2014PACKAGING

TRENDS

PRESENTED BY:

PETER SENA@petesena

Let’s take a look at thestate of packaging today

DID YOU KNOW?64% of consumers will sometimes buy

a product off the shelf without any prior knowledge of it.

Packaging drives purchase more than TV ads, online reviews and recommendations from friends.

37% 31%31% 27%

PACKAGING ONLINE FRIENDS TELEVISION

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.

73% 85%&

*2013  survey conducted by MWV group

SOMEWHERE BETWEEN

BUT WE HAVE A PROBLEM:

Fewer than

20%

of U.S. consumers report they are very satisfied with product packaging.

EVERY PACKAGE CATEGORY HAS ROOM TO IMPROVE

Satisfaction with soft drinks

!

24%!

19%!

18%

Satisfaction with healthcare products

Satisfaction with house hold cleaners

Satisfaction with frozen food packaging

!

18%!

17%!

11%

Satisfaction with beauty care products

Satisfaction with carry-out containers

KEY PILLARS OF 2014 PACKAGING TRENDS

01

SUSTAINABILITY

02

TRANSPARENCY

03

SOCIAL

04

FUNCTIONALITY

05

ENTERTAINMENT

06

CONVENIENCE

01

SUSTAINABILITY

the LOHAS consumer segment is a 290 billion dollar market in the U.S. alone

!

Let's not just sustain our quality of life, But BETTER our quality of life.

!

WE MUST STEP IT UP!

Nearly three quarters of consumers say that each of us has a personal responsibility to do what we can to be

environmentally responsible.

73% of consumers

think companies should help consumers become more environmentally responsible.

61% of consumers

identify reusable or repurpose-able as an important quality for food packaging.

63% of respondents

ENVIRONMENTALLY FRIENDLY PACKAGING MOST HIGHLY REGARDED AMONG AFFLUENT CONSUMERS

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

Preferences in packaging attributes for purchasing decisions by household income, April 2013 Packaging that is labeled as environmentally friendly

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.

THE LIFE BOXThe “Life Box” contains hundreds of tree seeds within its corrugations and is safe to tear up, plant, water and GROW.

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.

54% 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

86% of consumers

02

TRANSPARENCY

What you see is what you get.

GROWING DESIRE FOR ANSWERS

75% of consumers

would like to see on-package information explaining how the product was made.

CLEAR PACKAGINGNo surprise here.

PRODUCT CLAIMSAgreement with attitudes toward food packaging, by age, April 2013

29%It’s difficult to find product claims on

product packaging.

38%I trust what

companies say on their labels about their

food products.

64%There are so many

health claims for food that it is confusing.

Base: Internet users aged 18+ who are primary or shared shopper

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

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.

Their voices WILL be heard. Its worth while to welcome their input.

Leverage social media to involve consumers and fans in packaging decisions.

Lay’s: Do Us a Flavor campaign

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 Asda.com

website, from which some will be selected to appear on in-store POS barkers and on-pack stickers - with the customer’s permission.

03

SOCIAL

3 Ft

Max distance between average consumer and their mobile phone?

PRE-PURCHASE SOCIAL INTERACTIONS MATTER

76% of consumers

recommend companies they trust to a friend or colleague

57% of shoppers

are more likely to buy after receiving opinions from friends.

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.

FREQUENCY OF MOBILE ACTIVITIES IN-STORE

52%32% | 16%

50%34% | 19%

39%41% | 19%

Price Checking Info & Reviews Call / Text friend or family member

Regularly (Top 3) Occasionally Almost Never

FREQUENCY OF MOBILE ACTIVITIES IN-STORE

Used a barcode or QR code scanner

!

36%!

34%!

24%

Searched for online coupon

Posted a social update

location-based check in (Foursquare, FB)

!

22%!

17%!

10%

Mobile login to store loyalty program

Paid @ checkout using mobile app

"Social media: A communications revolution causes a packaging evolution"

!-HealthCarePackaging.com

Packaging can be a sale-driving media platform.

