Board Converting News, April 24, 2023

Packaging Trends (CONT’D FROM PAGE 64)

they’re doing the right thing. With growing concerns about a range of issues, from food availability and ethical sourcing to equitable pay and responsible use of water and land, consumers want to know more about the products they buy and the brands they’re buying from. In addition to spotlighting their achievements and strengths, brands and package manufacturers have to be more transparent about their weaknesses and how they plan to address them. Consumers are pursuing transpar- ency through clearer labeling and, specifically, what label- ing claims mean for the greater good. Packaging becomes the messenger for socially respon- sible initiatives and actions Whether targeting environmental, social or human con- ditions, brands are tapping on-pack messaging to commu- nicate their ethos toward social responsibility. Protect health and immunity The COVID-19 pandemic brought a new urgency to healthy eating and supporting the immune system. In the United States, SmartLabel is a platform where shoppers can look up thousands of products to learn information that can’t fit on a package, including ingredient definitions and safe handling instructions. What Social Factors can mean for packaging 2023: Be transparent It’s time to stop making commitments to change ‘at some point’ in the future. Brands and packaging manufac- turers must provide clarity about the responsible actions that are being/will be taken and the benefits they deliver. Be honest and transparent about the challenges and ob- stacles when delivering the ‘perfect’ package. 18 months-2 years: Take a stand Packaging paints a picture of a brand’s equity, which in- creasingly includes social and environmental capital. Con- sumers want to hear what retailers, brands and package manufacturers have to say on controversial topics related to diversity, inclusion and equity. Technological Factors Consumers are becoming fatigued as a result of the fast pace of daily life, increased use of technology and having to move from crisis to crisis. The rapid advance of technology is leaving some consumers unconvinced of its actual benefit—specifically the Metaverse, NFTs and cryp- tocurrency—which can make them feel disengaged. On the other hand, driven by curiosity, excitement and a desire to be informed and entertained, many consum- ers are spending increased amounts of time on the inter- net. Whether it involves developing their personal brand, entrepreneurial projects, socializing or gaining a better understanding of environmental issues, consumer expec- tations are creating a demand for increased immersion. Digital experiences are rapidly expanding to include social media, artificial intelligence (AI) and the Metaverse, espe- cially as a means of content consumption and entertain- ment.

18 months-2 years: Consumers won’t sit idly by Consumers will grow weary of the additional incon- venience and/or cost associated with initiatives such as deposit schemes. This means package manufacturers, brands and retailers must invest in technologies, pro- cesses and systems that show greater value without passing along costs to consumers. At the same time, maintaining or increasing the levels of convenience asso- ciated with recycling and end-of-life packaging schemes. Economic Factors The global economy is in flux. Supply chain issues linger, labor shortages persist and inflation is rising. This econom- ic uncertainty and the associated rising cost of goods have forced consumers to rethink budgets and discretionary spending, creating the need for more value-based options. Combining the economics of product and packaging Across categories, brands are tapping messaging, technology and retail strategies to show consumers how packaging can stretch a budget.

What Economic Factors mean for packaging 2023: Guide consumers toward value On the heels of the global pandemic, markets have been rocked by rising food and fuel prices. With dou- ble-digit inflation common among G20 nations, consum- ers will look to brands to help them overcome econom- ic-induced stresses with products and packaging that mesh with purchasing abilities and reflect value without compromise. 18 months-2 years: Help consumers maximize resources As national economies remain strained, the opportuni- ty to present consumers with packaging that represents financial value propositions, while not compromising qual- ity, convenience, freshness, safety and environmental re- sponsibility will be a differentiator at the point of sale. Social Factors Consumers are less trusting—of companies, govern- ments and institutions—than ever before, and are less likely than ever to take brands at their word when they say

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April 24, 2023

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