Trends in Packaging 2014 - Contract Packaging Association
CPA 2014 Annual Meeting
Today consumers control brands. The internet and social media have given consumers more of a voice than they have ever had. This rise of the “Experience Economy” and “The internet of things” has changed the retail shopping experience. This always-on digital savvy consumer creates massive challenges for brands on how they have to mobilize their product development and supply chain management to deliver on the ever-shifting landscape of consumer demands. The good news is these changes are causing explosive growth in the contract packaging industry. In his presentation, Pete Sena takes us you through some emerging consumer trends and behaviors to inspire you on some ways you can better service consumer packaged goods organizations who are consistently shifting and evolving to meet the needs and demands of consumers globally.
A framework for top 6 trends and consumer wants in Package Design and consumer packaged goods.
1 - Sustainability
2 - Transparency
3 - Social Media & Connected Technology
4 - Functionality
5 - Entertainment
6 - Convenience
Brands are looking for innovative thinking to transform their business
If we know that 68% of purchase decisions can be driven by packaging an unsatisfied consumer means opportunity for packagers.
Created a Framework of 6 Key Pillars of for the intersection of consumers and packaging worldwide to inspire disruptive innovation.
-when people feel like the brand stands for the values they do, they have a higher affinity towards brands.
sustainability is paramount.
-better environment, better world.
The LOHAS consumer (life of health and sustainability) segment is a 290 billion dollar market in the US alone.
this estimated 13 to 19 percent of the population cannot be avoided.
sustainability matters more than because our customers want it
The choices we make will affect our children's future on this earth.
The land grab for the higher income consume is among us.
environmentally friendly packaging is important to consumers.
Reusable packaging offers people something extra for their money, allows consumers to feel environmentally responsible in their purchase decisions
people care how a product was made.
where possible we must lift the curtain
Focus groups are too slow and don’t offer the power and reach that social media does.
As a society we suffer from Cell Phone Addiction and FOMO (fear of missing out)
Social media paired with ethnographic research can unlock and validate key decisions in the supply chain and brand vision
News media and PR drives consumer interest.
Unilever, L'Oreal, Johnson & Johnson, Avon Products, Henkel, Estee Lauder, Coty, Clorox, LG, Procter & Gamble (P&G), MSW Packaging, Heartside Food Solutions, The Visual Pak Companies, ADCO Manufacturing, Church & Dwight, Revlon, Chanel, Energizer Holdings Inc, Prestige Brands,
2. Let’s take a look at the
state of packaging today
3. DID YOU KNOW?
64% of consumers will sometimes buy
a product off the shelf without any prior knowledge of it.
37%
PACKAGING
31%
ONLINE
31%
FRIENDS
Packaging drives purchase more than TV ads, online reviews and
recommendations from friends.
27%
TELEVISION
4. SOMEWHERE BETWEEN
73%
&
85%
of purchase decisions are made at the point of sale.
Package design plays a key role because it is often the
only factor that differentiates two products on shelf.
*2013
survey conducted by MWV group
5. BUT WE HAVE A PROBLEM:
Fewer than
20%
of U.S. consumers report
they are very satisfied with product packaging.
6. EVERY PACKAGE CATEGORY HAS ROOM TO IMPROVE
!
!
!
24%
19%
18%
Satisfaction with
soft drinks
Satisfaction with
healthcare products
Satisfaction with
house hold cleaners
!
!
!
18%
17%
11%
Satisfaction with
frozen food packaging
Satisfaction with
beauty care products
Satisfaction with
carry-out containers
7. KEY PILLARS OF 2014
PACKAGING TRENDS
01
02
03
SUSTAINABILITY
TRANSPARENCY
SOCIAL
04
05
06
FUNCTIONALITY
ENTERTAINMENT
CONVENIENCE
9. the LOHAS consumer segment is a
290 billion dollar market in the U.S. alone
10. !
Let's not just sustain our quality of life,
But BETTER our quality of life.
!
WE MUST STEP IT UP!
11. 73%
of consumers
Nearly three quarters of consumers say that each of us
has a personal responsibility to do what we can to be
environmentally responsible.
