Choices + Challenges for Sustainability-Focused Startups

Starting a small business in the United States (let alone leading it to long-term success) is far from a straightforward task. No matter the industry, competition is stiff, startup costs are high, funding can be hard to come by, time is precious, and regulations are constantly evolving. 

This is especially true for those in the food, beverage, and consumer packaged goods (CPG) spaces. More and more often, we’ve seen many of these businesses are also facing the added challenge of trying to build environmentally ‘sustainable’ business practices into the very foundation of their mission.  

There are a number of reasons for this. Not only does it improve the odds of securing funding from ‘sustainable’ and forward-looking consumers and investors, it’s also somewhat of a cultural prerequisite to success in 2025. Some could even argue it’s simply the right thing to do.  

But as a vendor collaborating with many of these same food, beverage and CPG startups, we’ve seen that the topic of sustainable packaging in particular can pose a major source of stress and confusion. Even for the most well-intentioned entrepreneurs, there are myriad myths about sustainability and consumer interest that can be dangerously easy to fall victim to. 

Beware Greenwashing & False Promises 

Without an extensive background or past career in waste management, climate science or bioresource engineering, most startup leaders are just as vulnerable to exploitative, deceptive, confusing marketing as the everyday consumer. And that’s saying something.  

According to NielsenIQ’s 2023 CPG sustainability report, “Part of the problem is the lack of a singular definition for ‘sustainable,’ both from brands’ and consumers’ perspectives... When asked what makes a brand sustainable, consumers’ responses widely varied and included mentions of packaging, responsible sourcing and renewable energy. Confusing or unavailable information was the third-largest barrier consumers reported that stopped them from adopting a more sustainable lifestyle, behind cost and lack of sustainable product availability.” 

When a small business or startup builds their supplier networks with their environmental impact in mind, this confusion is caused by the overuse of terms like “recycled” and “recyclable”, “compostable”, “circular”, “net zero”, “carbon-offset”, “eco-friendly”, “carbon-neutral” and many more. Just like any other industry in its early stages of growth, there is a learning curve that comes with understanding the landscape, and in our opinion, there just aren’t enough vendors on the market -- in packaging or otherwise -- who are focused on helping shorten this curve at the potential sacrifice of a quick sale.  

At PFP, empowering the public through industry education of the ‘sustainable’ packaging space is one of our top priorities.  

Think Marketability First 

Millennial and Gen Z-aged consumers (who are now in the 13-28 age range), will continue to move the needle on demand for Earth-friendly goods and services. And we can only expect the same or more from Gen Alpha in a few short years. 

According to a 2024 Deloitte survey, a third (~33%) of Gen Z individuals conduct independent research on a company’s environmental policies before buying products from them. 35% avoid buying fast fashion due to climate concerns, and 30% even avoid air travel when they can. Money talks, and successful startups listen. 

This pattern sends our industry a clear message that an investment in truly sustainable suppliers and practices is also an invaluable investment in marketing and brand reputation for the foreseeable future. Which can also attract some fantastic and loyal employees. Win-win-win! 

Our Role at PFP 

Official PFP customer or not, we’d love to be a part of your small businesses’ discussions around sustainable fiber packaging options and the specific design needs of your customers. 

A basic understanding of the consumer packaging and alternative fiber world, paired with access to current information about evolving regulation and consumer priorities, can make or break how your small business can market its investment in sustainability to its target customers.

Check back soon for updates on our all-new Resource Center, a collection of verified government and third-party resources!