SMEs’ Eco-Friendly Food Packaging Critical Factors: An Empirical Study

Abstract

Abstract. SMEs are economic driver that need to have a more sustainable business development strategy. Issues arise in food packaging which has a direct impact on environmental damage and pollution. In addition, food packaging is one of the factors of business competitiveness and attractiveness for customers. This study aims to obtain a direct picture from SMEs in the field about whether there is awareness to use eco-friendly packaging, what is their current condition of food packaging, and what they need for the next development strategy. The method used in this study is a qualitative approach using a survey with open-ended questions on 49 SMEs. This study uses a coding approach, content and semantic analysis to explore the study. The findings obtained from this study are that there is awareness and knowledge about the importance of using environmentally friendly products. For the perpetrators, the current conditions are not yet ideal for total use, due to business considerations, access to materials, and high prices. In the future, SMEs actors will focus on their packaging development strategy on several aspects, namely material, design, and cost. SMEs need to increase their skills and knowledge regarding eco-friendly packaging and support from relevant stakeholders in order to become a sustainable business.