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MEGA TRENDS
Challenges for the
packaging Industry
Mega Trends
• The changing consumer
• The changing retail environment
• The digital world
• Concerns on food safety
• Mark...
Nestlé at a glance
 CHF 83.6 billion in sales in 2011
 328,000 employees
 461 factories
 10,000 brands
 1 billion Nes...
The Changing consumer…….
60 Million
Population
47+
Half Adults
10 Million
Disabled
8.5 Million
Arthritis
9 Million
Hearing...
Age band
Even today, half the UK
adult population are aged
47 or over.
Cambridge University (UK)
InclusiveInclusive
Popula...
Put yourself into the shoes of the
shopper/consumer
CONCENTRATION
Top5RetailersShareofGrocerySales
Exploration ConcentrationPenetration Maturity
Value of Top5
in EUR Billion
...
Alternative business models
Control over total value chain &
direct consumer contact
Direct consumers contact (category
sh...
MAISON CAILLER / 2012 (Switzerland, and global roll out)
ISON CAILLER®, the prestigious inventor of milk chocolate in Swit...
BabyNes – Advanced Nutrition System (Switzerland)
NUTRITION INFORMATION
LOGO / BRANDING
INGREDIENT LIST
Scanning QR and barcodes
• Code takes you to website
or application
• Technology very strong in
Japan, and is expanding to...
Augmented reality
Chocapic France Launch
The very first augmented reality
consumer good product launched on the
Market !
N...
Internet connections
www.chocapic.com website : Total Visits
Packsonshelf
X 15
average connectionsWe decided to focus the ...
Choose a product Start the app Film the barcodeBe located Get sorting advices
Choose a product Start the app
& be located
Like or SuggestFilm the barcode Tell more by adding
video, picture or text.
Concerns about Food safety
A complex supply chain
Resin
Manufacturer
Converter
Food Packer
Trade
Consumer
Pigment
Manufacturer
Printing Ink
Manufactu...
Ann. 2
Vade-Mecum
for Vendors
Ann. 1
CoC Template
Ann. 2
CoC Example
Ann. 3
Confidentiality
Must be shared with suppliers
...
Polarisation of the market
Premiumization
PPP
Polarisation of the market
PPP
Polarisation of the market
Premiumisation
Mainstream
Emerging
30
>30,000
22,000-30,000
14,000-22,000
3,000-14,000
< 3,000
Emerging Consumers
30
Increase in people who can afford to buy...
• Meet nutritional needs in developing countries
- low price
- high nutritional value
- smaller, more affordable, pack siz...
Cost Challenge
Hurdles:
- Down size = More packaging / kg
- Product requires same protection.
- Added fortifications might...
Polarisation of the market
Premiumization
Premium and luxury products
• More than just products – the complete experience
• Nestlé Nespresso
• Premium chocolate: Ce...
1. Eco Design based on Life Cycle
Assessment
2. Promote recycling & recovery & use of
recycled materials
3. Materials from...
Holistic approach to reducing environmental impact
Recovery
Disposal
DOWNSTREAM IMPACT
UPSTREAM IMPACT
Raw material
produc...
Eco Design
Packaging lightweighting
Eco-Shape® bottle Nestlé Waters
Purina Project Density :
Reduction of 144’000 pallets
640 Tonnes less packaging material
• product development
• packaging...
Contains over 92% renewable materials: PLA & paper
Certified Sustainable Forestry Initiative (SFI) paper.
Soy based printi...
AFRIS. AsianFoodRegulationInformationService.
We have the largest database of Asian food regulations in the world and it’s...
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
Challenges for the Packaging Industry
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Challenges for the Packaging Industry

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Challenges for the Packaging Industry

