Table of Contents
Executive Summary
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- The market
- Impact of COVID-19 on food packaging
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- Figure 1: Short, medium and long term impact of COVID-19 on retail food packaging, April 2020
- UK set to miss 2020 target for recycling
- Progress being made on plastic reduction
- Binary recycling labelling being rolled out
- Plastic tax coming in 2022
- Companies and brands
- Plastic removal top of retailers’ agendas
- Fruit and vegetables a major focus for plastic reduction
- Retailers make big progress on removing black plastic
- Packaging-free aisles trialled
- New packaging accounts for more than a quarter of launches
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- Figure 2: New launches in the UK food market, by launch type, 2015-19
- Half of launches feature environmentally-friendly packaging claims
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- Figure 3: New product launches in the UK food market carrying environmentally-friendly packaging and recycling claims, 2015-19
- Plastic still the dominant packaging material
- The consumer
- Ocean plastic people’s biggest concern
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- Figure 4: Top consumer concerns relating to food packaging and waste, February 2020
- Being easy to recycle is important to two thirds of people
- A quarter see keeping food fresh for longer as important
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- Figure 5: Most important attributes of food packaging, February 2020
- Re-usable containers most likely to be used for pasta/rice
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- Figure 6: Foods people think they would be likely to use re-useable containers for when shopping in supermarkets, February 2020
- Use-by or best-before dates the most checked information
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- Figure 7: Information people check on food packaging when shopping, February 2020
- Huge stated preference for loose fresh fruit/vegetables
- Consumers taking action to reduce food packaging
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- Figure 8: Behaviours related to food packaging, February 2020
- People want more from local recycling services
- Seven in 10 want environmentally-friendly rating system for packaging
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- Figure 9: Attitudes towards food packaging, February 2020
- What we think
The Impact of COVID-19 on Food Packaging
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- Short, medium and long-term impact on the industry
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- Figure 10: Short, medium and long term impact of COVID-19 on retail food packaging, April 2020
- Opportunities and Threats
- Potential risk of critical packaging shortages
- Demand for refills and loose produce likely to be hit
- Short-term greater focus on core ranges and essentials
- Impact on the retail food packaging market
- Panic buying in initial weeks of outbreak
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- Figure 11: Incidence of stocking up on groceries/other supplies, 28th February-16th April 2020
- More meals and snacks being eaten at home
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- Figure 12: Expected changes to spend on food for eating at home over the next month compared to usual, surveyed 2nd April- 9th April 2020
- Contamination worries are widespread but packaging is low risk
- Packaging industry faces supply and cash flow issues
- Reported shortage of solvents for packaging
- Threat to supply of cardboard from recycled fibre
- Plastics companies expecting a drop in turnover
- Shifts in consumer behaviour
- Less demand for loose produce and refills
- Plastic waste issue likely to take more of a back seat during pandemic
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- Figure 13: The environment as a priority since the COVID-19 outbreak, 16th April-23rd April 2020
- On-the-go packaging likely to be less important
- Success of remote working may result in longer-term changes
- How a COVID-19 recession will reshape the industry
- Income squeeze will hit discretionary spend
- Economising habits have proven long lasting
- Income squeeze puts a spotlight on food waste
- Impact on the marketing mix
- Online channel will enjoy a lasting boost
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- Figure 14: Selected behaviour changes since the COVID-19/coronavirus outbreak, 16th April-23rd April 2020
- COVID-19: Market context
Issues and Insights
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- Consumers taking action to reduce food packaging
- The facts
- The implications
- Seven in 10 want environmentally-friendly rating system for packaging
- The facts
- The implications
- Packaging waste in the environment is biggest waste concern
- The facts
- The implications
The Market – What You Need to Know
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- UK set to miss 2020 target for recycling
- Progress made on plastic reduction
- New advice on compostable packaging
- Binary recycling labelling being rolled out
- Plastic tax coming in 2022
- Ease of opening more important to older population
- Progress made on reducing food waste
- COVID-19 pandemic boosts demand for retail food packaging
Market Drivers
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- UK set to miss 2020 target for recycling
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- Figure 15: Recycling rates for waste from households in England, 2010/11-2018/19*
- Progress made on plastic reduction
- New advice on compostable packaging
- Binary recycling labelling being rolled out
- Plastic tax coming in 2022
- Ease of opening more important to older population
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- Figure 16: Trends in the age structure of the UK population, 2014-24
- Smaller households need smaller packs
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- Figure 17: UK households, by size, 2014 and 2019
- Progress made on reducing food waste
- COVID-19 pandemic boosts demand for retail food packaging
Companies and Brands – What You Need to Know
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- Plastic removal top of retailers’ agendas
- Fruit and vegetables a major focus for plastic reduction
- Retailers make big progress on removing black plastic
- Packaging-free aisles trialled
- New packaging accounts for more than a quarter of launches
- Half of launches feature environmentally-friendly packaging claims
- Plastic still the dominant packaging material
- Compostable packaging is limited
- Re-sealable is a major element of convenient packaging
- Brands partner with Terracycle for hard-to-recycle packaging
Industry Strategies on Packaging
