McKinsey: Procurement Strategies for Sustainable Packaging

In the evolving landscape of packaging procurement, the aftermath of the COVID-19 pandemic presents unique challenges and opportunities for procurement professionals in the United States.

Consumer priorities, influenced by inflation, energy market volatility and geopolitical tensions, have shifted significantly, necessitating a reevaluation of how procurement executives approach sustainable packaging.

The survey conducted by McKinsey in March 2025 offers pertinent insights into these consumer attitudes.

For procurement leaders, understanding these shifts is critical in aligning supply chain and sourcing strategies effectively.

Consumer practicality priority

The findings by McKinsey indicate a decisive change in consumer priorities concerning packaging choices.

While quality, price and convenience remain dominant, sustainability continues to be a factor, albeit secondary.

Procurement officers must recognise that recyclability and the reuse of materials are still valued by consumers, suggesting sustainability remains a valuable factor in procurement decisions.

This hierarchy shift in consumer values, as demonstrated in McKinsey's surveys, reveals that economic pressures have elevated the importance of price, quality and convenience.

"Consumers expect businesses to do the heavy lifting of finding, developing and scaling affordable solutions that align with both consumer priorities and profit margin goals," wrote Jon Hancock, CEO of Sedex, on LinkedIn. This expectation places additional responsibility on procurement teams to balance sustainability with cost-effectiveness.

Recyclability takes the lead

Despite sustainability not being front and centre, procurement professionals should note that US consumers still have strong opinions about sustainable packaging features.

Recyclability stands as a leading attribute, with 77% of respondents highlighting its importance.

Procurement strategies should prioritise materials with a focus on recyclability, while also considering specific segments that prioritise bio-based materials and carbon impact, such as high-income women in the Northeast.

This segmentation requires tailored procurement strategies to align with regional and demographic preferences.

Sustainable preferences

Procurement leaders must also consider consumer opinions on packaging materials - glass, paper and metal are seen as the most sustainable options due to their recyclability.

Conversely, plastics, despite being technically recyclable like PET, are less favoured due to a lack of recycling infrastructure in the US, where only 33% of PET bottles are collected.

This highlights a crucial role for procurement in ensuring that the packaging materials selected are not only sustainable in theory but also supported by practical recycling systems.

Aligning procurement strategies with existing infrastructure capabilities is essential for achieving meaningful sustainability outcomes.

Looking to brands and producers

A significant insight for procurement leaders is the perception of responsibility among consumers.

According to 68% of survey respondents, the onus for sustainable packaging rests with brand owners and packaging producers, rather than consumers or retailers.

This disconnect poses a challenge for procurement to facilitate sustainability initiatives without increasing costs to consumers.

For procurement within the packaging industry, the strategy must involve comprehensive collaboration across the supply chain, from raw material suppliers to brands and recyclers.

Integrating sustainable practices from the outset in packaging design requires a proactive approach from procurement professionals to embed sustainability alongside affordability and functionality.

Designing for a changed consumer

To address these multifaceted consumer expectations, procurement teams must focus on strategic priorities such as segmented consumer insights, cross-value-chain collaboration, holistic packaging design and consumer education.

Companies should work to communicate the value and sustainability credentials of their packaging, leveraging education as a differentiator and trust-builder.

By embedding sustainability into the core of procurement and packaging strategies, companies can better cater to the complex demands of today's consumers while maintaining a competitive edge in the market.

As the landscape for sustainable packaging continues to evolve, procurement strategies that integrate these nuanced insights will be better positioned to succeed.

The imperative for procurement leaders is clear: design packaging solutions that meet broad consumer needs across functions, segments and environmental metrics.

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