CPGs Focus (Cont’d from Page 6)
two years, compared with only 64 two years ago — an increase of 42 percent. Because each additional subproduct calls for differentiated and effective pack- aging, there is likely to be considerable activity in this area as SKUs proliferate. 4. Healthy Holds Its Own Demand for more healthy products or products con- taining natural ingredients is stronger than ever, and respondents considered it to be one of their top three growth drivers over the past two years. Responses var- ied by industry,with 25 percent of beauty and person- al care respondents pointing to this as a growth driver, compared with only 17 percent of food and beverage respondents and 15 percent of respondents in the pet and household products sector. Interestingly, while 23 percent of local or niche brands considered it to be a growth driver, only 5 percent of global brand owners felt the same way. Companies have addressed the healthy trend by mak- ing adjustments to their product offerings and substi- tuting more healthy or natural ingredients. For exam- ple, 60 percent of brand owners introduced all-natural or non-processed products in the past two years, and 53 percent introduced “health-focused products” during this period.As a result, brand owners have had to revamp product labeling on their packaging. It’s worth noting that a number of national and small- er regional brands are developing healthy products designed to take market share from the larger global brands. Given that these healthy products are often offered at higher price points, brand owners see pack- aging as an effective way to articulate the product’s healthy and natural messaging to an increasingly dis- cerning health-conscious consumer. 5. Green Is Growing Environmentally friendly products and services have begun to move out of their corner niches onto center stage.The growth in green is the combined re- sult of consumer demand, corporate public relations initiatives and greater (mostly local) regulation. Brand owners, regardless of company size, see this as a top growth driver over the next two years, and packag- ing will certainly play a critical role in the transition to more sustainable products. In fact, a shift has al- ready begun. For example, respondents report that the use of sustainable packaging material has grown in the past two years, with the trajectory expected to continue through 2020.Around 85 percent of respon- dents made at least one significant change to packag-
(Cont’d on Page 11)
Flexo Market News January 20, 2020 9
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