Food Packaging Trends - UK - March 2018

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Packaging needs to cater to the ageing population
Out-of-home eating occasions on the rise
Disposal of food packaging will become a major challenge for the UK
Plastics debate could see increased demand for other packaging materials
The ‘shrinkflation’ trend exacerbated by Brexit and sugar concerns
Companies and brands
Retailers’ strategies to reduce plastic waste
New packaging launches jump to a four-year high
Innovation in environmentally friendly packaging
Environmentally friendly pouches enter the UK market
Packaging focuses on food waste
Smart labels appear on Sainsbury’s packets of ham
The consumer
Glass packaging is seen as the hardest packaging type to open
Figure 1: Qualities associated with different types of food packaging, December 2017
Plastic packaging formats are associated with being difficult to recycle
Resealable packaging garners the most interest
Figure 2: Interests in food packaging, December 2017
Scope to boost recycling amongst younger age groups
Figure 3: Behaviours relating to food packaging, December 2017
Strong interest in buying loose products suggests a future for plastic-free aisles
Britons consider themselves to be a nation of recyclers
Figure 4: Food packaging recycling habits, December 2017
Clearer recycling instructions on packaging are needed
Figure 5: Factors to encourage recycling of food packaging, December 2017
The majority expect companies to make food packaging sustainable
Figure 6: Attitudes towards food packaging, December 2017
Branded packaging seen to be more attractive than own-label by half
What we think
ISSUES AND INSIGHTS
Cardboard and paper packaging likely to benefit off the back of plastic concerns
The facts
The implications
Helping younger age groups to recycle more can build engagement
The facts
The implications
Highlighting functional features can win favour with the UK’s ageing population
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Packaging needs to cater to the ageing population
Out-of-home eating occasions on the rise
Disposal of food packaging will become a major challenge for the UK
Plastics debate could see increased demand for other packaging materials
The ‘shrinkflation’ trend exacerbated by Brexit and sugar concerns
MARKET DRIVERS
Packaging needs to cater to the ageing population
Figure 7: Trends in the age structure of the UK population, 2012-17 and 2017-22
Smaller households need smaller packs
Figure 8: UK households, by size, 2017-22
Out-of-home eating occasions on the rise
Disposal of food packaging will become a major challenge for the UK
Household recycling rates have fallen over the last five years
Government proposes 25-year plan to reduce plastic packaging waste
Removing plastic packaging has the potential to increase food waste
China restricts imports of waste paper and plastics from the UK
Uncertain future for packaging recycling following Brexit
Black plastic trays identified as the worst culprits for not being recycled
Roadmap agreed for black plastic tray recycling
Plastics debate could see increased demand for other packaging materials
Guideline changes to fresh food labelling aim to reduce food waste
The ‘shrinkflation’ trend exacerbated by Brexit and sugar concerns
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
New packaging launches jump to a four-year high
Innovation in environmentally friendly packaging
Environmentally friendly pouches enter the UK market
Packaging focuses on food waste
Smart labels appear on Sainsbury’s packets of ham
RETAILERS’ STRATEGIES TO REDUCE PLASTIC WASTE 
Iceland commits to plastic-free aisles
Waitrose pledges to scrap black plastic trays
Tesco wants all packaging to be recyclable or compostable by 2025
Sainsbury’s aims to halve packaging by 2020
Asda commits to recyclable packaging under Walmart’s Sustainability targets
Morrison’s responsibility targets align with the UN Sustainable Development Goals
Aldi to source all of its pulp-based packaging from certified forests by 2020
The Co-op aims to make the majority of its packaging easy to recycle
Marks and Spencer aims to generate zero waste across the business
LAUNCH ACTIVITY AND INNOVATION
New packaging launches jump to a four-year high
Figure 9: New launches in the UK food market, by launch type, 2014-17
Several categories have seen pack sizes shrink
Innovation in environmentally friendly packaging
Iceland launches Indian street-food style range in eco-friendly packaging
Tesco maximises recyclability of fresh food packaging
Figure 10: New product launches in the UK food market carrying an environmentally friendly package claim, 2014-17
