Amcor reveals consumers pay more for private labels and eco-packaging despite cost of living crisis

27 Sep 2023 --- Amcor has found that packaging, environmentally sustainable practices and cost influence the purchasing habits of private label products for grocery store shoppers. The company has released research into how European consumers perceive, consider and purchase private label products.

Based on responses from over 3,000 grocery shoppers in the UK, France, Germany, Italy, Poland and the Netherlands, Amcor concludes that private label products have become a firm staple in consumers’ homes. Seventy percent of European consumers regularly buy private label products when grocery shopping. 

“Recyclable packaging,” “less plastic,” “less packaging” and “paper packaging” were found to be the top claims retailers could make to positively influence a purchase decision for private label products.

Additionally, 28% of shoppers stated that more ecological packaging influenced their decision to buy more private label products. As such, more environmentally sustainable packaging is one of the top three consumer concerns and one of the critical influence levers available to retailers.

“What was surprising about the results was consumers’ significant emphasis on [environmentally] sustainable packaging as a crucial decision factor in their willingness to buy more private label products,” Madalina Mitru, strategic marketing and value chain manager at Amcor, tells Packaging Insights.

“Price has traditionally been the primary driver for consumers when choosing private label items. However, the data demonstrated that sustainability is rapidly evolving from a marketing buzzword into a fundamental criterion for consumers.”

“This shift in consumer behavior implies that relying solely on competitive pricing strategies may no longer be sufficient to attract and retain loyal customers for private label brands.”

Grocery store shoppers were found to prefer environmentally friendly packaging.Looking for sustainability
Forty-eight percent of respondents stated that “promotions” and 40% said “cleaner ingredients” influenced their decision regarding packaging.

The research also uncovered changes in consumer attitudes toward retailers and brands, particularly how they demonstrate a commitment to environmental sustainability.

“The findings can be utilized to help retailers and brand owners better understand the importance of more [environmentally] sustainable packaging in consumer decision-making and to make data-driven decisions,” asserts Mitru.

One-third of consumers believe they have seen industry progress in “food waste reduction,” “less excessive packaging” and “more sustainable packaging.” Forty-two percent of European consumers think that local production is an area where retailers have been making an effort when it comes to environmental sustainability.

However, despite retailers making progress in sustainability for private labels, one-third of grocery shoppers believe more efforts are needed to use less excessive packaging and to incorporate more environmentally friendly packaging.

“The study highlights that a significant portion of European consumers feel that there is room for improvement in terms of excessive packaging. This is critical feedback that can support retailers and packaging producers to work together toward reducing excessive packaging for private label products, such as redesigning packaging to be more minimalistic and efficient,” says Mitru.

Cost of livingDespite the cost of living increasing, customers still prefer private label products.
Amcor’s research also found that rising living costs have influenced European consumers’ purchasing decisions for private label products.

In the study, 85% of respondents ranked “price” as the top reason for purchasing a private label item, while 48% stated “promotions” are one of the main drivers to buy more private label products.

Meanwhile, the quality of private label products was also recognized as a critical factor when making buying decisions. When defining quality, consumers’ top three factors were: “better taste,” “local production” and “cleaner ingredients.”

Half of consumers who actively purchase private labels due to pricing will continue to do so, based on their satisfaction with the high quality of the products.

“The research results will help us stay aligned with evolving consumer expectations. We will also continue collaborating with retailers and brand owners to explore new materials, designs and technologies that reduce their environmental impact and are aligned with upcoming European legislations and consumer needs,” Mitru concludes.

By Sabine Waldeck