Do consumers pay a premium for environmentally friendly food packaging?
Do consumers pay a premium for environmentally friendly food packaging? A business opportunity for off-premises foodservice industry
Food packaging waste has become a key concern amid the growing issue of packaging waste from off-premises consumption (i.e., food consumed outside the restaurant through takeout, delivery, or drive-thru). As food consumption shifts increasingly from on-premises to off-premises options, packaging waste continues to present an ongoing environmental challenge. Conventional packaging such as disposable materials like single-use plastics accounts for 42% of global packaging waste, contributing significantly to environmental degradation. In contrast, environmentally friendly options, such as sustainable and reusable packaging, offer alternatives that help reduce environmental impact.
Single-use plastics (Source: smcsustainability.org)
Together with the growth in off-premises food consumption, concern over packaging waste is growing, with calls for environmentally friendly consumer choices. This is a call to action for scholars, businesses, consumers, and policymakers to “bend the trend” toward a healthier planet by lessening unsustainable activities that include food packaging waste.
A recent study published in the International Journal of Hospitality Management revealed that consumers would pay more for food if the packaging was environmentally friendly such sustainable and re-usable. Led by Associate Professor Muhammet Kesgin from the Rochester Institute of Technology, an international team from the UK and France, this research investigates how pro-environmental self-identity and moral judgment influence consumer behaviour in encouraging the adoption of sustainable and reusable packaging options over traditional single-use plastics.
Sustainable Food packaging (Source: smcsustainability.org)
KEY FINDINGS:
• Environmentally Friendly Packaging Sells Premium: In the USA, reusable and sustainable food packaging significantly enhance the willingness to pay more in comparison with conventional packaging. In the UK, this increase has been observed for only reusable sustainable food packaging.
Reusable food packaging (Source: bruinsmaunited.com)
• A Sense of Self and Morality Matter: In opting for green packaging, it is the consumers’ pro-environmental self-identity and moral beliefs that play a critical role in their decisions.
• Legacy Motives Influence Decisions: These are supported by the so-called legacy motives, including making a positive environmental impact or improving one’s reputation, also driving consumers’ willingness to pay a premium for sustainable packaging options.
IMPLICATIONS FOR THE FOOD SERVICE INDUSTRY:
• Leverage Reusable Packaging: Foodservice operators can turn this to their advantage by offering and promoting environmentally friendly packaging that aligns with consumers’ desire to make responsible choices.
• Effective Communication: In their marketing efforts, businesses can emphasize the environmental and ethical benefits of environmentally friendly packaging to encourage consumers to pay a premium. Crafting messages that resonate with consumers’ values and sense of responsibility will be particularly effective.
• Emphasize Long-Term Impact: The long-term benefits of environmentally friendly packaging are what really speak to the legacy motives of consumers-people who want to go green and, by doing so, earn a better reputation. By underlining how their choices will result in a healthier planet for future generations, businesses can encourage premium pricing from consumers who know they’re leaving a meaningful, lasting legacy.
Lead author Associate Professor Muhammet Kesgin from Rochester Institute of Technology (USA) said, “Our research demonstrates that people not only recognize the environmental consequences of the products they buy, but are willing to pay for greener options. This creates a great opportunity for the foodservice industry to enact and communicate environmentally friendly packaging, where value will be gained by firms and consumers alike”.
ARTICLE INFORMATION: Kesgin, M., Can, A.S., Lee, M., Li, D., & Dylan, S. (2025) Legacy matters: Encouraging willingness to pay a premium for environmentally friendly off-premises food packaging. International Journal of Hospitality Management, 126, 104037. https://doi.org/10.1016/j.ijhm.2024.104037
FOR CONTACT: Muhammet Kesgin via mkesgin@saunders.rit.edu