How worthwhile is it for companies to invest in sustainability? Sustainable packaging is becoming central to business strategies in the food sector, driven by the rising consumer demand, particularly from Generation Z, for eco-friendly solutions. This article explores emerging trends, economic challenges, and innovations that could redefine the future of food packaging.

Preferences of Generation Z

Generation Z, or "Gen Z", is notable for its heightened environmental awareness compared to previous generations. With over 60% of these young people aiming to reduce their ecological footprint, according to the recent study by EY and JA Worldwide titled "Generational Sustainability Survey 2023", there is a strong push towards eco-sustainable solutions in packaging. However, implementing a sustainable packaging system (including reusable, recyclable, and compostable packaging) on a large scale requires complex coordination between consumer education, regulatory development, and food safety.

Economic challenges of reusable packaging

Among the various types of packaging being explored by food companies, reusable packaging is gaining attention.

The success of reusable packaging depends on companies' ability to balance ecological practices with cost concerns. Reusable packages and containers tend to be more expensive than less sustainable options, which can hinder their widespread adoption.

A similar situation applies to other types of packaging, such as compostable options. However, the rising interest in these solutions could drive investments and innovations, potentially making them more affordable and accessible, as well as profitable, due to their growing appeal and the increasing demand highlighted by industry studies.

What are the critical factors?

Current socio-economic trends, such as the increasing preference of young consumers for a reduced environmental footprint compared to the past, could drive this shift in the coming years. In this scenario, forward-thinking companies should be ready to explore various eco-friendly solutions, anticipating potential growth in competitiveness and weighing the long-term cost-benefit ratio.

Several economic and market conditions influence companies' adoption of sustainable packaging:

1. Cost of materials: sustainable materials, such as reusable, recycled, or compostable options, are often more expensive than traditional alternatives. This can reduce profit margins and discourage widespread adoption if assessed in the short term. However, as other factors evolve, as discussed below, a sustainable strategy may lead to increased competitiveness and higher profits over the long term, potentially offsetting these costs.

2. Consumer education and awareness: Generation Z demonstrates a strong inclination towards sustainable practices, as various studies show. As this generation gains more purchasing power and becomes more influential in consumer behavior, the growing consumer awareness will likely drive up demand for sustainable products.

3. Infrastructure and regulation: the lack of adequate infrastructure to support recovery and reuse systems, coupled with a fragmented regulatory framework across different countries, presents a significant challenge. On an international scale, harmonized laws and proper infrastructure are important for the success of sustainable packaging. Future regulatory interventions (such as EU measures against "greenwashing") are expected to enhance transparency and environmental awareness while also promoting advanced recovery and reuse systems.

4. Investment and innovation: increased interest in sustainability could drive investments in research and development, reducing the costs of sustainable materials and making eco-friendly packaging more accessible. Additionally, adopting these materials may be supported by forward-thinking corporate policies on market goals and profitability, facilitating long-term solutions.

5. Socio-economic developments: consumer pressure, combined with a socio-economic context increasingly focused on sustainability, may push companies to integrate sustainable solutions to remain competitive. Success will depend on balancing additional costs with the perceived consumer value and long-term profitability.

Rethinking sustainable profitability

Recent analyses suggest that companies should view sustainability as a strategic component of their business model, alongside financial objectives. This requires a shift in mindset: balancing profitability with long-term investments in sustainable practices.

Such an approach can lead to growth and a competitive edge, as consumer preferences and regulations increasingly favor sustainability as a key success criterion.

In other words, the critical factors previously discussed advocate for a strategic perspective where companies aim not only to maximize short-term profits but also to balance those profits with other important goals, such as sustainability and social responsibility.

In this context, it is crucial to strike a balance between achieving sufficient profit and investing in environmentally friendly practices that support the company's long-term longevity and reputation. Instead of focusing solely on short-term margins, companies can invest in innovation, infrastructure, and practices that, while initially more costly, provide enduring benefits for both the company and society.

Beyond circularity: what are the real sustainability goals?

Increased consumer awareness drives a broader and more profound approach than simple "circularity" which usually focuses on material recycling.

An environmentally oriented mindset involves minimizing resource waste and energy consumption throughout the entire supply chain.

Practically, this means going beyond merely reusing or recycling materials (circularity) to also optimizing every stage of production and distribution. The aim is to reduce energy consumption, resource use, and the employment of unnecessary materials. The ultimate goal is to develop more efficient and sustainable processes that result in a lower environmental impact.

Conclusions: the future of sustainability in the food sector

The future of sustainable packaging in the food sector will hinge on companies' ability to innovate and adapt to the evolving needs of consumers, especially younger generations. Beyond packaging, several factors can enhance a company's appeal to current and future customers, such as a reduced overall impact, responsible resource use, and energy efficiency.

While significant challenges exist, the potential to lower ecological footprints while maintaining profitability is substantial. Companies that manage to integrate environmental responsibility into their core strategy will secure a competitive advantage in an increasingly aware and future-oriented market