Future of Food Packaging: Key Trends and Success Factors
The food packaging industry includes a wide number of sectors including packaging alternatives and packaging supplies. Of the entire global packaging market, fiber based materials (including corrugated, carton, liquid carton, etc.) contributes 31% of the total price. Within corrugated materials, food packaging is the biggest end-user marketplace, accounting for about 40% of the total use. The total global consumption amount of corrugated board is estimated to grow at a CAGR of 4.3% up to the year 2017.
Five Major Trends That Will Affect the Future of Food Packaging Industry
- Increasing importance of design and shelf standout
In the increasingly competitive retail landscape, differentiation and product standout will grow more important. Secondary packaging will grow in significance as a brand vehicle and retailers and brand owners will increasingly invest in superior quality printing and different design solutions.
- Increasing competitive intensity in the value chain drives the focus on the cost
The increasing competitive passion will force the players in the value chain to price reduction measures and optimization of their operations.
- Sustainability and environmental friendliness are growing in importance
Increasing end-consumer demands and intensifying rules in the area will lead to an improved focus on ecological aspects throughout the value chain.
- Intelligent packaging will grow stronger in the future
Smart packaging has been a significant subject for many years, and will be very important in the future. Solutions like RFID and sensor tools have emerged in a small number of markets, the trend has not been very strong but brand owners and retailers will shortly apply these solutions on a full scale.
- E-tailing volumes will continue to increase
Online food retail will experience strong development in the future, motivated by consumers’ requirements for handy and time-saving alternatives for grocery shopping.
Key Success Factors
- Enable basic functionality
The major job of packaging in the food industry is providing safety and protection for the products all through the supply chain. To deliver fundamental functionality at the right level the following areas should be well thought-out: Secure steady performance, Meet consumer requirements, Support with service.
- Reduce cost
Cost innovations will arrive in three key dimensions:
- Solution: An innovation that redefines the packaging solution in order to decrease costs is one of the most significant actions of a packaging supplier.
- Process: An innovation that optimizes how the package is used. This kind of innovation looks at what can be altered in usage to decrease cost.
- Features: An innovation that focuses on improving the real packaging functionality. This is the character of most cost innovations today.
- Optimize Operations
Packaging providers may help in optimizing the supply chain by providing a range of operations services.
Consistent and flexible inbound logistics
Disturbance free production
- Support brand value building
Packaging will work as an increasingly essential tool in the brand owners’ advertising mix. In short, the key areas where packaging will assist brand owners are:
Capturing end-consumer interest at point of sale
Influence the perceived brand value
Create brand consciousness
Differentiate products, e.g. economy vs. premium
Convey green image with a renewable and Eco-friendly product
Protection, so both the content and the box looks good quality when they arrive
- Communicate the value of being sustainable
Sustainability concern will turn into an increasingly important product characteristic influencing shopper decisions. In 2016 and beyond, sustainability will be a serious topic, no longer just a word.
Author Bio: Mark Dawson writes on the behalf of Globe Packaging, a company which provides industry standard packaging supplies. Apart from writing, he helps SMBs in achieving their goals through his extensive digital marketing knowledge.