trends in packaging 15 participants - currnt · omnichannel supply chain, walmart & sam’s...

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Exploring Future Trends in Packaging

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Background & Objectives

We created a panel of 15 experts—from designers and marketers to agencies, retailers, and supply chain players--whose work provides various lenses on the future of packaging, in order to understand changes affecting packaging. Insights came from both a traditional design perspective and from the viewpoint of changes affecting the broader packaging ecosystem, such as the implications for packaging as a result of the growth of e-commerce (from selling online to being shipped to consumers’ homes).

We identified a series of opportunities shaping the future of packaging and then discussed how easy or difficult it will be for organizations to implement these changes. We then focused our discussions on how to enroll key stakeholders in making the needed changes to leverage these trends to win in the marketplace.

This document highlights those opportunities and then shares perspectives for how to make this case for change.

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F A C I L I T A T O R

Participants

James BlackMarketing & Insights Consultant and Freelancer

Aubrey DyerBusiness Development Manager, Flavourtech Pty Ltd

Bill StankiewiczPrincipal and Owner, Savannah Supply Chain LLC

Bryan HintzArt Director, Faithlife

Carlos PlazaGraphic Designer/Production, Royal Caribbean Cruises, Ltd

Cynthia PannorPresident, Creative Director, POW Brands

Daniela KlazOperations Analyst.

Donn MarvinPrincipal, Donn G Marvin Consulting

Doris Hernandez, MBASupply Chain and Operations Consultant

Jack (John) HiltzPackaging Engineer Associate.

Jim HartzfeldPrincipal, Hartzfeld Sustainability Advisors

Justin Schuhardt, CSCPDirector of Operations, Omnichannel Supply Chain, Walmart & Sam’s Club eCommerce

Laureen SchroederPrincipal Consultant, Bespoke Beauty Partners

Rick PlanosConsulting Partner, Global Retail Solutions

Ryan BalockDirector, Global Marketing Communications, Scholle Corp

Shelley GoldbergInvestment Liason & Consultant, Sustainable Farm Partners

Participants included experts in packaging, design, supply chain and ecommerce who brought a variety of perspectives to the session on trends shaping the future of packaging.

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Executive Summary

Packaging designs will become simpler to meet a variety of needs

Manufacturers are addressing sustainability across the entire packaging ecosystem

• Simple, authentic designs that address consumers’ changing needs increasingly win in the marketplace.

• Manufacturers are not just redesigning primary packaging to be more sustainable, but are revisiting wasteful secondary and protective packaging methods to ensure that the entire packaging ecosystem is more sustainable.

E-commerce is fundamentally changing how manufacturers think about packaging

• Perhaps no trend reshaping packaging is more revolutionary than the

impact of e-commerce, which extends from reshaping the core package design (for presentation on the website and for shipping) to how it is shipped to the consumer, etc.

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The panel identified several needs regarding core packaging design, sustainability, and designing to win in e-commerce

Sustainable SecondaryPackaging

Flexible for Different Usage Occasions

Authenticity in Design

Sustainable Primary Packaging

Clean Labelling (e.g. GMO-Free)

Simple Design

E-Commerce Friendly Packaging (primary/2ndary)

Wasteful Secondary/Protective Pack Reinventerd

Closed Loop System for 2ndary pkg

• Core packaging design needs to include simple designs, clean labeling and authenticity.

• Sustainability is moving beyond core packaging to secondary packaging and the entire ecosystem.

• E-commerce is having a significant impact on the packaging landscape.

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Probability of Happening (from Manufacturer Perspective)

Simplicity and Authenticity

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Simple designs enable clean labeling, authenticity, and greater noticeability on the shelf

“I see a lot more simplification, customers have less time to read, even though they may be more interested in ingredients and health issues on food type products, with non food retail simple is better. Apple has really led the way with very simple, yet compelling fonts, sleek package designs, even simplified directions all designed to enhance their position in the tech landscape”

“I am seeing a desire for authenticity. People are looking for quality products, and further product quality associated with a brand that holds true to its stated values.”

“It seems to me as though the trend has become an inverse relationship between amount of graphics and perception of the quality of a product. When a package is clean and neat, it gives the impression of class.”


Bryan HintzArt Director at Faithlife

The food industry has led the trend in “clean labeling” to make ingredients easy to find.

Brands are using their packaging to communicate authenticity.

Brands are using simple designs to improve noticeability on the shelf.


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Simple designs make the product you are shopping for more noticeable on the shelf

“Brands are finding ways to visually communicate quality by paying close attention to the detail and craftsmanship of their design. Simple visual identities are communicating confidence. If your product is quality, it doesn’t need to be flashy or over-designed.”

“The new consumer is looking for ‘functional’ packaging that goes above and beyond merely housing/protecting our products… the new Veuve Clicquot packaging is durable, practical and beautifully designed.”

