Some consumers will pay a premium for recycled material

Some consumers will pay a premium for recycled material

by Tom Karst, Feb 18, 2020

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A slight majority of consumers polled by The Packer’s Fresh Trends 2020 survey say they would pay a premium for fresh produce packed in containers made from recycled materials.

Middle-income and younger consumers were most likely to favor paying a premium for produce in containers made from recycled materials, according to Fresh Trends.

The survey of nearly 1,300 consumers asked “Would you pay more for fruits/vegetables packed in containers made from recycled materials?”

Overall, 55% of consumers said they would pay more for produce packed in containers made from recycled materials, with 45% saying they would not.

The income group most receptive to paying more for produce packed in containers made from recycled materials was consumers in the $50,000 to $100,000 range; in that group, 58% of consumers answered “yes” to the question. 

On the other hand, only 47% of consumers making over $100,000 answered “yes,” the lowest of any income group.

By gender, 55% of both men and women said they would pay more for produce in packaging made from recycled materials.

There was a significant disparity in the answers provided by consumers with kids compared to those without kids.

Fresh Trends research found that, for consumers with kids, 70% said would pay more for fresh produce packed in containers made from recycled materials. By way of contrast, just 47% of consumers with no kids said they would pay more for the product.

At 58%, consumers in the Northeast U.S. were most likely to pay more for fresh produce in containers made from recycled materials. That compares with just 50% for Western U.S. consumers, according to Fresh Trends research, 54% for the Midwest and 56% for the South.

Youth and ethnicity

Fresh Trends research found young consumers are most receptive to paying more for fresh produce in recycled packaging. 

For consumers 18-39 years old, a whopping 73% said they would pay a premium for the product, compared with 61% of consumers 40-49 years old, 44% of those 50-58, and just 36% for those over 59.

By ethnic background, Fresh Trends found that Hispanic consumers appear most willing to pay a premium for fresh produce packed in containers made from recycled materials. 

The survey found 74% of Hispanics said they would pay a premium, compared with 70% of blacks/African Americans, 62% of Asians and 50% of whites/Caucasians.

Price premium 

Of those who said they would pay a premium, Fresh Trends research found 60% would pay a premium up to 25%, while 24% would pay a premium of 26% to 50%, 12% would pay a premium of 51% to 75%, and 4% would pay a premium of 76% to 100%.

Younger consumers appear most willing to pay a higher premium, according to the research. 

For consumers 18-39, Fresh Trends found that 17% said would pay a premium of 51% to 75%, compared with 11% in the 40-49 age group, 6% of those 50-58, and just 2% of those over 59. 
 

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