Looking for ways to make an impact while drawing in new customers? Look no further.
Capture and satisfy environmentally conscious consumers by introducing eco-friendly products and packaging. These days consumers are becoming more and more mindful of their impact on the environment. As a result of this shift in customer focus, sustainable business practices have become the norm in the food industry. People want to feel like they’re making a difference.
According to a Nielson Sustainability Report published in December 2018, nearly half (48%) of US consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment. Since 2014, sustainable product sales have grown by 20% and are projected to grow up to an additional 17% by 2021.
According to a Nielson Sustainability Report published in October 2015, it’s not just higher income consumers dedicated to making this impact. Consumers of various regions, income levels, and categories are all willing to pay more to ensure they remain loyal to their values. In fact, those earning $20,000 or less are 5% more willing than those with incomes greater than $50,000 to pay more for products and services that come from companies who are committed to positive social and environmental impact.
It’s clear that this eco- friendly initiative will only continue to grow. But you may be wondering– how will this adaptation be beneficial to my brand? Here are 4 key reasons:
Decrease your carbon footprint
Firstly, an obvious benefit to eco-friendly products and packaging is reducing your carbon footprint. Using biodegradable, recycled material reduces the waste of natural resources, allowing your company to make a real impact on our world and its future generations.
Another benefit is the ease of disposal. Regular packaging often costs a considerable amount to move and dispose of supplies. However, eco-friendly packaging is compostable, reusable and recyclable. This means the packaging can be buried, recycled, or reused. It reduces short term effort and costs while yielding a considerably impactful long term effect.
One of the most significant rewards to sustainable business practices is how it reflects on your company. Taking the initiative to show your brand’s values and priorities builds customer trust, respect, and loyalty. In this day and age, it’s crucial to exploit any outside-of-the-box techniques for building customer trust. According to a 2014 survey conducted by the McCarthy group, 84% of millennials don’t trust traditional advertising. On top of that, Millennials are the leaders of sustainability sales. Studies show Millennials are twice as likely than Baby Boomers to say they are definitely or probably changing their habits to reduce their impact on the environment (75% vs. 34%). Altering your brand image is an authentic and meaningful way to gain customer loyalty from eco-friendly consumers. Millennials are the future, and you want them on your side.
And finally, the last major advantage of eco-friendly packaging is cost-effectiveness. Recycled materials mean fewer materials, which decreases packaging weight. Lower packaging weight saves on transportation costs. Altogether, manufacturing packaging costs less.
If you have any questions or would like to learn more about this topic, please reach out to the NewPoint team. If you are interested in more food marketing topics, please visit our Food for Thought page or check out NewPoint’s Patrick Nycz’s book: Moving Your Brand Up the Food Chain.