Packaging industry has grown from just 'packaging' to an experience today.
Packaging industry has grown from just 'packaging' to an experience today. Today, consumption is happening on-the-go. Consumers, retailers and food producers are looking for fresher, more convenient packaging solutions that have minimum impact on the environment.
The world of food is rapidly evolving even as packaging is transforming with digital technology. “Digital transformation allows brands to empower employees, engage customers, optimize operations, and transform products,” said Meetul Patel, COO and CMO, Microsoft India, at a leadership seminar organized by Tetra Pak India in Gurgaon, recently.
Every consumer is a digital consumer. “With more devices connected to the internet than there are humans,” said Libby Costin, VP, Global Marketing, Tetra Pak South Asia, East Asia and Oceania, at an event celebrating the brand’s 30 years in India.
Companies are constantly trying to connect with the consumer to analyse consumption behaviour and enhance his buying experience. “We are going through a technological movement towards digital food. Just as the industrial revolution transformed food, digital technology is transforming how we manufacture, grow and consume food,” explained Libby.
Automation and artificial intelligence will be vital components of the food system, especially in fast-urbanizing nations like India, in the years to come. Smart packaging comprising a dynamic QR Code, eco-friendly material is growing at a CAGR of 5% and is likely to become a 40 billion industry by 2020, added Libby.
Digitalisation is sure to impact the food and beverages industry strongly. With 75 percent of consumers having a mobile phone, the broadband adoption rate is forecasted to grow more than four-fold by 2020. India being the fastest growing smartphone market in the world, the stage is set for crowd-powered food systems to emerge.
Demand for convenience and sustainability has led to an increasing number of paperboard packages appearing on the scene. It can be printed on, cuts down on oil consumption and is lighter than plastic resulting in lower fuel costs. And, of course, they are many times more environment friendly than any other packaging.
Why millennials are critical?
Millennials are not only great influencers for the food and beverage industry but most of the food-related decisions in households are being taken keeping them in mind. Noted US-based speaker & author of ‘Marketing to Millennials’, Jeff Fromm, observes that the younger generation influences the older consumers.
According to Jeff, the future consumer is looking for better and healthier packaging without having to pay a premium thus paving way for more frugal innovation. He gives few insights on how brand owners can prepare themselves for the evolving needs of consumers over the next few years.
Fromm’s research indicates that 80% of millennials believe packaging to be moderately to very important in their purchasing decision of retail grocery products. In addition, millennial consumers look for five key attributes when picking a single portioned package off the shelf: how it looks, how easy it is to carry, how easy it is to drink from, whether it can be resealed, and how environmentally friendly it is.
Therefore, to hold their attention and be a part of their status updates, it’s important that brands, too, behave responsibly and communicate in ways that resonate with their customers.
Adding value to the product
The packaging industry is going through the most substantial transformation in many years. From milk, ice creams, coconut water to wines and spirits everything is available in paper-based packaging. Companies have realised that packaging needs to add value to the product in order to stand out among competition.
Living ahead of the curve, Tetra Pak’s paper carton packaging has been the most wonderful invention of all times. The development of the Tetra Pak package and the aseptic packaging technology made it possible to eliminate the cold chain supply for distribution and storage, substantially increasing access in the remotest parts of the country and even overseas. It can keep milk fresh for months without refrigeration. There are hundreds of products that are given extended shelf life, thanks to this technology.
The aseptic packaging technology has been called the most important food packaging innovation of the 20th Century by the Institute of Food Technologists and the Royal Swedish Academy of Engineering Sciences called the Tetra Pak packaging system one of Sweden’s most successful inventions of all time.
The main material in Tetra Pak packages is paperboard. Which provides stability, strength and smoothness to the printing surface. Paperboard is a renewable material, made from wood. Polyethylene used in the packaging material protects against outside moisture and enables the paperboard to stick to the aluminium foil. The foil protects against oxygen and light to maintain the nutritional value and flavours of the food in the package in ambient temperatures.
Gamut of possibilities
Tetra Pak has been working hard to enrich the look and feel of its products. One of its recent innovations, DreamCap packaging is one such example. The cap has been ergonomically designed for on-the-go consumption.
Tetra Top, a head turning, contemporary package with on-the-go features, built with more than 80 percent plant-based materials was launched of late.
Company’s light-weight and environment-friendly retortable carton package Tetra Recart is the future-ready alternative for canned food. It’s ideal for canned fruits, sauces, purees, soups and other shelf-stable products containing particulates of any size. From sizes as small as 200 ml, 340 ml, 390 ml and 440 ml Tetra Pak has a collection of 500 ml and 1 litre packages globally.
Riccardo Castagnetti, Marketing Director, Tetra Pak recently unveiled company’s product portfolio comprising different packaging formats. It’s amazing to know that Tetra Pak is working on over 7,000 possible combinations, some of which are already on store shelves around the world.
Technologies to boost efficiency
Tetra Pak constantly challenges itself to improve or develop new innovations that meet the needs of its customers. The company has launched a suite of new services for its customers, focusing on improving the ability to predict machine errors, accelerating response time, and giving the customer faster, direct access to Tetra Pak’s global expertise.
Powered by Microsoft, these breakthrough digital solutions will boost manufacturers’ efficiency, cut costs, ensure food safety, and ultimately drive their business forward.
“Digital technologies are revolutionising every industry, and it’s exciting to make the latest innovations work for our customers. We are pleased to be the first to launch digitalised services, offering customers reduced costs, enhanced efficiency, and peace-of-mind. This is just the beginning of what promises to be a very exciting journey for us and our customers,” says Dennis Jonsson, President and CEO, Tetra Pak.
Tetra Pak is currently piloting Microsoft’s HoloLens technology for remote monitoring and already provides future ready services like real time data access through apps and E-beam for packaging sterilisation and more.
Watch: Digitalisation of Services
And this is just a small sign of things to come over the next few years.
