Nearly six in 10 U.S. shoppers say choosing responsibly packaged beverages is important, EcoFocus Worldwide says; beverage companies must balance product quality, health benefits, sustainability, price for maximum consumer appeal: i2live Interview

Joyce Routson

LOS ANGELES , February 22, 2012 (Industry Intelligence) – Beverage shoppers’ perceptions of packaging are changing, and sustainability has become a key factor in consumers’ purchasing decisions. According to a new study from EcoFocus Worldwide, a research firm specializing in consumer perspectives on green and sustainable goods and services, 84% of U.S. beverage shoppers at least sometimes consider the environment in their purchasing decisions.

As founder and CEO of EcoFocus Worldwide, Linda Gilbert has studied consumer trends for numerous multinational companies, including PepsiCo, Coca Cola, Danone, and Nestle. Ms. Gilbert will share her insights in an exclusive 12live webinar, “Enhancing the Beverage Shopper’s Experience with Sustainable Packaging,” on Thursday, March 8, 2012, at 2 p.m. EST. The webinar is presented by Industry Intelligence and sponsored by Packaging Strategies.

i2live recently sat down with Ms. Gilbert to discuss consumer trends toward sustainable beverage packaging and how beverage companies can use those insights to create products with maximum consumer appeal.

i2live: What can leaders in the sustainable packaging and beverage industries take away from EcoFocus Worldwide’s “Sustainable Packaging for Beverage Shoppers” study?

LG: Beverage packaging is an entry point to sustainable lifestyles for many mainstream consumers. According to the EcoFocus study, 59% of beverage shoppers say it is extremely or very important to choose beverages that are packaged responsibly, and 38% have already changed what they buy due to the type or amount of packaging. This creates significant opportunities to differentiate and add value to products and brands by enhancing the consumer’s beverage experience with eco-friendly packaging options.

Already, eco-friendly packaging is playing a larger role in brand perceptions and choices, especially when married with economic, convenience, health or other advantages. The study helps you understand the mindset of an evolving class of mainstream consumers who are becoming more focused on sustainability in their shopping behavior.

i2live: What are some of the key points you took away from this study?

LG: The study makes it clear that while most beverage shoppers do consider the environmental impact of the products they buy at least sometimes, the steps they are taking are small, incremental, and for the most part, they are not willing to make compromises for eco-friendly packaging. For these mainstream consumers, sustainability is often a tipping point only when other expectations are met. For example, sustainable beverage packaging needs to deliver same or better performance for these shoppers. If the eco-friendly cup doesn’t keep the coffee hot or the iced tea cold, it’s not a practical solution for most consumers.

Second, the study finds that that mainstream consumers have a personal approach to sustainability that focuses on wellness and quality of life. Their focus is on My World, My Life™ first, and then the greater good. Sustainable packaging and beverage officials need to make sustainability benefits personal and speak to higher order emotional rewards for beverage shoppers. This means shifting the conversation with consumers from talking about polar bears and melting ice caps to talking about less waste and improving personal health and well-being.

Third, the study shows that consumers want help and information from manufacturers, retailers, and brands to help them make their homes and lifestyles more eco-friendly. For mainstream consumers, what motivates shopping decisions is less about what your business is doing to reduce its corporate footprint and more about what your business is doing to help your consumer have a more eco-friendly home and lifestyle. The study shows that availability, affordability, quality, performance, convenience, and practicality are barriers that need to be recognized and overcome with solutions that fit existing or desired behaviors for consumers.

i2live: EcoFocus’ study indicates a large and/or growing awareness of environmental and sustainable factors in the purchase of beverages. What are some reasons for this?

LG: There are numerous forces driving this change. Two principal ones from the consumer side are interests in better health and reduced waste.

Sustainability is a new dimension of the ongoing wellness trend we’ve seen evolve over the last few decades. Initially, wellness was about reducing the risk of disease fueling the success of fortified and functional beverages. Then, wellness became about fitness and energy for consumers and we saw the explosion of sports beverages, green teas and other energy drinks. In more recent years, wellness has been about looking and feeling good, fueling interest in soymilk, probiotic drinks, and lower calorie, and higher antioxidant beverages, for example. Today, sustainability is the new dimension of wellness for consumers who increasingly associate “a healthier planet” with “a healthier me.”

At the same time, reducing waste is a high priority for consumers today. Beverage packaging can be a visible problem or a solution as consumers want to recycle more and trash less. According to the EcoFocus study, 67% of beverage shoppers say “providing ways to dispose of packaging” is an extremely or very positive influence on purchases; and 66% say “manufacturers need to do a better job of telling me how to recycle or dispose of their packaging.”

