Consumer trends and flexible packaging:
How packaging can help drive trends
Presented by Lynn Dornblaser, Director, Innovation and Insight, Mintel
© 2013 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
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2
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Today’s presentation
• First, a discussion of some of the overarching consumer drivers
that impact flexible packaging
• Then, a look at the numbers—products, packaging, consumer
• Three major trends for discussion:
• Wellbeing
• Value
• Fun
• What they are, what role packaging plays, especially flexibles
3
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Mintel Inspire trend: Transumers
UK rail travel
has grown
6% in 2011
as passenger
numbers rise
to highest
level in 90
years
A van in
Mumbai,
India named
City Bliss lets
travellers get
beauty
treatments
while
traveling
4
Source: Mintel
Consumers are spending
more time in transit.
Commutes – as well as the
‘places in between’ – offer
new marketing opportunities.
•
Implications for flexible
packaging:
Flexible single-serve pouches
address on-the-go needs
better than most other
package types
Airlines are
using social
networks in
order to
make the inflight
experience
more
entertaining
19% of all
meals and
snacks in the
US are eaten
in the car
mintel.com
Mintel Inspire trend: Snack Society
Work: About
two-thirds of
US
consumers
view
temporary
work more
favorably
than last year
Communication: While
77% of US
consumers
use mobile
phones for
texting, only
39% use it
for email
5
Source: Mintel
Time and budget constraints
have people opting for bitesize products and services.
•
Implications for flexible
packaging:
Small pack sizes can allow
consumers not only to eat and
drink on the run but also to
experiment with a variety of
flavors and product types
Holidays:
81% of UK
consumers
say that short
breaks are a
great way to
“recharge
your
batteries”
Snacking on
food and
drink: 47%
of US
consumers
say they
snack every
single day
mintel.com
Mintel Inspire trend: Make it Mine
39% of US
car owners
said they
purchased
accessories
for their cars
as a reflection of their
personality
JibJab Jr.
Books turns
kids into
stars of their
own iPad
storybooks
6
Source: Mintel
Coca-Cola
Australia is
putting
customers’
names on its
bottles and
cans
Personalisation is a right, not
a privilege.
•
Implications for flexible
packaging:
Sachets with added flavors or
mix-ins can help consumers
customize what they eat and
drink to be uniquely their own
1 in 4 US
consumers
say the ability
to customize
a product is
one way they
define luxury
mintel.com
A look at the biggest picture: All US CPG introductions
Recession clearly had an impact on product introductions
• New product intros
dipped in 2009, but
made some recovery
in 2010 and 2011
• However, market
contraction and SKU
rationalization have
likely brought overall
introductions down to
a lower level for the
longer term
• Most significantly
affected: Beauty &
personal care
7
Source: Mintel
US new product introductions, by broad
category, 2008-2012
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2008
2009
2010
2011
Food
Beauty & Personal Care
Drink
Household
Health & Hygiene
Pet
2012
mintel.com
Flexibles of all types continue to grow in consumer packaged goods
Flexible stand-up pouches show the greatest increases over time
Flexible package types on CPG
products, as % of all introductions,
2008-Sept 2012
25.00%
New product introductions in
flexible stand-up pouches, USA,
2008-Sept 2012
1500
1000
500
20.00%
0
2008
15.00%
10.00%
5.00%
0.00%
Flexible
2008
8
Source: Mintel
Flexible stand-up
pouch
2009
2010
2011
Flexible sachet
2012
2009
2010
2011
Jan-Sept
2012
• Only bottles have a greater
percentage of products than do
flexibles (e.g. bags)
• Besides all types of flexibles,
only tubes have shown
significant increases over time
in terms of appearance on CPG
products
mintel.com
Looking closer at stand-up pouches: Snacks, pet drive introductions
Note the diversity of product categories as well
• Pouches
appear across
a range of
categories,
mainly
focused in
food and
drink
• Note the
increase in
the “all other
group,” which
indicates
greater
diversity
New product introductions in flexible stand-up pouches,
USA, by category and percent, 2008-Sept 2012
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2008
2009
2010
2011
Snacks
Pet Food
Processed Fish, Meat & Egg Products
Bakery
Side Dishes
Sauces & Seasonings
Meals & Meal Centers
Breakfast Cereals
Fruit & Vegetables
Chocolate Confectionery
2012
All other categories
9
Source: Mintel
mintel.com
Flexible pouches continue to appear with new shapes and closures
10
Simplehuman’s hand soap,
USA, in a refill container
Plum Organics’ Yogurt Smoothie
for kids, USA
Arbor Mist frozen wine, USA, in
a 10.5-oz. single-serve pouch
Malibu Cocktails Melon
Margarita, USA, in a 1.75L pack
mintel.com
Consumers demand their packaging be easy to open, and more
They ask a lot of the packaging, from ease of use to durability, to recyclability
• Most important for
consumers:
packaging that
provides a functional
benefit, not
packaging that is
pretty to look at
• Note that this is for
beverage packaging
only, but this insight
can be applied across
all product categories
• Think about how
flexible packaging can
answer these needs
Importance of beverage packaging features
Easy to open
Retains freshness/carbonation
Easy to hold
Resealable
Portable (easy to carry, walk with,
drive with, etc.)
