Page 12 - Packaging News Magazine July-August 2018

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INDUSTRY INSIGHT www.packagingnews.com.au July-August 2018
Online opportunities
The online grocery sector will benefit hugely from smart packaging technology in the next five years. We explore four key e-commerce trends set to pave the way for innovation in the space.
HE recently released Tetra Pak Index
2018 indicates that smart packaging technology based on unique digital codes will take both online and offline grocery in new directions.
Online grocery shopping is growing at a double-digit rate, while traditional stores are merging into an omnichannel where consumers expect to use the smart-
phone as their shopping compass. Packaging will play an important role in response to the trends that are shaping the growth of online grocery, says Tetra Pak, which has identified the following four
trends in this segment.
1CONVENIENCE CREATION
This is the main driver for online con- sumer take-up, as time-crunched con- sumers look for new ways to make their life easier. More and more, consumers are de- manding variety with both the type of item as well as the size of the package. Choices provide variety and allow consumers ver- satility in expressing their personal tastes and preferences. Variety also allows busy consumers to make healthier choices on the go. Having such variety in attractive, safe, and functional packaging offers con- sumers the convenience they crave.
Key opportunities for packagers include easy product replenishment, voice, and convenient packaging.
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3PERSONALISATION PREFERENCES Customisation of products and per- sonalisation in the consumer journey will be important differentiators going for- ward, according to Tetra Pak.
This is accelerating the direct-to-con- sumer trend and as many as 80 per cent of consumer-packaged goods companies are predicted to migrate to this model by 2025.
According to Deloitte, one in four con- sumers are now willing to pay more to re- ceive a personalised product or service. In some categories, more than 50 per cent of consumers expressed interest in purchas- ing customised products or services, and 22 per cent of consumers are happy to share some data in return for a more per- sonalised customer product or service. De- livering personalised products and experi- ences can provide benefits for both the business and the consumer. Businesses
SUSTAINABILITY SMARTS
Pressure on plastic, and awareness of
the circular economy will continue to grow, and recycling will become more im- portant. Consumers are wanting to know whether brands are ‘doing the right thing’.
Globally, there is a noticeable up-tick in awareness on not only the issue of food waste and how high-performance packag- ing can enable a longer shelf life, but also the need for sustainable end-of-life options for plastics waste. Governments, brand owners, and materials suppliers are all
working collaboratively on packaging solutions and technologies that address these preferences and help
improve the environment. Some of the aspects that influence packaging materi- als and design are un- changeable, such as the need to protect its contents, and some influences are purely aesthetic, like co- lour. However, when it comes to sustainability, there is an increased de- mand for more efficiencies in all aspects of the supply chain. Suppliers, convert- ers, and brand owners are working with govern- ments and consumers to increase the sustainabili-
ty of their packaging.
have the opportunity to demonstrate the value consumers can get from their per- sonal data being used, while also gaining deeper insight into consumer behaviour. At the same time, it makes it easier for con- sumers to understand the offer, while get- ting better value for money.
Offering personalisation might require a rethink of business operations but busi- nesses that embrace personalisation have an opportunity to create a differentiated proposition that may command a price premium, and improve consumer traffic and conversion.