Some 36% of consumers in India would be willing to pay a lot more for sustainable packaging, compared to just 3% in Japan, new research from McKinsey has found.
According to the latest edition of the McKinsey Packaging Survey, in general terms, younger consumers – including Gen Zs and Millennials – along with higher-income consumers are the most willing to pay more for sustainable packaging.
The country-by-country data indicates a significant variation in those that are willing to pay more for sustainable packaging, along with those that are willing to pay ‘a lot more’.
Along with India, China (18%), Brazil (17%), Mexico (15%) and the US (13%) boast the highest percentage of those that would be willing to pay a ‘lot more’ for sustainable packaging.
Meanwhile, Mexico (58%). China (54%), Brazil (53%), India (49%) and Italy (44%) have the highest percentage of those that would be willing to pay a ‘little more’.
‘Important implications’
‘These differences in willingness to pay have important implications for companies bringing innovative sustainable packaging to market at higher price points,’ McKinsey said. ‘Companies marketing their product toward high-income millennials in Germany, for example, could have an addressable market that is many times higher than if they were targeting high-income Gen X consumers in Germany.
‘As a result, identifying the segments and consumer groups that are willing to pay more will be critical for success.’
About the study
McKinsey‘s survey, which featured 11,000 respondents across 11 countries, found that while environmental concerns still matter for consumers when making purchases, price and quality dominate more than ever.
In terms of what consumers deem to be the most essential sustainability attribute when it comes to packaging, recyclability ranks highest, however, there’s little global consensus on the sustainability of specific packaging materials – some countries with effective collection systems view PET as a sustainable option, while glass and paper generally rank high across different geographies. Read more here.