Co-op’s single-polymer protein pack aims to help consumers up recycling habits
Itsu relaunches pot noodles in environmentally friendly packs
Snact roles out home compostable packaging across its range
Environmentally friendly pouches enter the UK market
Figure 11: New product launches in the UK food market, by packaging type, 2014-17
Packaging focuses on food waste
Waitrose introduces packaging made from food waste
Maldon Sea Salt summer packaging encourages top-to-tail cooking
Retailers remove sticker labelling on some fruit and vegetables
Unipak develops new packaging to absorb fruit juices and extend shelf life
Retailers face consumer backlash over packaged fresh produce
UK’s first re-closable frozen food pack launched
Figure 12: New product launches in the UK food market, by claims related to convenience, 2014-17
Fairfields unveils the first ever microwaveable bag of crisps
Linpac develops ‘quick roast’ joint pack concept for the Co-op
Smart labels appear on Sainsbury’s packets of ham
Onken offers personalised ‘YouGurt’ pot service
THE CONSUMER – WHAT YOU NEED TO KNOW
Glass packaging is seen as the hardest packaging type to open
Plastic packaging formats are associated with being difficult to recycle
Resealable packaging garners the most interest
Scope to boost recycling amongst younger age groups
Strong interest in buying loose products suggests a future for plastic-free aisles
Britons consider themselves to be a nation of recyclers
Clearer recycling instructions on packaging are needed
The majority expect companies to make food packaging sustainable
Branded packaging seen to be more attractive than own-label by half
QUALITIES ASSOCIATED WITH DIFFERENT TYPES OF FOOD PACKAGING
Methodology
Glass packaging is seen as the hardest packaging type to open
Figure 13: Correspondence Analysis, December 2017
A fifth see flexible plastic pouches as hard to open
Figure 14: Qualities associated with different types of food packaging, December 2017
Plastic packaging formats are associated with being difficult to recycle
Various component materials inhibit ease of recycling plastic pots
‘Downcycling’ is an option for plastic pouches
Most packaging types are not seen to be environmentally friendly
INTERESTS IN FOOD PACKAGING
Resealable packaging garners the most interest
Figure 15: Interests in food packaging, December 2017
Under-34s are most interested in portion control
Portion control packaging can help to reduce food waste
Edible packaging is an underexplored area
Interactive packaging features appeals to the young and the affluent
BEHAVIOURS RELATING TO FOOD PACKAGING
Scope to boost recycling amongst younger age groups
Figure 16: Behaviours relating to food packaging, December 2017
On-pack information about food is preferable to online
Strong interest in buying loose products suggests a future for plastic-free aisles
Reducing food waste is more of a priority than reducing packaging waste
Figure 17: Food Packaging Trends – CHAID – Tree output, December 2017
Methodology
FOOD PACKAGING RECYCLING HABITS
Britons consider themselves to be a nation of recyclers
Figure 18: Food packaging recycling habits, December 2017
Over-65s are the most frequent recyclers
Figure 19: Food packaging recycling habits, by age group, December 2017
FACTORS TO ENCOURAGE RECYCLING OF FOOD PACKAGING
Clearer recycling instructions on packaging are needed
Figure 20: Factors to encourage recycling of food packaging, December 2017
More clarity is needed for local recycling
Opportunity for supermarkets to boost recycling rates
ATTITUDES TOWARDS FOOD PACKAGING
Easy-open packaging is important for older generations
Figure 21: Attitudes towards food packaging, December 2017
The majority expect companies to make food packaging sustainable
Many consumers forget how long food has been open for
More than half think that popular characters would make healthy food appealing to kids
Branded packaging seen to be more attractive than own-label by half
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET DRIVERS
Figure 22: New product launches in the UK food market, by packaging material, 2014-17
Figure 23: Recycling rates of municipal waste, by EU Member States, 2015
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 24: New product launches in the UK food market, by package type, 2014-17
Figure 25: Share of new product launches in the UK food market featuring an easy-to-open claim, 2014-17
APPENDIX – THE CONSUMER
Figure 26: Share of new product launches in the UK food market, carrying a resealable claim, 2014-17
Figure 27: Food packaging waste recycling habits, by region, December 2017
Figure 28: Food Packaging Trends – CHAID – Table output, December 2017