), thereby elevating the importance of sustainability in the ‘packaging mix’

Minimizing the environment burden is just one of a number of important features determining how consumers will judge packaging. Nevertheless, claims associated with more sustainable forms of packaging, such as ‘reduced packaging’ and ‘recyclable/compostable’, exert a favorable influence on consumers’ product evaluations

Your key questions answered
What proportion of consumers consider alcoholic beverages to be over-packaged?
What proportion of consumers act on their sustainable packaging concerns by changing the purchase choices?
How does the issue of sustainable packaging in the alcohol sector compare to other CPG sectors?
What approaches have producers across the CPG spectrum pursued as best practice solutions to sustainable packaging provision?
What can I do to better communicate sustainable packaging efforts to the consumer?

Table of contents

Overview
Catalyst
Summary
THE FUTURE DECODED
INTRODUCTION: Intensifying pressure exists for the packaging industry to develop more sustainable solutions across the supply chain
TREND: Widespread environmental concerns are driving the sustainable packaging agenda
TREND: Consumers are becoming more sensitive to sustainable packaging issues and perceive grocery products to be over-packaged
TREND: Heightened sensitivity to the environmental impact of packaging is influencing consumer behavior
INSIGHT: A small segment of alcoholic beverage consumers are influenced by, and acting upon, sustainable packaging concerns
INSIGHT: Sustainability aligned benefits do not feature among the top three attributes consumers value from grocery product packaging
INSIGHT: Sustainable packaging concerns align well with consumers’ desire to ‘de-clutter’
INSIGHT: Concerns about sustainable packaging potentially conflict with desires for more information about alcoholic beverage product credentials
ACTION POINTS
ACTION: Contribute to broader efforts to educate consumers about the merits of packaging and, in particular, sustainable packaging design
ACTION: Ensure that the sustainability profile of packaging continually improves by evaluating all the routes towards sustainable food and beverage packaging
ACTION: Market more sustainably packaged alcoholic beverage products as a positive lifestyle choice
APPENDIX
Definitions
Supplementary data
Methodology
Further reading and references
Ask the analyst
Datamonitor consulting
Disclaimer