  1. 1. MEGA TRENDS Challenges for the packaging Industry
  2. 2. Mega Trends • The changing consumer • The changing retail environment • The digital world • Concerns on food safety • Market polarisation • Sustainability
  3. 3. Nestlé at a glance  CHF 83.6 billion in sales in 2011  328,000 employees  461 factories  10,000 brands  1 billion Nestlé products sold every day  A product for every moment of every day, from morning to night and from birth to old age
  4. 4. The Changing consumer……. 60 Million Population 47+ Half Adults 10 Million Disabled 8.5 Million Arthritis 9 Million Hearing loss 2 Million Visual Loss 11 Million Children 14 Million Grandparents 1 in 10 Left Handed 8% Men 0.4% Women Colour Blind 3.4 Million Asthma 1.5 Million Diabetes 50 : 50 Gender
  5. 5. Age band Even today, half the UK adult population are aged 47 or over. Cambridge University (UK) InclusiveInclusive Population Change
  6. 6. Put yourself into the shoes of the shopper/consumer
  7. 7. CONCENTRATION Top5RetailersShareofGrocerySales Exploration ConcentrationPenetration Maturity Value of Top5 in EUR Billion USA, 307.0 Germany, 113.5 France, 138.3 UK, 122.1 Italy, 40.8 Spain, 44.8 Mexico, 28.3 China, 19.1 Japan, 79.5Brazil, 21.9 0% 20% 40% 60% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Data sources: MVI research High and increasing Trade Concentration 3
  8. 8. Alternative business models Control over total value chain & direct consumer contact Direct consumers contact (category shop, shop in shop) Dolce Gusto Nespresso Brand channel exclusivity 13 Controlled delivery chain (street vending, home delivery) Purina Channel New channels Fully integrated value chain Dis-tribution model …
  9. 9. MAISON CAILLER / 2012 (Switzerland, and global roll out) ISON CAILLER®, the prestigious inventor of milk chocolate in Switzerland, offers the most intimate exploration of chocolate for the perfect gift or your own personal treat. nding, Product and packaging design have been developed internally. Maison Cailler
  10. 10. BabyNes – Advanced Nutrition System (Switzerland)
  11. 11. NUTRITION INFORMATION LOGO / BRANDING INGREDIENT LIST
  12. 12. Scanning QR and barcodes • Code takes you to website or application • Technology very strong in Japan, and is expanding to many other markets
  13. 13. Augmented reality Chocapic France Launch The very first augmented reality consumer good product launched on the Market ! Nestlé cereal boxes has an “integrated 3D animation” function that encourages consumers to log onto brand websites
  14. 14. Internet connections www.chocapic.com website : Total Visits Packsonshelf X 15 average connectionsWe decided to focus the buzz campaign on one of the two brands (CHOCAPIC) to compare the buzz effect on visits and sales.
  15. 15. Choose a product Start the app Film the barcodeBe located Get sorting advices
  16. 16. Choose a product Start the app & be located Like or SuggestFilm the barcode Tell more by adding video, picture or text.
  17. 17. Concerns about Food safety
  18. 18. A complex supply chain Resin Manufacturer Converter Food Packer Trade Consumer Pigment Manufacturer Printing Ink Manufacturer Upstream Downstream Adhesive Manufacturer It is in the interest of all partners of the packaging value chain to have a full knowledge of the products they sell, including the raw materials they purchase.
  19. 19. Ann. 2 Vade-Mecum for Vendors Ann. 1 CoC Template Ann. 2 CoC Example Ann. 3 Confidentiality Must be shared with suppliers List of substances Abstract Guidance Note on Packaging Inks Overview on packaging safety and compliance GI-80.008 Nestlé Standards on Materials in Contact with Food GI-80.103-1 Certificate of Compliance GI-80.104 Monitoring/ Surveillance GI-80.100-1 The Packaging Safety Process GI-80.105-2 Packaging Supplier Audit GI-80.002-1 Specifications
  20. 20. Polarisation of the market Premiumization PPP
  21. 21. Polarisation of the market PPP
  22. 22. Polarisation of the market Premiumisation Mainstream Emerging
  23. 23. 30 >30,000 22,000-30,000 14,000-22,000 3,000-14,000 < 3,000 Emerging Consumers 30 Increase in people who can afford to buy Nestlé products regularly
  24. 24. • Meet nutritional needs in developing countries - low price - high nutritional value - smaller, more affordable, pack sizes • Different business model, different types of advertising, micro distributors Products for emerging markets – Popularly Positioned Products
  25. 25. Cost Challenge Hurdles: - Down size = More packaging / kg - Product requires same protection. - Added fortifications might require better protection. PM over-cost > 20% Equivalent price /kg PPPPPP
  26. 26. Polarisation of the market Premiumization
  27. 27. Premium and luxury products • More than just products – the complete experience • Nestlé Nespresso • Premium chocolate: Centre of Chocolate Excellence • Luxury ice creams • Pet foods • Waters Premiumization
  28. 28. 1. Eco Design based on Life Cycle Assessment 2. Promote recycling & recovery & use of recycled materials 3. Materials from sustainably managed renewable resources 4. Lightweighting Sustainability by Design
  29. 29. Holistic approach to reducing environmental impact Recovery Disposal DOWNSTREAM IMPACT UPSTREAM IMPACT Raw material production Processing Filling Distribution PackagingUse
  30. 30. Eco Design
  31. 31. Packaging lightweighting Eco-Shape® bottle Nestlé Waters
  32. 32. Purina Project Density : Reduction of 144’000 pallets 640 Tonnes less packaging material • product development • packaging development • logistics • marketing & communication. Excellent feedback from consumers & press -
  33. 33. Contains over 92% renewable materials: PLA & paper Certified Sustainable Forestry Initiative (SFI) paper. Soy based printing inks.
  34. 34. AFRIS. AsianFoodRegulationInformationService. We have the largest database of Asian food regulations in the world and it’s FREE to use. We publish a range of communication services, list a very large number of food events and online educational webinars and continue to grow our Digital Library. We look forward to hearing from you soon! www.asianfoodreg.com adrienna@asianfoodreg.com

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