Trends Driving Today’s Packaging Industry
Keith Schafer, Nordson Corporation
June 23, 2011
Who is PMMI?
• North American packaging supply
chain association
• Member Profile
– 500 general members
– 69 processing, supplier &
materials members
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PACK EXPO Trade Shows
• Discover innovation across the line
• Help attendees
– Strengthen brands
– Improve cost, production
efficiencies
– Achieve sustainability goals
• Allied partners add value
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Industry Resource
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New Industry Alliance
• Alliance for Innovation and Operational Excellence
• Mission: Unite CPGs and suppliers to establish
best practices for critical manufacturing issues
• GMA is charter partner
• Multiple solution groups
–Product Safety Solutions Group (PSSG)
–Sustainability Solutions Group (SSG)
–Operational Reliability Solutions Group (ORSG)
–Workforce Development Solutions Group (WDSG)
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Presentation Overview
• Vision 2015: End-users, OEMs expect gains
• Trends and advances in food packaging
• Beverage market forecast
• A preview of PACK EXPO Las Vegas 2011
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Vision 2015: Economic Outlook
• “Cautiously optimistic” outlook for economy
– Slow but positive growth in next 12-18 months
– Specific niche opportunities for new products and packaging to
drive growth rates
• Increases in spending by CPG’s due to several factors
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Economic stability in developed countries
Continued economic growth in developing countries
Improvement in consumer spending
Benefits from tax and other public policies that support increased
business spending
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Vision 2015: Economic Impacts
• Project must produce high and short-term returns with minimal
risk
• Capital funds increasingly being directed toward process and
operational improvements
• Strong emphasis on lean strategies
– Using automation to reduce labor costs across operations
– Leveraging sustainability strategies to reduce costs
– Applying Six Sigma disciplines to measure and improve
performance
– Emphasizing OEE metrics
• Decrease in incremental innovation that produces marginal
results
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Vision 2015: The Upside
• End-users will continue to implement strategies to build
customer loyalty and market share
• Consumers still seeking innovation due to desire for
convenience, value and safety
• Consumers increasingly “thinking green”
• Compliance with new government policies will spur investment
in packaging machinery and innovative materials
• Large retailers continuing to push for packaging innovation
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Market Spotlight: Food
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Market Spotlight: Food
• Three primary drivers shaping today’s food industry
– The Economy
• Consumers more thoughtful about spending and saving more
– The Consumer
• Convenience continues to drive demands
• Counting on food processors to reduce waste
– The Retailer
• Creating choice for consumers with premium store brands
• Initiating packaging material reduction
• Retail Ready Packaging (RPP) trend
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Market Spotlight: Food
• These drivers are, in turn, directly impacting
today’s packaging trends
– Sustainability
– Labeling and food safety
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Sustainability
• Sustainability efforts spanning multiple packaging stages
Primary Package
-Material reduction
-Right-sizing the package
-Reducing web width and cut off to minimize waste
-Using new bio-film materials for better shelf life and barrier protection
-Lightweighting glass/plastic
-Using water based inks to aid recyclability
Secondary Package
-Increase use of recycled corrugate
-Material reductions; gapped flats
-Specialty glues to add corrugate strength
-Moving away from bleached corrugate
Transport Package
-Better pallet configuration
-Recycling pallets
-Cube utilization
-Source materials closer to production &
distribution
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Sustainability
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Sustainability
• Materials being tested or considered for food
packaging
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PLA (polyactic acid)
Regresa® oxo-biodegradable polyethylene films
NatureFlex™ films
Surlyn®
IntegraGuard™ Eco-Wise
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Labeling & Food Safety
• Foodborne illness is a significant public health burden that is
largely preventable
– 48 million people (1 in 6 Americans) get sick each year
– 128,000 people are hospitalized each year
– 3,000 people die each year
• Food Safety Modernization Act (FSMA)
– Gives FDA new prevention-focused tools and clear regulatory
framework
– Enhances FDA’s ability to oversee food imports
Source: Centers for Disease Control and Prevention
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A Closer Look at FSMA
• The law can be divided into five key areas
– Preventative controls
• Mandatory preventative controls for food facilities
• Mandatory produce safety standards
• Authority to prevent intentional contamination
– Inspection and Compliance
• Mandated inspection frequency
• Records access
• Testing by accredited laboratories
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A Closer Look at FSMA
– Imported Food Safety
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Importer accountability
Third-party certification
Certification for high risk foods
Voluntary qualified importer program
Authority to deny entry
– Enhanced Partnerships
• State and local capacity building
• Foreign capacity building
• Reliance on inspections by other agencies
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A Closer Look at FSMA
– Response
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Mandatory recall
Expanded administrative detention
Suspension of registration
Enhanced product tracing abilities
Additional recordkeeping for high risk foods
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FSMA and Recalls
www.fda.gov/Safety/Recalls
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Labeling & Food Safety
• FDA proposing nutrition labeling
guidelines
• Nutrition Keys, a new voluntary
front-of-pack nutrition labeling
system
– Developed by the food and
beverage industry in collaboration
with GMA and FMI
– Helps busy consumers make
informed decisions while they
shop
– Clear, easy to read format displays
calories, saturated fat, sodium and
sugar per serving
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Labeling & Food Safety
• Types of new equipment needed as FDA mandated food
traceability and food safety changes are implemented
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Date coding equipment
Labeling equipment
Metal detectors
Barcode printers
Testing equipment for salmonella and bacteria
Barcode scanning equipment
Scrubbers/cleaners
RFID, if it’s required
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Labeling & Food Safety
• Wide range of industry resources for help and guidance
– New web resource: FDA Basics for Industry
(www.fda.gov/FDABasicsforIndustry)
• Basic information about regulatory process, frequently
requested information
– Produce Safety Alliance
• Funded by the FDA and USDA and housed at Cornell University
• Provides produce growers and packagers with essential,
on-farm food safety knowledge
• Helps prepare for proposed rules from FDA in 2011 on
safe production, harvesting and packing of produce
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Trends to Watch
• Name brand vs. store brand (Own Brand)
• Healthier lifestyles
• Foods of the future
• Continued testing of nanotechnology
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Trends to Watch
• Next Generation of Machinery
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Enhance operating efficiency
Changeover with the push of a button
Lower energy consumption
Decreased waste
Reduction in labor
• Increased integration of processing and packaging functions
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Streamlines operations
Increases productivity
Reduces waste
Decreases costs
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Market Spotlight: Beverage
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Key Beverage Trends
• Eye-catching single-serve packaging
• Cost-effective “green” packaging
• Flexible packaging machinery to support latest container
technologies
• Minimization of secondary packaging to cut costs, reduce
overall carbon footprint
Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Your Resource for Packaging and
Processing Innovation
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PACK EXPO Las Vegas 2011
• Largest North American packaging
and processing event in 2011
• New in 2011
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The Pharmaceutical Pavilion
The Processing Zone
The Confectionery Pavilion
Project 2020: The Consumer
Experience
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PACK EXPO Las Vegas 2011
• New customer-centric approach
– Puts attendee at center of focus
– Launching initiative with three
industries
• Pharmaceutical
• Confection
• Bakery/Snack
– Networking Lounges
• Rx Lounge
• Candy Bar
• Baking/Snack Break
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Partnerships: Education
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Added Value Partnerships
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THANK YOU!
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