TABLE OF FIGURES
Figure 1: Sustainability captures a broad range of social, environmental and economic issues
Figure 2: The sustainability challenges differ markedly depending of economic progress
Figure 3: Corporate social responsibility (which also encompasses sustainability) remains a top-tier business issue for consumer companies
Figure 4: Packagers are increasingly familiar with, and acting upon, sustainability principles
Figure 5: Retailers (and their customers) are leading the drive towards more sustainable forms of packaging
Figure 6: Improved cost management drives many decisions to embrace sustainable packaging initiatives
Figure 7: Sustainable packing is an ‘umbrella term’ incorporating a range of principles
Figure 8: Understanding both the drivers and inhibitors of sustainable packaging will allow for better decision making regarding an issue that could potentially re-shape how a company operates
Figure 9: Deep-rooted environmental values that now characterize majorities of global citizens
Figure 10: There is worldwide consensus that global warming is a serious problem
Figure 11: More than three-quarters of citizens globally attach high importance to protecting the environment—a sentiment that is pushing the sustainable packaging agenda
Figure 12: On a like-for-like basis, citizens in a few countries consider sustainability-led issues to be more of a concern than the economy in 2010
Figure 13: Despite being in a global recession, a considerable proportion of global citizens would—in theory at least—sacrifice some economic growth to address environmental concerns
Figure 14: The extent consumers feel truly informed about environmental issues is lower than expressed concern
Figure 15: Public awareness and interest in sustainable packaging is fueled by a plethora of communications focusing on the issue
Figure 16: Consumers are becoming more sensitive to sustainable packaging issues and perceive grocery products to be over-packaged, although alcohol fairs from better than average perceptions
Figure 17: Packaging and associated waste is an important green issue for consumers
Figure 18: Contradictory attitudes towards the role of packaging exist, which presents an important challenge for the packaging industry and supply chain partners they serve
Figure 19: A majority of consumers think products are over-packaged, although this perception has subsided
Figure 20: Consumers expect retail/consumer companies in particular to make a positive environmental impact via measures such as minimizing packaging or using to recyclable materials
Figure 21: Consumers in the UK, Australia and Japan have higher expectations of retail and consumer companies to make a positive environmental impact via measures such as minimizing packaging
Figure 22: Alcoholic beverage products are perceived to be the least over-packaged FMCG items
Figure 23: With few exceptions, only limited numbers of consumers believe that alcoholic beverages are over-packaged
Figure 24: Ethical consumerism involves a mix of ‘positive’ and ‘negative’ consumer behaviors
Figure 25: Consumers are beginning to believe that their own individual actions can make a difference in improving environmental/sustainability outcomes
Figure 26: Many citizens recognize their personal responsibility in addressing environmental degradation
Figure 27: Approaching half of consumers across 20 countries report being attentive towards the environmental friendliness of grocery product packaging
Figure 28: Well over a third of consumers in most nations will consider alternatives if they perceive a product has too much packaging
Figure 29: Around 40% of consumers claim to avoid excessively packaged goods on a frequent basis
Figure 30: Packaging sustainability considerations also influence gift buying
Figure 31: Promoting green credentials, whether more sustainable packaging or other related claims, necessitates finding the right balance in marketing communications
Figure 32: Sustainable packaging claims such as ‘reduced packaging’ exert a favorable influence on consumers’ product evaluations
Figure 33: Recycling of household waste is more established in developed consumer markets—indicative of the superior recycling infrastructure that is typically apparent in these countries
Figure 34: Recycled content tops the criteria for how the industry evaluates sustainable packaging
Figure 35: Bringing one’s own bag to a store or market has been a topical sustainability issue in recent years
Figure 36: The contested use of store-bags has made packaging and waste a more visible topic in many consumer societies
Figure 37: A segment of alcoholic beverage consumers are influenced by, and acting upon, sustainable packaging concerns
Figure 38: Only around 2-in-10 consumers are highly influenced by the amount of packaging when choosing alcoholic beverage products
Figure 39: Too much packaging influences a fifth of alcoholic beverage consumers to consider an alternative purchase
Figure 40: More environmentally friendly packaging is a hot topic for consumers, but for most it is not the most important packaging attribute sought
Figure 41: Packaging—which can be classified in three ways—performs a number of crucial roles
Figure 42: Sustainability benefits do not feature among the top three attributes consumers value from packaging
Figure 43: Consumers are not willing to compromise hygiene and protection for environmental benefits
Figure 44: The perception that reduced packaging in grocery products may compromise product quality does exist, but is not highly pronounced
Figure 45: Taste and flavor typically dictate consumers’ alcoholic beverage choices, with ethics and sustainability still a secondary concern for most
Figure 46: Products touting ethical or sustainable credentials need to contend with the habitual nature of alcoholic beverage selection; consumer may simply overlook these benefits