“[The] US cereal industry is a $9 billion category (although down from $15 billion in 2000), mainly sold as a bag in a box. Why can’t the bag have some type of resealable feature?”




Communicating quality through simplicity

Consumers are looking for “functional + _____” packaging.

Changing consumer needs require packaging to be flexible and designed for different uses.

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Clean labeling—making ingredients easy to locate and understand—has been a key trend in food labeling, and the notion is

spreading to other categories

■ Kind Bar packaging clearly communicates what ingredients are included and what they are “free of” to help consumers shop the brand.

■ Ensuring that customers know exactly what they are getting is key.

■ Honest labeling is critical to retaining loyal customers.

“Some companies are beginning to create pouches using clear film...It’s no longer enough for designers and brands to show a nice photo of what’s inside the food/beverage package. They need to show the actual product people are purchasing.”

“One big problem in the industry is greenwashing, a term used when packaging or other materials are marketed to appear green or environmentally safe, when in fact that is not the case.”



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Simple designs enable clean labeling, authenticity, and greater noticeability on the shelf

“The Coca-Cola “Share a Coke With” campaign… aside from just printing names and phrases on the packaging, they actually created a cap that could not be opened without the help of someone else- thus causing strangers to meet to “enjoy a Coke” together.”

“I’m always looking for unique and memorable packaging that reflects the brand’s mission. For some reason I’ve always noticed honey brands.”



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Sustainability

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Sustainability

The challenge with sustainability goes beyond the primary packaging to include secondary/tertiary packaging and the

entire packaging ecosystem

“In the beauty business, we are seeing more focus on sustainable packaging. This is a business that was all about over-packaging!”

“We have seen that packing peanuts are already starting to be replaced by more eco-friendly alternatives.”

“What is really driving this change (from a non-food/beverage point of view) is ease of use within the logistics chain...not necessarily anything stemming from consumer need or expressed desire.”

Laureen SchroederPrincipal Consultant, Bespoke Beauty Partners



Manufacturers have focused first on revisiting primary packaging to improve sustainability.

Wasteful secondary and protective packaging needs to be reinvented.

Secondary and tertiary packaging will become a closed loop system.

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Sustainability

“EarthLite encourages their consumers to plant a seed in their light bulb packaging. They use earthy tones to give a natural feel, and encourage a second life for their packaging as well.”

“The Saltwater Brewery, a craft microbrewery in Florida, US, has designed and produced biodegradable, edible, compostable beer six-pack rings, to protect marine life.”

“Extruded corrugated polypropylene cartons are better for the environment, can be reused (if the supplier can accomplish a closed-loop supply chain), and are structurally sound to ship product in.”

Use natural materials Craft materials that won’t harm the environment.

It is important that re-usable materials are both sustainable and reliable

Environmentally-conscious consumers are now paying more attention than ever to how packaging impacts the world




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Sustainability

Smart manufacturers are even thinking about ways consumers can reuse the pack

“Consumers are continuing to be more aware of their carbon footprint, and the convenience of a single-use or on-the-go package will be one of the first trends to disappear.”

“Alcan developed packaging for Givenchy so many perfume users very easily were able to refill the products 50ml bottles.”

“The Puma ‘clever bag’ is really focusing on the environmental as well as the functional aspect of reducing waste. Once we buy athletic shoes, the boxes are just more waste; by changing it to a bag and reducing the cardboard, Puma is maintaining the integrity of the product by providing support but is also providing a reusable bag.”

“PaperFoam has done a great job with its new material currently used for edible dry goods that is sustainable, eco-friendly, low-carbon, highly recyclable and home compostable. The main ingredients (starch and fiber) are annually renewable and locally sourced.”





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Sustainability

Further, changing consumer needs requires packaging to be flexible and designed for different uses

“[The] USA Cereal is a $9 billion category (although down from $15 billion in 2000), mainly sold bag in a box. What can’t the bag have some type of resealable feature?”

“Alcan developed packaging for Givenchy so many perfume users very easily were able to refill the products 50ml bottles.”

“The Puma ‘clever bag’ is really focusing on the environmental as well as the functional aspect of reducing waste. Once we buy athletic shoes, the boxes are just more waste; by changing it to a bag and reducing the cardboard, Puma is maintaining the integrity of the product by providing support but is also providing a reusable bag.”

“PaperFoam has done a great job with its new material currently used for edible dry goods that is sustainable, eco-friendly, low-carbon, highly recyclable and home compostable. The main ingredients (starch and fiber) are annually renewable and locally sourced.”



Jim HartzfeldPrincipal, Hartzfeld Sustainability Advisors


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Sustainability

E-commerce

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E-commerce

T O D A Y T O M O R R O W

Extensive waste in the system while focused on getting product from A to B, little consideration for ecosystem (packaging ecosystem, let alone environmental one)

Stronger emphasis on materials used in process and consideration for how to improve opportunities for reuse and recycling

“Currently plastic crates/cartons are predominantly used in the full-truck environment, going to brick-and-mortar stores that receive the whole batch of product, unpack it, and then return the packaging.”

