Gen Z Wants a Circular Economy, But at What Price?Gen Z Wants a Circular Economy, But at What Price?

Generation Z will soon wend its way through the demographic pipeline to make its mark on the world. Gen Zers, or Zoomers, are diverse in their cultural backgrounds, ages, and life stages. Overall, however, it appears they’ll drive the growth of a large-scale circular packaging economy … given the right circumstances.

Compared to their elder Millennials, these Zoomers are “better educated on sustainability and environmental issues than any generation before,” according to a 2023 sustainability research report EY and nonprofit JA Worldwide. At the same time, they’re digital natives who, in 2023, Colca-Cola and Technomic said “only view the world through digital channels.” The adults among them are more geared toward healthy choices. However, they also pay higher rent, carry more debt, and care less about brand loyalty — they’d rather search and scroll their way to the best deals, says Business Insider.

What does this tell us about the future of sustainable packaging? Stephny Halstead, vice president of marketing & New product development with foodservice packaging specialist Sabert shares answers and insights below.

Do younger generations use reusable packaging more than other generations?

Halstead: We are seeing a strong overall interest in reusables, not just in foodservice but also in the consumer packaged goods, or CPG, markets. This heightened interest is no surprise since more than 60% of Gen Z are looking to actively reduce their environmental footprint. They are advocating for the government to address climate issues and expect businesses to find more ways to enable consumers to make more sustainable purchasing decisions.

Related:Which Consumers are Leading the Recycling Charge?

Reusables are still in the early stages, so it’s too early to estimate consumer adoption. There is an uptick in urban areas piloting recovery programs and systems with some success, as well as investments in research and consumer behavior studies to understand what the potential roadblocks could be, as well as health and safety considerations. 

If so, how will that trend impact food costs and the market? For example, will more suppliers of disposable foodservice packaging get into the reusable market, or will there be a lot of consolidation and failed businesses in the near future? 

Halstead: Reusable packaging is an area that many suppliers are exploring. Foodservice businesses are setting sustainable packaging goals, grouping reusables under the broader umbrella of end-of-life disposal options, which also include recyclable and compostable solutions. When looking at the reusable food packaging landscape, there are three significant factors we need to consider: consumer education, regulatory developments, and health and safety.

Related:Making Sustainable, Circular Packaging a Profitable Reality

There are home reuse disposable items currently available that are dishwasher safe with a recyclable end of use. Consumers are simply not aware that a container they are using could be dishwasher safe and can withstand multiple uses. 

Furthermore, the current state of US food packaging laws is complex and involves many different regulatory bodies. Laws can vary significantly from one jurisdiction to another. We are seeing individual states, and their municipalities, increasingly develop a patchwork of regulations that are not aligned with one another. For instance, there are inconsistencies across states on what the definition of “recyclable” means, and labeling requirements are leading to incompatible laws across states.  

For reusable packaging initiatives to be truly successful on a broader scale, there needs to be an infrastructure in place to support reusable programs and legislative alignment.

The third area that needs to be explored further is health and safety factors, such as contamination and sanitary quality. This is especially important when you consider reusable to-go foodservice packaging and how it will be collected, washed, and sanitized providing consumers peace of mind.

Will it not matter for a while until Gen Z buys more through foodservice (income vs convenience)?

Halstead: Determining the role of reusables as viable broad-based solution for the foodservice industry will be a primary focus in the coming years, especially as sustainability is integral in moving towards a more circular economy and achieving meaningful outcomes.

The food packaging industry also continues to face a sustainability dilemma: balancing eco-friendly practices with cost concerns. Recycled materials, while environmentally sound, often cost more than less sustainable options. This price difference can deter the full adoption of eco-friendly packaging, forcing companies to weigh environmental impact against financial viability. However, the hope is that increased interest in sustainable packaging may drive investment and innovation, helping to reconcile sustainability with affordability.

It’s important to note that Gen Z is a premium target for reusables because colleges and universities are leading pilot programs on campuses that will enable incoming students to trial these initiatives and help to uncover positives as well as challenges.