1 © 2009 Mintel International Group. All rights reserved. Confidential to Mintel. Market trends and...

1© 2009 Mintel International Group.

All rights reserved. Confidential to Mintel.

Market trends and packaging innovation

FDIN Seminar, Putting Packaging at the Heart of NPD

April 2009



Today’s presentation

• Key packaging trends globally

• Implications of local and regional trends

• Packaging innovation:

– Art versus functionality

– Step change or incremental

– Complexity versus simplicity

– What works, and what doesn’t



Innovation

• New brand, new product, new variety, new pack…

• Estimated 80-90% of all introductions globally are merely tweaks of flavour or fragrance or package size...

• Are companies playing safe? Is there a dearth of innovation?

– “Where has all the great NPD gone?”

• Very few products or packs are truly innovative...

– …but lots are innovative in one aspect



Market trends

• Until recently we spoke of three major trends that impact all markets:

– Health & wellness

– Convenience

– Indulgence

• But these trends evolve and change over time

• And we now add a fourth trend:

– Ethics and the environment

• Look at innovation in the context of those four trends

– Identify how companies around the world are developing new packs to meet those trends



Health & wellness

• Low-in claims remain important, but “dieting” and

“weight loss” are outmoded and marginalised

• Portion control is emerging as a key trend, with

significant impact on packaging

• Focus now is on “natural” nutrition: fresh, wholesome,

nutritious – values that can be delivered via package

design and technology

• Technology driven solutions provide new delivery

systems for health & wellness benefits

• But clear communication of the health & wellness

message is still critical



Usage of portion control packaging, USA• “...The 100 calorie snack package, an

industry that went from $0 to $200 million in a three year period...”

• “The concept of the 100 calorie package is a winner. Portion control, convenience, familiar and favorite foods, all in one (slightly expensive) package add up to a dieter’s best friend”

Source: Mintel Inspire trend report, “Portion Control”

Source: Mintel Oxygen report – “Food & Drink Packaging Trends - US - April 2008”

100 Calorie Packs, USA 100 Calorie Packs, Europe

Health & wellness: portion control



Health & wellness: freshness, naturalness

Innocent Tasty Veg Pot, UK

Marks & Spencer’s Eat Well Steam Cuisine, UK

ConAgra’s Healthy Choice Fresh Mixers, USA

Preserving Natural Goodness

Freshness: See the Goods

Birds Eye Steamfresh rice, USA



Health & wellness: new delivery systems

Rising Beverage’s Activate functional drinks, with vitamins and herbal

ingredients stored as a powder in a moisture-resistant chamber inside the cap, released into the water when the

cap is twisted, USA

Oenobiol slimming drink concentrate, sold as a concentrated mix in a cap to fit any standard PET bottle of water,

France



Health & wellness: clear communication

Schwartau’s Fruit2day juice drinks, Germany



Convenience

• Hectic modern lifestyles (“jigsaw” lives) encourage the

development of instant solutions: no mess, no fuss, no

measuring, no clean-up

• Growth in smaller households, and the decline of the

formal family meal occasion, lead to expansion of individual

or portionable solutions

• With today’s more mobile society, consumers spend more

time away from the home – need for portable solutions

• Technology allows for greater convenience, but note the

counter-trend:

• For the over-optioned consumer, convenience=simplicity

• Simple to understand, simple to use, product and package



Convenience: microwaveable packaging

Toro’s microwave chilled meals that “beep” when ready, Norway

Mars’ Uncle Ben’s Heiss auf Reis rice & sauce in “duo-tub” pack for microwave, Germany

Masterfoods’ Royco microwave cheese sauce in a 200ml pouch with heat-free handle, South Africa

2-Part Packaging

More Than a regular microwaveable pack…



Convenience: single-serve & portionable

Cerebos cooking salt in stick packs, France

Kraft Food, Crystal Light On the Go, USA



Convenience: resealable

Cross-category applicationCoca-Cola in resealable 33cl can, Germany



Convenience: on-the-go

Ferrero’s Pocket Espresso to Go, 21ml “cups” of espresso coffee with an

attached straw, Italy

Trencherman wine in 2 x 18.75cl pack of foil-sealed PET glasses, UK



Convenience: the role of technology

Pears with Ripe Sense indicator that changes colour, Canada

Morinaga’s Dars chocolate with thermochromic label to indicate when

the chocolate is at the optimum temperature (22°C) for texture and

flavour, Japan



Convenience = simple added value

Pfizer’s Children's Benadryl Perfect Measure On-The-Go Allergy Relief,

USA

Secouettes seasonings in 25g steel packs with magnets, designed to stick to any metallic surface in the kitchen,

