Intelligent Packaging and Recyclability to be Top Two Disruptive Technologies in Flexible Packaging

The top five disruptive technologies in flexible packaging are forecast to be intelligent (smart) packaging, recyclability, packaging openability, biobased polymers and digital printing, according to a new market report by Smithers Pira. 

Ten-Year Forecast of Disruptive Technologies in Flexible Packaging to 2023 identifies and assesses technological, economic, consumer, sociological, environmental and regulatory developments and trends which will impact the flexible packaging industry over the next 10 years to 2023. The 25 highest ranked developments were selected for further study with regard to their impact on the flexible packaging supply chain, commercial products and associated technologies and trends. Based on current flexible packaging markets, the centre of attention within the report is inevitably food and beverage packaging, but other applications are considered including pharmaceuticals, household chemicals, medical devices and electronics, together with a wide range of flexible packaging materials including plastics, paper and metal foils. 

Because of growing consumer focus on convenience and sustainability, general flexible packaging use has been growing rapidly worldwide both in absolute and percentage terms. It is gaining market share from other packaging formats such as rigid packaging. This growth is projected to continue because flexible packaging, particularly pouch packaging, uses less energy and materials and has lower transport costs, environmental impact and carbon footprint than its rigid counterparts. 
These current trends concerning flexible packaging and rapid growth are anticipated to continue and increase over the next 10 years to 2023. There will be continuous development of new flexible packaging products for new markets and applications encroaching on traditional rigid packaging. High growth is expected in Europe and North America, as well as in the emerging markets of Asia and Central and South America.

Important drivers from a manufacturing viewpoint will include savings in materials, manufacturing and transportation costs and increased line filling speeds for pouches to match those for rigid bottles. From the consumer viewpoint, two important drivers will be the growing focus on convenience and sustainability. 

The new market study states that the innovation in and implementation of smart and active packaging over the next 10 years will be the key disruptive factor affecting the flexible packaging industry. So far, these technologies have been retarded by high cost, consumer resistance to items such as sachets in packaging, and concerns about excessive packaging. However, the deployment of intelligent packaging is expected to become much more frequent with decreasing cost, increasing emphasis on food safety, anti-counterfeiting, new regulations and brand owner/consumer demand. These technologies, particularly together with printed electronics and digital printing, will become more widespread in the years to 2023. This will lead to dramatically expanded perceptions of the function of packaging, beyond the traditional containment, preservation, protection and identification to include a wide range of monitoring, tracking, warning, remediation, authentication, communication and brand protection. 

According to the report, the second most disruptive technology in flexible packaging is recyclability. Because of the small amount of material used in a flexible package, it generates much less waste than other formats. However, it is not currently feasible to mechanically recycle postconsumer flexible packaging because of its thin film structure, multi-layered composition and often contamination by food waste. This situation could create problems with the sustainability and recyclability goals of many major corporations or with the reduced or zero landfill policies of many governments. More easily recyclable materials and barrier structures, including monolayers, are expected to be introduced over the next 10 years, but this will not resolve the problem unless improved collection, sorting and recycling infrastructure is implemented.

Briefing: The Current State of the European Printing Market - Part One

In recent years, the number of European printing establishments has continued to decline and employment levels have similarly fallen back. However, while some larger printing concerns have gone out of business, others have managed to adjust their offer to ensure that they are able to meet a more varied set of demands from their customer base. 

Increasingly, customers are demanding faster turnaround times, shorter runs and more targeted printing with versioning and full variable content. Some print companies have adjusted to take advantage of this new reality. Although the pace of these changes can be overstressed, feedback confirms that printers are investing more time in ensuring that they are making the best use of their resources. Lean manufacturing techniques are widely adopted to optimise productivity, while workflow and MIS help keep the presses busy through a mix of long and short run work.

In the first instalment of a two-part bulletin detailing the current state of the European printing industry, Smithers Pira provides an overview of the current trends occurring in this market. Whether you are looking for new ways to adapt to the changing print industry or need to know how the market is shaping up over coming years, read on to find out more.

