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Global Packaging Trends 2019

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Global Packaging Trends 2019 GLOBAL PACKAGING TRENDS 2019 As technology connects and innovates packaging in the virtual world, consumers demand eco-friendly solutions to clean up the real world. EDITOR’S NOTE CONTENTS Welcome to Mintel’s 2019 Global CONNECTED PACKAGING CLOSING THE LOOP Packaging Trends where we define PAGE 4 PAGE 12 the challenges and opportunities that will impact manufacturers, companies, brands, and retailers in packaging markets around the world, over the coming months and years. David Luttenberger, CPP The four trends encompass broader Global Packaging Director themes of virtual connection, engineering innovation, e-commerce and sustainability, providing a full view of the global packaging industry in 2019. Best wishes for the year ahead. Dr. Benjamin Punchard REINVENTING THE BOX PLASTIC-FREE Global Packaging PAGE 20 PAGE 28 Insights Director Regina Maisevičiūtė-Haydon Global Food & Drink Analyst 2 | PACKAGING TRENDS 3 Multiple technologies are enabling brands to connect physical packaging to the virtual world. Connected packaging is Connected packaging creates a seeing renewed interest, marketing opportunity, bringing driven by growth in ownership the engagement and interaction of connected devices of the online world to the worldwide and advancement shopper moment, potentially in technologies that can link influencing and driving packaging to the online world. purchase. In the home, such Brands today have a wealth of connections can increase brand options to connect virtually with engagement, increase product packaging, including QR codes use and add an experiential and other graphic markers, near element to product interactions. field communication (NFC), radio frequency identification (RFID), bluetooth, and augmented reality (AR). 4 | PACKAGING TRENDS CONNECTED PACKAGING 5 What's in it for the brand? Connected packaging can enable differentiation of a product from its competitors on store shelves. Not only does this extend the potential for communicating product attributes, but linking consumers to an online space can create a direct connection to shoppers What's in it for handling the product. the consumer? Connected packaging also offers significant data collection Connected packaging can benefits. Many consumers are add value for the consumer willing to share their information by offering unique shopping when accessing online content, experiences, meeting enabling brands, and the consumers’ needs for agencies they work with, to interaction and personalising track consumer-pack interaction the shopper moment. in real time. This can be used in Such connections can a number of ways; for example deliver unique experiences to build consumer profiles, and enable omnichannel measure campaign performance shopping. This aligns with or to provide real-time feedback Mintel Trend ‘Experience on marketing activities. Is All’, which suggests that retailers' over-emphasis on Connected packaging speed, convenience and can be used to build the price has led consumers to brand story, provide specific crave experiences in bricks- product information and and-mortar spaces and deliver promotional offers physical places. and discounts. 6 | PACKAGING TRENDS CONNECTED PACKAGING 7 Trend in action QR codes and 1 other digital markers Digital markers are printed use of QR codes on consumer patterns that can activate an packaged goods (CPG) action, such as opening a launches. According to Mintel webpage on a smartphone. Global New Products Database QR codes are the most well (GNPD), almost 9% of all Malibu included an NFC tag on select bottles that leads consumers to known digital markers, however, CPG launches in Asia Pacific promotional content such as drink recipes, a bar locator and an opportunity many brands or service featured a QR code, while 5% to win prizes (via The Spirits Business). providers have created their occured in Europe. However, own proprietary markers. These poor use of QR codes, including include Snapchat’s Snapcodes, a lack of on-pack signposting Near field Amazon’s SmileCodes, Coca- and lack of consumer benefit/ 2 communication Cola’s sip & scan marks and engagement, risks giving QR Spotify Codes to name a few. codes a poor reputation. Near Field Communication Each NFC-enabled tag (NFC) is a simple tag that can integrated into product Of all these digital be incorporated into packaging. packaging has a unique codes, it is QR codes By tapping an NFC-enabled ID. This enables product that have become the pack with a smartphone, the tracking and authentication most widespread. In consumer can launch branded and allows interactions with 2018, Asia Pacific had content such as videos, or a single consumer. Delivered the highest regional simply be directed to product content can be used to build information. A benefit of NFC brand loyalty and be linked to From Nigeria, Fanta Fruit tags is that there is no need for e-commerce capabilities, such Twist Sparkling Mixed the consumer to download a as enabling re-purchase. Fruit Drink retails in a 330ml recyclable can specific app to their phone. featuring a Snapcode that links to exclusive Snapchat filters and lenses (via Mintel GNPD). 