Amid private-label boom, manufacturers must meet consumer demand for sustainable packaging

Consumer demand for private-label products shows no signs of ebbing.

But, as shoppers have become more eco-savvy in recent years, WGB asked the Private Label Manufacturers Association (PLMA) whether that sentiment is being reflected in packaging of store-brand items.

Here, the industry association’s president, Peggy Davies, discusses how private-label packaging is evolving and which grocery retailers stand out.

WGB: Have you seen private-label packaging become more sustainable in recent years?

If yes, what's that driven by?

PD: Driven by the demands and expectations of today’s consumer, the CPG industry is in different phases of development and execution. Private label manufacturers recognize this isn’t an overnight undertaking and are deliberate and purposeful when it comes to providing sustainable packaging for customers and the consumer.  Manufacturers of store brands are no different than national brands. All are committed to being eco-friendly, in a timely fashion, to gain the consumer’s confidence and their fair share of wallets.

The topic of sustainable store-brand packaging has been on PLMA’s radar for many years. With offices in Amsterdam and our annual World of Private Label International Trade, sustainable packaging was top of mind for European retailers and hence our international manufacturers. As an organization, these learnings were then easily transferable to introducing the topic to our U.S. members and their retail partners.

To keep the innovation and education moving forward, we’ve held stand-alone programs on the topic and have and will continue to include it in our online and in-person events in Europe and the U.S.

WGB: Can you give any examples of prior-generation packaging vs. sustainable options?

PD: There are so many across a variety of food and non-food categories, it’s hard to call out specific products. In our industry, the best private-brand packaging can be seen when you look at retailers like Kroger aiming for 100% recyclable, compostable and/or reusable packaging for all its own-brand products by 2030; CVS’s Live Better wellness products have 80% recyclable packaging; and Aldi, who pledged all of its store-brand packaging will be recyclable, reusable or compostable by 2025. That kind of commitment to sustainability can’t happen without manufacturers and retailers working together to provide environmentally friendly products that also meet consumers’ expectation of quality and value.

WGB: Do you have any data on what consumers are looking for in packaging? Is sustainability an important attribute for them?

PD: There’s a lot of data out there pointing to consumers’ desire to align themselves with companies whose products reflect their eco-friendly values. During one of our conferences, a speaker from Fair Trade USA said 69% of consumers say sustainability is important to them when purchasing CPGs. McKinsey, The Conference Board, Deloitte have all pretty much said the same thing.

WGB: Any insight into what we might expect to see in the future when it comes to sustainable packaging?

PD: Join us in November at “Store Brands Phenomenon” Private Label Trade Show in Chicago, you’ll see for yourself what’s on the horizon for sustainable private brand packaging. There will be a significant number of sustainably packaged products featured in PLMA’s Idea Supermarket, and when you walk the show floor, you’ll have an opportunity to see hundreds of products on display where both food and non-food private label manufacturers and suppliers are embracing sustainable packaging.