From The Editor Executive Outlook
commitment to sustainability is to have products packaged in an environmentally friendly way. “Even more,” said the report, “consumers ranked packaging higher than sustainable sourcing prac tices, partnerships with NGOs and activism. While these activities are all important to consumers, the packaging is a very direct, tangible way to show commitment to sustainability.” When it comes to demonstrating commitment to sustainability, consumers ranked packaging higher than many major operational activities. The key tightrope for brands now appears to be the ability to balance sustainability without affect ing functionality. Nearly 80 percent of consumers believe it important for brands to focus on innova tions that make it easier for them to use the prod uct. Additionally, 77 percent of consumers said it’s extremely important that packaging keep products fresh and/or effective, and 82 percent said it’s ex tremely important that packaging prevent spilling/breaking. Counterfeit Threat Sustainability and branding may still monopolize much of the discussion in the packaging markets, but there remains one key issue that will continue to grow in importance: Anti Counterfeiting. Counterfeit goods pose serious threats to con sumer welfare as well as the brand loyalty of many CPG companies. The success of CPGs hinges on noth ing greater than its ability to control the quality of its products. It is very difficult to gain goodwill among consumers, and once that goodwill is jeopardized it is even more daunting a challenge to regain it. Several reports suggest that the anticounterfeit ing packaging markets will continue to grow by enormous margins as CPGs and retailers struggle to bring this epidemic under control. The AntiCoun terfeit Packaging Market size is projected to grow from $82.05 billion in 2015 to reach $153.95 billion by 2020, at an estimated Compound Annual Growth Rate of 13.41 percent, according to a new report from MarketsandMarkets.
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More than 80 percent of U.S. consumers, accord ing to the report, say safe packaging makes them: • More favorable toward a manufacturer or brand (88 percent), • Trust the brand more (88 percent), • More likely to purchase products from the man ufacturer or brand (87 percent), • More likely to recommend products from the manufacturer or brand to friends and family (82 percent). And confidence in the packaging efforts put for ward by consumer goods companies also appears strong. Three quarters of consumers said compa nies are doing enough to ensure product packaging does not contain harmful materials of substances. Additionally, 92 percent of consumers believe pack aging safety is headed in the right direction. Sustained Growth In the area of sustainability, the importance to consumers has reached all time high levels. Accord ing to the Westrock survey, 98 percent of con sumers indicated that sustainability is extremely important in their view of a brand. CPGs and packaging converters have spent mil lions of dollars to minimize greenhouse gas emmis sions, using recyclable materials, and partnering with community groups, but the survey suggests that they could do much more to communicate their sustainability efforts to consumers. WestRock concludes that companies are experi encing a disconnect when it comes to sustainability. They are making enormous investments and then missing their opportunity to demonstrate their commitment to consumers at the most immediate point of interaction—through the packaging. “When asked for the most impactful action a brand could take to demonstrate its commitment to sustainability, consumers said: the packaging,” according to WestRock’s report. Twothirds of consumers said that the most im portant action a brand can take to demonstrate its
18 Executive Outlook Flexo Market News
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