Latest Trends in Packaging for the next decade.

Transcription

1 Latest Trends in Packaging for the next decade. Presented by Ram Kumar Sunkara Sub Committee Chairman - FCBM Ram Kumar Sunkara 1 Key Points Modern day packaging no longer plays just a passive role in protecting and marketing the product. It is increasingly taking up an active role in managing the quality and safety of products throughout the distribution chain. The new demands of product s security has led to the integration of technology into packaging. Ram Kumar Sunkara 2 FCBM 1

2 Key Points The Packaging is going from simple to smart. The global smart packaging market will grow to $ 4.8 billion in 2011, reach $ 14.1 billion in 2013, and $ 23.7 billion by 2015 according to a report of NanoMarkets, LC, USA. To reach $ 39.7 billion by Market growing at a CAGR of 4.8% from 2014 to 2020 Ram Kumar Sunkara 3 Key Points On the basis of technology Active packaging Modified atmosphere Smart Intelligent Moisture control Gas scavengers Smart labels Time and Temperature indicators Ram Kumar Sunkara 4 FCBM 2

3 Key Points On the basis of application Sea food Meat and Poultry Soup Dairy products Confectionaries Fruits and Vegetables Ready to eat meals. Ram Kumar Sunkara 5 Smart Packaging Printable Electronics Sophisticated electronic capabilities can be imparted to a packaging through printing. Smart Materials Shape memory alloys to control the opening and closing of packages. Thermo-chromic inks to show optimal temp. Smart adhesives than can used in labels to ensure freshness through color change. Ram Kumar Sunkara 6 FCBM 3

4 INKS THAT CHANGE WITH TEMPERATURE Ram Kumar Sunkara 7 Color Change Inks Touch Reactive Chill Reactive Heat Reactive Moisture Reactive Reversible Thermo-chronics Irreversible Thermo-chronics Ram Kumar Sunkara 8 FCBM 4

5 Ram Kumar Sunkara 9 Trends Major trends likely to affect the packaging industry over the next decade are as follows:- Electronic Business Processing. Supply Chain Management. Concentration of Ownership. Convenience Packaging. Shorter Runs Greater Flexibility. Marketability The Environment Other demands- Freshness, tamper Evidence, Labelling. Ram Kumar Sunkara 10 FCBM 5

6 Key Points Thinking ahead is crucial to business success. Failure to do so will result in companies being overtaken by events and their competitors. Companies which look to the future and attempt to plot the course of change may still get it wrong. But they better placed than others to respond quickly and effectively to new change. Ram Kumar Sunkara 11 Electronic Business Processing. It will eventually link the entire supply chain - raw material suppliers, packaging manufacturers, packaging users, retailers and consumers. Will effectively "shorten" the supply chain. From the time the consumer makes a purchase, the speed with which information flows back through the supply chain - ultimately to the raw material producer - will result in more effective strategic planning. Ram Kumar Sunkara 12 FCBM 6

7 Electronic Business Processing. This could change the nature of the production system to one where rather than "pushing" goods onto the system, they are ordered and produced by companies in response to a specific demand or precise forecast requirement. Effective utilisation of electronic processes such as digital artwork will foster a more integrated approach for packaging from concept through to the final product in the supply chain management. Ram Kumar Sunkara 13 Supply Chain Management. At every point in the supply chain, costs are added. Supply chain strategic alliances will become more widespread. The manufacturers and users of packaging will be much more closely involved with each other. working together on packaging innovation and design, identifying changes in market trends, etc. Ram Kumar Sunkara 14 FCBM 7

8 Supply Chain Management. The commercial advantages of working together are likely to be far greater than the gains to be made by the more traditional approaches. These advantages are: An improved level of service to customers Better supplier performance as relationships become closer Reduced inventory costs Quicker responses and shorter lead times Ram Kumar Sunkara 15 Concentration of Ownership. There is a significant concentration of ownership in the packaging industry. The trend towards concentration will continue to be aided and abetted by the need to supply customers who have a national focus and also to service the large international customers. Smaller companies will, by and large, be limited to supplying products for niche markets. Ram Kumar Sunkara 16 FCBM 8

