"No Packaging for Holiday Gifts? ... It's 'Eco-Friendly'"

Expansion of Eco-Friendly Packaging in the Distribution Industry
Driven by Consumer Value Consumption and Accelerated ESG Efforts

#. Yang Mo (30), a third-year office worker in Seoul, purchased only gift sets with all-paper packaging ahead of this year's Lunar New Year. He felt that gift sets with excessive packaging every holiday were wasteful. He said, "Since last Chuseok, I have been avoiding overly packaged gift sets and mainly buying eco-friendly gifts with paper packaging. The contents are not large, but it’s unpleasant to spend a long time unwrapping, and the amount of trash generated is burdensome."

Consumers seeking 'eco-friendly' gift sets for this Lunar New Year are increasing. This is due to the trend of value consumption that emphasizes health and the environment by reducing excessive packaging and adopting eco-friendly packaging materials. As consumer interest in eco-friendliness rises and ESG (Environmental, Social, and Governance) management accelerates, not only packaging materials but also food products produced in an eco-friendly way are appearing as Lunar New Year gift sets.

"Only trash after unwrapping"... Distribution industry takes steps to reduce excessive packaging

According to the distribution industry on the 22nd, major department stores have introduced eco-friendly holiday gift packages instead of flashy packaging ahead of this year's Lunar New Year. Shinsegae Department Store improved 85% of its gift sets to eco-friendly packages and embarked on a 'zero waste' initiative. The 100% sugarcane hamper boxes used by Shinsegae Department Store decompose in soil by microorganisms in less than three months. They also expanded the paper fruit baskets introduced last Chuseok to all stores. The eco-friendly cooling bags made from recycled PET bottles were expanded from 75% to all products.

Lotte Department Store used paper pulp for nut gift sets following fruits and seafood and minimized the use of auxiliary materials. The 'cooling bag return' promotion introduced last Chuseok was also expanded to meat and seafood gift sets. Hyundai Department Store prepared 25,000 fruit gift sets with 'eco-friendly paper packaging' by switching gift set packaging materials to paper, and wine packaging was also replaced with recyclable paper materials. For cooling bags used in holiday gift set packaging, eco-friendly reusable bags made from recycled plastic are used.

Large supermarkets also joined the eco-friendly packaging trend. Emart fully introduced the 'Styrofoam Zero' strategy for meat and seafood gift sets this Lunar New Year. About 40% of refrigerated meat gift sets and about 20% of seafood gift sets replaced Styrofoam packaging with paper materials. Homeplus launched ESG sets using eco-friendly paper materials instead of plastic and packaged premium cooking oil, commonly used in holiday foods, in recyclable eco-friendly paper. Lotte Mart eliminated paper flyers for the first time in 25 years and replaced them with mobile alternatives. They also strengthened eco-friendly store implementation by installing recycling bins and electric vehicle charging stations in some stores.

'Value Consumption' Leads to Eco-Friendly Food Products

On the 6th, Lunar New Year gift sets were displayed at the Lotte Department Store main branch in Jung-gu, Seoul.
[Photo by Kim Hyun-min]

This change in the distribution industry is analyzed to be influenced by increased consumer interest in eco-friendliness. According to Lotte Members' research platform Lime's analysis of transaction data, sales of products related to 'Meaning Out,' where consumers express their beliefs and values through consumption activities, increased by 171.4% in the first quarter of 2022 compared to the first quarter of 2019.

Notably, it is significant that not only packaging materials but also food products produced in an eco-friendly way are offered as Lunar New Year gift sets. Consumers who purchase according to values consider not only packaging but also eco-friendly production methods when buying products.

A representative example is Lotte Department Store's 'Low Carbon Hanwoo Gift Set,' which features 65% less carbon emissions than regular Hanwoo beef. Galleria Department Store's 'Clean Eating Wine' gift set is also a product that realizes eco-friendly values from grape cultivation to the brewing process. It has zero carbon emissions, uses no animal ingredients, and is organically certified.

Meanwhile, the government and local governments have also begun cracking down on excessive packaging. From the 9th to the 27th, Seoul City formed a joint inspection team with 25 district offices and specialized agencies to conduct intensive inspections for three weeks. The inspection targets are △confectionery △alcohol △cosmetics △miscellaneous goods △composite products. If excessive packaging is detected by exceeding the packaging space ratio (10-35% depending on the item) and packaging frequency limits, a fine of up to 3 million KRW will be imposed. Additionally, if synthetic resin film or sheets are used to repackage products during sales, a fine of up to 3 million KRW will be imposed.