France



Indulgence

• Consumers have a propensity to treat themselves, and

to buy more high performance, luxury versions of

everyday items

• Brands add indulgence values via packaging, as well

as other routes



Indulgence: design elements

Dorset Cereals, UKGodiva biscuits, USA



Indulgence: premium package materials

Carrefour Selection mini desserts in glasses, France

Göttinger’s frozen chocolate mousse in a multi-layer board “tube”, Austria



Ethics and the environment

• Packaging plays a critical role in environmental concerns

• The role of packaging has tended to focus on the “green

mantra” of reduce, reuse, recycle:

– Reduction of packaging materials - the largest focus

area – important economic + environmental benefits

– Reuse of the package

– Recyclability, and the use of recycled materials

• Renewable materials have been a focus, but with limited

impact

• The whole supply chain comes under pressure to consider

carbon footprint labelling, but little evidence of activity yet



Environment: package reduction

Sainsbury's milk in two-pint plastic pouches said to use 75% less plastic

than bottles and designed to fit a reusable jug, UK

Nature’s Path cereals, in boxes that are 10% smaller than the previous package, yet contain the same amount of cereal



Environment: switching materials

Arniston Bay wine in a 1.5 litre pouch with an 80% lower carbon footprint

and 90% less waste and landfill than two 750ml glass bottles, UK

Nestlé NatureNes baby food in microwave polypropylene pots said to use 25% less greenhouse gases

and energy consumption than a glass equivalent, France



Environment: reuse

Kraft Foods’ Kool Aid Singles in a “refreshingly eco-friendly” reusable

water bottle containing 10 stick packs, USA

Plup spring water, Finland, in a 400ml refillable and reusable PE bottle



Environment: rethinking the package

Pangea Organics’ skincare lines in card boxes embedded with flower seeds, to be planted after

use to regrow the product’s active ingredients, USA



The role of packaging...

• Packaging needs to:

– Contain

– Protect

– Inform

• But it also needs to help sell the product, especially in today’s increasingly competitive retail environment

• And it has to be fit for local needs and conditions…



One brand, segmented to many options...

Nestlé’s KitKat: Pop Choc balls in a 140g resealable pouch; Singles in a box of 6 x 15g flow-wrapped sticks (Canada); 155g flow-wrapped Tablet of 12 fingers; Editions in a 45g flow-wrap; carton of 16 individually-wrapped mini KitKats

(Japan); 210g and 140g gift tins (China)



Local marketing: shape and size...

Fanta in 1.25 litre contoured PET and 250ml spherical PET, Europe

Coca-Cola in 1 litre single-serve PET, USA; Coca-Cola in 8oz (237ml) 100 calorie cans,

USA; in 250ml PET “minis”, UK



On the left: premium on-the-go package for PepsiCo’s Cheetos Go Snacks in USA: resealable plastic pack of 71g at $1.29.

On the right: value on-the-go package for Cheetos Go Shots in Mexico: flexible pack of 24g at $0.25

On the go snack packaging



Maizhichu instant hot cereal in a 40g board cup with a plastic spoon, China; Crown Cup & Zle cereal in a 52g PP cup with a

spoon included, South Korea; Uni-President’s Open cereal with apple flavoured milk, sold chilled in a 240ml cup, Taiwan

Breakfast on the go: Asia



Kellogg's All-Bran powdered cereal beverage mix, in single-cup stick packs of 25g each, Mexico

Breakfast on the go: Latin America



Kellogg's Drink 'n Crunch in a Tip 'n Mix pack, including an inner plastic cup containing the cereal while milk can be added

up to a fill line in the outer plastic cup; no spoons or bowls needed (USA)

Breakfast on the go: USA



Conclusions

• Focus on:

– Packaging that clearly communicates the product’s key attributes

– Packaging with improved visibility/transparency

– Reduced package sizes

– Functional design for ease of use by all consumers

– Alternative materials/technologies for stand-out appeal, and to enhance the enjoyment or use of the product



Opportunities

• Look elsewhere for inspiration

• Identify key focal points for main trends, and consider what they mean for packaging:

– Convenient, practical, simple

– Authentic, exclusive

– More natural

• Don’t underestimate the simple, don’t over-engineer innovation

– Simple = convenient

– Simple = inclusive

– Simple = eco-friendly



Think Outside the Category!

Salty Snacks ConfectionerySalty Snacks

Chilled Desserts

Self-Tan Sauce

Sliced Meat

gnpd.mintel.comyour new product partner

Email: [email protected]. +44-207-606-4533

1 © 2009 Mintel International Group. All rights reserved. Confidential to Mintel. Market trends and...

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Transcript of 1 © 2009 Mintel International Group. All rights reserved. Confidential to Mintel. Market trends and...