How much weight does the sustainability factor carry with consumers?

One survey estimates that nearly 50% of U.S. consumers consider at least one sustainability issue when selecting products in the store. And for many of those shoppers, the materials used in the packaging also have become important when choosing not only which brands to buy but also which stores to patronize.

In 2007, Information Resources Inc., a research firm, surveyed more than 22,000 U.S. consumers. They were asked to consider organic, environment-friendly products and packaging, and the treatment of employees and suppliers pertaining to sustainability issues. The results show that sustainability is increasingly influencing purchasing decisions and that consumer packaged goods (CPG) companies and retailers positioned well for sustainability will likely have at least a short-term advantage on shelf.

Following are some of the survey's principal findings:

A majority of leading CPG companies and retailers have supply chain sustainability programs in place, but some consumer-focused efforts are in the early developmental stages.
About 25% of consumers who responded consider two or more sustainability factors in their purchase decisions. Though product origins are important, 29% said eco-friendly packaging influences their brand selection, and 21% opt for stores that offer a good selection of products with environmentally friendly packaging.
Sustainability factors are particularly important among older baby boomers and smaller households. In larger households with budget constraints, price may outweigh sustainability as a purchase-decision variable.
CPG companies and retailers that have failed to target the 55-and-older segment with sustainable-packaging and product initiatives may be missing opportunities for sales.
Sustainability-driven consumers allocate a higher share of spending to drugstores and a lower share to supercenters.
Consumers within the sustainability-driven segment have high purchase indices in food and beverage categories.

A report detailing the results says that many sustainable-packaging initiatives are under way but aren't always communicated to consumers. In terms of packaging, the report recommends that CPG companies and retailers:

1. Identify opportunities to reduce packaging and leverage recycled, recyclable, and biodegradable materials among private-label products.
2. Increase availability of products with sustainable packaging.
3. Plan to optimize shelf space as package size is reduced.
4. Clearly communicate all significant sustainable-packaging enhancements on package labels, point-of-purchase displays, and other in-store communication tactics.