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Avery Dennison > Blogs > The Cost Parity Question in Sustainable Packaging

By Nathan Zhou, Sustainability Program Manager, Avery Dennison APAC

Published on 26 February 2025

For years, brands across the food, beverage, homecare, personal care, and beauty sectors have battled a persistent paradox in packaging. The challenge? Striking the right balance between sustainability, shelf appeal, and cost-effectiveness. While the call for innovation in sustainable practices has reached a crescendo, one truth remains immutable—cost cannot be ignored.

Sustainability has transformed from being a mere checkbox in corporate strategies into an essential metric of progress. According to our recent brand survey spanning 102 companies, cost parity remains the most critical factor in sustainable packaging. Brands prioritize reducing plastic use and highlighting sustainability in their storytelling. Yet, there is hesitation when it comes to adopting eco-friendly solutions if costs rise above conventional packaging.

Pressure-Sensitive Labels (PSLs) exemplify how material innovation can contribute to reducing total packaging costs. When viewed not in isolation but as part of a broader operational ecosystem, PSLs offer significant long-term advantages. They transcend being a mere packaging component and bring measurable impact to operational efficiency, branding, and sustainability efforts.

Often, packaging cost discussions focus narrowly on material price. However, total applied cost introduces a more holistic approach. This metric refers to the combined expense of material cost, operational performance, and sustainability-related benefits.

For example, when PSLs reduce downtime or enable faster production speeds (due to simplified application processes), they bolster operational efficiencies. Similarly, PSLs’ advanced features—such as wash-off adhesives and thinner constructions—support recyclability and reduce waste, helping brands achieve their sustainability goals without incurring heavy losses in eco-compliance-related adjustments.

Our survey indicates that 97% of brands view PSLs in a positive or neutral light—recognizing their compatibility with sustainability goals and recyclability frameworks.

Beyond operational savings, PSLs are changing the visual and functional narrative of product packaging. Their premium appearance elevates brand visibility on crowded retail shelves, drawing customer attention and enhancing consumer perception. This premiumization leads to higher product sales, which offset initial packaging adjustments.

For instance, customizable PSL designs enable aesthetic innovation while maintaining substrate compatibility. Consider how in food, beverage, or even personal care and beauty products, sleek, film-based PSLs deliver upscale branding without compromising recyclability—a vital feature as sustainability-conscious consumers increasingly scrutinize packaging.

Adopting sustainable packaging isn't just about immediate financial gains. It's about positioning your brand to thrive in an increasingly eco-conscious marketplace. A global shift towards regulating waste and promoting circular economies—evident in frameworks like the EU’s Packaging and Packaging Waste Regulation—is underway. Future compliance will depend on building sustainable practices into packaging strategies now, especially for international players exporting to regulated markets.

PSLs align seamlessly with these future-forward goals. Their lighter designs facilitate plastic reduction, a pressing priority among survey participants across most regions. By choosing PSLs, brands can meet both regulatory and marketing demands for a greener image.

Here’s how PSLs help brands balance cost and sustainability:

1. Operational Efficiency

PSLs reduce manufacturing complexities due to advanced application methods, improving overall production time and costs.

2. Lower Environmental Impact

By using thinner materials and wash-off adhesives, PSLs reduce waste and facilitate better recyclability for Glass, PET and HDPE containers.

3. Premium Shelf Appeal

Offering a high-end feel and better design customizability, PSLs can drive higher sales.

4. Future-Proofing Your Brand

Gradual integration of PSLs ensures preparedness for evolving regulatory frameworks and establishes a proactive sustainability narrative.

Brands have raised legitimate concerns about balancing eco-friendlier packaging with cost parity and operational scalability. However, addressing these requires a mindset shift towards assessing long-term total applied costs rather than short-term material expenditure alone.

Pressure-Sensitive Labels are a strong example of innovations that cater to this dual demand. By rethinking packaging strategies in terms of operational life cycle, recyclability, and consumer engagement, brands will uncover untapped areas where PSLs offer clear advantages.

If you're ready to explore how PSLs can transform your packaging strategy while aligning sustainability goals with cost effectiveness, connect with one of Avery Dennison’s specialists today. Together, we'll help you achieve cost parity that empowers both your business and the environment.

About the author

Nathan Zhou is our Sustainability Program Manager at Avery Dennison Asia Pacific, leading the way in implementing our GHG reduction strategy to reach our 2030 sustainability goals. His role involves spearheading the company's decarbonisation efforts, with a special focus on cutting down scope 3 emissions to speed up our target achievement across the APAC region. Nathan brings a wealth of expertise in GHG accounting, product carbon footprint analysis, setting SBTi carbon targets, and reporting to CDP.

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