"Understanding how consumers experience packaging is no longer optional; it is indispensable."

!- packworld.com

Macy’s has just become the first retailer to try out the tech, using shopBeacon devices that work with

Apple’s iBeacon innovation.

+ =

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.

ALTERNATIVES TO QR CODES

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.

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!

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.

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.

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.

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.

FASHION LIKES !Brazil retailer using Facebook likes… on its clothing hangers

"Packaging is just as important as the product itself, and it goes a long way toward convincing customers that

they want what’s inside."

04

FUNCTIONALITY

92%80% 74% 72%

64%

ENVIRONMENTALLY FRIENDLY PACKAGING MOST HIGHLY REGARDED AMONG AFFLUENT CONSUMERS

Retains Freshness Re-sealable Easy to open Durable - sturdy Recyclable

Base: 2,000 internet users aged 18+ Source: Mintel

Important food packaging attributes, April 2013

YES, CONSUMERS WANT PACKAGING THAT:

1. Protects from breaking or spilling 2. Maintains product integrity 3. Gets the entire product out of the package

And then they want MORE!

In addition to standard packaging expectations, they ask…

“WHATS IN IT FOR ME?”

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.

DUAL- PURPOSE“FASHIONABLY CLICQUOT” !Cylindrical carrier & functional ice bucket.

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.

CREATIVE Fun & Functional

Packaging customization is becoming expected, especially by Millennials.

Dual-use packaging resonates well with environmentally and budget conscious consumers.

Give customers more bang for their buck without spending to much of our own.

DIY LIVING’S BIG IDEA:

SPECIAL OFFER: Pay for bench, lamp on the house.

What would otherwise be thrown in the trash now served a practical purpose at home.

joolz did the same.

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.

05

ENTERTAINMENT

Increase conversation, reach, engagement & loyalty.

59% of Status Seekers

are younger than 45 years old and are more interested in packaging that is attractive or cool than eco-

friendly and/or functional.

INTERACTIVE PACKAGING !Re-Think Wine

FUN DESIGNS !Jooze juice boxes

JUST GENIUS !Vax developed vacuum cleaner made from it’s own packaging

Make it Personal.

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.

HEINZ ‘GET WELL’ SOUP FOR FRIENDS !Personalized packaging via Facebook promotion exceeded customer expectations.

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.

06

CONVENIENCE

We have to go the extra mile so that our consumers don’t have to.

RE-SEALABLE PACKAGINGAn 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

think re-sealable packaging is important, in large part because they associate re-sealable with the ability to

retain freshness.

8 in 10 consumers

EDIBLE PACKAGING“Don’t hold back - devour the sandwich without taking off the packaging.”

As more Americans adopt healthier living, smaller serving sizes will supplant the need to buy in bulk.

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.

As e-commerce grows, it may be possible to use simpler retail packs, make them smaller, leave them

unprinted or perhaps remove them entirely.

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.

Slow and Steady will lose the race.

young consumers are roughly twice as influenced by SPEED as older consumers.

QUICK APPLICATIONThe packaging and delivery of products should facilitate quick application and contribute to ease of usability.

SIMPLIFIED DESIGNIf there’s nothing to add & enhance, SIMPLIFY.

of shoppers use technology to save time.

44% of consumers

are more likely to choose a company that allows them to interact via an online, mobile

or self-service device.

88% of consumers

01

SUSTAINABILITY

02

TRANSPARENCY

03

SOCIAL

04

FUNCTIONALITY

05

ENTERTAINMENT

06

CONVENIENCE

01

SUSTAINABILITY

02

TRANSPARENCY

03

SOCIAL

04

FUNCTIONALITY

05

ENTERTAINMENT

06

CONVENIENCE

Innovation drives engagementBE MORE THAN A VENDOR!

THANKYOU

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@petesena