Best Eco-Friendly Packaging and Tips for Small Businesses

Written by Catriona Fuller | 29 October 2025 | 10-minute read

Using eco-friendly packaging is a strategic move for small businesses aiming to boost their green credentials, attract ethically-minded consumers, and reduce environmental impact. With government targets and consumer preferences shifting towards sustainability, choosing the right packaging is both a moral and business imperative.

Why Use Sustainable Packaging?

Environmental Impact

The planet’s finite resources require businesses to adopt recyclable or naturally renewable materials, significantly lowering waste and pollution from single-use packaging.

Net Zero Compliance

The UK aims for net zero carbon emissions by 2050. Small businesses must review and adapt their packaging practices to align with these targets and future regulations.

Consumer Demand

According to Deloitte’s 2024 report:

• 37% of consumers prioritize brands with sustainable practices.
• 61% have reduced single-use plastic consumption.
• 24% are willing to pay more for sustainable products.
  Young consumers (18–24) particularly boycott non-sustainable brands (45%).

Brand Reputation

Eco-friendly packaging reinforces a positive brand identity, demonstrating commitment to environmental values which builds customer trust and loyalty.

Cost Savings

Cutting waste and energy use reduces costs. Also, with taxes like the plastic packaging tax rising, recycled plastic grows more expensive, incentivizing alternatives.

Supply Chain Preparedness

Upcoming ESG (Environmental, Social, Governance) regulations affecting large companies will cascade to smaller suppliers, making sustainability crucial for business continuity.

Tips for Finding Sustainable Packaging

Materials to Prioritize

• Reusable, biodegradable, or compostable materials: paper, cardboard, glass, metal.
• Plant-based options: sugarcane, bamboo, hemp—renewable and low-impact.
• Plantable packaging: seed paper that customers can compost and grow flowers or herbs.
• Avoid harmful plastics like PVC, polystyrene, and low-density polyethylene.

Practical Advice

• Use the smallest packaging feasible to optimize shipping efficiency.
• Source from ethical, environmentally responsible suppliers.
• Obtain samples to test materials before wide implementation.
• Gradually transition to new packaging to monitor impact.
• Review packaging design to eliminate harmful additives and improve recyclability.
• Introduce bulk return schemes for reusable containers or boxes.
• Avoid “greenwashing” by transparently communicating your sustainability progress.

Customer Engagement

Gather feedback through focus groups and surveys to refine packaging solutions and strengthen your sustainability narrative.

Sustainable Packaging Solutions by Sector

Food and Hospitality

• Compostable food containers.
• Glass jars for sauces (returnable/reusable).
• Paper bags and straws instead of plastic alternatives.
• Avoid non-recyclable or chemically harmful materials.

Note: Food safety remains paramount; follow guidelines such as those from the Food Standards Agency, which is reviewing bamboo-plastic composites.

Online Retail

• Recycled cardboard boxes.
• Plastic-free tape and padded envelopes.
• Compostable or dissolvable packing peanuts.
• Paper bubble wrap and corrugated cardboard.

Consider reusable packaging: glass jars, metal tins, fabric bags.

Example: Y.O.U Underwear uses Fairtrade organic cotton products packaged in reusable organic cotton bags. Following a £25,000 sustainability grant, they aim to establish a circular recycling program.

Summary

Small businesses stepping into sustainability can start with smart, eco-friendly packaging choices. This commitment not only aligns with environmental goals but responds directly to evolving consumer expectations and legislation. Practical steps, reliable suppliers, and customer engagement will pave the way for a greener, more resilient business.

References:

• Deloitte, The Sustainable Consumer Report (2024)
• Federation of Small Businesses (FSB) Net Zero Survey (2025)
• UK Government Net Zero by 2050 policies
• Food Standards Agency guidance on packaging safety

For comprehensive insights and supplier recommendations, visit our Knowledge Centre on Sustainable Packaging.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.