Aug. 7, 2008 - Packaging firms are feeling the squeeze as retailers up their expectations for more recyclable, resource-efficient product packaging, according to a new industry report.

The report, by Business Insights, finds retailers are using sustainable packaging not only to appeal to green-minded consumers but to cut costs as well.

"Retailers such as Wal-Mart have embraced ethical packaging initiatives not only because they enhance their ethical profile but also because many greener packaging technologies, such as lightweight packaging, bring with them cost benefits," the study's authors note.

Resource-efficient packaging designs typically help retailers cut costs by saving space in delivery vehicles and on store shelves.

Wal-Mart, for example, stocks only concentrated liquid detergents and has introduced a new-style milk container that packs more product into refrigerated cases. (Wal-Mart has pledged to eliminate all private-label packaging waste by 2010, and to send zero packaging waste to landfill by 2025.)

More that half of packaging execs (53.5%) says recyclable packaging will be significantly important or the most important ethical packaging innovation over the next five years, according to the report. Just over a third (37.5%) believe reduced packaging will be the most important.

Packaging from natural sources is another key trend, along with biodegradable, lightweight, and packaging made from recycled sources. The report features a special section rating the pros and cons of each approach.

Business Insight's Trends in Ethical and Sustainable Packaging: Innovation by Product Category is available for purchase here.