Board Converting News, November 30, 2020

Beyond COVID-19 (CONT’D FROM PAGE 22)

focus even more on health and hygiene. These changing consumer preferences will make it necessary to rethink the product mix at FMCG and retail customers. Inevitably, there will be implications for packaging design. Before the COVID-19 crisis, FMCG companies and retailers facing significant margin compression passed these pressures up the line to converters. This issue has already affected packaging design in multiple ways: for example, the substitution of different packaging materials, “light-weighting,” redesigned formats to increase filling ef- ficiency and volume density, smaller pack sizes, and shelf- ready packaging. Given the crisis, we expect such cost pressures to continue, and this could amplify the existing need to use packaging design to reduce costs. Speedier Digitalization Of The Value Chain Another expected outcome of the pandemic is in- creased digitalization of the value chain through automa- tion and the more widespread use of AI—not only for cost efficiency and productivity, but also to make supply more resilient and transparent through real-time tracking. The result could be a greater need to integrate technology— radio-frequency identification (RFID) tags and near-field communications (NFC)— into packaging. Innovative pack- aging designs will play an important enabling role. Pack- aging companies will need to reassess their strategies in light of these evolving megatrends. The consumer’s perceptions of both the actual prod- uct and brand value depend highly on packaging—both its tactile feel and its look. It is therefore a key compo- nent in promoting products and helps to differentiate the introduction of new ones—particularly in today’s world, with rampant SKU proliferation and robust competition on shelves for the consumer’s attention. Primary packaging is also an information carrier that educates consumers about the product inside and ways to use it. Ensuring A Cost-Efficient Delivery System Packaging plays a basic role in containing and protect- ing the product—for example, helping to preserve food, to extend its shelf life, and to minimize waste. It facilitates the consumer’s need for convenience. The consumer’s chang- ing behavior and lifestyles have imposed new demands on packaged goods—for example, reducing the prepara- tion time of food, packaging ready-to-eat fresh meals, and enabling “portionability,” portability, and smaller individual packs. Packaging design has played an important role in fulfilling these requirements by incorporating, for example, easy-to-open and resealable closures. As we move to the next normal, packaging companies should further rethink packaging design, beyond these ex- isting must-have factors. Any packaging launched during the pandemic or in the near future should take into ac- count three other important requirements. 1. Design with a strong sustainability narrative : The broad spectrum of design opportunities to improve the CONTINUED ON PAGE 26

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November 30, 2020

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