This morning, I decided to swing by the lovely neighbourhood Starbucks to get my much-needed caffeine fix. There, I spotted a deal that had probably been sitting there forever, but I hadn’t noticed it before. They had this offer at the counter where you could get a 10 rupee discount if you brought your own mug for your drink.

Saw several regulars giving their mugs and flasks at the counter while ordering, but why one would ask, would they care about 10 rupees saving on a 300 rupee coffee. They don’t. 

Starbucks might be trying to cut down on packaging costs or the expenses of washing all those cups, but you know what – is this a cost-saving measure? Probably not.

Why, then?

By encouraging people to bring their own mugs, Starbucks is making a little contribution to the environment. It’s a small action, but every little bit counts, right? And it made me happy to see that a global brand like Starbucks is taking steps in the right direction.

But, why are Brands moving towards Sustainability?

While you and I are troubled at the thought of what planet we leave behind for our 5 and 10 year olds, brands on the other hand are also worried, of what consumers like us think of them. 

In a race to come out on top as politically correct, and yes, environmentally-right, several brands are making serious efforts to make a difference to what THEY leave behind with every product – the packaging. 

Enter, Eco-friendly packaging (Drum Rolls, please!)

The world economy has seen increasing environmental awareness and a shift towards eco-friendly products and packaging. As is obvious, many big consumer-facing brands have taken measures to contribute to a sustainable future. 

Here are some top reasons why brands are rethinking their processes, packaging and marketing:

• Environmental Impact: As awareness of environmental issues grow, consumers are beginning to become more conscious. Brands that demonstrate a commitment to sustainability stand a chance to enhance their brand reputation and attract younger-more-aware audience. 
• Consumer Perception: Consumers are increasingly showing loyalty to brands that align with their values, particularly in terms of environmental responsibility. Brands can’t afford not to listen!
• Regulatory Pressures: While not much is in place now in terms of regulations, brands can proactively develop eco-friendly packaging solutions to stay ahead of potential regulatory hurdles.

Cost, much?

Despite potential benefits, adopting environmentally friendly materials may result in increased manufacturing costs, which could translate to a higher retail price for products. Moving to environmentally friendly packaging and processes might pose the risk of losing market share to competitors offering cheaper alternatives. This is, ofcourse, a no-brainer in the premium segment (like Starbucks) where customers are willing to pay a premium for products that demonstrate a commitment to sustainability. In fact, staying on-trend by practicing sustainability keeps younger consumers happy. 

Brands that are crushing it, literally!

The rise of conscious consumerism has seen a paradigm shift in purchasing decisions. Consumers are willing to pay higher prices for products that align with their values and have a minimal environmental footprint. Sustainable packaging becomes a critical factor in product differentiation as it attracts the attention of environmentally conscious buyers.

We have all used or heard of the popular global beauty brand Body Shop. This brand emphasizes the use of sustainable and eco-friendly packaging materials, such as bamboo and recycled plastics. The reason it’s become so successful despite having a higher market price than its competitors is due to the brand’s ability to create an eco-friendly distinction for itself.

Calvin Klein‘s commitment to environmental responsibility is noteworthy and deserving of praise. Owned by the global apparel company PVH, the brand has set ambitious goals to become a zero-waste company by 2030, exemplifying its dedication to sustainability and conscious consumerism. 

PVH’s resolute dedication to sustainable packaging is evident through its ambitious pledge to utilize 100% sustainable and ethically sourced materials by 2025. Already, Calvin Klein has made significant strides, with 74 per cent of its packaging being recyclable—a remarkable achievement in the industry.

While many are familiar with Amul as a renowned dairy brand, its remarkable commitment to sustainability might come as a pleasant surprise to some. Awarded numerous environmental dedication accolades, including the prestigious Green Globe Award, Amul has firmly established itself as a trailblazer in eco-friendly practices within the dairy industry. 

In addition to producing highly recyclable milk packets, Amul’s dedication to environmental stewardship extends to innovative initiatives aimed at generating renewable energy and reducing carbon emissions. 

Consumer Consciousness might nudge a brand, or two, But is that enough push to make an actual difference to the Environment? 

While consumer consciousness pushes brands to move towards a sustainable approach, it might not be sufficient to drive significant change at the macro level. 

Large brands possess substantial resources, both in terms of finances and technological capabilities, which could be harnessed to drive innovation in sustainable practices. By prioritizing eco-friendly materials and reducing their environmental footprint, they can align their branding with sustainability, appealing to a growing segment of environmentally conscious consumers. By investing in R&D, Brands can explore cost-effective solutions and make sustainable choices more accessible to a broader audience.

How to get this going in a big way?

There is a need for an overarching policy framework that incentivizes and regulates sustainable practices in the industry. Governments and international bodies can play a pivotal role in encouraging companies to adopt sustainable packaging by offering incentives, tax breaks, or penalties for non-compliance. A well-designed policy can level the playing field, creating a more conducive environment for sustainable innovation and compelling all players in the market to contribute to a greener future.

• There is a need, for consumers to in a big-way adopt brands and products that have adopted sustainability, and talk about brands that don’t.
• An urgent need, additionally, to raise voice and rally opinion for the government to take more steps than just ban single-use plastic (good move there, but been a while, no?)

Future of Sustainable Branding

So, how does the future of branding look? It’s simple: it looks sustainable as long as it remains dedicated to promoting sustainable values. Well, that’s a fair trade-off, isn’t it? Sooner or later, all big and small companies will have to adapt to the eco-conscious landscape, not just because it’s what their consumers demand but also because it’s a necessity. 

Dear Brands,

Sustainable packaging is not merely a trend but a transformative movement that is here to stay. This powerful value is and will continue to shape the branding landscape and consumer perception. As business owners and leaders, companies have the power to shape the future of their brand and the environment in one go! Therefore, it’s imperative for brands to embrace sustainable packaging for a better future.

Big brands must embrace sustainability and invest in the research and development of alternative packaging materials to align with evolving consumer perceptions and environmental demands. While the initial transition may come with challenges like increased manufacturing costs and competition from cheaper alternatives, the long-term benefits of improved brand image, consumer loyalty, and a healthier planet far outweigh these concerns. An overarching policy framework can further bolster these efforts, creating a collective movement towards a more sustainable future for both businesses and the environment.