8 | PACKAGING TRENDS CONNECTED PACKAGING 9 Augmented 3 reality The use of packaging-directed However, most examples of Final thought augmented reality (AR) allows AR on CPG packaging have brands to position the pack been used to provide fun, Connected packaging can be directly within a consumer’s interactive experiences. the link between physical and real world experience. AR This aligns with Mintel Trend, digital shopping worlds, giving has the potential to provide ‘Play Ethic’, suggesting adult brands a route to some control instructional guidance; for life is becoming busier and over how the brand and product example, demonstrating down-time is becoming is viewed online, as well as functional packaging attributes increasingly squeezed. With being able to deliver engaging can provide a way to compare less leisure time available, content and product-specific products for the shopper and consumers are devoting free information to directly influence aid the purchase decision. time towards fun, playful and purchasing decisions. even juvenile pursuits. The Walking Dead Wine, by The Last Wine Company, builds on the popularity of the 19 Crimes wine app, which first brought augmented reality to wine labels (via YouTube). 10 | PACKAGING TRENDS CONNECTED PACKAGING 11 Consumers have been recycling some packaging for years. But they are now demanding the ability to recycle more and to understand how recycling really works. During the past year, content are still rare. Low proclamations by brands and availability of high-quality converters touting commitment recycled plastic and concerns to 100% recyclable materials over food safety are hampering or packaging that is 100% the use of recycled material recycled have dominated in food and drink. Brands industry headlines. The reality have opportunities to meet that few have yet to fully consumer demands for more consider is how, where and recyclable packaging. While who will be supplying and eco-responsible packaging can recycling these materials. be complex to engineer, the These are simple questions that way in which that responsibility don’t have definitive answers. is communicated to consumers on-pack must be simple, Though recyclable packaging straightforward, and actionable. claims have become common, claims to include recycled 12 | PACKAGING TRENDS CLOSING THE LOOP 13 What's in it for the consumer? Recycling may be second nature to some, but the inconvenience of cleaning and sorting waste for recycling is a barrier for others. In response, an increasing number of schemes are aiming to reward recycling behaviour. What's in it for For example, in Turkey, commuters can trade empty the brand? bottles for credit on Istanbul Cards, the city’s travel card. Greater clarity on which parts of food packaging can be In the UK, motorists receive recycled is the top factor that a 20p parking voucher for would encourage consumers every bottle they bring to the to recycle more frequently. Just CitiPark in Leeds. 27% of global new beauty and personal care launches in 2017 featured an environmentally friendly packaging claim, with recyclable packaging accounting for only part of this (drink 27%, food 9%). which parts of packaging are recyclable, this is not Food packs that are made of universal. Products that are several different component more vocal about how easy materials are widespread, they are to recycle should win making them difficult or the loyalty of consumers by impossible to recycle fully. presenting a more proactive While some products show and environmentally a simple breakdown of responsible image. 14 | PACKAGING TRENDS CLOSING THE LOOP 15 Trend in action Re-engineered 1 recycling Recognising the lack bottle to switch materials from Envision of domestic recycling hard-to-recycle materials to the organized a special collection infrastructure, the American widely-accepted PET. High-quality recycled of plastics within Chemistry Council’s (ACC) 2 content a reality 50 kilometers Plastics Division has By also optimising the bottle of a coast line where marine announced new plastic resin design, Coca-Cola is able to OceanBound Plastic’s Envision debris was producer targets with the aim reduce annual plastics usage has organised a special apparent, and then recycled of recycling or recovering all by more than 1.5 million collection of plastics within 50 the material plastic packaging used in the pounds. The pressure-sensitive kilometers of coast lines that lie for hair care US by 2040. label on the bottle now uses product bottles along known at-risk areas for (via Packaging an innovative adhesive that marine debris. Digest). Development of a new separates the label from the polyethylene terephthalate bottle during the recycling Its first customer, ViTA, is using extremely limited and kept (PET) resin that can be process, further improving the the 100% recycled plastic for solvent-free so that it can be extrusion blow-molded on package’s recyclability. its haircare products. This repurposed as grey water for shuttle machines allowed Coca- disproves the long-held theory landscape irrigation.
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