PD_Packaging Digest

Packaging Digest Directory, 2015/2016

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26 TRENDS // summer 2015 www.PackagingDigest.com Packaging proliferation spurs beverage growth Expanding usagE occasions is just one beverage trend that requires creativity in packaging, which is causing the number of package types to fourish. Lisa McTigue Pierce, Executive Editor More than half of respondents (53%) to a Packaging Digest poll say they expect their beverage portfolio will increase in 2015—and that this growth will come mostly through the development of new packaging formats and/or sizes. Tus the rise and subsequent fall of stock-keeping units continues, as businesses grow and then later optimize/standardize their packaging choices. Te online poll was conducted by Packaging Digest in cooperation with the Institute of Packaging Professionals (IoPP) as part of its March 2015 Spotlight on Beverage Packaging. Among the interesting revelations are: • Nearly a quarter of respondents (23%) don't know if their beverage portfolio will increase, decrease or stay the same. With the poll taking place in March, well into the new year, this could mean that either the company hadn't decided what its growth strategy would be or it hadn't shared this information with its packaging department. Neither situation bodes well for a synergistic strategy. • Developing new products or line extensions, or buying other beverage brands, is taking a back seat to developing new packages in 2015. With many consumer packaged goods (CPG) companies fghting to improve margins and clamoring about an imperative for innovation, the pressure on designers to create packages that will provide the sales lift needed must be great. • When asked what is driving the decision to develop new packaging, expanding a product's usage occasion(s) ranks high with our respondents, just after the top choice of growing profits or margins. Fitting the package format to the retail outlet has been a tactic all along (single-serve packs for convenience stores and bulk packs for club stores, for example). But redesigning packaging to either refect how drinks are being consumed diferently these days or to give consumers new ideas in how to consume them—and to consume them more often—could give beverage companies the competitive edge they need. Early poll results showed expanding a product's usage occasion(s) in the lead, so clearly this is important. In the poll, we also asked "What is the biggest challenge facing packaging departments at beverage companies today and why?" Answers ranged quite a bit, but most can be categorized by cost, competitive strategy, technical prowess, sustainability and consumer expectations. Highlights of verbatim answers show where many thoughts lie—with consumers: "Be diferent at low cost." "Te ever-growing need to be environmentally friendly while maintaining the premium feel and functionality expected by consumers." "Packaging of product with user-friendly packaging design with good aesthetic look." "Choose packaging materials free of Chemicals of Concern and widely accepted by end-users." "Cost and margins vs. consumer benefts." Several other comments show how creative packaging professionals can be or want to be: "Coming up with the next innovation to get the WOW factor." "Increased array of processing techniques for which package performance must be confrmed." "Most packaging [is] in bottling plant. Why we don't think out of [the] box?" Source: 2015 March Packaging Digest online poll If you chose "Develop new packaging formats/sizes," what is driving that decision? (check all that apply) Grow profits/margins Expand product's usage occasion(s) Enter new distribution channel(s)/area(s) Other (please specify) 50.0% 44.4% 16.7% 11.1% Source: 2015 March Packaging Digest online poll In 2015, will your beverage portfolio: Increase Don't know Stay the same Decrease 53.2% 4.3% 19.1% 23.4% Source: 2015 March Packaging Digest online poll How do you expect your beverage portfolio will increase? (check all that apply) Develop new packaging formats/sizes Create new products Extend the line of existing brand(s) Acquire new brands/products Other (please specify) 73.7% 47.4% 31.6% 15.8% 5.3%

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