BROWN. Why do green consumers

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1 A WHITE PAPER FOCUSED ON BROWN. Why do green consumers prefer brown packaging? SEE INSIDE. BAKERY CONSUMER PREFERENCES 1

2 SPOTTING TRENDS. TAPPING INSIGHTS. DELIVERING SOLUTIONS. Today s bakery consumer isn t like yesterday s. Now more than ever consumers crave environmentally conscious options. From artisan quality to sustainable packaging, trend researchers report increasing demand for higher-quality food choices. And, consumers are willing to pay more for these options. 3 TRENDS WORTH WATCHING: NATURAL INGREDIENTS/ CLEAN MENUS LOCALLY SOURCED/ ARTISAN CREATED ENVIRONMENTAL SUSTAINABILITY Source: BAKERY CONSUMER PREFERENCES 2

3 THE MILLENNIAL MIND Who s driving this focus on fresh? The Millennial generation. Eighty million strong, this massive market segment directs the menu boards of today, demanding a diet of fresh food, natural ingredients, locally sourced produce, artisanal creativity and environmental sustainability. Millennials appetite for fresher, healthier foods drives grocers, supermarkets and retailers to revise their store menus. Source: Millennials are driving the future of food. Are you ready? Maru/Matchbox, February 2017 BAKERY CONSUMER PREFERENCES 3

4 WHEN BRANDS SHOW DEDICATION, SO DO CONSUMERS. Nielsen studies show brands that demonstrate a greater dedication to sustainable practices reap the rewards of consumer loyalty. 66% of global consumers are willing to PAY MORE for products from companies committed to making a positive environmental and social impact. Source: Green Generation: Millennials say sustainability is a shopping priority. Nielsen, November 2015 A COMMON CONCERN, NO MATTER THE GENERATION. MILLENNIALS 72 % say they SPEND MORE MONEY on brands that demonstrate social and environmental stewardship. BABY BOOMERS 51% say they will SPEND MORE MONEY for socially and environmentally conscious products, an increase of seven percentage points from the previous year. BAKERY CONSUMER PREFERENCES 4

5 PACKAGING IS AN IMPORTANT PART OF THE COMPLETE PACKAGE. The right packaging makes a world of difference. In fact, packaging is the most outward testament to a brand s commitment to sustainability. That s why WestRock dedicates resources to researching consumer beliefs and behaviors regarding packaging. Our Packaging Matters study uncovered key insights to fuel brand success. WHEN IT COMES TO CONSUMERS JUDGING A BRAND S SUSTAINABILITY EFFORTS, PACKAGING RANKS HIGHEST. Percentage of consumers who said this activity would be important in demonstrating commitment to sustainability: 43% clearly articulated sustainability message on brand website. 44% speak out about sustainability issues within the industry. 52 % partner with organizations to promote sustainability. 54% use renewable energy to manufacture and transport products. 65% package products in a sustainable and environmentally friendly way. Source: WestRock 2016 Packaging Matters Study BAKERY CONSUMER PREFERENCES 5

6 2 STUDIES. 1,800 BAKERY CONSUMERS 1 CONCLUSION: BROWN WINS. Insights are invaluable. They ensure your success and ours. So, at WestRock we set out to determine how packaging with a natural appearance affects consumer preference within a bakery setting. We conducted multiple studies with respondents representing a solid sampling of the overall U.S. population. All of these consumers had purchased relevant bakery items at least twice in the previous month. CONSUMERS EVALUATED PACKAGING FOR TWO BAKERY ITEMS: pies donuts CONSUMER PACKAGING PREFERENCES: 2x MORE PREFER BROWN OVER WHITE. 52% MORE PREFER BROWN OVER PLASTIC. 67 % MORE PREFER BROWN OVER WHITE. 61% MORE PREFER BROWN OVER PLASTIC. Source: WestRock 2017 Natural Packaging Consumer Study BAKERY CONSUMER PREFERENCES 6

