• 11/01/2025
  • Article

Study: Consumers Demand Sustainability – But Not at Any Price 

Sustainability has become a standard expectation for many consumers – especially when it comes to packaging. Shoppers want environmentally friendly solutions, yet they are not willing to compromise on functionality or hygiene. For brands, this creates both an opportunity – and a challenge.

When making purchasing decisions, sustainability is becoming increasingly important to consumers. Above all, reducing packaging waste is a key criterion for the majority: 66 percent consider minimal packaging to be the most important sustainability feature – a significant increase compared to the previous year. This is one of the findings of the latest “Sustainable Product Packaging” study by global strategy consultancy Simon-Kucher.

“Recyclability, the use of recycled materials and biodegradable solutions are also highly rated, with more than half of consumers considering these aspects relevant,” explains Dr Daniel Bornemann, Senior Partner and Paper & Packaging expert at Simon-Kucher. “Consumers respond positively to clear and transparent communication on these attributes. Messages that highlight a tangible benefit – for instance, how materials are saved or resources conserved – are particularly effective.”

Sustainability Builds Trust – When It’s Credible

For brand owners and packaging manufacturers, one thing is becoming increasingly clear: sustainable packaging strengthens brand perception. Sixty-three percent of respondents view brands with sustainable packaging solutions more positively. This effect is particularly evident, says Dr Bornemann, in categories with high visibility and direct consumer contact, where packaging is increasingly seen as part of the brand message and an important differentiator.

At the same time, packaging-intensive sectors are under growing innovation pressure. Regulatory requirements and rising expectations for resource efficiency are accelerating the development of new approaches – from recyclable materials and lightweighting to refillable concepts. “For manufacturers, this creates opportunities to build comprehensive expertise in sustainable materials and processes, and to establish sustainability as a clear quality attribute. Those who move early will benefit from rising demand and sustainable growth potential across almost all product categories,” says Bornemann.

Willingness to Pay Stagnates – Consumers Become More Selective

However, there is a clear gap between sustainable aspirations and actual purchasing behavior: only 54 percent of consumers are currently willing to pay more for sustainable packaging – a sharp decline compared with previous years (2021: 81 %, 2022: 72 %, 2023: 62 %, 2024: 64 %). The average accepted price premium now stands at around eight percent.

Willingness to pay is primarily driven by three factors: credibility, transparency and functionality. “Consumers want to understand the specific ecological benefit a package offers and are only willing to pay more if shelf life and hygiene remain fully guaranteed,” explains Bornemann, adding: “The clearer the environmental benefit, the greater the readiness to accept a price premium.”

Sustainability matters across all age groups – but perceptions vary. Younger consumers, urban households and higher-income groups show above-average willingness to pay, while older demographics place greater emphasis on functionality and product protection. For them, sustainability is acceptable only if it does not compromise quality.

Form Follows Function – Limited Tolerance for Change

Function still outweighs form when it comes to sustainable packaging design. Sixty-two percent of respondents accept visual changes in favor of more sustainable solutions. For products with high hygiene requirements – such as food or personal care items – protection and product integrity clearly take precedence. In other segments, where brand perception and design play a greater role, visible sustainability becomes more important. “Packaging must therefore convince both ecologically and functionally,” emphasizes Bornemann.

 

Regulation Gains Support – and Increases the Pressure to Act

Greenwashing hardly plays a role for consumers anymore. “This shows that sustainability efforts are being evaluated more critically and in a more differentiated way today,” says Dr Daniel Bornemann. At the same time, 74 percent of respondents support legal measures to reduce unnecessary packaging – as introduced in February 2025 through the new EU Packaging Regulation.

“For companies, this means the time for waiting is over,” Bornemann continues. “Manufacturers can build trust by making their sustainability progress transparent and verifiable – through certifications, recycling performance data or material-saving figures. Honest, evidence-based communication creates credibility and differentiation in a competitive market.”

 

Key Findings at a Glance

  • 66 % view waste reduction as the most important sustainability attribute
  • 63 % associate sustainable packaging with a positive brand perception
  • 54 % are willing to pay more – fewer than in previous years
  • Younger consumers are more open-minded than older groups
  • 74 % welcome legal requirements to reduce packaging
  • 62 % accept visual compromises – but not at the expense of shelf life or hygiene

About the Study: The representative “Sustainable Product Packaging” study was conducted for the fifth time in May 2025 by Simon-Kucher in cooperation with market research institute YouGov. A total of 2,031 consumers in Germany were surveyed about their attitudes, expectations and willingness to pay regarding sustainable packaging.

 

Editor: Alexander Stark, FACHPACK360°