Packaging sustainability is losing its appeal among U.S. consumers, according to David Feber, leader of the packaging practice at McKinsey & Co. Feber shared this insight during the Packaging Conference held in Austin, Texas, in March 2026. He pointed out that while sustainability in packaging was once a key driver of consumer decision-making, recent trends indicate that U.S. consumers are becoming less focused on this issue. This shift could significantly impact the future direction of the packaging industry, as sustainability, which was previously at the forefront of packaging innovation, becomes less of a priority for the average consumer.

Feber emphasized that although sustainability was once a key consideration for many consumers, other factors such as cost, convenience, and product functionality are now taking precedence. Consumers are increasingly seeking packaging solutions that are practical and affordable, rather than necessarily sustainable. This trend is likely to influence packaging companies as they adjust to a changing consumer landscape where environmental considerations are no longer as dominant in purchasing decisions.

“Consumers are overwhelmed with sustainability messaging, and while it remains important to certain segments, it is no longer a primary factor driving purchasing behavior for the general population,” Feber said. “The increasing emphasis on price and convenience has overshadowed the desire for eco-friendly packaging solutions, and that shift has been accelerating in recent years.”

Feber also pointed out that the global economic climate, which has been marked by inflation, supply chain challenges, and rising material costs, has made consumers more price-sensitive. As a result, many are less willing to pay a premium for products packaged in sustainable materials. Instead, they are more focused on the practicality of the packaging, such as whether it is easy to use and dispose of, and whether it meets their personal needs.

Challenges for the Packaging Industry: This changing consumer mindset presents a challenge for companies within the packaging industry that have heavily invested in developing eco-friendly materials and solutions. While many brands and manufacturers have committed to sustainability goals, such as reducing plastic use or increasing recyclability, these efforts may no longer resonate with a large portion of consumers. As consumer interest in sustainability wanes, companies may need to reconsider their packaging strategies to align with the shifting priorities of their target audiences.

Feber also noted that although sustainability remains a key focus for certain sectors and environmentally conscious consumers, the broader market is not as driven by green initiatives as it once was. Many companies that have embraced sustainability as a core part of their brand identity may find that this focus no longer differentiates them in a competitive marketplace. Instead, other attributes such as convenience, product quality, and price are now playing a more prominent role in shaping consumer behavior.

Despite the apparent decline in consumer demand for sustainable packaging, Feber stressed that the packaging industry should continue its efforts toward sustainability, even if it becomes less of a consumer-driven trend. “Regulations around sustainability are still moving forward, and businesses will need to comply with increasingly strict environmental policies,” he said. “In addition, the need for corporate social responsibility and reducing environmental footprints remains important, especially for global brands looking to maintain a positive reputation in the market.”

Shifting Focus to Circular Economy: According to Feber, the packaging industry’s future focus may need to shift away from solely relying on consumer demand for sustainability to instead building a more comprehensive approach that includes collaboration with policymakers, investment in recycling infrastructure, and advancing the circular economy. He believes that adopting a circular approach—where materials are reused, recycled, and repurposed—could be the key to driving long-term sustainability in the packaging sector.

“We are entering an era where the focus will be less on what consumers want in terms of eco-friendly packaging and more on how the packaging industry can operate within a circular economy,” Feber explained. “By developing new business models that prioritize the reuse and recycling of materials, companies can create packaging solutions that meet both regulatory requirements and long-term sustainability goals.”

Conclusion: While packaging sustainability may not be as important to consumers as it once was, it remains a critical issue for businesses and regulators. The shift in consumer priorities presents a challenge for the packaging industry, but it also offers an opportunity to innovate and adapt to changing market conditions. The packaging industry must strike a balance between meeting the demand for affordable, functional packaging solutions while still addressing the global need for sustainable practices. By focusing on circular economy principles and working closely with policymakers, the packaging industry can continue to move toward a more sustainable future, even as consumer preferences evolve.