Price and quality are the primary factors that influence consumers’ food purchasing decisions; however, brand owners are increasingly focused on enhanced packaging as a way to engage customers and to stand out from the competition.
According to Datamonitor, the global containers & packaging market was worth $560.3bn in 2014, representing a compound annual growth rate (CAGR) of 3.4 percent between 2010 and 2014. Market consumption volume increased with a CAGR of 3.5 percent between 2010 and 2014, to reach a total of 370.4 million tonnes in 2014.
The market is expected to grow with a CAGR of 5.8 percent for the five-year period between 2014 and 2019, which is expected to drive the market to a value of $744.3 billion by the end of 2019.
Functional Benefits
In terms of functional benefits, packaging protects the product in storage, shipment and display. Due to the per-metre cost of supermarket shelving, producers have innovated to make their products more space-efficient.
Packaging also extends the shelf-life of perishable goods and reduces the amount of waste while reducing the chances of contamination. Packaging prevents tampering with products, which is particularly important with pharmaceutical products.
Convenience packaging is a good way to enhance the value of a product and innovations such as pull-rings on drink cans; pumps for toothpaste; and re-sealable packets for sliced meat or cheese can provide a competitive advantage to manufacturers.
Food packaging insights
Designing the right food packaging is crucial to improving food safety, increasing longevity, and reducing unnecessary food loss & waste, however it is also having a growing impact on consumer engagement. To take advantage of this trend, brand owners must consider new packaging approaches that balance cost-effectiveness with consumer convenience and preferences.
At Farrelly Mitchell, our food and beverage specialists have decades of experience in designing new products and optimising packaging, retail, and delivery systems for maximum profitability. We provide a range of services to businesses across the value chain, from foodservice & retail to processing & manufacturing, identifying innovative new ways to store, transport, and package food products. In addition to this, our team offers key services in market entry & development, supply chain optimisation, sustainability and esg, and much more.
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