McKinsey: Do US Consumers Really Want Sustainable Packaging?

US shoppers still care about sustainable packaging—but not if it compromises cost or convenience.

As inflation and uncertainty press on household budgets, sustainability holds its place, though not at the top.

McKinsey’s March 2025 survey of 1,000 consumers shows that expectations are shifting across the supply chain, putting pressure on brands and producers to embed eco-friendly packaging into practical and affordable designs.

Sustainability holds but slips behind essentials

The lasting impact of COVID-19 continues to echo through consumer decisions. With high inflation, erratic energy prices and persistent global unrest, many US consumers now focus on what they need rather than what they want.

For packaging, that shift means recyclability and reuse are still appreciated, but they come second to quality, price and convenience.

McKinsey's latest consumer packaging study shows that although environmental concerns have not disappeared, they’ve moved down the priority list. For the first time since the firm began tracking this area, the hierarchy of consumer needs now places economic and functional criteria well ahead of environmental values.

Packaging performance now matters most at the shelf and at home. Food safety and longer shelf life are top of mind, followed by label clarity and packaging durability. Aesthetic appeal, once a strong factor in retail displays, has dipped. That’s likely tied to the growth of ecommerce, where online shoppers don’t see the product in person before buying.

Still, consumers haven’t abandoned the planet entirely. About one-third of those surveyed said environmental impact remains a "very important" consideration.

In practice, that means people still want packaging that works and doesn’t go straight to landfill—but they won’t pay a premium unless it's tied to performance.

Recyclability leads

Among sustainable features, recyclability remains key as 77% of respondents said it was the most important trait of sustainable packaging.

Next came recycled content, reusability and compostability. Materials derived from plants or those designed to reduce carbon footprints mattered much less—unless the consumer was a high-income woman living in the Northeast. That group values bio-based materials and carbon reductions far more than the broader public.

This split signals the need for targeted packaging approaches across the supply chain. Brands and producers can’t rely on one-size-fits-all messaging or materials. Instead, packaging strategies must reflect the priorities of regional and demographic segments if they’re to land with their intended audience.

When asked which packaging materials felt most sustainable, respondents chose glass, paper and metal.

Plastic came in last—even though some forms, such as polyethylene terephthalate (PET), are technically recyclable. But that technical detail doesn’t help if local infrastructure can’t support it. In the US, only 33% of PET bottles are collected, compared with over 90% in Germany and Sweden.

The takeaway is clear: packaging strategies must match the realities of collection and recycling systems, not just the material’s potential. If a pack is recyclable but rarely recycled, it doesn’t meet consumer expectations—or environmental goals.

Responsibility falls on brands and suppliers

Consumers largely agree that the burden of sustainable packaging doesn’t rest on their shoulders, with 68% of those surveyed saying the responsibility lies with brand owners and packaging producers. They expect sustainability to be built into the product, not bolted on after the fact.

Yet fewer than 10% of respondents could name a packaging supplier. The lack of brand recognition underlines the gap between consumer expectations and industry visibility.

This disconnect presents a challenge - and an opportunity - for companies in the packaging value chain.

McKinsey points to four strategic areas for action: segmenting consumer insights, fostering collaboration across the chain, designing packaging that balances durability, safety and sustainability, and educating consumers on the value of eco-packaging.

Producers and brands can’t treat sustainability as a final polish. It must be part of the design process, involving every stage from raw material sourcing to end-of-life reuse or disposal. That means suppliers, manufacturers and recyclers need to work together from the outset.

Supply chains must evolve to deliver packaging that meets diverse consumer needs without undermining margins.

The survey also highlights the growing need for education and communication. Brands that make their packaging’s sustainability features clear, accurate and accessible can build trust—and help consumers make confident choices without extra effort.

In 2025, sustainable packaging is not about standing out—it’s about fitting in without falling short.

Consumers still care about the planet, but they care just as much about cost and convenience. That means the supply chain must carry more of the weight.