7 BAKERY CONSUMERS NATURALLY GRAVITATE TO BROWN. PIES 32% more consumers agree that all-brown packaging is good for the environment as compared to all-white. NEARLY 3x as many consumers agree that all-brown packaging is good for the environment as compared to plastic. We asked bakery consumers if all-brown, all-white, and plastic packaging are good for the environment. Here s what we found. MORE THAN 2x as many consumers agree that all-brown packaging is good for the environment as compared to plastic. DONUTS 26% more consumers agree that all-brown packaging is good for the environment as compared to all-white. Source: WestRock 2017 Natural Packaging Consumer Study BAKERY CONSUMER PREFERENCES 7

8 STRAIGHT FROM THE MOUTHS OF BAKERY CONSUMERS It looks like it would be higher value and locally produced. The brown packaging is more natural and welcoming. It makes the pie look fresh. Brown packaging looks more natural, eco-friendly. Source: WestRock 2017 Natural Packaging Consumer Study BAKERY CONSUMER PREFERENCES 8

9 THE POWER OF BROWN: PERCEPTION OF PRODUCT FRESH, HIGH-QUALITY INGREDIENTS Our research indicated that brown packaging increases the consumer s purchase interest and positively influences the consumer s perception of bakery products. PURCHASE INTEREST 44% more consumers indicated that they are very interested in purchasing a pie in brown packaging where they normally shop as compared to plastic packaging. 22 % % more consumers indicated that they are very interested in purchasing donuts in brown packaging where they normally shop as compared to plastic packaging. 88% of consumers perceive the quality of the pie to be high in brown packaging. 76 of consumers perceive the quality of the donuts to be high in brown packaging. Source: WestRock 2017 Natural Packaging Consumer Study BAKERY CONSUMER PREFERENCES 9

10 BROWN CREATES REAL PREFERENCES, NOT PLASTIC ONES. Proprietary research shows that retailers who use brown packaging benefit from improved shopper perceptions. From ingredients and freshness to sustainability, brown wins over plastic time after time. FRESH FOOD NATURAL INGREDIENTS PREMIUM RETAILER CARES ABOUT THE ENVIRONMENT 41 % 56% 57% MORE AGREE MORE AGREE MORE AGREE grocery stores that use brown also offer fresher foods. grocery stores that use brown also use natural ingredients. grocery stores that use brown are more premium. 2x AS MANY AGREE grocery stores that use brown are environmentally friendly. Source: WestRock 2017 Natural Packaging Consumer Study BAKERY CONSUMER PREFERENCES 10

11 A POSITIVE PERCEPTION IS PART OF EVERY BROWN PACKAGE. HIGHER QUALITY 49% more pie customers agree brown packaging is higher quality than plastic. When compared to plastic, even the packaging itself is more favorably perceived by bakery consumers. PRODUCT PREFERENCE 52% more consumers say they would choose brown paperboard packaging over plastic for their next pie purchase. Source: WestRock 2017 Natural Packaging Consumer Study WORTH PAYING MORE FOR 55% more pie consumers agree brown packaging is worth paying more for than plastic packaging. BAKERY CONSUMER PREFERENCES 11

12 BROWN BOARD. GREEN POSITIONING. After digesting the data, what s the key takeaway? It is clear that consumers strongly prefer brown packaging over plastic packaging for retail bakery items. And, they prefer retailers that offer bakery products in brown packaging. Why? It s simple, really. Consumers perceive brown to mean the food and packaging are more natural. And by using brown packaging, retail bakeries show a greater commitment to the environment. In short, brands like yours can tap into a growing segment of consumer preference. BAKERY CONSUMER PREFERENCES 12

13 GOING GREEN STARTS WITH BROWN. At WestRock, insights fuel innovation. And, collaboration enables success. We work with clients like you to deliver brown/kraft solutions that not only meet your performance needs but also tap into current consumer preference trends. Natural appearance High strength Recyclable High OGR (Oil & Grease Resistance) High MVB (Moisture Vapor Barrier) A PAIR OF WINNING SOLUTIONS. WestRock EnShield Natural Kraft Kit 12-rated oil and grease resistance 100% recyclable and repulpable All-brown kraft exterior and interior WestRock FoldKraft Excellent print performance 100% recyclable and repulpable All-brown kraft exterior and interior BAKERY CONSUMER PREFERENCES 13

14 YOUR GOALS BECOME OURS. Contact us and see how our paperboards can help your green initiatives. TOGETHER, WE WIN. westrock.com BAKERY CONSUMER PREFERENCES 14