The food and beverage packaging industry is constantly evolving to keep up with the demands of a volatile marketplace and improve their overall profitability. A large part of the industry is what’s considered flexible packaging solutions and that industry alone was worth $74 million in 2012 and is estimated to grow to $100 million by 2018.
One of the biggest causes for change in an industry like this is when the target demographic begins to change. As the Baby Boomer Generation continues to grow older and thus slowly losing their perch as the primary target audience more and more companies are beginning to update and improve their food and beverage packaging designs to keep up with the times. Here are three trends that are doing just that with, the help of information from the packaging industry news source PackWorld.com.
1.) Millennial Influence: As the Boomers continue on their way out the Millennials are quickly becoming one of the most powerful demographics in terms of buying power and potential. Millennials tend to enjoy more food and drinks that are less-processed and more fresh. Because of this the demand for traditional food and beverage packaging to store items that sit on the shelf for long periods of time is becoming less.
2.) Size and Convenience: According to one report, 61% of American households only have one or two people living there. The big economy-sized food and beverage packaging that was popular is becoming less so. Single-serve and resealable packaging sleeves are becoming increasingly popular to help consumers reduce the amount of product waste. They also are making more things like heat-sealed plastic pouches and wraps that help keep food fresh and protected from contamination. Experts estimate that every pound of plastic packaging can reduce food waste by 1.7 pounds.
3.) Environmentally Friendly: The plastic water bottle industry was one of the biggest entities hit by consumer backlash concerned with the environment. Many companies took the call-to-action and have since changed their designs to reduce their impact on the environment. More and more companies will continue this trend of trying to improve upon their efforts going forward. Not only can it be a great public relations tool, but it can also lead to potential tax breaks and benefits.
The global flexible packaging market is expected to grow at an annual average rate of 3.4% during the period 2015 to 2020, reaching $248 billion. During that time we will no doubt see even more changes to the food and beverage packaging industry from influences like these and other trends still to come.