9 Convenience Packaging. Convenience packaging goes beyond the essential purpose of preserving and protecting the product. Consumers want conveniently packaged products that can be quickly opened. For retailers, convenience packaging is often also utilized as a dispenser, making the product easier to display. (POP also serves as shipping container). Ram Kumar Sunkara 17 Shorter Runs Greater Flexibility. The Proportion of the elderly is expected to increase in the coming decade. These social changes will create the demand for packaging lines that are highly flexible and differentiated products. There will be far more versions of the same product. The packaging industry has to create personalized, individual products in full colour at high speed and with a minimum of notice. Ram Kumar Sunkara 18 FCBM 9

10 Marketability Packaging sells products. Lifestyle changes, greater product differentiation, competitive pressures - will put an even greater premium on the look, sales appeal and quality of retail packaging. There will be an increasing demand for higher quality graphics and promotional links between graphics and advertising. Ram Kumar Sunkara 19 The Environment The environment will remain a major issue for the packaging industry. Issues involving recycling, reducing the amount of solid waste, source reduction will remain on the agenda of all governments. The driving forces are threefold - the consumer, commercial interests and government legislation. Getting the economics "right" is the key ingredient of a successful packaging environment policy. Ram Kumar Sunkara 20 FCBM 10

11 Other demands- Freshness, Tamper Evidence, Labelling. Freshness - While consumers want convenience, they also want freshness. Modified atmosphere packaging - that preserves shelf-life and maintains freshness. Tamper Evidence - The demand for tamper evident packaging will increase. Labelling - The demands on labels to provide information will increase. Ram Kumar Sunkara 21 RFID in Packaging RFID an acronym for Radio Frequency Identification. refers to a way of using electromagnetic energy to transmit and receive information. this is the same wireless system used by cell phones, radio and television. Ram Kumar Sunkara 22 FCBM 11

12 RFID Technology The heart of the current RFID based technology drive is The EPC Electronic Product Code E P C Electronic Product Code Header (0-7) bits- The Header is 8 bits, and defines the length of the code. O1 indicates an EPC type 1 number which is 96 bits in length. The EPC length ranges from 64 to 256 bits. FCBM 12

13 E P C Electronic Product Code EPC manager (8-35) bits- Will typically contain the manufacturer of the Product the EPC tag is attached to. Object Class (36-59) bits- Refers to the exact type of product in the same way a SKU (Stock Keeping Unit). Serial Number (60 96) bits- Provides a unique identifier for up to 2 96 products RFID SYSTEM COMPONENTS RFID system consists of 4 main components. Tags Antennas. Readers. Host Computer. FCBM 13

14 RFID SYSTEM COMPONENTS RFID Tag Is made up of a microchip with a flexible antenna. The Reader Emits a radio wave to scan the microchip via the antenna. How does RFID work? A reader emits signals as radio waves. The radio waves are received by the antenna of the tag. The energy from these radio waves activates the computer chip causing it to receive, transmit or alter the information it stores. Reader then reads the information stored on the Tag. FCBM 14

15 RFID Tag Assembly Long Term Benefits of RFID Advanced Shipping Notices (ASN) RFID is able to automatically detect when either a pallet or shipment has left the warehouse or Distribution Center. This will allow to not only generate an electronic ASN and notify the recipient. bill clients in real time instead of waiting until the end of the week or month, and doing a batch operation. FCBM 15

16 Long Term Benefits of RFID Shrinkage One of the major problems in the supply chain is product loss or shrinkage. The causes may vary from misplaced orders, employee and customer theft or inefficient stock management. RFID with its superior tracking and identification capability will be able to localize where losses are occurring. Long Term Benefits of RFID Anti counterfeit Illegal duplication and manufacture of high value products, is one of the industries most well known problems. By integrating a tag into items, for example the body of an expensive ladies handbag, RFID has the potential to authenticate a product, and combat the sale of false goods on the black markets. FCBM 16

17 Long Term Benefits of RFID Supply Chain efficiency RFID will enable the trace ability and reduction in the number of discrepancies between what a supplier invoiced, and what a customer actually received. Improved stock management Managing stock is the key priority for many retailers. Implementing RFID at the item level and on shelves will give an automatic way of knowing and managing stock levels. Long Term Benefits of RFID Returned Goods Full visibility and automation can be potentially achieved on returned goods thereby reducing fraud. Reduction in labor costs At DC s (Distribution Centers) labor accounts for nearly 70% of costs. It is estimated that RFID could reduce this by nearly 30%. FCBM 17