Durable, sturdy
Recyclable
Type of packaging material (glass,
plastic, carton, aluminum)
Single-serve size
Lightweight
Minimalistic (as little packaging as
possible)
Stylish, unusual design
0
11
Source: Mintel
20
40
60
80
100
mintel.com
Today’s presentation
• Three overarching trend areas:
• Wellbeing
• Value
• Fun
• What they are, what role packaging plays, especially
flexibles
12
mintel.com
Wellness is inescapable
Physical
and
mental
Symbols
help
Recycle
it!
13
Source: Mintel
Wellness transcends just physical wellbeing to also
include mental and spiritual wellbeing (and wellbeing
of the environment)
40% of US consumers say they look for healthrelated symbols on menus to help them make
healthy choices; NuVal ratings continue to expand as
well
66% of US consumers say that product packaging
should be recycled
mintel.com
Consumers see “natural” as something different than you might
For US consumers, “all natural” often means “healthy”
• It should be
noted that
consumers
may say they
will pay more
for some
natural
products, but
that this
intent does
not always
translate to
purchase
Attitudes toward natural claims, USA
I believe labels that claim
products are “all-natural”
When I see products labeled as
“all-natural”, I think it’s healthy
It’s worth paying more for
natural products for some types
of items, but not for others
0% 10%20%30%40%50%60%70%
14
Source: Mintel
mintel.com
Packaging can reinforce those natural attributes
Clear communication
regarding contents
Graphics, shape convey
“wellness”
Cherry Bay Orchards 100% Tart
Montmorency Cherry Concentrate,
USA
Happy Squeeze Super Pom, Apple
and Peach Super Smoothie, USA
15
mintel.com
Environmental issues appear to be almost all about recycling
But there’s much more to it than that . . .
• Eco-friendly packaging
dominates among
claims, as companies
focus on the obvious
• But other types of
claims have perhaps
stronger or more
“active” benefits
New product introductions with ethical &
environmental claims, USA, 2008-August 2012
16%
14%
12%
10%
Eco-Friendly Package
Ethical - Charity
8%
• Insight: Future
activity is likely to look
more toward
communicating more
meaningful values
Eco-Friendly Product
Ethical - Human
6%
Ethical - Animal
4%
2%
0%
2008
16
Source: Mintel
2009
2010
2011
2012
mintel.com
Packaging’s environmental message is more than just recycling
Offer a simple package end of life solution: Green claims don’t
make (mainstream) consumers buy a product
Casino’s Family Biscuit Assortment, France
Kraft’s Trident Splash Strawberry with
Kiwi Flavoured Gum, Canada
Less packaging
Compostability
17
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Healthy eating: What’s important to consumers is positive attributes
What matters more to
consumers than calories
are high-in attributes:
65%
•High in
vits/mins
65%
•High in fiber
65%
•Wholegrain
63%
•High in
protein
54%
•Low sodium
49%
•Low calorie
ConAgra Foods’ Healthy Choice Greek
frozen yogurt, USA
• 100 calories per serving
• 4g protein per serving
• On market about 8 weeks, average
weekly sales of about $125,000
Calorie perceptions for healthy meals,
US, by age
474.07
All
18
Source: Mintel
393.96 421.39
18-24
25-34
461.11 486.51
35-44
45-54
525.54 547.91
55-64
65+
mintel.com
Packaging’s role: Offer “just enough”
Focus on the positives, not on the negatives,
and enable consumers to have a small treat
Hershey’s KitKat Snack
Box, USA, with 24 0.49oz. bars that are 70
calories each
•
Calorie restriction =
dieting, which can be
seen as a negative
•
Therefore, look to
packaging that allows
consumers to have a
small treat (but it’s
not about “fewer
calories”)
•
Promote products as
offering anyone a bit
of a treat
NibMor Daily Dose of Dark
Dark Chocolate, USA, in a
0.35-oz. size, positioned
as “the perfect amount of
chocolate!”
