Part of the appetite for greater risk-taking in packaging innovation comes from lower costs. Advances in manufacturing technology are allowing smaller runs of packaging to be produced more affordably, and Brill said this may motivate more store brands to experiment with features like foils, holograms, unique structures, different finishes and color palettes. “These tactics are still not being fully utilized, but when implemented, they have allowed retailers to support brand extensions and promote premium versus value lines,” he noted.
MILLENNIALS: A MISSED OPPORTUNITY?
Millennials are driving much of the innovation in private label packaging. According to an October 2019 report by IRI, more than half (54%) of millennial shoppers say that store brands are extremely influential or very influential in determining which stores they decide to visit. Yet nearly 1-in-5 shoppers (18%) overall said that packaging makes private brands appear to be of lower quality than national brands, per IRI.