Sustainable packaging struggles in Asia amidst inflation

Economic uncertainty will likely continue to challenge sustainable packaging efforts in the future.

Sustainable packaging is losing traction in Asia due to high inflation, according to GlobalData.

“Sustainable packaging initiatives have been driven by consumer awareness, corporate commitments to prove green initiatives, and regulation. Given the multiple factors encouraging sustainable packaging, manufacturers have increased their investments,” said Parthasaradhi Reddy Bokkala, lead consumer analyst at GlobalData.

“With all-round support, sustainable packaging has been trending, especially since the COVID-19 pandemic, when consumer awareness increased,” he continued.

However, the rise in inflation since 2022 is dampening consumer enthusiasm amongst Asian consumers for sustainable options.

Deepak Nautiyal, consumer and retail commercial Director for APAC and the Middle East at GlobalData, noted that sustainable packaging is more expensive due to specialised manufacturing processes. Rising costs are being passed on to consumers, making products even pricier amidst current inflation.

A GlobalData survey revealed that 31% of consumers view recyclable packaging as essential, but 58% are focused on price comparison and 46% are switching to cheaper brands.

Reddy pointed out that consumers are torn between supporting sustainable packaging and managing costs. 

Nautiyal also warned that economic uncertainty and inflation will likely continue to challenge sustainable packaging efforts in the near future.