A move towards shorter runs and JIT (just in time) printing

There has been a general shift towards shorter runs and JIT printing, meaning that the amount of print being produced is coming more in line with the actual amount that is required, reducing manufacturing waste and redundant copies across the supply chain. As well as revolutionising point of sale advertising, digital print has meant that, in many areas, print has become a more efficient process. In some instances, this has allowed printers to command the same price for a print run that is slightly shorter.

Further moves towards shorter runs is likely, although there are barriers to overcome when it comes to changing perceptions about the role of print in areas like cross-media advertising. Printed advertising is still treated by some as a commodity item, but there are increasing numbers of print buyers at brands who are looking to printers to take a greater strategic role in cross-media campaigns.

Downward trend of graphic print

The decline of graphic print (i.e. not packaging) has continued despite something of a pick-up in the European economy in the second half of 2013. This confirms the view that the decline in graphic print is not a function of adverse economic conditions, but is related instead to broader changes in how information is delivered. As different products have different prospects, it is unlikely that the trend away from print into digital alternatives as part of the overall communication mix will ease up significantly. Whether it is transactional, entertainment, education, information or promotion, digital media will continue to make gains at the expense of print.

Changes in the information landscape

Adjustments in the communication market have had a massive impact upon graphic print demand and products over the past five to ten years. Predictions of the 'paperless office' late in the last century took time to have an impact, and there was perhaps a sense early on that the effects of computerisation would not be as significant as initially believed. However, forms and cheques have been among the first to witness major fall-offs in demand. 

The proliferation of competing information and entertainment sources has meant that the shift to online arose irrespective of the best interests of the traditional publishing industry. Consumers are spending increasing amounts of time digesting information online, so big falls were recorded around the globe in newspaper and magazine advertising.

The book publishing industry has been more successful in adapting to digital media with the adoption of e-readers, but here too digital communications have had an impact, with online information sources leading to lower demand for technical and educational books, and the broader range of media options leading to book readership levels declining in most countries, particularly in lower age groups. Fall in book demand is also due to supply chain optimisation and reduction of unsold copies. Across other areas, directories have become slimmer and slimmer or disappeared altogether as people have opted to get this kind of information online or via smartphones.

There are bright spots, however, even in analogue printing where operations such as FlyerAlarm have adopted sophisticated workflows, linking on-line ordering with slick automated imposition to increase the efficiency of sheetfed commercial printing by ganging jobs and finishing to share set-up time and costs.

For more information about the European printing market see Smithers Pira's market report entitled The Future of Global Printing to 2018 now. 

Look out for Part Two of this bulletin, which discusses the state of printing products, processes and equipment in the European printing industry. 

Demand for Corrugated Packaging Material to reach $176 billion by 2019

The global corrugated market was worth over $140 billion in 2013, amounting to almost 90 million tonnes of finished product according to a new market report from Smithers Pira. Demand for corrugated packaging is expected to increase by an average of more than 4% annually over the next five years, and will amount to almost 115 million tonnes of converted material worth by 2019.

The Future of Corrugated Board Packaging to 2019 gives an overview of the state of the corrugated board industry in 2013, alongside global market forecasts to 2019, including key definitions and details of specific geographic markets.

According to the report, the largest producing country of corrugated board is China, which amounted for more than 27% of the total containerboard volume produced in 2013. China also leads the world in corrugated conversion, making up over 28% of the global converted output in 2013.

Almost 30% of the projected volume in 2019 will be used in the packaging of processed foods, with fresh produce adding a further 10% to the total. The packaging of electrical goods, which includes mobile devices, is expected to show the most attractive growth prospects. This sector will increase its volume consumption of corrugated materials on average by 5.6% annually to 2019, representing almost 7% of the total market volume by this time. By 2019, food packaging will consume almost 47% of the total volume of board, with processed foods accounting for 30% of the total. Electrical goods will be the single largest non-food packaging application, followed by paper products and personal and household care items.

Figure E.3 Forecast global consumption of corrugated board by end-use market, 2019, volume, end-use market

Source: Smithers Pira

What is driving and influencing this growing demand for corrugated packaging materials? According to The Future of Corrugated Board Packaging to 2018, significant investments are being undertaken by producers in environmental protection and energy optimisation programmes, as well as other activities aimed at reducing water consumption and improving logistics and transportation. These initiatives and programmes are having the desired effect, as the corrugated industry has achieved its carbon footprint by a further 4.8% between 2009 and 2011, following a reduction of nearly 12% between 2006 and 2008.

