Eco-friendly packaging: a competitive advantage in the U.S. market

Demand for sustainable products in the United States is growing steadily

New generations of consumers are becoming increasingly conscious of issues like pollution and excessive plastic use, leading to a rising preference for products designed with environmental responsibility in mind. Brands must align with these market trends, and the message is clear: consumers are looking for eco-friendly, sustainable, and recyclable products.

In response to this market demand, some companies have built their business models around recyclable packaging and sustainable practices. Loop is a zero-waste brand that creates packaging from reusable materials and collects them from customers after use, establishing a recycling and reuse chain that resonates with eco-conscious consumers.

Reusable packaging as a differentiator in the U.S. market

Loop's business model works as follows: online orders are delivered in reusable bags. Once the customer empties the bag, they schedule a pickup, return the packaging, and receive a deposit refund. If they reorder, the deposit remains in their account, eliminating the need to pay it again. These packages are heavier but have a significantly lower environmental impact than single-use packaging.

“We all know recycling alone won’t be enough,” says Sara Wingstrand, leader of the innovation team at the Ellen MacArthur Foundation, an organization focused on advancing the circular economy. “This is a completely new way of thinking about how to deliver products to people.”

Loop has also partnered with physical retail stores, enabling customers to purchase products in-store or return used containers for collection.

But it’s not just the sustainability ethos of brands participating in Loop that attracts customers. “People are actually drawn to Loop first for the design, secondly for the reuse,” explains Tom Szaky, CEO of Terracycle, the recycling company that helped form the coalition of brands testing the platform. Now, Szaky also serves as CEO of Loop. “Design is so important to consumers—more than I ever imagined.”

The market for sustainable packaging in the United States

It’s estimated that the market for recycled packaging will grow at an annual rate of 5% between 2019 and 2023

Beginning March 1, New York implemented a statewide ban on single-use plastic bags in stores, introducing a 5-cent tax on paper bags. According to the city, New Yorkers consume and discard 10 billion plastic bags annually, often used for just a few minutes, contributing to a total of 23 billion plastic bags statewide.

This commitment involves some of the world's largest companies and is supported by startups like Loop. For example, Nestlé has pledged to purchase up to 2 million tons of food-grade recycled plastic and invest over 1.5 billion Swiss francs in these materials by 2025.

While Coca-Cola may be reluctant to move away from plastic bottles entirely, there’s no denying the growing shift toward sustainable packaging solutions across the industry.