14. ENVIRONMENTALLY FRIENDLY PACKAGING MOST
HIGHLY REGARDED AMONG AFFLUENT CONSUMERS
Preferences in packaging attributes for purchasing decisions by household income, April 2013
Packaging that is labeled as environmentally friendly
39%
40%
39%
37%
43%
47%
< $25K
(Base: 341)
$25K - $49.9K
(Base: 440)
$50K - $74.9K
(Base: 425)
$75K - $99.9K
(Base: 257)
$100K - $149.9K
(Base: 279)
$150K+
(Base: 279)
Base: 1,872 internet users aged 18+ who are primary or shared shopper source: Mintel
15. PLANT
BOTTLES
• Recyclable PET made from
renewable resource (Sugarcane)
is projected to offer significant
growth potential over the longer
term.
• The production capacity of bio
based PET today is around
600,000 tons a year.
• This volume is reported to grow
to roughly 5 million tons by
2016.
16. THE LIFE
BOX
The “Life Box” contains
hundreds of tree seeds
within its corrugations and
is safe to tear up, plant, water
and GROW.
17. 54%
of consumers
say when considering food purchase decisions,
packaging that can be reused for other purposes would
cause them to choose a product over a competing
product.
18. 86%
of consumers
expect manufacturers to increase recycling
of their packages.
!
And 3 out of 4 prefer to learn about a
package’s recyclability from the package
itself.
!
!
- Carton Council of North America
23. PRODUCT CLAIMS
Agreement with attitudes toward food packaging, by age, April 2013
29%
38%
64%
It’s difficult to find
product claims on
product packaging.
I trust what
companies say on
their labels about their
food products.
There are so many
health claims for food
that it is confusing.
Base: Internet users aged 18+ who are primary or shared shopper
24. NEED FOR CONCRETE MESSAGING
64%
of shoppers
say there are so many health claims for food that it’s confusing
29%
of shoppers
say it’s difficult to find product claims on product packaging
25. TECHNOLOGY
Smart phones allow today’s consumer to access
product information anytime, anywhere.
This offers a solution to transparency without
confusing labels on packaging.
Utilize on-package QR codes and mobile
applications (sms/shortcode) to offer consumers
more (instantaneous) product information.
26. Leverage social media to involve consumers and
fans in packaging decisions.
Lay’s: Do Us a Flavor campaign
Their voices WILL be heard.
Its worth while to welcome their input.
27. e
Asda has invited customers to tweet and write Facebook posts about the range using a
#ChosenByMe hashtag. The best posts are being curated into a hub page on the Asda.com
website, from which some will be selected to appear on in-store POS barkers and on-pack
stickers - with the customer’s permission.
32. IN-STORE SOCIAL INTERACTIONS MATTER.
60%
mobile-assisted
shoppers
are more likely to buy a product in the store when
they find online reviews on their smart phone.
33. FREQUENCY OF MOBILE ACTIVITIES IN-STORE
Price Checking
Info & Reviews
Call / Text friend
or family member
52%
50%
39%
32% | 16%
Regularly (Top 3)
34% | 19%
Occasionally
41% | 19%
Almost Never
34. FREQUENCY OF MOBILE ACTIVITIES IN-STORE
!
!
!
36%
34%
24%
Used a barcode or
QR code scanner
Searched for online
coupon
Posted a social
update
!
!
!
22%
17%
10%
location-based check
in (Foursquare, FB)
Mobile login to store
loyalty program
Paid @ checkout
using mobile app
35. "Social media: A communications
revolution causes a packaging evolution"
!
-HealthCarePackaging.com
37. "Understanding how consumers experience packaging is no
longer optional; it is indispensable."
!
- packworld.com
38. Macy’s has just become the first retailer to try out the
tech, using shopBeacon devices that work with
Apple’s iBeacon innovation.
39. ALTERNATIVES TO QR CODES
+
=
Instead of using an indecipherable Rorschach blot, it used your logo. And
instead of just taking people to a link, these designer QR codes opened up
whole new lines of interactive communication. Ones that you could track, use
and reuse to build relationships.
40. TRIX
CEREAL
!