“Plastics, metals, and reusable fibrous materials are going to be a returnable, reusable concept for packaging.”


The entire packaging “ecosystem” is evolving to a closed loop


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E-commerce

E-commerce is changing the role of the package in the shopping experience.

E-commerce shifts the focus from how the packaging (primary and secondary) holds up in the warehouse to how it holds up in shipment to the consumer.

“As more things are sold online, less emphasis is needed on that shelf appeal and ‘pop.’ Brands on Amazon (for example) can simply serve up great in-use photography, how-it-works videos, etc.”

“Attention, retailers: Look at your packaging and how it can be optimized to reduce shipping costs.”

E-commerce is having an even more revolutionary impact on packaging, from core packaging design to the broader packaging

ecosystem



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E-commerce

Companies can leverage these trends to win if they revisit the role of each of the key players in the packaging ecosystem

MANA GEMENT

DESIGNERS& A GENCIES

RETAILERS

THE DESIGNPROCESS

M A K I N G T H E C A S E F O R C H A N G E

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E-commerce


Management needs to focus on the role of the package, not trying to make it do too many things. They need to consider the entire ecosystem.

“Packaging should enhance and portray the message of the company, brand, and product.”

“What I see is more and more focus on sustainability. Customers, and not just millenials, want to be sure they are patronizing socially responsible brands in ALL arenas. Having store teams educated to discuss packaging details is a given as daily customers will inquire.”

“Authenticity is always appreciated … Fight against letting Sales or Marketing drive the decisions you make for packaging. It’s not about getting the most eyes, or clicks, or likes, or shares. It’s not about finding easy ins and lists upon lists. It’s about being true to who the brand is.”

“Keep designs simple and multi-functional. Give consumers a “back to basics” approach by not overcrowding packaging with unnecessary copy and/or jargon.”

“The future of the environment sits on the edge of a knife. It’s your responsibility to steward your business, and our ecosystem, into the next century. Extended producer and supplier responsibility taxes are coming. Brands that will lead in the next few decades will be those that seek out multi-value packaging solutions that provide value in their sourcing, through the supply chain, at their customers’ hands, and then at either a disposal, recycle, or upcycle point.”






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E-commerce


Design needs to re-think how to better bring the brand to life.

“Be clear about brand voice and long-term goals. Convey those things very early on in the design process, and drive them home. Too many times I’ve seen clients sit back and observe the wildly creative design concepts and give the green light because of the coolness factor, only to end up redesigning a couple of years later when the message doesn’t live up to its core purpose.”

“Dig down to the root of the brand. Find out who they are and what the brand mission is, and let that drive the package design decisions. Can the package tell a part of the brand story in an authentic way, and visually communicate to consumers who the brand is in order to relate on an emotional level to the customer? ”



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E-commerce


The design process needs to be more open, more agile, and include more stakeholders’ perspectives.

“Brands [need to] start really engaging their creative agencies far earlier in the process.”

“Be agile. We now live in a very disposable and changeable environment. Systems and fast-paced departments need to be in place to answer and adapt to those key components.”

“Marketing add draws the consumer. Package engineering ensures that the product is protected. Product management should be involved as well, as there are often ways that the product itself can be adapted, assembled, or deconstructed in order to complement the overall strategy. Supply chain leaders help ensure that the proper materials are sourced and assembled in a way that facilitates movement throughout the product life cycle … Invite finance to help model the impact of changes (and keep some of us in line).”




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E-commerce


Retailers can provide critical input to manufacturers and also be better gatekeepers, because they ultimately control what goes on the shelf.

“Retailers are a critical component of the ecosystem. They are interacting directly with the consumer and can see what works and what doesn’t; they have valuable insight into the consumer’s needs and behavior.”

“Be open to letting the smaller-run labels through the door. Honestly, I think consumers are tired of seeing major manufacturers like Coca-Cola, Kellogg’s, Pepsi, etc. flood the marketplace with homogenized-looking products.”

“Retailers need to drive change. They are often closest to the consumer, and we need their input. Rooting costs out while developing a better value chain experience is what needs to happen. Retailers should partner to send a unified and strong message to manufacturers.”




ConclusionsTrends shaping the future of packaging cut across design, sustainability, and e-commerce.

Addressing these trends is no longer an issue that can be handled by a single function or player within the ecosystem.

These design challenges must be addressed holistically in order to create designs that win on shelf, are sustainable, and succeed in the context of growing e-commerce. We must proactively address how macro-trends like sustainability and e-commerce are fundamentally reshaping the entire packaging ecosystem.

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trends in packaging 15 participants - currnt · omnichannel supply chain, walmart & sam’s...

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