Exploring the Aseptic Packaging Force on its Flexible Side

Size: px

Start display at page:

Download "Exploring the Aseptic Packaging Force on its Flexible Side"

Godfrey Dean
6 years ago
Views:

1 Exploring the Aseptic Packaging Force on its Flexible Side Arnaud Quetin, Global Executive Director Aseptic Unwrapping Packaging and putting it at the heart of NPD

2 Pouch

3 Improved quality of longlife foods Increased demand for food safety Demand for more natural products Food waste reduction Supply chain cost savings Capability to gain market share Growth drivers for aseptic 3

4 Improved Quality of long-life foods Advances in processing technologies allows higher quality, superior organoleptic properties (less heat stress Vs. hot fill - retain more vitamins, exhibit more natural texture, color, flavor, taste). Long life right-for-me foods 4

Increased demand for Food Safety Cross-contamination

micro-organisms were the largest contributor to the total

5 Increased demand for Food Safety Cross-contamination causes most product recalls In UK pathogenic micro-organisms were the largest contributor to the total number of recorded incidents in 2015 according to FSA Food Standards Agency. One of the major threats for food industry profitability. There is a need for more stringent food safety standards. 5

Demand for more natural added value products 80% consumers agree that dairy foods with low or reduced sugar are better for their health (DSM Global Insights 2015).

6 Demand for more natural added value products 80% consumers agree that dairy foods with low or reduced sugar are better for their health (DSM Global Insights 2015). Among consumers who say they are watching their weight, 81% read the nutritional panel on product labels (The Hartman Group). Protein-based drinks and snacks are among few growing aseptic segments in UK. 6

7 Food Waste Reduction OUR About one third of all the food that is produced is wasted despite consumers, processors & distributors endeavor to optimize their wastage. If many food squandering is due to expired date, then increased aseptic products shelf life for months have more chance to be eaten than thrown away. 7

8 Supply Chain Costs Savings No cold chain logistics required. Retailers may prefer ambient products, because distribution costs are lower. Aseptic technologies make it possible, though products may still need to go in the chilled cabinet for consumers acceptance. Similarly, same logistics convenience applies for e-commerce. Aseptic filling is usually made at ambient temperature. This allows to down gauge packaging materials. 8

Capability to gain market share World demand for aseptic packaging in 2020 is +437 billion units +5 % CAGR 15-20 (Zenith International and Warrick Research - Global Aseptic Packaging 2015).

9 Capability to gain market share World demand for aseptic packaging in 2020 is +437 billion units +5 % CAGR (Zenith International and Warrick Research - Global Aseptic Packaging 2015). Though aseptic use in UK remains modest. Aseptic innovation is a genuine game changer to strengthen FMCG s products portfolio. Huge possibilities in terms of R&D food and beverage formulation, but CAPEX challenges. 9

10 Stand Up Pouch

Stand Up Pouches one of the fastest growing packages 60 Billion units of stand up pouches sold in the retail environment in 2016 8,78% Forecast Pouches global market to

11 Stand Up Pouches one of the fastest growing packages 60 Billion units of stand up pouches sold in the retail environment in ,78% Forecast Pouches global market to grow CAGR 8.78% Source: MarketStudyReport.com 2016 Global Stand-up Pouches Market Source: Euromonitor International Passport Stand-Up Pouches December 2016

12 On-the-Go Demand for Smaller The Kid Factor Transparency Branding Signifier of Quality Growth drivers for pouch 12

Consumers want on-the-go food Convenience Portable &

Significant number of adults are grazing on food, rather

This is often a response to long working hours or lengthy

of HR firm Randstad UK, observed: British workers are

housing crisis nudges them further out into the suburbs.

13 Consumers want on-the-go food Convenience Portable & Resealable Some can be used in oven or microwave Significant number of adults are grazing on food, rather than eating regular meals. This is often a response to long working hours or lengthy commutes. In 2015, Mark Bull, chief exec. of HR firm Randstad UK, observed: British workers are embracing longer commutes to work, particularly as the housing crisis nudges them further out into the suburbs. The UK house price index soared by 142% between 2000 and Source: Euromonitor International Passport Stand-Up Pouches December

Volume in billion units % CAGR 2016-2020 Demand for smaller is driven by growing number of single-person

2016-2020 10 8 Single-person households drive demand for smaller pack sizes 2 1 6 4 2 0 0-100g 101-300 g

14 Volume in billion units % CAGR Demand for smaller is driven by growing number of single-person households 4 3 Global Sauces, Dressing and Condiments in Stand Up Pouches By Size Bands 2016 And Growth Single-person households drive demand for smaller pack sizes g g g g 2016 Volume % CAGR Salad dressing 90ml Source: Euromonitor International

Volume in million units Demand for smaller is driven by hectic

Pouches By Pack Size 2016-2020 30% of the global population by

187 ml 250 ml 296 ml RTD 187 ml 1500 ml 1750 ml Single-serve RTD

15 Volume in million units Demand for smaller is driven by hectic lifestyles 100 Global RTDs/High-Strength Premixes in Stand Up Pouches By Pack Size % of the global population by 2020 will be Millennials ml 250 ml 296 ml RTD 187 ml 1500 ml 1750 ml Single-serve RTD cocktails in pouches for millennials Source: Euromonitor International

