71% of European consumers want to buy sustainable products, Bain & Company’s inaugural “Global Paper & Packaging Report” shows.
While 71% of US consumers claim they want to buy products with as little packaging as possible. However, a Bain survey of nearly 4,000 US consumers showed that 70% believe single-use glass has a lower carbon footprint than single-use plastic, which is incorrect. Only 12% said it was plastic—the correct answer.
Bain’s analysis also shows that while flexible plastics score best on production and transport-related carbon emissions, they are the least circular or biodegradable.
According to the report, the packaging sector could grow by 21% to reach $1.2 trillion in the next three years, with the largest growth coming from the rigid paper category, which may surpass plastic growth rates by 2026.
Bain says the number of companies in the industry that have verified or committed to science-based targets has increased from five in 2019 to 164 in 2022, yet more than 30% of those companies have missed their near-term Scope 1 and Scope 2 targets – 41% are missing their Scope 3 targets.
Only 22% of companies surveyed reported assessing their value chain impact on biodiversity and just 31% are acting now to address biodiversity loss. Companies choosing to take action are poised to benefit by reducing their exposure to biodiversity-related risks as well as brand risks.
Leading companies are assessing the environmental impact of different materials and taking the full life cycle into account.
Ilkka Leppävuori, global head of Bain & Company’s Packaging group, commented: “Gone are the days when paper and packaging decisions were made based solely on cost, functionality, and consumer experience.
“Sustainability is now top of mind for everyone. However, when it comes to picking a packaging material – from paper to plastic to metal to glass – there’s no clear winner. Paper may have an edge, but the most sustainable option can vary greatly by application and geography.
“Leading companies are assessing the environmental impact of different materials and taking the full life cycle into account – from resource extraction and production to transportation and products’ end of life.
Ilkka Leppävuori, global head of Bain & Company’s Packaging group, commented: “Gone are the days when paper and packaging decisions were made based solely on cost, functionality, and consumer experience.
“Sustainability is now top of mind for everyone. However, when it comes to picking a packaging material—from paper to plastic to metal to glass—there’s no clear winner. Paper may have an edge, but the most sustainable option can vary greatly by application and geography.
“Leading companies are assessing the environmental impact of different materials and taking the full life cycle into account—from resource extraction and production to transportation and products’ end of life.”
According to the report, the paper and packaging sector has had two times more merger and acquisition deals relative to its size than the broader manufacturing industry over the past decade.
Bain says the increased merger and acquisition activity comes from strategic paper and packaging investors who are filling gaps in their portfolios as well as external private equity players that are creating standalone value with new acquisitions.
