Sustainable packaging is inarguably the new hot term in the packaging world. Many big corporations and consumers are increasingly emphasising on sustainability. The natural instinct is to ask what is sustainable packaging? Sustainable packaging is the development and use of packaging which results in improved sustainability. The goals of sustainable packaging are multiple. First is functional (i.e. product protection, safety, regulatory compliance, etc.), the second one is cost effectiveness and the third one is to support long term human and ecological health.

It is always a good idea to look at the statistics to get a deeper and clearer understanding of an issue. According to a study, 51% of millennials will check packaging before purchase for sustainability claims, 70% of all consumers are likely to be influenced by environmentally friendly packaging, 39% of consumers always / often look for environmental information on beverage packaging, 70% of consumers have purchased an environmentally friendly product even when it cost more, 66% of consumers have avoided a particular product and / or brand for environmental reasons. The statistical figures speak volumes about the relevance of sustainability in the life of millennials.

There are many ingredients of sustainable packaging. Quite expectedly, sustainable packaging emphasises on the three R’s – reduce, reuse and recycle. It involves use of minimal materials – reduced packaging (reduced layers of packaging, lower volume, etc.), repeated reuse of package and use of materials which are frequently and easily recycled (also reduction of materials which hinder recyclability of major components). At the same time it is important to understand that sustainable packaging goes beyond the three R’s. It also involves use of renewable resources in packaging. It avoids the use of materials toxic to humans or the environment and takes into account the effects on atmosphere/climate – ozone layer, greenhouse gases (carbon dioxide and methane), volatile organic compounds, etc.

It is important to look at the multiple benefits of sustainable packaging. It reduces an organisation’s carbon footprint. It provides opportunity for cost reductions through minimised material usage and possible savings in storage and warehouse requirement (dependent on materials used). It has the potential to improve brand and consumer perception. Consumers are shifting towards sustainable packaging not only because they feel a sense of satisfaction by protecting the environment from possible damage but also because it is now seen as a symbol of social status. Therefore it won’t be wrong to say that sustainable packaging is a reality and not an overstatement.

It has become increasingly important to gain a layman’s perspective on packaging. That would help producers to mould their packaging according to the requirements of the consumers.

One way a layman views packaging is as a means of protection. Consumers value packaging for the protection it provides. Greater protection might reflect greater care and quality of the product. It also prompts the consumer to think highly of that brand and might make him a loyal customer.

Another way a layman views packaging is as a means of presentation. Colourful and printed packaging adds to the appeal of the product and gives additional satisfaction to the customer. It is important to note that the additional satisfaction is brought solely by the packaging. With the advent of social media, ‘the unboxing experience’ has become a rage. Consumers post videos of them opening a product and the spotlight is on both the packaging and the product. That way an attractive packaging has the potential to push the demand of the product to some extent.

A layman’s opinion on packaging can be influenced by the price of the product. At lower prices, basic protection might do enough. But as the price increases, the expectation of the consumer also increases. At higher prices they do not only expect better protection but also better quality of presentation.

With increasing literacy and awareness, an ordinary person feels he/she has a responsibility towards society and environment. They now want to willingly contribute to the environment and buying products with eco-friendly packaging is one way. Also, buying eco-friendly products has become a trend or a status symbol and people feel a sense of superiority when they buy one.

Therefore it becomes important for the producers to understand the psyche of a layman. One can use it to enhance one’s quality of packaging and improve customer satisfaction.

E-commerce has taken the world by storm. E-commerce markets are growing at staggering rates. The online market is expected to grow by 56% in 2015–2020. In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are expected to grow to 4.88 trillion US dollars in 2021. Traditional markets are only expected to have 2% growth during the same time. On the other hand, brick and mortar retailers are struggling because of online retailer's ability to offer lower prices and higher efficiency.

E-commerce provides multiple advantages. The foremost being convenience, it takes place twenty four hours a day, seven days a week at any part of the world. Secondly, stores provide a great variety of products online than they do in the brick and mortar counterparts. Also, consumers gain power through e-commerce. They are able to compare prices among retailers, avail discount codes and access detailed information which even the in-store staff cannot provide. E-commerce technologies also cut transaction cost by skipping through the intermediaries.

An important point to note is that e-commerce provides many opportunities for the growth of packaging industry. With the advent of e-commerce, the number of touch points have increased along the delivery route and with that the potential for product tampering and damage too has increased. This has enhanced the use of protective packaging materials. Companies are starting to move toward smaller, lighter layers requiring less material. Additionally, consumer preference towards sustainably packaged products is driving a continued focus on packaging optimization. E-commerce has also changed the way logistics system builders, cold chain suppliers, automatic warehouse machines and solution providers operate and this has increased the demand for different types of packaging materials and types.

All this points out to the ocean of opportunities that e-commerce provides to the packaging industry. The real challenge is whether the packaging industry utilises these opportunities efficiently or ends up wasting them.