Figure 47: Frito-Lay’s new environmentally-aligned packaging for the SunChips brand quickly became the target of negative attention because of how noisy it is
Figure 48: Sustainable packaging concerns align well with consumers’ desire to ‘de-clutter’
Figure 49: Consumers have placed added emphasis on living a less complicated lifestyle in recent years
Figure 50: Reducing consumption levels in order to improve the environment is an ideology that majorities of global citizens subscribe to—at least from an attitudinal perspective
Figure 51: Concerns about sustainable packaging potentially conflict with desires for more information about alcoholic beverage and other grocery product credentials
Figure 52: Alcoholic drinks consumers want more information on calorific values of the beverages they consume
Figure 53: Global shoppers value reassurances and transparency about how products are produced— including information on packaging about products are made
Figure 54: Carbon-free certified products are beginning to appear in the FMCG marketplace
Figure 55: Ethical wellbeing is a compelling opportunity providing impetus for strategy defining social marketing initiatives
Figure 56: If a real ethical/sustainability advantage exists with product packaging, companies must use it to inspire customers and end consumers
Figure 57: Industry players must engage and inform consumers about sustainable packaging initiatives
Figure 58: Educating consumers about sustainability policies increases awareness and potentially adds impact to the changes being made
Figure 59: Sainsbury’s sustainability aligned milk bags are being touted as a 'flagship product' for the retailer
Figure 60: Signatory moments such as sustainability events can add additional clout to the sustainable packaging message
Figure 61: PepsiCo’s ‘Performance with Purpose’ initiative allows packaging (among other) to take center stage in the company’s sustainability pledges
Figure 62: Industry players must focus on sustainability claims that are transparent
Figure 63: Recycling bins are one way to encourage recycling, especially in convenience channels
Figure 64: Packaging, both within and outside of the FMCG space, will signpost sustainability credentials more vigorously going forward
Figure 65: Logos of acceptable forest management certification programs will begin to appear on the packaging of Unilever's brands, while cause-marketing can also have packaging implications
Figure 66: Through packaging initiatives and on-pack graphics, brands can demonstrate their sustainability credentials, but companies should look beyond ‘single attribute eco-labels’
Figure 67: Stonyfield Farm takes website users through the “sustainable packaging journey”, highlighting the incremental steps taken over 20 years as well as what the future might hold
Figure 68: Nature’s Path Organic, which has a ‘Packaging Reduction Program’, is an example of a food and beverage company implementing various sustainable packaging principles for a better outcome
Figure 69: Packagers and their customers must explore the full range of possible future rewards and risks associated with the vast range of sustainable packaging tactics that exist
Figure 70: Such is the irritation with packaging in certain usage scenarios, the term ‘warp rage’ has emerged
Figure 71: Waste reduction remains the principle area for implementing sustainable packaging principles
Figure 72: The ‘naked’ philosophy that Lush adopts with regards to packaging is one of the more pronounced examples of companies proactively stripping away unnecessary materials from operations
Figure 73: Wine vending machines in France remove normal packaging considerations from the supply chain and offer consumers convenience and strong value for money
Figure 74: Lightweighting is emerging as a significant trend within the wine market, as suggested by O-I's commitment to lightweight bottle production
Figure 75: Lightweighting is about lowering the weight in terms of distribution of the product, as well as lowering the embodied carbon per pack
Figure 76: Boxed wines offer product differentiation but also strong sustainable credentials through their weight savings and ergonomics
Figure 77: It is important to consider the end-life of packaging when assessing its sustainability
Figure 78: Recycled PET is becoming a more familiar and accepted sight within the alcohol market
Figure 79: Packaging produced from renewable sources potentially represents an important stepping-stone to the future of sustainable packaging
Figure 80: While biodegradable plastic packaging may appear more sustainable its usage is not without difficulties
Figure 81: The Natural Process Alliance winery echoes its ethical production approach with local distribution of its wines in stainless steel reusable bottles
Figure 82: KFC is actively trying to increase the reuse potential of food and beverage packaging with a new reusable polypropylene container
Figure 83: CoverMate has converted to more sustainable packaging for its ‘Stretch-to-Fit Food Cover’ product line
Figure 84: Truly embracing sustainability means evaluating an entire business structure: packaging should be assessed and optimized with a thorough understanding of its full role in the product life cycle
Figure 85: Through Product Launch Analytics (PLA) and Pack-Track, Datamonitor offers the innovation tools to facilitate effective tracking of the most compelling packaging innovation
Figure 86: Ethical products can effectively tap into the desire to purchase in line with one’s expressed values
Figure 87: While ethicality and sustainability credentials do influence food and beverage choices, manufacturers and retailers must not lose sight of the wider hierarchy of purchase influences
Figure 88: Environmentalism has genuine luxury and conspicuous value
Figure 89: Three important commonalities represent the crossover between ethical/environmental consumerism and authenticity
Figure 90: Black Grouse Scotch whisky allies sustainable packaging practices with brand heritage and localism