In addition, the growth in the use of the internet for shopping, stimulated by the growing use of smartphones as well as the increasing proportion of tech-savvy consumers, has a very positive effect on corrugated demand. In traditional in-store retailing, one corrugated case would be used to transport several items to the retailer for sale, whereas now, each individual item has its own corrugated secondary pack for distribution direct to the customer.

Retail-ready packaging is increasing, driven by the influence of supermarkets over the retail landscape and supported by their growing share of the retail market, as they attempt to improve in-store and distribution efficiencies.

As well as these industry trends, the global economy seems to be on the brink of a long-awaited upturn after some years of stagnation and decline, presenting yet more opportunities for growth in demand for corrugated packaging materials.

The Future of Corrugated Packaging is available now for £3,555 until the 28th of March. To find out more about the report and how your company can benefit from a global usage licence, please contact: Heather Adams (US) T: +1 207 781 9632 or Bill Allen (UK) T: +44 (0)1372 802086.

Sustainable Packaging Coalition and Smithers Pira team up on Spring 2015 sustainable packaging event

GreenBlue's Sustainable Packaging Coalition and Smithers Pira team up to create premier thought leadership event for the sustainable packaging industry
Partnership will commence with a Spring 2015 conference and exhibition

GreenBlue's Sustainable Packaging Coalition (SPC) joins Smithers Pira, in association with Packaging Digest, in announcing a new partnership to create a joint event offering the most up-to-date information and strategic intelligence for the sustainable packaging industry.

Building off of the success of Smithers Pira's Sustainability in Packaging conference and GreenBlue's SPC Spring Conference, the event will serve the needs of the entire supply chain from feedstock and material suppliers, to converters and brand owners and other end users. Participants will come together to discuss, network, learn and debate the opportunities, technologies and challenges facing the industry now and in the future.

To be held annually, the first joint edition is slated for March of 2015. The event will include dedicated SPC Industry Leadership Committee meetings, site tours, an exhibition hall, conference, workshops and special receptions. Strategy and programming will be guided by a joint steering committee made up of SPC representatives, Smithers Pira and other industry stakeholders.

"We are looking forward to working with Smithers Pira to expand the reach of our sustainable packaging message beyond our traditional audience" said Nina Goodrich, Executive Director of GreenBlue and Director of the SPC. "We know our members will enjoy and benefit from the larger conference, especially as it offers greater opportunities to build relationships with like-minded industry stakeholders outside of the SPC. The SPC was created to facilitate collaboration across the packaging value chain, and we're excited about how our partnership with Smithers will build on this goal."

"Smithers Pira and Packaging Digest are very excited to be working with the SPC, Nina and her team to create the must-attend event for the sustainable packaging supply chain. The SPC has an impressive reputation and a very strong understanding of the challenges and opportunities facing the industry today," said John Lewinski, head of US Events for Smithers Pira. "By joining together, the business executives, R&D leaders, government policy makers, stakeholders, and investors that make up the key audiences for the SPC and Smithers Pira will have more opportunities to build strategic relationships and greater access to the most current research and information."

The Latest Innovations in Packaging

Brand owners are constantly innovating to keep up with the changing demands and requirements of consumers, as well as to stand out in an increasingly competitive environment. Alongside changing consumer habits, there have been recent developments in technology meaning that there is now opportunity for manufacturers and suppliers to be more creative than ever before. So, what developments should we be looking out for in the near future? 

Smithers Pira explores the top five innovation trends currently occurring in the packaging industry and what manufacturers, suppliers and brand owners can be doing to further engage customers.

1.) National pride and nostalgia

The 2012 London Olympics, the marriage of Prince William and Kate Middleton and the Queen's coronation instilled a sense of patriotism and national pride in British consumers. The packaging industry is reflecting this through designing definitively British packs, often featuring the Union Jack and images of the monarchy.

