MARKET RESEARCH: THE SUSTAINABILITY IMPERATIVE

COMPELLING MARKET DATA

McKINSEY & COMPANY FINDINGS

McKinsey & Company's survey of U.S. consumers reveals five key findings about sustainable packaging:

• Consumers rank overall sustainability relatively high as a buying criterion among end-use factors

• More than half of U.S. consumers are highly concerned about the environmental impact of packaging in general

• Consumers are willing to pay more for green, but would also buy additional sustainably-packaged products if more were available and better labeled

• Consumers are almost equally interested in recyclable/recycled plastic packaging and fiber-based substitutes

• COVID-19 has heightened consumer sensitivity to hygiene and food safety, which are now strong drivers alongside sustainability

GENERATION Z: THE SUSTAINABILITY GENERATION

Generation Z (born 1997 onward) represents a seismic shift in consumer behavior:

• 82% express concern about the planet's environmental state

• 72% have proactively altered their behavior to reduce environmental impact

• Over 70% influence family decisions on buying furniture, household goods, and food and beverages

• Currently wield $143 billion in purchasing power, expected to grow dramatically

• Will make up 30% of the U.S. workforce by 2030

According to IBM Institute for Business Value, 74% of Gen Zers spend their free time online, making them highly connected to global issues including environmental challenges.

PREMIUM PRICING OPPORTUNITY

Research consistently shows consumers will pay more for sustainable products:

• 73% of Gen Z expects retailers and brands to become more sustainable and are willing to pay more for sustainable products

• McKinsey research shows that when it comes to packaging, consumers "would also buy additional sustainably-packaged products if more of them were available"

• The "price premium" for sustainable packaging ranges from 5-25% depending on product category

• Customers seeking sustainable options report less price sensitivity for products with clear environmental benefits

Source: Wharton

THE COMPETITIVE LANDSCAPE

CURRENT MARKET DYNAMICS

Market Opportunity

The global plastic production reached a staggering 400.3 million metric tons in 2022 with continued growth projected

Regulatory Pressure

Increasing global legislation against single-use plastics and microplastic pollution

Corporate Commitments

Major retailers and brands are making significant sustainability commitments, creating competitive pressure

Consumer Preference Shift

89% of consumers have changed their buying behaviors due to concerns about climate change

Innovation Urgency

First-movers in sustainability technology gain significant market advantage and consumer loyalty

Source: IBM, Kadence International

WHY BIO-ASSIMILATION MATTERS NOW

• Microplastic Crisis: By 2050, there could be more plastic in our oceans than fish

• Recycling Limitations: Less than 9% of all plastic waste is recycled globally

• Greenwashing Concerns: Consumers are increasingly skeptical of vague environmental claims

• Authentic Solutions: Bio-assimilation provides verifiable, measurable environmental benefits

STRATEGIC OPPORTUNITIES FOR RETAILERS

FIRST-MOVER ADVANTAGE

Retailers who adopt ECLIPSE™ technology gain:

Market differentiation

Through genuine environmental innovation

Regulatory protection

Against increasingly strict regulatory environments

Enhanced brand perception

Among environmentally conscious consumers

Positive media coverage

And stakeholder engagement

Industry leadership

Ability to shape industry standards around bio-assimilation

THE BOTTOM LINE

The business case for bio-assimilable plastics extends far beyond environmental benefits. By integrating ECLIPSE™ technology into your packaging strategy, you're not just reducing plastic waste—you're positioning your brand at the forefront of retail's sustainability revolution and capturing the loyalty of next-generation consumers.

Appendix: Sources

The following resources provide additional context

Market Growth and Opportunity:

The global sustainable packaging market was valued at $272.93 billion in 2023 and is expected to grow at a CAGR of 7.6% from 2024 to 2030 due to rising awareness about environmental impacts of traditional plastics and increasing regulatory pressure (Grand View Research, 2023).

Consumer Demand Driving Change:

McKinsey's 2023 global consumer survey covering 11,500 consumers found that compostable and plant-based packaging ranks high in consumer perception of sustainability across most countries, showing strong market demand for solutions like ECLIPSE™ (McKinsey, 2023).

Supply Chain Sustainability:

According to Deloitte's 2024 CxO Sustainability Report, 85% of organizations have increased sustainability investments in the past year, demonstrating the business priority of sustainability initiatives (Deloitte, 2024).

Regulatory Pressures:

EY reports that governments are setting plastic and waste reduction targets to meet their contributions to Sustainable Development Goals, creating both risks and opportunities for businesses (EY, 2023).

Generational Shifts in Consumer Behavior:

Research by First Insight and the Wharton Baker Retailing Center shows that 73% of Gen Z consumers are willing to pay more for sustainable products, compared to just 42% of Baby Boomers (First Insight, 2021).

Business Value of Circular Solutions:

PwC notes that circular economy thinking is helping businesses regain value, resulting in benefits to the bottom line and to society by looking across supply chains in new ways (PwC).

Biodegradation as End-of-Life Solution:

According to analysis in Nature Reviews Materials, bio-based plastics can have a lower carbon footprint and exhibit advantageous materials properties while offering biodegradation as an EOL scenario (Nature Reviews Materials).

Transformation of Business Models:

McKinsey research indicates there is substantial value-creation potential in capturing plastic waste and using existing technologies to process it to make new plastics and other chemicals (McKinsey, 2020).