4 CPG Trends That Will Redefine Packaging in 2020
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A new decade is upon us, and we are both excited and intrigued to see where the consumer packaged goods industry is heading. Some new trends in the CPG industry are focusing on products that will utilize flexible packaging and provide the sustainability that consumers are demanding. We believe the entire category of packaging will be redefined by the end of 2020. Here are 4 trends that will make their mark:
More consumers are buying online, so how can products have the same appeal on a digital platform as they do on store shelves? The Flexible Packaging Association finds that consumers are looking for sustainability within their e-commerce purchases. There’s an opportunity here for packaging manufacturers to reduce the amount of material used in shipping. This can also optimize shipping space on trucks and design packaging for easy returns. With e-commerce expecting to double from $2.29 trillion in 2017 to $4.8 trillion by 2021, the responsibility grows.
Packaging Gateway says that rigid packaging, such as corrugated packaging, is predicted to “dominate the [e-commerce] sector with its stable structure and sustainable qualities.” Reusable printed sleeves that sit over multiple-use corrugated boxes also will be a hit, especially in the luxury packaging market, which is expected to be on the upswing.
Stand-up pouches will also see an uptick in usage, as they have a smaller footprint then their paper counter parts. (less on shipping) Not to mention the importance of easier storage and the ability to easily re-seal after opening.
Remesh experts agree that CPG products must have a digital presence to connect with customers. “This digital presence may just seem like a marketing decision for your brand, but consumers see it as a way to connect with your brand message.” Start with your website, then engage further through social media platforms for optimal success.
The rise of flexible packaging is a CPG industry breakthrough. Remesh reports that 42 percent of consumers are looking for products that use recycled or sustainable materials, and 35 percent are seeing products made with natural or organic ingredients. PKG Branding predicts that we will see a reduction in single-use items; examples include casein film — which is made out of milk, so it’s edible — as used with recyclable glass packaging.
According to Packaging Gateway, another trend is in both, the package design, and in the type of material used in consumer packaged goods. An example of this is in our compostable films, used for bar wrappers and other snack product packages. Our packaging offers a wide variety of materials and designs to choose from to offer sustainable packaging, consumer eye-catching design, and maintain being environmentally conscious.
Lifestyle Packaging global head of marketing Rich Quelch told Packaging Gateway: “More brands will be investing in updating their primary packaging — glass and plastic bottles, caps, and closures — with decorative techniques, such as etching, metallization, hot stamping, screen printing and anodizing, helping to translate brand identity directly onto the product.”
Lisa Dower, head of new product development at Mad Beauty also spoke with Packaging Gateway: “Clean packaging [and] simplistic designs [will be a trend for 2020]. Focusing on product ingredients, this trend ties in with the sustainability trend, as consumers believe less complex packaging is more environmentally friendly than over-engineered packaging.”
And, one of our favorites, edible packaging, is going to be a star in 2020. Eco-friendly, minimalist packaging, especially in food service, will take off with products like edible straws, edible cutlery, and other innovations.
Especially in the food and beverage space, subscriptions are becoming more personalized than ever before. Obviously, the internet has allowed companies to reach more customers than in the previous decade. Remesh says that brands who distribute statewide, nationwide or even larger need to “cultivate a consumer relationship outside your local, target audience.” With that, it’s important to look at the growing consumer persona that may encompass multiple personalities and groups.
“It’s crucial to view your customers outside of their use of your product, and even outside of the CPG industry at large. Find out who they are and what they value using tools like FullStory or Crystal. You can then use this information to create a personalized experience for your buyers,” Remesh says. “The more personalized the experience a customer has, the more likely you are to have a higher rate of satisfaction. This can lead to a customer base that is loyal to your brand.”
Satisfying consumers’ wants and needs within a long-term relationship leads to more subscribers, engagements, and ROI, which all equal coveted brand loyalty.
Consumers need products that fit their on-the-go lifestyles. Previously mentioned subscription services allow for products to be delivered right to the customers’ doorsteps with automatic renewal. This is especially powerful in the case of toiletry, dog food, and cleaning industries, as these are all renewable-type products.
Convenience isn’t just about easy delivery options and order renewals, consumers also want easy on the go snacks, drinks, and meals. We understand the need for those fast, convenient, on-the-go snacks and drinks, that’s why we’ve created easy, on the go, labels for everyday products. We offer packages from single-serve powder packets, single-serve stick packaging, to on the go shakes, cold seal bar wrappers, and more convenient package offerings.
Smart packaging and 5G are also providing the ultimate in convenience, with smart tagging available to track when shelves need to be restocked, just to name one example. The Flexible Packaging Association says that the Internet of Things “will enable printed electronics to be included on the packaging to communicate with consumers and educate them on where and how they can recycle flexible packaging.”
As convenience continues to be a hot trend in consumerism, more than 40 smart cities are adopting policies that could lead to improved packaging collection efforts. Think, convenience, ease of sortation, and efficient waste collection.