This has led to more traditional and nostalgic designs as a nod to the past; old-fashioned graphics and logos which showcase a brand's truly British nature. Vintage packaging not only plays on a popular fashion trend but also points towards a certain authenticity. Due to the amount of brands and products available to choose from consumers now look for those they know they can trust, and the packaging helps to convey this idea. 

2.) Personalised packaging

As digital printing technology becomes more affordable and wide-spread, there has been an increase in short print runs, and personalisation is being used more often as a tool to differentiate a brand and attract customers. 

This innovation was arguably pioneered by Coca Cola and their Share a Coke campaign, which featured popular first names printed on labels. However, Coca Cola was just the beginning, and we now have a number of other designs which capitalise on this 'made for me' approach. These include the Absolut Vodka bottles, which used 4 million unique and individually numbered designs. 

As brands utilise the internet and social media to broaden reach and enhance campaigns, consumers now feel packaging is 'made for them' more than ever before. Take, for example, Heinz Tomato soup - a recent campaign allowed consumers to personalise a can on the brand's Facebook page, and send it to a friend or loved one as a 'get well soon' gift. As the technology enabling such innovations improves and costs come down, the industry will become even more creative with personalised packaging. 

3.) People-pleasing packaging

In order to be successful, brand owners need to understand consumers' unmet needs. For example, convenience packaging is popular among increasingly on the go consumers, who don't have time or space for large, unwieldy, or difficult to open packs. Examples of new convenience packaging include Robinsons Squash'd, a plastic squeezable pouch designed to dispense fruit squash into water bottles on the go, making up to 20 drinks. 

Easy to use packaging also fits into this 'people-pleasing packaging' category, notably easy to open jars, and Unilever's 'Clean Lock Cap' used on their recent Colman's brand condiments. Packaging which can control the dosage required for both consumption and cleaning products also helps consumers if they aren't sure how much of the product needs to be used. 

4.) Pack differentiation

A constant battle for brands is to ensure their products stand out on the shelf at the moment the consumer is making their buying decision - the so-called 'moment of truth' in store. In order to do this, brands must secure their niche and advertise their unique selling point in an engaging way. Examples of companies successfully achieving pack differentiation include Budweiser, who's recent beer cans take on their distinctive bow-tie shape, and Tattinger Champagne, who's varied and colourful bottles are striking and impactful on the shelf. 

Many brands achieve stand-out appeal by simply 'saying it how it is'. In the same way that brands are reverting to vintage designs to convey a traditional and trustworthy approach, brands also like to communicate honesty, simplicity and clear intent to their consumers. Examples include Heinz Ketchup, whose bottle states that it is 'bursting full of tomatoes' and school bars, which directly state their purpose and context of consumption. 

Sustainability has traditionally been a driver for consumers as environmental concerns increasingly enter the public consciousness, so brands are keen to flaunt their sustainable credentials on pack. Brown materials, uncluttered packaging and simple fonts all point towards an environmental focus, even if there is none present. 

5.) Technology

Recent technological innovations have been able to take packaging's interactions with consumers one step further. Bottles from brands such as Heineken and Strongbow offer numerous interactive features, for example producing beams of light when opened, and the ability to control the light on DJ decks. While these are not in mass production and are in fact more of a marketing tool, they showcase just what can be done with packaging technology. 

Although the packaging industry is working hard to maximise technology use, there is still more that can be done. For example, differentiation between online and in-store packaging. One purchased, the advertising and point of sale text on a pack is made redundant. If brands can use one pack for selling the product and another for its delivery, they can maximise both resources and packaging.

How can we expect these innovations to develop and change over time? The heritage and nostalgia trend will continue, as will natural and simple designs as connotations of environmentally friendly packaging. There are also profitable opportunities out there for functional packaging which delights the consumer. 

This article was put together with the help of Paul Jenkins from packaging innovation consultancy, The PackHub. The PackHub provides networking meetings in addition to packaging ideation and insight to brand owners and suppliers of all sizes.

Need to know more about which innovations to look out for in the packaging industry? Our report, The Future of Global Packaging to 2018, is available now and provides a five year forecast for this dynamic sector.