The Kid Factor Busy parents value the fact

In a 2015 post, UK-based parenting blog What

size to pack in a lunch bag and they are the

The kids found it really easy to eat the

loved the fact there was no need to take a

bonus my habitual nonfinishers can save the

16 The Kid Factor Busy parents value the fact that babies can feed themselves using pouches. In a 2015 post, UK-based parenting blog What Me and the Boys Say reviewed Petit Filous fromage frais in pouches. The blogger wrote: The pouches are an ideal size to pack in a lunch bag and they are the perfect size for little hands. The kids found it really easy to eat the yoghurt through the straw-like spout, and I loved the fact there was no need to take a spoon The fact that they are resealable is a bonus my habitual nonfinishers can save the rest for later with no mess. Source: Euromonitor International Passport Stand-Up Pouches December

17 Transparency See-through helps simplifying your packaging and focus on enhancing your product. Nearly one third of shoppers (30%) gauge how fresh a product is by its appearance, rather than its use-by date. Clear packaging can help increase shoppers initial perception of food freshness and demonstrates that what you see is what you get. 17

Pouch as a signifier of Quality Stand-up pouches

perceived by many consumers as a signifier of

Bifurcation is a notable trend Sometimes, the same

shopping for one item and quality when shopping

conscious, while others are more willing to pay a

economic environmental, value sales of organic

in both Western Europe and North America between

18 Pouch as a signifier of Quality Stand-up pouches are lightweight and yet robust, and are widely perceived by many consumers as a signifier of quality. Bifurcation is a notable trend Sometimes, the same consumer can prioritise value for money when shopping for one item and quality when shopping for another With some consumers increasingly price conscious, while others are more willing to pay a premium for quality Example, even a difficult economic environmental, value sales of organic packaged food exhibited strong real terms growth in both Western Europe and North America between 2010 and 2015, of 21% and 20%, respectively. Source: Euromonitor International Passport Stand-Up Pouches December

Leading to Branding opportunities APPEAR MORE EXCLUSIVE AND THUS COMMAND

LOOK THROUGH MATTE FINISHES MULTIPLE SHAPE POSSIBILITIES FOR SHELF

PRODUCT FOR ITS NAME MILLENNIALS WANT TO SEE THE PRODUCT AND READ THE

19 Leading to Branding opportunities APPEAR MORE EXCLUSIVE AND THUS COMMAND HIGHER MARGINS ADD EXTRA CONVENIENCE FOR THICK PRODUCTS ORGANIC MIMIC LOOK THROUGH MATTE FINISHES MULTIPLE SHAPE POSSIBILITIES FOR SHELF DIFFERENTIATION BABY BOOMERS ARE MORE TRUSTING OF BRANDS AND WILL BUY A PRODUCT FOR ITS NAME MILLENNIALS WANT TO SEE THE PRODUCT AND READ THE INGREDIENTS Source: Euromonitor International Passport Stand-Up Pouches December

20 Premium consumer experience Premium value Pouch Market Positioning examples: Baby Food in UK HiPP 1 x 190g Pouch GBP: 0.99 ( 1.26) Euro 6.63/Kg Source: Waitrose HiPP 1 x 230g Pot GBP: 1.71 ( 2.18) Euro 9.48/Kg HiPP 1 x 130g Pot GBP: 1.29 ( 1.64) Euro 12.61Kg +33% 20

21 Premium consumer experience Premium value Pouch Market Positioning examples: Custard in Spain Nestle Petit Nesquik 6 x 60g Pot /Kg Nestle Nesquik Yoco Go! 4 x 80g Pouch /Kg +230% Source: Auchan, Mataro - Spain

Stonyfield Organic whole milk Yogurt 1 x 24 oz Pot USD: 3.

17/oz HappyFamily - Stonyfield Organic whole milk Yogurt 1

46/oz +270% Goodbelly Probiotics 1 x 32 oz cardboard USD:

22 Premium consumer experience Premium value Pouch Market Positioning examples: USA Yogurt Probiotics HappyFamily - Stonyfield Organic whole milk Yogurt 1 x 24 oz Pot USD: 3.99 USD 0.17/oz HappyFamily - Stonyfield Organic whole milk Yogurt 1 x 3.7 oz Pouch USD: 1.69 USD 0.46/oz +270% Goodbelly Probiotics 1 x 32 oz cardboard USD: 3.99 USD 0.12/oz Lifeway Whole milk kefir Probiotics 2 x 16 oz Pouch USD: 5.99 USD 0.37/oz +208% Source: Whole Foods Market / Miami

23 Consumer-preferred can create new consumer engagement in traditional categories packaging will drive preference when it fulfills an untapped need or drives new relevance / brand re-invent 23

24 Retail customers reality does your new format help retailers establish a new price point? 24

your packaging choice increasing or eliminating facings?

25 Placement how complicated is it to stock, shop and face? where should pouched products formats live? Planograms and replenishment efficiency Traditional volume of product per linear inch no longer true Is your packaging choice increasing or eliminating facings? Retailers need labor savings (less actions to stock products) Retail buyer focus on gross margin return on investment, inventory turnover and seasonality 25

27 Do you face a commodity product situation? Key takeaways Growth of aseptic processed foods and high consumers acceptance of stand up pouch format jointly lead to create new consumers experiences. Multiple consumers market segment from babies, toddlers, kids, millennials, yuppies and elderly with an array of food & beverage applications. The aseptic pouch innovation can fuel new NPD business case and show that consumers like it, that it fits with your brand values, and of course, that it makes money. Exploring the Aseptic Force on its Flexible Side 27

Innovative Aseptic Flexible Packaging Solutions

Innovative Aseptic Flexible Packaging Solutions Aseptic opportunities: Africa keeping food safety and freshness no need for refrigeration cleaner label more natural shelf stable products lower caloric