Food Packaging Trends - US - June 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
The importance of packaging is clear, just not to consumers
Figure 1: Top three factors important in food/drink purchase, March 2019
Changes in shopping and eating habits usher in packaging updates
Figure 2: Share of food launches, by pack type, 2015-19
Plastic leads food launches, concerns
Figure 3: Share of food launches, by packaging material, 2015-19
The opportunities
Assuring (and conveying) freshness will be key to resonating with shoppers
Figure 4: Packaging elements that impact product choice, March 2019
Brands must take the lead on sustainability to stand apart from the pack, save the world
Figure 5: Environmental responsibility, March 2019
The future of packaging is minimal
Figure 6: Sustainability habits, March 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
New packaging leads food launch type
Snack popularity necessitates packaging updates
Online shopping requires/drives packaging innovation
Concern for the environment trails behind other causes
MARKET BREAKDOWN
New packaging leads food launch type
Figure 7: Share of food launches, by launch type, 2015-19*
Snacks lead new packaging launches
Figure 8: Share of new packaging food launches, by category, 2015-19
Snack packaging redesign puts a focus on ingredients
Plugging into portability
MARKET FACTORS 
Snackers can’t stop, won’t stop
Figure 9: Snacking frequency, January 2015 and November 2018
eCommerce grocery shopping will be a game changer
Figure 10: Approach to grocery shopping by category, February 2019
Food waste and the environment are hungry for more action
Figure 11: Consumer donation and support of causes, net donation and support, April 2018
FDA initiatives will require packaging updates
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Pouches continue to grow; prepared meals increase tray activity
Plastic leads food launches, consumer concerns
Consumers take to whimsy
The future of packaging is minimal
WHAT’S WORKING?
Pouches continue to grow; prepared meals increase tray launches
Figure 12: Share of food launches, by pack type, 2015-19
Plastic leads food launches, consumer concerns
Figure 13: Share of food launches, by packaging material, 2015-19
Whimsy for the win
WHAT’S STRUGGLING?
Environmental packaging claims are moving in the wrong direction
Figure 14: Share of food launches, by packaging related claims, 2015-19
See-through not always seen as appealing
WHAT’S NEXT?
Visual times require more visual representations
Connected packaging
Brands need to take the lead on sustainability
THE CONSUMER – WHAT YOU NEED TO KNOW 
The importance of packaging is clear, just not to consumers
Consumers look to packaging for freshness
Metal and plastic tubs occupy a middle ground of functionality
Packaging occupies important role in meat purchases
Consumers aren’t prioritizing environmental responsibility
Consumers want to be rewarded for sustainability
IMPORTANT FACTORS IN FOOD AND DRINK CHOICE 
Consumers don’t recognize the importance of packaging, but value its features
Figure 15: Top three factors important in food/drink purchase, March 2019
IMPORTANT PACKAGING ELEMENTS
Figure 16: Packaging elements that impact product choice, March 2019
Portability is important to young consumers
Figure 17: Packaging elements that impact product choice, by age, March 2019
Pairing freshness with recyclability can boost product interest
Figure 18: TURF Analysis – Packaging elements that impact product choice, March 2019
Figure 19: Table - TURF Analysis – Packaging elements that impact product choice, March 2019
PERCEPTIONS OF FOOD PACKAGING FORMATS
Utilitarian metal and plastic tubs need a makeover
Figure 20: Correspondence Analysis – Symmetrical map – Perceptions of food packaging formats, March 2019
Figure 21: Perceptions of food packaging formats, March 2019
IMPORTANCE OF PACKAGING BY FOOD CATEGORY
Packaging has strongest impact on meat purchases
Figure 22: Importance of packaging across food categories, March 2019
SUSTAINABILITY HABITS
Consumers aren’t prioritizing environmental responsibility
Figure 23: Food packaging statements - frequency, March 2019
Figure 24: Food packaging statements - frequency, by age, March 2019
Figure 25: Food packaging statements – HH income, March 2019
Brands will need to step up their focus on sustainability
Figure 26: Sustainability habits, March 2019
Women are strong targets for reusing packaging
Figure 27: Sustainability habits - current, by gender, March 2019
Only half of young consumers are recycling
Figure 28: Sustainability habits, by age, March 2019
Food packaging gets recycled more than beverage and household products
Figure 29: Food packaging statements – what you’re recycling, March 2019
SUSTAINABILITY CONCEPTS OF INTEREST
Consumers want to be rewarded for sustainability
Figure 30: Sustainability concepts of interest, March 2019
Young consumers are more interested in sustainable packaging
Figure 31: Sustainability concepts of interest, by age, March 2019
More than half of consumers are interested in loop programs
Figure 32: Loop program interest, March 2019
Younger consumers are particularly interested in loop programs
Figure 33: Loop program interest, by age, March 2019
SUSTAINABILITY EDUCATION
Brands could boost their on-pack sustainability communication
Figure 34: Sustainability education, March 2019
On-pack is important information source for sustainability shoppers
Figure 35: Sustainability education - sustainability, March 2019
Social media is key in communicating sustainability to young shoppers
Figure 36: Sustainability education, by age, March 2019
ENVIRONMENTAL RESPONSIBILITY
Only half of consumers claim responsibility for environmental friendliness
Figure 37: Environmental responsibility, March 2019
Personal responsibility even lower among younger respondents
Figure 38: Environmental responsibility, by age, March 2019
Low income HHs least likely to claim personal responsibility
Figure 39: Environmental responsibility, by HH income, March 2019
Respondents limited by time may feel guilty
Figure 40: Environmental responsibility, by barriers to sustainability, March 2019
SUSTAINABILITY STATEMENTS
Sustainability has closer ties with planet than with personal health
Figure 41: Food packaging statements - motivation, March 2019
Packaging not strongly linked with environmental responsibility
Figure 42: Food packaging statements - sustainability, March 2019
BARRIERS TO SUSTAINABILITY
Cost is the strongest barrier to sustainability
Figure 43: Barriers to sustainability, March 2019
FOOD AND DRINK SHOPPER SEGMENTATION
Figure 44: Food/drink shopper segmentation, February 2019
Quality Seekers (34%)
Figure 45: Profile of Quality Seekers, February 2019
Adventure Eaters (34%)
Figure 46: Profile of Adventure Eaters, February 2019
Time Savers (17%)
Figure 47: Profile of Time Savers, February 2019
Value Chasers (15%)
Figure 48: Value Chasers, February 2019
Implications of food/drink consumer segments on food packaging
Freshness assurance is a win for Time Savers
Figure 49: Packaging elements that impact product choice, by food and drink consumer segmentation, March 2019
Quality Seekers are harsh critics of premium packaging cues
Figure 50: Perceptions of food packaging formats - premium, by food and drink consumer segmentation, March 2019
A third of Adventure Eaters choose products with minimal packaging
Figure 51: Sustainability habits – currently do, by food and drink consumer segmentation, March 2019
Cost informs priorities of Value Chasers
Figure 52: Barriers to sustainability, food and drink consumer segmentation March 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Correspondence analysis methodology
Abbreviations and terms
Abbreviations