Flexible Packaging Still on the Upswing

To catch a glimpse of evolving societal preferences, the supermarket is one of the best destinations to study consumer behavior. In terms of product packaging formats, today’s grocery store shelves provide the greatest evidence that consumers are becoming more welcoming of flexible packaging, as brands continue to transition their products from rigid options to flexible.

While there are some clear advantages to flexible packaging, such as its smaller physical footprint and strong graphical capabilities, consumer acceptance of flexibles is imperative to their success. According to David Luttenberger, global packaging director for Mintel, a market research firm, North American consumers are increasingly inviting flexible packaging into their lives, although not as readily as consumers in other parts of the world.

“A lot of it has to do with mindset and consumer familiarity,” Luttenberger says. “Those of us in the United States have tended to like things that are a little more premium and we’ve equated rigid with premium. We like that hefty sort of feel where if it feels strong, it must be good. The rest of the world was less hung up on premium and equating the feeling of rigidity with quality. We just began to follow.”

Pouches Stand Up to the Competition

The flexible packaging umbrella includes bags, sachets, shrink sleeves and any other type of package that can easily shift its form. However, it’s the stand-up pouch that is one of the most rapidly growing types of flexible packaging, and one that is playing a major role in the transition from rigid packaging to flexible.

For example, Luttenberger explains that from 2012 through 2016, Mintel research indicates that there was a 58% increase of food product introductions in stand-up pouches in which the new packaging was a “launch driver,” which is defined as either the primary or secondary aspect leading to a product launch.

“That’s one of the biggest things we’ve seen in flexible packaging,” Luttenberger says. “Brands and retailers are understanding the role stand-up pouches can play because stand-up pouches are a little easier for consumers to use and to understand with the different types of openings they have.”

Katie Wieser and Mike Richardson, packaging analysts for the Freedonia Group, a Cleveland-based global market research organization, also point toward ease of use as a key driver behind the growth of pouches. In the food segment for example, they state that the advent of pouches has improved the ease of use in children’s food, while simultaneously reducing the mess.

“The best growth has been seen in applications where it makes the product easier to use,” Wieser and Richardson wrote in an email to packagePRINTING. “Some products just make more sense in pouches and consumers are happy to change how they use a product if it means that the process will be easier. The fact that you can eliminate the mess of feeding children foods that are complicated to eat has been a major factor that contributes to consumer appreciation of flexible packaging.”

Markets to Watch

Unsurprisingly, the food industry is the market with the greatest penetration of flexible packaging. According to the Flexible Packaging Association’s (FPA) 2016 State of the Industry Report, which features data collected from FPA member and industry-wide converter surveys conducted in 2015, the retail food market makes up $16.6 billion, or 53% of the total $31 billion flexible packaging industry in the U.S.

The next two largest markets, each clocking in at $3.1 billion, or 10% of the industry, are retail nonfood items and consumer products. Retail nonfood items include products such as lawn and garden supplies, pet food and supplies, health and beauty products, and other items commonly found in a retail setting. Consumer products consist of household bags (paper lunch bags, storage bags and trash bags), household wraps (film and foil), and paper products such as plates and napkins.

Though the food market is clearly dominant in the flexible packaging space, it appears consumers are also seeking a packaging transition in their companions’ food. According to the 2016 FPA report, pet food and supplies is the No. 1 flexible packaging end use in terms of growth. However, Nos. 2 through 6 are all food or beverage products, with snacks, beverages, coffee and tea, confectionary and produce ranked in that order.

According to Wieser and Richardson, meat and beverages appear to be among the fastest growing market segments in the food space. The two Freedonia analysts state that neither of these segments are growing at an extremely rapid rate, but the continuing desire to shift products from rigid to flexible packaging is driving the growth. One example that caught the industry’s attention was when tuna began to appear in pouches instead of a can, they explain.

In nonfood markets, Wieser and Richardson state that the medical and pharmaceutical markets are among the fastest growing, but for more logistical reasons, as opposed to consumer usage.

“Flexible packaging is more established there, so packaging demand is more boosted by related shipments than a favorable shift in product mix,” they wrote.

Where to Next?

According to the 2016 Flexible Packaging Transition Advantages Study, a report released by the FPA in November of 2016, featuring data from a survey of brand owners conducted by Packaging World magazine and a survey of consumers conducted by Harris Poll, the flexible packaging market will continue to grow.

The report states that the brand owner study revealed 83% of brands have already implemented flexible packaging in some form and over the next five years, many brands expect to see an even greater increase in their flexible packaging options. 31% state they expect to transition to a higher mix of flexible packaging and 58% of respondents with a higher mix of flexible packaging already have plans to use more at some point in the future.

On the consumer side, the report states 71% of respondents prefer flexible packaging over rigid, and 79% believe flexible packaging features added benefits for food storage. But the key statistic on the consumer side is that according to the report, 46% of respondents will pay more for food items stored in flexible packaging.

While there is little doubt that flexible packaging is still on the rise, it appears that the boom of products transitioning from rigid packaging to flexible has tapered off a bit. Luttenberger explains part of the reason is that most products that could transition from rigid packaging to flexible packaging have already made the change.

Now, he says the key is seeking out other differentiators to help a flexible package stand out from the crowd, and the best way to do this is to understand consumer preferences.

For example, Luttenberger says that freshness is the No. 1 attribute consumers seek to understand from food packaging. The trick here, he continues, is that according to Mintel research, only about one-third of consumers believe the on pack messaging they are presented with. So, brands are seeking ways to increase the transparency of flexible packaging.

“When we give consumers the ability to see the product using those diecut windows or clear films — even on pouches — and allow them to make a quality perception based on what they believe to be true, then you’re empowering that purchasing decision,” Luttenberger says. “When you do that, it takes a little bit of guts on the brand’s part to pull back and do less to try to convince you of what is good for you and empower the purchasing decision based on what the consumer believes to be true.”