New McKinsey report shows: Gen Z is willing to pay more for sustainable packaging
Packaging is evolving with a more strategic, data-driven approach and smarter material choices. A recent McKinsey report ("Sustainability in packaging 2025: A deeper look at what consumers are thinking around the world") captures this shift, noting that Gen Z is willing to pay more for sustainable packaging, a key trend identified in this report, indicating that they are not only actively calling for attention to climate issues, but are willing to support this initiative with their own consumption.
Five key findings from the report present a nuanced picture
Price and quality
remain the most critical factors in global purchasing decisions, and price has become increasingly important in recent years. While environmental issues rank low in most product categories, countries such as France and Italy have given them higher importance.
Food safety and shelf life
Aluminum remains the top consideration in packaging decisions. Environmental impact remains important, but its importance has declined.
Recyclability
is the most valued sustainability-related attribute in global packaging. Other circularity-related characteristics, such as compostability and reusability, also continue to rank high.
Perceptions of sustainable materials vary in different regions. Paper and glass are widely viewed as environmentally friendly, while perceptions of materials such as polyethylene terephthalate (PET) vary. PET is viewed as more sustainable in countries with robust recycling systems, and less sustainable in regions that lack adequate infrastructure.
Willingness to pay more for sustainable packaging
Sustainability remains even when environmental concerns are replaced by price or shelf life. This suggests that sustainability continues to influence consumer behavior in complex ways.
What influences Gen Z's packaging preferences?
This study highlights differences in generational values. Gen Z and Millennials are more willing to support sustainability through their consumption choices. Greater awareness of climate change Social media and online activism drive these attitudes. These consumers believe brands should share their values not only in their communications but also in their packaging strategies.
Transparency is critical. Labels indicating whether a product is recyclable, compostable or renewable are increasingly influential. Brands that fail to demonstrate true environmental responsibility risk alienating this socially conscious generation. Generation Z is willing to pay more for sustainable packaging, suggesting that they actively evaluate such transparency in their purchasing decisions.
Implications for brands and manufacturers
McKinsey partner Daniel Nordigården said younger, more affluent consumers may be willing to pay more, but there is no single solution. He stressed that companies must take a proactive, fact-based approach to respond to changing expectations.
Senior partner David Feber further noted that consumers are increasingly aware of sustainable packaging, however, in today's price-conscious environment, they must weigh these issues against functional requirements, especially including food safety, shelf life and value.
Brands must make significant strides in material selection, marketing, supply chain transparency and storytelling to remain competitive. In addition to meeting regulations, the goal is to earn long-term loyalty and trust. However, they must avoid greenwashing. Vague or unsubstantiated "environmental" claims can undermine credibility. Real progress requires actions backed by transparency and facts.
Regional and market differences
Consumer attitudes toward sustainability vary from region to region. The report found that in countries like Mexico (44%), India (40%), France (37%), and the UK (37%), the majority believe that the responsibility for sustainable packaging lies with brands and packaging manufacturers, rather than governments or individuals.
This shift increases the pressure on companies to lead. Industries with high packaging turnover, such as food and beverage, cosmetics, and retail, face the most urgent pressure to adapt. The future of packaging and consumer expectations Sustainability has become a core part of brand identity, especially for Generation Z. ESG standards and regulations are also evolving.
McKinsey notes that in a rapidly evolving environment, companies that can rebalance their product portfolios, strengthen marketing, remain cost-competitive, and collaborate across the value chain will be well-positioned to succeed. Recognizing that Generation Z is willing to pay more for sustainable packaging could be a decisive advantage for brands looking to the future.
