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Editor’s note: This story highlights information obtained from an Oct. 15 event hosted by Packaging Dive and Food Dive. To watch on-demand replays, register here.
For some CPG companies, food packaging design strategy is a critical balancing act where product convenience and shelf appeal must be perfectly balanced with new recycling regulations.
This is how the speaker characterized the latest food packaging innovation trends during 2019. The future of food and packaging innovationHosted Virtual Events October 15 Food Dive and Packaging Dive.
Speakers from the Consumer Brands Association, SmashBrand and Graphic Packaging International discussed how the food and packaging industries are embracing innovation as consumer trends and expanded producer responsibility regulations change over time. We discussed it.
“Getting something safely and effectively to the consumer in a way that balances legal or regulatory requirements for recyclability is part of the magic and the secret,” said John Hewitt, senior vice president of packaging and sustainability at the Consumer Brands Association.
EPR Consideration Calculation
In the United States, seven states have now adopted expanded producer responsibility for packaging laws. This will have a huge impact on how brands budget and execute packaging design changes.
Hewitt said the Consumer Brands Association and its members believe EPR is an important tool to drive investment in recycling infrastructure and increase recycling rates while helping CBA members achieve their circularity goals, including incorporating recycled content into packaging.
But companies have “seven different sets of recycling rates, seven different sets of recycling rules, seven different sets of program policies and compliance dates and deadlines… If that sounds like a lot, that’s because it is,” he said.
Hewitt estimates that once all packaging laws go into effect, about 20% of the U.S. population will have some type of EPR for packaging laws. “Designing a product that meets the legal and regulatory requirements of the state, balancing consumer demand and protecting the product accordingly ends up being a very complex equation for these companies,” he said.
He added that EPR-related regulations, such as ecomodulation, will also have an impact on an already complex equation. According to this formula, if companies switch their packaging for more sustainable choices, they will pay less in fees. For example, a brand could trade an iconic colored bottle for a clear style that can be recycled, which saves money but can change shelf appeal, Hewitt said.
“The fees are not significant. If you look at programs like California’s, estimates of what the consumer products industry needs to meet the requirements exceed $2 billion per year,” he said.
Adding nuance to your sustainability goals strategy
Major brands are also mapping out strategies to meet their publicly announced sustainability goals, such as creating recyclable packaging or incorporating greater amounts of recycled content.
Some major CPG companies We have made progress towards our 2025 goal.Others have already announced they will do so. Lower your target barIt cites issues with local recycling systems and other obstacles. This leaves many observers wondering how the packaging design strategies of other major CPG companies will change in the future.
The conversation about sustainable packaging strategies certainly hasn’t gone away, but it has become more nuanced in recent years, said Roxanne McSpadden, senior director of new business development at Graphic Packaging International. GPI said demand for life cycle assessments has grown in recent years to help customers “understand the full impact of their packaging” through multiple data points rather than just one or two key indicators such as plastic reduction.
But recyclability remains key, especially since GPI specializes in paper-based packaging, she said. “We have the advantage of being able to provide a renewable resource that can become many other products,” McSpadden said. “Obviously, finding high recycling rates in every product we make is important to us and our customers.”
Maintain shelf appeal
These factors are all at play as CPG companies update their strategies to lower packaging costs, increase recyclability, and stand out on store shelves.
Christy Lebor, group director of strategy at SmashBrand, said a little creative problem-solving can help companies embrace sustainable packaging styles while also following new packaging trends, such as brighter colors and packaging that offers a pleasant opening experience. The company provides product and packaging design services as well as market research and brand positioning services.
One strategy is to integrate the message into the packaging to let consumers know that the product inside has not changed, but the updated packaging design offers environmental benefits. “Telling consumers things like ‘Reduce your plastic by 40%’ or ‘The more you waste, the better’ tests well.”
These types of short messages are “value drivers for consumers who feel they are getting an optimized product or something new and different. They are typically rewarded with increased revenue in the marketplace.”
McSpadden added that consumer goods companies aren’t the only ones making sustainability changes to their packaging. Suppliers that work across multiple countries, like GPI, can have insight into the materials or components used by other brands to meet stringent environmental regulations in places like Europe.
“If you are struggling with a particular material or looking for an alternative material that meets the law or your company’s goals, your supplier can be a partner in understanding the impact of change,” she said.
