Is Eco-Friendly Packaging More Expensive?

  • By: greenorb
  • Date: July 20, 2021
  • Time to read: 5 min.

Lately, online retailers are seeing more sales than ever before. 

While this is great for all these companies, it does increase the amount of packaging being used. 

A lot of companies are making efforts to become more eco-conscious about the steps they take. 

Since packaging plays a big role in their business, a lot of online retailers wonder if eco-friendly packaging is more expensive.

It’s no secret that many consumers are doing their research to see which companies are eco-friendly. 

They can easily get turned off by a company if they receive a box that’s full of extra plastic that they have to throw away.  

Today, we’re going to talk about whether or not eco-friendly packaging is more expensive so you know what to expect.

What is eco-friendly packaging?

Eco-friendly packaging is a more sustainable choice. 

Every business that ships products directly to its customers needs packaging to keep the items safe. 

There are many different choices on the market for packaging, but eco-friendly is a safe pick for you and the environment. 

That is because it’s easy to recycle, but could also be used again by the consumer.

What really catches people’s attention about eco-friendly packaging is that it’s made out of recycled materials. 

The manufacturing process also requires fewer energy sources. 

Companies will try to use as many natural resources as possible when manufacturing eco-friendly products.

Is eco-friendly packaging more expensive for retailers?

It’s not just retailers that are curious about the cost of eco-friendly packaging. 

Many consumers wonder if they will have to pay more to receive products in eco-friendly packaging. 

When many companies begin to compare packaging prices, they do notice an increase in eco-friendly products. 

This initial price difference is what has caused many businesses to continue using plastics for packaging. 

However, we must take a deep look at what causes eco-friendly packaging to be more costly:

  • Is it the materials being used? 
  • Is it the cost of manufacturing?
  • Are manufacturers being greedy?
  • Could there be a shortage of a certain material needed?
  • Does it all stem down to freight and transportation costs?

While these are all factors that contribute to the cost of a product, they aren’t the main reason why eco-friendly products are more expensive.

Materials are a lot cheaper

Let’s really think about this for a moment. 

How could the materials being used be more costly if eco-friendly packaging is being made out of recycled materials? Consumers are essentially handing the materials over to them. This also means that there isn’t a shortage of materials either.

Manufacturing takes less effort

Since eco-friendly products are made to be safe for the environment, there is less manufacturing needed to produce them. 

This means that companies can cut down on the materials needed for manufacturing and the cost of labor. 

However, one thing to consider is that plastics are much easier to produce in large volumes than sustainable products.

What really makes eco-friendly packaging cost more?

When you look at how eco-friendly packaging is made, it seems more cost-efficient. 

This leaves a lot of us wondering why it costs more to purchase. Surprisingly, this all stems down to supply and demand. Supply and demand play the biggest role in the cost of a product.

This may leave you scratching your head. Why are products that are proven to be bad for the environment in demand? Especially when it’s more affordable to produce eco-friendly packaging.

Let’s clear this up!

While many businesses are taking steps towards more eco-friendly practices, they are still driven by costs. The main concern of every business is their profits, even if they claim otherwise.

This means that when they are weighing their options for packaging, plastic will stand out because it costs a lot less money. 

From a company’s point of view, they don’t make a profit off of their packaging. If they feel that the cost of recycled packaging will interrupt their profits, they will ultimately choose the more affordable option.

Why plastic is cheaper

Plastic has been used for packing for decades. This means that there is an abundance of plastic available for packaging. 

Manufacturers are able to sell it to companies for a much lower price. Since this has been working for many companies, they continue to buy plastic.

All of this plastic means that the market value has dropped over the years. Since eco-friendly packaging isn’t in demand, the market value is much higher.

Could the market change for eco-friendly packaging?

Anytime a product is high in demand, more companies begin to manufacture it. 

If an increase in demand for eco-friendly packaging does occur, consumers could see the costs drop significantly. It’s also important to consider innovative advances in technology. 

Now, more businesses are presented with options and materials to make this possible.

If you are managing a business that ships products to customers, you should consider what the packaging will say about your business. 

Eco-friendly packaging sends a good message to your customers and shows that the company cares about the environment. 

When other companies start seeing the positive impact this choice has on customers, they may take the same approach which will put eco-friendly packing in demand. 

Final thoughts: Is eco-friendly packaging more expensive?

While the price of eco-friendly packaging may be more costly, it may not stay that way. 

Supply and demand play a bigger factor in the cost of packaging than the materials and manufacturing process. Since plastic has been the top choice of packaging for many years, it’s much easier and affordable for companies to get a hold of.

However, if companies start weighing out their options for eco-friendly packaging, they may be surprised by what they find. 

A brand’s first impression of a customer says a lot, and packaging is the first thing they see. Modern customers dislike packages that are stuffed with non-sustainable materials. 

Using eco-friendly packaging will keep people coming back to your business. While you may spend more on packaging, you’ll likely earn more customers.

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