This article discusses the complex interactions between eco-friendly packaging, consumer perception, and willingness to pay in the context of green marketing carried out by Small and Medium-Sized Enterprises (SMEs) in Indonesia, especially food producers. The increasing consumer awareness of eco-friendly packaged products, which is a small part of the 12th sustainable development goal (SDGs 12), shows a response to the direction of public consumption of products that not only offer individual benefits but also reflect environmental and social responsibility. This study also highlights the important role of communication between producers and consumers in fostering environmental awareness that influences consumer’s perception and willingness to pay. Eco-friendly packaging is identified as an important element in increasing consumer awareness that creates a desire to participate and a sense of responsibility towards the environment. Small and medium food businesses that adopt this practice will benefit through increased market growth, competitor competitiveness, and consumer satisfaction. This article suggests future research to further and in-depth research that explores the long-term impact of this influence on consumers’ willingness to pay.