In recent years, single-serve plastic beverage bottles for waters, juices, and other beverages, once regaled for their convenience and sometimes healthfulness, have become poster children for packaging waste. Single-serve bottled water is a great case study for this evolution in consumer thinking. As one mom from Chicago told us: “I remember when it used to be healthy to have a bin full of bottled water at parties; now that’s considered wasteful.”

i2live: Can we expect consumer awareness of sustainability to grow?

LG: Just as health and nutrition interests transformed the beverage industry over the past 30 years, health and sustainability interests will transform the beverage industry in the coming years. Shopper awareness and actions will definitely increase and are already on the rise. Consumers today are more aware of the problems and are becoming aware of more solutions. As solutions become more available, we will see more social, economic and other culpability for consumer behavior. For example, as curbside recycling becomes the norm in many communities, there is greater social culpability with regard to using the recycle bin and putting out less trash. Already, 75% of beverage shoppers expect that recycling will become a habit for everyone in the future; only 5% disagree.

The EcoFocus study shows that most Americans think that while recycling is a bother, it is worth it. The hassle factor is a hurdle and while most are already recycling to some extent, they want help to do more of it, more often. Just because your package can be recycled, does not mean that it will be recycled. For example, the EcoFocus study shows that cans are most likely to be recycled by beverage shoppers today, and plastic bottles are least likely to be recycled. How can packagers help consumers get over the hassle hurdle?

i2live: For sustainable packaging officials, what are some of the important takeaways from this study?

LG: Consumers need information to find and make the choices that are right for them and their family. The study shows how labels can work harder to communicate the information consumers consider most important and influential when shopping.

The type and amount of packaging, as well as what happens to it once it is in the consumer’s hand, are new considerations for beverage shoppers. From the beverage shopper’s perspective, recyclable and refillable or reusable packaging are good solutions. They are learning more about biodegradable and compostable packaging.

From protecting resources to reducing waste to avoiding potentially harmful ingredients, there are significant opportunities for beverages to leverage the Eco-Healthy Lifestyles trend to create a new frame of reference for plastic in the consumers’ mind. About six in 10 beverage shoppers think it is important to use less plastic; one in two look for beverage packaging that uses less plastic; and about four in 10 have stopped using or are using single-serve plastic bottles less often. Many have heard about plant-based plastics and are interested in learning more about corn- and soy-based plastics.

i2live: Based on your findings, is it possible for sustainable packaging companies to tailor their packaging to consumers in a cost-effective manner?

LG: Sustainable or eco-friendly packaging has to be affordable to be successful with mainstream consumers over time. Most consumers are not willing to pay a premium for sustainability advantages alone. More often, success lies in finding the sweet spot where sustainability benefits intersect with expected consumer values in convenience, health, or product performance to deliver what we call Sustainability PLUS. Often, this sweet spot is where a new pricing frame of reference can be created for consumers.

Remember that in many respects, it does not make sense to consumers that eco-friendly products cost more than conventional ones. For example, they wonder: Why doesn’t a bottle that uses less plastic cost less? Why isn’t recycled material less expensive than virgin? Why does the price go up when the manufacturer uses less water in its production practices? There is a strong disconnect here with their expectations. They expect that sustainability means savings: saving money, saving energy and water, saving natural ecologies, saving natural resources, and more. How this disconnect is reconciled in the consumer’s mind is key to success and brand trust.

i2live: What are some changes packaging companies could make as a result of the insights gleaned from the EcoFocus study?

LG: Beverage packaging must transition and evolve to meet the needs of more environmentally aware consumers. EcoFocus has identified four actions for beverage packagers who want to remain relevant to consumers, enhance brand value, and generate sales. I’ll be discussing each of these in the webinar and offering some examples of success from the beverage shelf.

a. Help beverage shoppers take action by fitting solutions to existing or desirable behaviors.

b. Make sustainability benefits personally and emotionally rewarding for beverage shoppers.

c. Communicate the life cycle advantages of the packaging with a focus on what happens once it is in the consumer’s hand.

d. Deliver same or better packaging performance PLUS sustainability advantages.

Linda Gilbert will be the featured presenter in i2live’s exclusive webinar, “Enhancing the Beverage Shopper’s Experience with Sustainable Packaging” on Thursday, March 8, 2012, at 2 p.m. EST. Ms. Gilbert will show how beverage products can further meet the needs of a more environmentally aware consumer, plus share her “Four EcoFocus Actions” for beverage packagers. Please visit i2live.net to register for this free event.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.