Study shows rising willingness to pay for sustainable packaging

A new study by Simon-Kucher & Partners shows that consumers are increasingly willing again to pay more for sustainable packaging. However, the price premium remains limited.
At the point of sale, the packaging must be quickly convincing and intuitively understood. Signals that are immediately understood and read as sustainable can reinforce a purchase decision. At the point of sale, the packaging must be quickly convincing and intuitively understood. Signals that are immediately understood and read as sustainable can reinforce a purchase decision.
(Image: Shutterstock/Steklo)

Consumer willingness to pay more for sustainable packaging is on the rise again. According to a recent study by Simon-Kucher & Partners, three out of five consumers are prepared to accept a surcharge for eco-friendly packaging solutions. Younger consumers in particular show a greater willingness to pay, which points to a general trend towards greater environmental awareness in this age group.

Despite growing acceptance of higher prices, the price leeway for sustainable packaging remains limited. 60 per cent of German consumers generally accept a surcharge for more sustainable product packaging – six percentage points more than in the previous year. This is shown by the „Sustainable Product Packaging“ study by the global strategy consultancy Simon-Kucher. At the same time, consumers set narrow limits on the surcharge: 30 per cent would pay at most five per cent more for sustainably packaged products, based on the total product price. „Manufacturers should not hastily view the limited willingness to pay as an obstacle,“ says Dr Daniel Bornemann, Senior Partner at Simon-Kucher. „More sustainable packaging can noticeably increase the value of the overall product. However, the additional costs often remain manageable.“

„The age groups are drifting apart“

While the vast majority (83 per cent) of under-25s are willing to pay more, this only applies to about every second person (51 per cent) among the over-54s. The gap between the age groups has thus increased by 12 percentage points since 2025. „The age groups are drifting apart – this makes brand communication and pricing significantly more challenging for manufacturers,“ says Mark-Daniel Rentschler, Senior Director at Simon-Kucher.

Factors influencing the purchasing decision

Almost every second person (49 percent) recognises sustainable packaging primarily by the lowest possible use of materials. Clearly understandable recycling instructions are also a key identifying feature. Official environmental labels, on the other hand, play a lesser role (26 percent). At the same time, 12 percent state that they cannot reliably identify sustainable packaging. „What consumers don't recognise immediately comes to nothing,“ explains Stephanie Sparber, Senior Director at Simon-Kucher.

Consumers generally support political measures against packaging waste, but prefer targeted interventions. It appears that the more a measure affects daily life or convenience, the more reserved the acceptance. The greatest approval (37 percent) goes to bans on certain single-use packaging and regulations on reducing empty space (35 percent). Approval for extending the deposit scheme to other types of packaging is significantly lower (25 percent). For Sparber, one thing is clear: „Not every measure is equally convincing. For companies, it is crucial to translate regulatory requirements into solutions that consumers can understand and that are suitable for everyday life.“

"Price pressure does not shift priorities"

Inflation, high energy prices and geopolitical tensions do not mean that consumers are fundamentally losing sight of sustainable packaging. For 71 per cent, the issue remains at least as important as before. „Price pressure is not shifting priorities. Manufacturers must communicate the added value of sustainable packaging so clearly that they also win over those who are undecided,“ Bornemann summarises.

Source: Simon-Kucher & Partners