Millennial Generation Could Significantly Improve Market for Wood Fiber Packaging

 

A new Viewpoint report released this past week from Stora Enso, Helsinki, Finland, shows that retailers and brand owners who fully embrace the opportunities presented by sustainable packaging can achieve an increase in net sales of 2% - 4 % and an improvement in their EBIT-margin of 1.0% - 2.5% (p.p.). The importance of sustainability in the retail sector will increase as Millennials become a more dominant group of consumers.

Some 59% of Millennials, the generation born between 1980 and 2000, consider packaging sustainability to be important throughout the entire value chain. Stora Enso, a global leader in the packaging industry, published the Viewpoint report titled "Future of packaging for the Millennials," highlighting trends for consumer expectations on packaging and the linked opportunity for retailers and brand owners to increase profitability.

"Millennials are in many ways more demanding than previous generations of consumers and they expect products to be sustainable throughout the full value chain. This is a strong message to use sustainable packaging from renewable sources such as wood fibers. These expectations present new and exciting opportunities for retailers and brand owners to increase sales and margins." said Hannu Alalauri, SVP at Stora Enso Packaging Solutions. 

Expect retailers and brand owners to help Millennials consume smarter. The report shows that Millennials are more likely to purchase eco-friendly products than older generations. Four out of five Millennials consider packaging as important when making purchasing decisions and 85% of Millennials consider packaging material part of the brand experience, compared with 71% among non-Millennials.

The report shows that 44% of Millennials also are willing to pay a premium for products with sustainable packaging and they consider fiber-based packaging materials to be by far the most sustainable packaging material choice.