Top 6 Trends in Packaging. Contract Packaging Association 2014 Conference


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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,

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  • The wealth of information available to all of us is a great value. It's our responsibility to take advantage of our resources. We will no longer survive with a reactive approach. We need to take a proactive approach to meet and exceed our customer's expectations. Even if they do not realize those expectation yet.
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Top 6 Trends in Packaging. Contract Packaging Association 2014 Conference

  1. 1. 2014
  2. 2. Let’s take a look at the
 state of packaging today
  3. 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. 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. 5. BUT WE HAVE A PROBLEM: Fewer than 20% of U.S. consumers report they are very satisfied with product packaging.
  6. 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
  9. 9. the LOHAS consumer segment is a 
 290 billion dollar market in the U.S. alone
  10. 10. ! Let's not just sustain our quality of life, But BETTER our quality of life. ! WE MUST STEP IT UP!
  11. 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.
  12. 12. 61% of consumers think companies should help consumers become more environmentally responsible.
  13. 13. 63% of respondents identify reusable or repurpose-able as an important quality for food packaging.
  14. 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. 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. 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. 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. 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
  19. 19. 02 TRANSPARENCY
  20. 20. What you see is what you get.
  21. 21. GROWING DESIRE FOR ANSWERS 75% of consumers would like to see on-package information explaining how the product was made.
  22. 22. CLEAR PACKAGING No surprise here.
  23. 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. 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. 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. 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. 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 website, from which some will be selected to appear on in-store POS barkers and on-pack stickers - with the customer’s permission.
  28. 28. 03 SOCIAL
  29. 29. Max distance between average consumer and their mobile phone? 3 Ft
  30. 30. PRE-PURCHASE SOCIAL INTERACTIONS MATTER 76% of consumers recommend companies they trust to a friend or colleague
  31. 31. 57% of shoppers are more likely to buy after receiving opinions from friends.
  32. 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. 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. 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. 35. "Social media: A communications revolution causes a packaging evolution" !
  36. 36. Packaging can be a sale-driving media platform.
  37. 37. "Understanding how consumers experience packaging is no longer optional; it is indispensable." ! -
  38. 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. 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. 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. 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. 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. 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. 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. 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.
  46. 46. FASHION LIKES ! Brazil retailer using Facebook likes… on its clothing hangers
  47. 47. "Packaging is just as important as the product itself, and it goes a long way toward convincing customers that they want what’s inside."
  48. 48. 04 FUNCTIONALITY
  49. 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. 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
  51. 51. And then they want MORE!
  52. 52. In addition to standard packaging expectations, they ask… “WHATS IN IT FOR ME?”
  53. 53. LIGHT IS GREATER THAN HEAVY. PaperBoy wine "bottle" is made from recycled cardboard with a plastic liner and is 85% lighter than a glass bottle.
  54. 54. DUALPURPOSE “FASHIONABLY CLICQUOT” ! Cylindrical carrier & functional ice bucket.
  55. 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.
  56. 56. CREATIVE Fun & Functional
  57. 57. Packaging customization is becoming expected, especially by Millennials.
  58. 58. Dual-use packaging resonates well with environmentally and budget conscious consumers.
  59. 59. DIY LIVING’S BIG IDEA: Give customers more bang for their buck without spending to much of our own.
  60. 60. SPECIAL OFFER: Pay for bench, lamp on the house.
  61. 61. What would otherwise be thrown in the trash now served a practical purpose at home.
  62. 62. joolz did the same.
  63. 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.
  64. 64. 05 ENTERTAINMENT
  65. 65. Increase conversation, reach, engagement & loyalty.
  66. 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.
  67. 67. INTERACTIVE PACKAGING ! Re-Think Wine
  68. 68. FUN DESIGNS ! Jooze juice boxes
  69. 69. JUST GENIUS ! Vax developed vacuum cleaner made from it’s own packaging
  70. 70. Make it Personal.
  71. 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. 72. HEINZ ‘GET WELL’ SOUP FOR FRIENDS ! Personalized packaging via Facebook promotion exceeded customer expectations.
  73. 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.
  74. 74. 06 CONVENIENCE
  75. 75. We have to go the extra mile so that our consumers don’t have to.
  76. 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. 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.
  78. 78. EDIBLE PACKAGING “Don’t hold back - devour the sandwich without taking off the packaging.”
  79. 79. As more Americans adopt healthier living, smaller serving sizes will supplant the need to buy in bulk.
  80. 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. 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. 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.
  83. 83. Slow and Steady will lose the race.
  84. 84. young consumers are roughly twice as influenced by SPEED as older consumers.
  85. 85. QUICK APPLICATION The packaging and delivery of products should facilitate quick application and contribute to ease of usability.
  86. 86. SIMPLIFIED DESIGN If there’s nothing to add & enhance, SIMPLIFY.
  87. 87. 44% of consumers of shoppers use technology to save time.
  88. 88. 88% of consumers are more likely to choose a company that allows them to interact via an online, mobile or self-service device.
  91. 91. THANK