Building the perfect package

Packaging is becoming much more than a simple container for shipping and merchandising store brands.

The need to keep consumables fresh and safe is leading to a steady upgrade in designs, while greater shopper interest in sustainability is having a significant impact on the size and composition of packages.

Indeed, more manufacturers are making it easier to recycle containers by using fewer materials and incorporating environmentally sound elements. The subsequent lower weight of items also makes it easier and less expensive to transport products.

While demand for food containers is forecast to increase 2.8 percent from 2015 to 2020, demand for lightweight plastic items, as well as flexible bags and pouches, will rise 4.1 percent and 3.2 percent, respectively, compared to just 1.7 percent for metal containers and 1.4 percent for glass, reports the Freedonia Group Inc., a Mayfield Village, Ohio-based industrial market research firm.

Demand for beverage packaging, meanwhile, is forecast to increase 1.9 percent from 2019 to 2024, with unit sales of plastic and paperboard containers set to rise 3.6 percent and 2.1 percent, respectively, the Freedonia Group notes. Meanwhile, projections are for unit sales of metal packaging to increase just 0.1 percent, while glass packaging sales will decrease 0.8 percent.

“There is a general movement from rigid containers to flexible packaging,” states Mike Richardson, the Freedonia Group’s senior industry analyst, adding that a focus on lighter options also is trigging a consumer switch within the rigid beverage category from bottles to cans. Use of clear plastic cans is also becoming more popular as consumers seek to view product prior to purchase and merchandisers pursue a reputation for transparency, he notes.

A reusable requirement

Because packaging is an increasingly crucial variable in shoppers’ purchase decisions, it’s vital that retailers and their suppliers pinpoint the most pertinent alternatives for the different consumer segments, indicates Mintel, a global market research firm.

“Packaging continues to grow more important as brands look to packaging to not only convey benefits and product information but also to shape a consumer’s experience with the product and to capture new-use occasions,” Mintel notes in its June 2016 “Food Packaging Trends, US” report. Packaging that helps extend shelf life is likely to motivate shoppers to target such products, Mintel states.

In an April 2016 Mintel online survey of 1,887 adults who purchased non-alcoholic beverages in the previous 30 days, 62 percent indicated that they pay attention to the packaging format, with such elements as materials and shape being particularly influential.

Functionality is another key consumer focus, with such elements as ergonomics and the ease of opening bottles and containers becoming more relevant, says Frank Lin, director of marketing and strategic development with Amcor Rigid Plastics, an Ann Arbor, Mich.-based packaging supplier.

It is the greater demand for sustainable options, however, that is a major catalyst for packaging enhancements, he notes, citing the greater use of post-consumer recycled content (PCR) in designs. “As shoppers become more aware of the ingredients in food and beverage products, they also have concerns about the materials in packaging,” Lin says.

In an April 2016 Mintel online survey of 1,922 adult food shoppers, 40 percent of respondents between 18 and 34 years of age stated that they recycle most food packages, as do 37 percent of persons between 35 and 54, and 52 percent of respondents 55 and over.

“Many grocery shoppers think of the environmental impact of packaging before purchasing products, so the use of sustainable materials is important for brands to highlight,” says Erin Reynolds, marketing director of Evergreen Packaging Inc., a Memphis-based packaging manufacturer. “Consumers will continue to vote with their wallets, and fresh, clean and sustainable benefits are among their top purchase priorities.”

Satisfy the shoppers

“Brands that align with consumer values and help them feel good about their purchases will be in a good position to succeed in the market,” Reynolds states. “As a result, manufacturers and brands should take consumer preferences into consideration.”

Packaging developers seeking to extend the shelf life of foods, meanwhile, are incorporating a variety of barriers in designs to better protect products from oxygen, moisture and carbon dioxide, Lin says.

Recyclable polyethylene terephthalate (PET), a form of polyester that is transparent, lightweight and shatterproof, is another packaging material becoming more popular, he notes.

“There is a shift toward PET in both beverage and food products as consumers want to see the contents in the package and it offers supreme clarity,” he states. “Declining resin costs also is increasing the preference for PET” because of lower production expenses and product prices.

Ease of use and safety considerations are additional purchase drivers. Many older individuals who want to easily access packages without scissors are seeking flexible packaging with tear strips or notches, says Laurie Cardillo, vice president of product innovation and management at LiDestri Food & Beverage Inc., a Fairport, N.Y.-based supplier of sauces, dips, salsa, oils, beverages and spirits.

Younger families are seeking containers with protective attributes, such as shatterproof jars and bottles. “Consumers want packaging that is convenient, opens easily and is simple to store and handle,” Cardillo adds.

Shopper interest in such enhancements will likely fuel a greater transformation of packaging designs in the near future, with freshness, safety and sustainability top of mind, analysts note.

While most suppliers, for instance, are currently incorporating relatively inexpensive resins in designs, such as polypropylene, more packages will incorporate higher-priced nylons to better protect contents from air and light, Richardson states.

“The smart environmental thing to do often dovetails with the smart economic thing,” Richardson says. “Lighter packaging is good for the environment and the bottom line because it results in lower transportation and raw material costs.”

Easier said than done

With packaging becoming more important in consumers’ purchasing decisions, it’s vital that manufacturers satisfy their desires. Yet, producing the most attractive options can still be onerous.

While flexible packaging typically is less expensive to manufacture than rigid options because it requires fewer materials and has the halo effect of being environmentally friendly, it also can be more difficult to recycle, says Esther Palevsky, the Freedonia Group’s senior industry analyst.

“Pouches often contain layers with different resins or have a composition of paper, film and foil, but [they] often won’t be accepted for recycling because the package is not made of a single material,” she says.