UK consumers are showing a growing preference for biodegradable packaging in bottled water, according to a new study examining purchasing behaviour. Researchers found that while consumers are willing to pay more for eco-friendly alternatives, the price increase may not be enough to cover the higher costs of biodegradable packaging compared to traditional plastic bottles. The findings were published in the Journal of Environmental Management.
The study assessed how consumers value different factors when purchasing bottled water, including packaging type, country of origin, and charitable contributions. It found that biodegradable packaging was the most influential factor in purchasing decisions, surpassing both domestic origin and donations to environmental or social charities. However, the added cost of biodegradable materials remains a challenge for manufacturers, as consumer willingness to pay does not fully offset production expenses.
Professor Matthew Gorton from Corvinus University and the National Innovation Centre for Rural Enterprise, and colleagues, investigated how the type of packaging (biodegradable plastic or non-biodegradable PET), a charitable donation being made alongside purchase, origin (local or foreign), and price impact on UK consumers’ willingness to pay for bottled water. They also examined the influence of consumers’ levels of nature-relatedness and green consumption values on purchase.
They found UK consumers are willing to pay more for water in biodegradable plastic bottles compared to non-biodegradable PET – up to 49p extra. “While consumers are willing to pay more for biodegradable packaging, at present the costs of biodegradable plastic packaging are similar to, or greater than, the average willingness to pay identified in the study,” says Professor Gorton.
“It is difficult for manufacturers to pass on the full additional cost of biodegradable plastics to consumers when switching from PET containers,” adds fellow researcher and associate professor Áron Török from Corvinus University.
Researchers also found that environmental consciousness played a significant role in purchasing decisions. As consumers’ levels of nature-relatedness increase, biodegradable packaging becomes more preferable than non-biodegradable. But higher levels of green consumption values, related to environmental concern when buying, are associated with opting out of purchasing bottled water altogether.
Another key finding was the role of charitable donations in influencing consumer preferences. Consumers were also more willing to pay for bottled water if a charitable donation was being made with their purchase. While some brands promote sustainability by pledging a percentage of sales to environmental or social causes, this was found to be less important than packaging material. Consumers were generally more willing to pay extra for biodegradable bottles than for water brands that donate to charities. This suggests that direct sustainability initiatives may be more effective in influencing purchasing behaviour than indirect contributions to environmental or social programmes.
Despite the preference for biodegradable packaging, the study also revealed that a growing number of consumers are opting not to purchase bottled water at all. Those with strong green consumption values were more likely to avoid bottled water entirely rather than choosing a more sustainable alternative. This suggests that companies relying on biodegradable packaging to retain environmentally conscious consumers may still face declining demand in this segment of the market.
While consumers tend to prefer local products and will pay extra for them, the origin of water had a relatively modest effect on willingness to pay. Therefore, companies must do more than just emphasise the “localness” of their product.
