CPGs Focus (Cont’d from Page 4)
view convenience as a growth driver (27 percent ver- sus 18 percent). Clearly, new product formats that emphasize conve- nience will call for major changes to packaging, and brand owners are responding in a number of ways, in- cluding developing packaging that is easier to open (57 percent of respondents), developing more sin- gle-serve package sizes (51 percent), and stepping up placements in new distribution channels, such as convenience stores (49 percent). The increase in sin- gle-serve options in particular will likely require the use of more packaging materials, while package rede- sign might be necessary when entering new distribu- tion channels. 2. Premium Plays A Plum Role With the rise of Instagram and other social media platforms, consumers are turning more often to premi- um products as a way to convey their unique personal tastes and preferences.This trend has led 42 percent of brand owners in our survey to expand their premium offerings. In addition, 35 percent are changing their promotional strategies, while 32 percent are expand- ing their price-pack offerings — an array of packaging size and attribute options that capitalize on different consumer trends. Packaging is usually central to the marketing of premium offerings, since it is often the packaging quality and graphics that signal a product’s high-end status.Brand owners will need to think about packaging when making changes to price-pack offer- ings, since these often have unique requirements. 3. Customization Is Key A broad array of new technologies has made prod- uct customization far more feasible at a cost-effec- tive price point. As a result, consumers have gained a fondness for specialized products that cater to their particular tastes and needs. Brand owners say consumers’ penchant for customization has been an important growth driver for them over the past two years, and an equal number expect it to continue to have this effect for the next two. Consumer prefer- ence for customized offerings has resulted in a flurry of new subproducts and stock-keeping units (SKUs) that micro-target distinct buyer groups or address highly specific consumer needs. For example, more than half of brand owners have increased product personalization in the past two years, and 42 percent have implemented additional customization of their products.This trend is not expected to abate anytime soon, which may be why brand owners say they plan to launch an average of 91 new SKUs over the next
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(Cont’d on Page 9)
6 January 20, 2020 Flexo Market News
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