General Mills are coming to
life with an interactive
augmented reality Star Wars
experience!
!
At home or in the grocery store,
scan the back of your Trix
cereal box (pictured here) with
the free Aurasma mobile app
to take part in an epic battle
against the Galactic Empire.
41. NABISCO
!
To promote Nabisco’s partnership
with internationally-adored pop
band One Direction, Aurasma has
been embedded into the brand
new 1D VIP app to unlock
exclusive 3D video content
starring the one and only One
Direction!
42. LIGHT
UP CEREAL
BOXES
!
Even if the light-up cereal boxes
never take off, the same
technology could be attractive
for manufacturers as a way to
wirelessly track quantities and
expiration dates, or for stores to
wirelessly manage inventory.
Also, battery-powered toys
could be charged by the shelves
they sit on, so their power would
never run down.
43. BUILDING TRUST WITH THE CONSUMER;
NFC chips developed by Inside Secure can actually
be physically embedded inside a product to
guarantee a product is real and not a knockoff.
44. Users are 10% more likely to purchase an item they’ve
seen on Pinterest compared to other social sites,
according to Shopify.
!
Major companies such as Target and Nordstrom have
integrated Pinterest into their retail experience in some
locations to connect with social media users in store.
45. WARNING:
It’s kind of addictive, and you might make impulse
purchases.
!
FUN FACT:
An average pin generates 78 cents in sales and drives 2
visits to company websites.
49. ENVIRONMENTALLY FRIENDLY PACKAGING MOST
HIGHLY REGARDED AMONG AFFLUENT CONSUMERS
Important food packaging attributes, April 2013
92%
80%
Retains Freshness
Re-sealable
Base: 2,000 internet users aged 18+ Source: Mintel
74%
Easy to open
72%
Durable - sturdy
64%
Recyclable
50. YES, CONSUMERS WANT PACKAGING THAT:
1. Protects from breaking or spilling
2. Maintains product integrity
3. Gets the entire product out of the package
55. ECOLEAN
AIR
POUCHES
• REDUCES raw material to
a minimum.
• SAVES resources & energy.
• US demand forecast to
grow by 42% over the next
five years to reach almost
24 billion units in 2018.
63. Consumers need to be given the opportunity to engage
with products before purchase.
80%
of retailers
said implementing technology enhancements was the
top strategy for addressing internal and external
challenges through 2015.
66. 59%
of Status Seekers
are younger than 45 years old and are more interested
in packaging that is attractive or cool than ecofriendly and/or functional.
71. LIMITED EDITION
FEATURES LOCAL
ARTISTS
!
The ‘Start Pure’ campaign
aimed to highlight what can be
created from a blank canvas - in
a similar fashion to the colorful
cocktails that can be made from
the pure, unadulterated vodka.
72. HEINZ ‘GET
WELL’ SOUP FOR
FRIENDS
!
Personalized packaging via
Facebook promotion exceeded
customer expectations.
73. A COKE
FOR YOU
!
In the UK, 150 of the most
popular names were stocked on
shelves across the country,
with names ranging from
Aaron to Zoe.
75. We have to go the extra mile so that our
consumers don’t have to.
76. RE-SEALABLE
PACKAGING
An innovation unique to
Kraft Foods, this new
packaging allows consumers
to be able to open and close
their favorite chocolate slab
time and again and keep the
contents fresh
77. 8 in 10
consumers
think re-sealable packaging is important, in large part
because they associate re-sealable with the ability to
retain freshness.
79. As more Americans adopt healthier living, smaller
serving sizes will supplant the need to buy in bulk.
80. QUALITY
MONITORING
•
Color-changing labels
monitor food freshness
•
March 2013 saw UK-based
Insignia Technologies launch
‘smart’ labels that monitor
food quality.
•
The labels, which can be
incorporated into packaging
lids, are activated when the
product is opened and change
color as food loses freshness.
81. As e-commerce grows, it may be possible to use
simpler retail packs, make them smaller, leave them
unprinted or perhaps remove them entirely.
82. The continuing popularity of online shopping will
propel healthy gains for corrugated boxes, those
created for specific products, used in the fulfillment of
Internet sales.