TABLE OF TABLES
Table 1: Consumer survey: the extent to which global citizens across 25 countries perceive global warming to be a serious problem, by country, 2007-2010
Table 2: Consumer survey: importance attached to protecting the environment, in 20 countries across Europe, Asia Pacific, the Americas and the Middle East and Africa, 2008 and 2010
Table 3: Consumer survey: importance attached to protecting the environment across 20 countries, by gender and age, 2010
Table 4: Consumer survey: the extent to which global citizens across 25 countries perceive that protecting the environment should be given priority over economic growth, by country, 2007–10
Table 5: Consumer survey: extent to which citizens feel informed about how their behavior impacts the environment, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, age and gender (overall), 2010
Table 6: Consumer survey: extent to which citizens feel informed about environmental issues such as global warming/'carbon footprint', in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, age and gender (overall), 2010
Table 7: Overall and per capita packaging waste, in 20 countries across Europe, Asia Pacific, the Americas and the Middle East and Africa, by country, 2004–2014
Table 8: Overall and per capita household waste, in 20 countries across Europe, Asia Pacific, the Americas and the Middle East and Africa, by country, 2004–2014
Table 9: Consumer survey: perception of grocery product over-packaging, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2008 and 2010
Table 10: Consumer survey: perception of grocery product over-packaging across 20 countries, by gender, age and education, 2010
Table 11: Consumer survey: agreement with the statement, “alcoholic beverage products have too much packaging” across 18 countries, by age and gender, 2010
Table 12: Consumer survey: degree of attentiveness towards whether packaging is environmentally friendly, across 20 countries, by age and gender, 2010
Table 13: Consumer survey: agreement with the statement, “if I see a product has too much packaging I will consider buying an alternative product”, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2008 and 2010
Table 14: Consumer survey: agreement with the statement, “if I see a product has too much packaging I will consider buying an alternative product” across 20 countries, by age and gender, 2010
Table 15: Consumer survey: relative importance attached to the environmental friendliness and aesthetics of packaging when gift buying, across 20 countries, by age and gender, 2010
Table 16: Consumer survey: perceived influence of a ‘reduced packaging’ and ‘recyclable/compostable’ claim on a grocery product across 20 countries, by gender and age, 2010
Table 17: Recycling rates for paper and cardboard waste and glass waste, in 20 countries across Europe, Asia Pacific, the Americas and the Middle East and Africa, by country, 2004–2014
Table 18: Consumer survey: perceived influence that the amount of packaging has in directing alcoholic beverage product choices, in 15 countries across Europe, Asia Pacific and the Americas, by country, 2010
Table 19: Consumer survey: agreement with the statement, “if I see an alcoholic beverage product has too much packaging I will consider buying an alternative product” across 18 countries, 2009 and 2010
Table 20: Consumer survey: agreement with the statement, “if I see an alcoholic beverage product has too much packaging I will consider buying an alternative product” across 18 countries, by age and gender, 2010
Table 21: Consumer survey: degree of attentiveness towards 12 different packaging functions/benefits, across in 20 countries, by function, 2010
Table 22: Consumer survey: perception that reduced packaging in grocery products may compromise product quality across 20 countries, by age and gender, 2010
Table 23: Consumer survey: perception that living a less complicated lifestyle has become more or less important compared to two years previously, across 20 countries, by age and gender, 2010
Table 24: Consumer survey: proportion of consumers who felt fairly well or very well informed about the number of calories in particular alcoholic drinks
Table 25: Consumer survey: perceived appeal of information on product packages that allows users to see where and how a food or beverage product was made, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2008 and 2010
Table 26: Consumer survey: perceived appeal of information on product packages that allows users to see where and how a food or beverage product was made across 20 countries, by age and gender, 2010
Table 27: Consumer survey: perceived influence of various environmentally themed labels on purchasing decisions across 15 countries, 2010
Table 28: Consumer survey: perception that alcoholic beverage products are over-packaged, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 29: Consumer survey: perceived influence of a ‘reduced packaging’ claim on a grocery product, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 30: Consumer survey: perceived influence of a ‘reduced packaging’ claim on a grocery product, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 31: Consumer survey: perception that reduced packaging in grocery products may compromise product quality, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 32: Consumer survey: perception that living a less complicated lifestyle has become more or less important compared to two years previously, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 33: Consumer survey: degree of attentiveness towards whether packaging is environmentally friendly, in 20 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table 34: France: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 35: Germany: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 36: Italy: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 37: Netherlands: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 38: Russia: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 39: Spain: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 40: Sweden: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 41: UK: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 42: US: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 43: Canada: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 44: Brazil: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 45: Saudi Arabia: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 46: UAE: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 47: South Africa: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 48: Australia: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 49: China: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 50: India: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 51: Japan: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 52: Singapore: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014
Table 53: Korea: composition of municipal waste (1,000 tonnes), by waste type, 2004-2014

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By sector: General alcohol, Packaging, General drinks