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- Plastic removal top of retailers’ agendas
- Tesco announces targets to reduce plastic
- Asda aims for 30% recycled plastic by end of 2020
- Iceland and Unilever cut plastic packaging
- Fruit and vegetables a major focus for plastic reduction
- Aldi trials reusable bags for fruit and vegetables
- Asda tests coating to boost shelf life
- Iceland trials plastic reduction approaches
- Morrison’s and Sainsbury’s look to loose produce and paper bags
- Retailers make big progress on removing black plastic
- Packaging-free aisles trialled
- M&S trials refill aisles in two stores
- Asda plans ‘test and learn’ store
- Waitrose Unpacked
- ‘Clear on Plastics’ campaign unveiled by WRAP
- Sainsbury’s Net Zero by 2040 target
Launch Activity and Innovation
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- New packaging accounts for more than a quarter of launches
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- Figure 18: New launches in the UK food market, by launch type, 2015-19
- Half of launches feature environmentally-friendly packaging claims
- Environmentally-friendly packaging claims mostly about recycling
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- Figure 19: New product launches in the UK food market carrying environmentally-friendly packaging and recycling claims, 2015-19
- 1% claim 100% recyclable
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- Figure 20: Examples of new food launches making ‘100% recyclable’ claims, 2020
- Paper wrapper for snack bars and component recycling instructions stand out
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- Figure 21: Higgidy Family Kitchen Spinach & Pine Nut Pie and 100% recyclable packaging, 2019
- Few launches call out use of recycled plastic
- Moves to reduce or replace plastic in food packaging
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- Figure 22: New launches in the food market, by package material, 2015-19
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- Figure 23: Examples of new food launches highlighting using less plastic, 2020
- Plastic-free claim remains rare
- Compostable packaging limited despite consumer interest
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- Figure 24: Examples of new food launches with compostable packaging, 2019/20
- Premium ready meals opt for wooden trays
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- Figure 25: Examples of new launches of ready meals using wooden trays, 2019/20
- Re-sealable is a major element of convenient packaging
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- Figure 26: New product launches in the UK food market carrying convenience claims, 2015-19
- Few launches explore ‘no mess’ convenience
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- Figure 27: Examples of new food launches with ‘no mess’ packaging, 2019/20
- On-the go claims remain steady in food launches
- Brands partner with Terracycle for hard-to-recycle packaging
The Consumer – What You Need to Know
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- Ocean plastic people’s biggest concern
- Food waste is second biggest concern
- Being easy to recycle is important to two thirds of people
- A quarter see keeping food fresh for longer as important
- Re-usable containers most likely to be used for pasta/rice
- Use-by or best-before dates the most checked information
- Huge stated preference for loose fresh fruit/vegetables
- Consumers taking action to reduce food packaging
- People want more from local recycling services
- Seven in 10 want environmentally-friendly rating system for packaging
Top Concerns Relating to Food Packaging
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- Ocean plastic is biggest concern
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- Figure 28: Top consumer concerns relating to food packaging and waste, February 2020
- Waste to landfill and littering are also big concerns
- Most Important Attributes for Food PackagingTargeting zero waste to landfill for end-user waste
- Supporting local clean-ups an opportunity for snack food brands
- Food waste is the second biggest concern
- Few people think about CO2 emissions
Most Important Attributes for Food Packaging
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- Being easy to recycle is important to two thirds of people
- Strong interest in recyclability
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- Figure 29: Most important attributes of food packaging, February 2020
- Recycling depends on local services
- A quarter see keeping food fresh for longer as important
Likely Usage of Re-usable Containers When Shopping in Supermarkets
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- Re-usable containers most likely to be used for pasta/rice
- Chilled foods spark least interest
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- Figure 30: Foods people think they would be likely to use re-useable containers for when shopping in supermarkets, February 2020
- Major retailers trialling packaging-free aisles
Information Checked on Food Packaging When Shopping
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- Use-by or best-before dates the most checked information
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- Figure 31: Information people check on food packaging when shopping, February 2020
- Four in 10 check list of ingredients on packaging
- A third check packaging for nutritional content
- Country of origin important for a quarter of people
Behaviours Related to Food Packaging
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- Huge stated preference for loose fresh fruit/vegetables
- Eight in 10 report preferring loose fresh produce
- Shelf life and convenience matter
- COVID-19 puts the spotlight on hygiene
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- Figure 32: Behaviours related to food packaging, February 2020
- Consumers taking action to reduce food packaging
- Two in five report switching brands for sustainable packaging
- A third interested in smart technology connected to packaging
- Usage of on-pack QR and AR features is low
Attitudes towards Food Packaging
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- People want more from local recycling services
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- Figure 33: Attitudes towards food packaging, February 2020
- Seven in 10 want environmentally-friendly rating system for packaging
- Limited edition packaging benefits from catching the eye
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Launch Activity and Innovation
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- Figure 34: New launches in the food market, by claim, 2015-20
- Figure 35: New launches in the food market, by package material, 2015-20
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