Are consumers actually willing to pay more for sustainable packaging?: A choice-based conjoint analysis

Abstract

In response to the increasing emphasis on sustainability and shifting consumer awareness of environmental protection, companies are adapting their product offerings to be greener. These changes include the adoption of more sustainable packaging. While it would appear that consumers are willing to embrace eco-friendly behaviour, however, the attitude-behaviour gap – that is, the difference between the favourable attitude towards sustainable practices and the less frequent adoption – remains relevant. Furthermore, it is unclear if and how much more consumers are actually willing to pay for a product with sustainable packaging, compared to their stated intentions. This study aims to analyse the willingness to pay a premium price for sustainable packaging, focusing on actual behaviour – instead of attitudes – through an experimental study employing choice-based conjoint analysis and real food packaging. The results show that consumers are willing to spend significantly more for the packaging alternative that they believe is greener. This research intends to extend the previous literature on sustainable packaging, which focused more on the study of attitudes, providing evidence about actual pro-environmental behaviour. From a practical point of view, the article presents insight for managers and practitioners about the development of effective sustainable packaging strategies.