Reducing costs and increasing sales
The changing lifestyles of today’s consumers; eating trends, eating habits and eating occasions, has led to a need for packaging that goes beyond just protecting the product. To drive growth and profitability, consumer packaged goods companies (CPGs) have a need for forward-thinking functionality that fits with the new demands from consumers.
This is why stand-up flexible packaging is beginning to dominate new product releases, growing by 30% from 2016 to 2019. Manufacturers of baby food, yoghurt, fruit purees, beverages and many other categories are converting to stand-up pouches to meet evolving consumer lifestyles and position their business for future growth.
Form and Function
So, what is driving this growth?
The pouch is the right package for the right products at the right time, delivering both form and function. Spouted pouches allow toddlers to feed themselves, freeing mum and dad from the spoon as well as introducing an easy way to reclose the package. If the product wasn’t consumed in full, the rest can be stored easily. Squeezing the last bit of food out of a pouch is much easier than trying to scoop the last bit out of a rigid container. That means less food waste and improved value, which drives market growth.
Stand-up pouches account for 28.9% of all baby food packaging formats. Even more impressive is that stand-up pouches’ share of packaging formats grew 84.4% in one year, while virtually all other packaging formats saw a decrease in share in the category.
Shelf-stable fruit in pouches also experienced the highest unit sales compared to any other packaging format in 2018, resulting in a 24.4% share of the market and a growth rate of 13.2%.
A platform for Brand Growth
For CPG marketers, the millennial generation is the prime target audience for stand-up pouches. This dynamic segment, aged 21 to 38, accounts for 24.6% of the population and is projected to grow at 2.6% according to Mintel’s “Marketing to Millennials” study in 2015. Millennials are familiar with pouches since as children, they drank fruit juice from them. Today, these former juice drinkers are becoming parents themselves and are responsible for grocery shopping in their households. In fact, Fortune magazine says 51% of children have a millennial parent.
Pouches provide a platform for brand owners to deliver improved packaging functionality to millennials. A study shows that 74% of consumers indicate an easy-to-open package is important to them, while 55% indicate package portability is important. Additionally, 41% would select a product that is consumable on-the-go instead of a competitive offering that isn’t according to Mintel’s “Food Packaging Trends.” Pouches deliver the flexibility and performance that millennials are seeking. In fact, several brands have learned that augmenting their current rigid packaging with a pouch alternative does not cannibalize existing formats; it actually expands the entire market by expanding usage occasions.