CPG companies to spend more on environmental packaging

In an effort to appeal to consumer demand, consumer packaged goods (CPG) companies are switching their current plastic packaging for a more environmentally friendly version. But at what cost?

According to the “2019 Brand Owner Packaging Study,” a study conducted by Boston-based management consulting firm L.E.K. Consulting, 75% of 250 CPG brand owners polled reported that they plan on spending more on environmental packaging in the next year, demonstrating a significant increase from last year’s 65%.

With the general public becoming more aware of society’s environmental footprint, communities around the world have started to call for compostable packaging in an effort to reduce waste and the excessive amount of plastic used by CPG companies to package their products.

While 85% of respondents said that they had been working toward changing packaging materials to make them more recyclable, there were other significant trends in the packaging landscape discussed in the study, which all require investment in innovation. CPG companies have made moves into easier-to-open packaging (57%), single-serve packaging (51%) and packaging with different formats, printing and textures to match the new, premium products that they contain.

"CPG brand owners recognize consumers want more convenience, and companies are looking to packaging to help provide it. This will entail some major changes to packaging, and CPGs are responding and investing," said Thilo Henkes, managing director at L.E.K. Consulting and co-author of the “2019 Brand Owner Packaging Study.”

To read the L.E.K. Consulting study, click here.