Get involved in the discussion! Click here to comment on this story
Consumer trends in the food industry are often a driver for changes like new product lines and reformulations. But according to two recent reports, revamping packaging has a lot of promise for pleasing customers. And the benefits aren’t just for those buyers — there are numerous advantages for brand owners, too, like minimizing product loss and waste.
Consumer-driven packaging trends
L.E.K.’s annual Brand Owners Packaging Survey asked consumer packaged goods (CPG) representatives what packaging-related decisions they have made and plan to make in the near future. Overall, the survey found that 90% of brand owners believe packaging is important to their success, and 75% expect to spend more on packaging next year.
According to 22% of respondents, the top growth driver was the consumer’s desire for more convenience. In response to this trend, 57% of brand owners developed packaging that’s easier to open, 51% added more single-serve sizes, and 49% entered new distribution channels.
Other actions CPGs took based on consumer trends include:
All of these efforts directly impact product packaging. For example, a package’s quality of materials and design style can indicate its premium status. Recyclable, biodegradable, and compostable packaging material signals a brand’s shift to environmentally-friendly practices. And packaging can communicate a product’s health content through natural colors, text, and graphics.
The rise of smart packaging
There’s also a technology-driven side to recent packaging trends. Deloitte surveyed over 400 business leaders on smart packaging — “packaging with enhanced functionality, by way of new technologies, new materials, and thoughtful design.” Although smart packaging is still new to the game, its revenue is expected to grow by 11% each year and reach $39.7 billion by 2020.
Smart packaging has the potential to solve a lot of industry problems. Currently, the most prevalent form of smart packaging in use, especially among food and beverage companies, is what’s called “active” packaging. This relies on advanced chemistry or materials to minimize product damage and preserve quality.
But Deloitte points to an unrealized opportunity in “connected” packaging, which uses wireless technology to gather and communicate data. It has a lot of promise for applications like tracking, traceability, supply chain optimization, and even customer interaction.
The Deloitte report highlights a few examples of how food and beverage companies can take advantage of smart packaging:
Making the most out of smart packaging may require some bold decisions and creativity. But, Deloitte predicts, “If packagers are not able to participate in driving the increasing intelligence of packages, they risk getting marginalized as commodity material providers.” In other words, companies that pursue smart packaging will have a competitive advantage in the industry.
By Krystle Morrison
Source: Food Industry Executive
LinkedIn Twitter FacebookWould you be willing to give up social media for a month to have your favorite snack every day? What about your cell phone? Three in 10 adults […]
LinkedIn Twitter FacebookOrkla has appointed Harald Ullevoldsæter as its new chief financial officer, effective 1 March 2020, to replace Jens Bjørn Staff. Ullevoldsæter, 56, returned to Orkla earlier this year […]
LinkedIn Twitter FacebookJM Smucker has announced that its CFO Mark Belgya will retire on 1 September 2020, to be replaced by Tucker Marshall, the company’s vice president of finance. Marshall […]