I loathe packing peanuts. Because of the low air pressure up here, they explode out of boxes and then get insanely static clingy in the winter. I guess the static cling is handy when I try to fish them out from behind furniture. Then I have to scoop them and wipe my hand with a dryer sheet to get them to go back into a bag. I've wandered around the house with peanuts clinging to my rear, trailing a kitty trying to swat them off - much to the amusement of my teenager. Grr.
I also love Mad Oils packaging for supplies: simple, effective, and samples that I can actually use!
For shipping items (as a consumer), I think your packaging is an extension of your brand. If your M&P is adorable and colorful, go for some tissue paper. Check out
https://www.youtube.com/watch?v=x_pTWkBNV00 for a nice example of packaging that matches branding.