Consumers Seeking 'Good' Gift Sets with Reduced Excess Packaging as Holiday Waste Decreases

Sales of 'Meaning Out' Related Products Up 171.4% in 3 Years
"Every Year, Problematic Holiday Waste... Consumers Feel Relieved"
Few Cases of 'Excessive Packaging' Detected Compared to Waste Volume
Retail Industry Introduces Eco-Friendly Products... Will Sustainable Consumption Culture Take Root?

On the 22nd of last month, customers were selecting gift sets at a department store in Seoul. The photo is not related to the specific content of the article. [Image source=Yonhap News]

[Asia Economy Reporter Kim Jung-wan] #. Yang, a worker in his 20s preparing to return home for the Chuseok holiday, purchased eco-friendly products as Chuseok gifts this year. After receiving holiday gifts every year, he felt burdened by the excessive packaging containers that resulted in a lot of waste. Yang said, "Excessive waste can be a burden to each other," adding, "I believe that even simple paper packaging can convey the sentiment."

As Chuseok approaches, more consumers are seeking 'good' gift sets that consider the environment. This is regarded as part of 'value consumption,' based on personal values such as reducing plastic or using only paper packaging when purchasing gift sets.

According to an analysis of transaction data over the past three years by Lotte Members' research platform Lime, sales of products related to 'meaning out'?expressing one's beliefs and values through consumption activities?increased by 171.4% in the first quarter of 2022 compared to the first quarter of 2019.

Among consumers who prioritize value consumption, there is a concern about the numerous plastic containers and paper waste generated even when purchasing just one traditional Chuseok gift set. In fact, the Ministry of Environment has pointed out that 35% of household waste consists of packaging waste. Kim, a housewife in her 40s, said, "It’s troublesome every holiday, and since holiday waste is a recurring problem every year, I try to avoid it."

The Ministry of Environment has pointed out that 35% of household waste consists of packaging waste.

The government conducts crackdowns on excessive packaging before and after holidays every year, but there are criticisms that the detection rate is low and the standards are ambiguous. This year, the Ministry of Environment and others launched a nationwide intensive crackdown on excessive packaging starting from August 29, ahead of the Chuseok holiday. Violations of packaging standards can result in fines of up to 3 million KRW.

The actual number of violations detected is very low compared to consumers’ perceived amount of waste generation. During last year’s Chuseok, 11,417 products were inspected, and 12,049 products during this year’s Lunar New Year, but only 77 and 55 cases were found to be in violation, respectively, accounting for less than 1% of the total. Among the detected products, less than half were fined.

The packaging standards include packaging space ratio and number of packaging layers, and as long as the specifications are met, even if a lot of waste is generated, it is not legally classified as excessive packaging. This inspection focuses on gift sets that see concentrated sales during the holiday period among items subject to product packaging regulations, such as △confectionery △alcoholic beverages △cosmetics △toys and dolls △primary food products (composite products). It checks compliance with △packaging space ratio of 10-35% or less per product △and packaging layers within two layers.

The distribution industry is introducing eco-friendly products that do not use or reduce the use of plastic.

The distribution industry is releasing products for eco-friendly gift set consumers one after another, drawing attention to whether eco-friendly consumption culture will be activated. Galleria Department Store introduced the 'No Plastic Package' gift set, which completely replaces plastic packaging materials with paper. CJ CheilJedang also launched the 'Save Earth Choice' gift set made with 100% paper packaging, the 'Spam Label Free' gift set without vinyl labels, and the 'CJ Myeongga Kim' gift set that does not use plastic trays.

Meanwhile, the Ministry of Environment emphasized waste reduction through curbing packaging waste generation. Ahn Byung-ok, director of the Korea Environment Corporation, said, "Excessive packaging of gift sets not only wastes resources but also makes it more difficult to manage the increasing waste. To realize a circular economy supporting carbon neutrality by 2050, reducing waste at the generation stage is essential. Therefore, the corporation will continue to actively work to improve corporate packaging and establish a consumer culture that chooses eco-friendly products to curb packaging waste generation."

This content was produced with the assistance of AI translation services.