A few lines above in the man page it hints the variable ZIPOPT can be used to change any options except -i and -x. See if that works for you. Exporting a password means it remains in memory for at least the duration of the process and can be read. Bzip2, gzip and tar don't deal with passwords and it depends on how it's processed, the amount of files, size of the archive, level of protection needed and cross-platform compatibility what you should choose.
Since this isn't a security issue I'll move it to say Linux - General.
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