The Food and Agriculture Organization of the United Nations estimates that 1.3 billion tons of food is wasted globally each year, with consumers in Europe and North America throwing away be tween 95115 kg of food per person. With con sumers concerned about this growing waste mountain, and shoppers seeing the cost of this waste on their wallets, people are now actively seeking solutions. Brands can utilize communication tools directly on the packaging itself to educate consumers to the benefits packaging can bring, from extending shelf life of food to providing efficient and safe ac cess to essential products in developed and under serve regions of the world. Combating Counterfeiting The problem of counterfeit goods is one that con tinues to grow with each passing year and has yet to be adequately addressed as a systemic problem. Some of the statistics are astonishing. Take for in stance the fact that in 2016 more than 55 percent of the medicines purchased online globally were ei ther of poor quality or fake. The anticounterfeit push in the pharmaceutical industry, unsurprising ly, is growing because of increasing initiatives by the pharmaceutical companies, as the threats to endusers (and the inevitable lawsuits) are obvious. The market for anticounterfeit and security packaging will see significant growth over the medium term, with Smithers Pipra estimating a market worth over $2.75 billion in 2015 and grow ing to more than $3.5 billion by 2022. The Online Experience As more and more consumers embrace online shopping, packaging will play a pivotal role in brands’ and consumers’ ecommerce experiences, according to the Minter report. Much of the conversation among brands, con verters, and package designers about online shop ping and ecommerce is currently focused on, and driven by, Amazon. Free from the supply chain re strictions of the brickandmortar retail giants, Amazon is working to minimize “touches” in the supply chain, maximize the brand experience for consumers, and optimize packaging SKUs.
Online shopping is becoming more widespread around the world and is near ubiquitous in markets like the UK where 91 percent of consumers say they shop online. Much of the popularity stems from convenience as more than half of Chinese consumers aged 2049 who shop online say it is fast (53 percent) and saves time (51 percent). Now is the time for brands to consider how packaging can alleviate, if not eliminate, consumer frustration with overpackaged and even underbranded goods sold online and delivered via ecommerce. With ecommerce sales forecast to reach $4 tril lion globally by 2020, representing nearly 15 per cent of total global retail sales, according to eMarketer, brands must consider when, not if, they will enter the online retail and ecommerce pack aging fray. Packaging that safely delivers products through the ecommerce supply chain is only part of the equation, with opportunities for material op timization and improved sustainability. While online shopping’s key advantage is conve nience, consumers expect more from their favored brands. When designing packaging to be viewed online, and transit packaging to be opened upon delivery in the home, the experience of ecom merce packaging must reflect consumer expecta tions from shopping with that brand instore. Clear Communication The path forward for converters will further demonstrate the intense marketing and branding capabilities of packaging. Consumers are more informed than ever and package designs must strive to further enlighten consumers without overwhelming them. Reports show that consumers are more likely to trust brands when messaging and claims are suc cinct and easy to understand. Onpack communica tion that eliminates excess information and design elements to help consumers focus on key product qualities or package functionality can lead to greater customer engagement. In today’s increasingly hectic retail environment, clear, concise packaging is more important than ever. Changes will continue to evolve for CPGs and retailers, and it’s the innovations of flexo convert ers that will light the way to the future.
Executive Outlook Flexo Market News 3
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