Anco’s Il Villaggio cheese
snack bites (in Parmesan
and Brie), USA, in 0.7-oz.
individual portions of 80
calories
19
Strategies to
consider:
mintel.com
Packaging appropriate for seniors benefits everyone
85%
• Of US consumers
age 65+ say easyto-open is an
important feature
in beverage
packaging
Maggi Moment Mahl Tomato
Cream Soup, Germany
Easy to use package
Insight:
• Older consumers
want something
that is largely
missing in the
market
20
Source: Mintel
New World’s
Pasta
Portions
boil-in-bag
pasta, USA
Individual portions
Kraft Foods’ Oreo cookies, USA
Easy-open tab, easy
resealability
Quaker Oats’
Snack’ems
cereal snacks,
USA, in a
pouch with an
easy-open top
Easy-open pack
mintel.com
Value is for everyone
At all price
points
Shifting
strategies
Retailers
respond
21
Source: Mintel
“Value” is appropriate at all price points, in all
channels, from all companies—it all depends on how
you play it
About half of consumers are cooking at home more
to save money, BUT, about half of consumers are
spending the same amount on groceries as a year
ago
Hard-discounter Aldi continues to grow; private label
offerings grow; dollar stores (and their assortment)
also grow
mintel.com
Approaches to economy exhibit a shift in thinking
General Mills’ Pillsbury
Toaster Strudel, USA, in
a value size and an offer
for free orange juice
Old thinking: Bigger
packs and offers
22
"Most of you are
under the frame of
reference that the
emerging markets
benefit from things
brought from the
developed world. I
got news for you. It's
going to work in
reverse much better
going forward.“
Heinz Tomato Ketchup,
USA, in a 10-oz. standup pouch that retails for
99 cents
Heinz Chief Executive,
William Johnson
Shift in thinking:
Affordability
Where affordability
ideas come from
mintel.com
Affordability extends to the product formulation as well
Dannon Pure yogurt, USA
Only 7-9 “simple, natural
ingredients”
23
Coca-Cola’s Fanta Fun Taste Fruity
Orange Flavour Drink Powder, India
Rethink the format, but stay close
to brand’s values
mintel.com
Playfulness
24
Anxious
America
18% of women and 13% of men label themselves as
“anxiety sufferers,” and about half take medication
for it
“Take me
away”
88% of consumers who visit a spa do so for the
relaxation benefits; 40% of cooking enthusiasts cook
at home because it relaxes them
Make me
laugh
About half of US consumers say they both prefer to
send and receive funny greeting cards
Source: Mintel
mintel.com
Packaging’s role: Unexpected functionality
Avon’s Mark Main Squeeze Lip Gloss, USA
Attributes:
• Rigid plastic
case with
squeezable
center
• Precise delivery
Why it
works:
• Unique package
format, not seen
elsewhere
• “Coolness”
factor
25
mintel.com
Packaging’s role: Channel your inner kid!
Packaging that offers a sense of fun can be both complicated and
quite simple to create
The box
becomes a
game
Britvic’s Turbo Tango orange
drink, UK
26
MillerCoors’ Keystone Light
beer, USA
mintel.com
A shift in packaging can make a product fun for new consumers
Soup that’s not boring
Single-serve slushie alcoholic
drink
Campbell Soup’s Go soup line, USA,
in a range of ethnic varieties, ready
to microwave and eat
Cordina Choc-GO-late Mudslide PreMixed Cocktail, USA, ready to freeze
and drink
27
mintel.com
Final thoughts regarding flexible packaging’s role in product trends
28
Looks great
Flexibles can easily attract consumers via beautiful
graphics, unusual shapes. Use that ability to best tell the
strongest stories about the products inside.
Weighs less
The environmental message is a strong one—do you help
consumers understand the role played by lightweight
packaging?
Easy to use
“Easy-open” is of the greatest importance to consumers—
and flexibles offer that (usually). How can you improve on
that, or help consumers understand that?
mintel.com
Lynn Dornblaser
Director, Innovation & Insight
Tel
Email
Twitter
312 450 6117
lynnd@mintel.com
@mintelnews
© 2012 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
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