Food Packaging Demand Booms in Covid-19  

Last Updated on August 4, 2021 by DesignerPeople

We have seen a lot of articles, stories, facts figures of a pandemic affecting our life, change of customer behaviour and introducing new normal. You are aware of happening around you, and we cannot deny COVID-19 has brought a lot of changes with it.

Now you are more hygiene conscious, eating healthy, drinking immunity oriented natural drinks, preferring home food which is only a few good points of a pandemic.

In all this crisis and new learning, there are a lot of industries which have suffered badly, one of the few who have seen the opportunities is “Food Packaging Industry”.

COVID-19 crisis, the global market for Food Packaging Technology estimated at US$42.9 Bn in 2020, is expected to reach a revised size of US$63.3 Billion by the year 2027, growing at a 5.7% CAGR over the analysis period 2020-2027. Source

IMPACT OF COVID-19 ON PACKAGING INDUSTRY

PACKAGED FOOD V/S LOOSE FOOD

When pandemic just started, it was the initial shock, and everyone piled up a lot of stock at home which we call it as “panic buying”. That was the time we hardly bothered about which brand we are purchasing motive was to buy and store.

But as days passed, things were not much better, but all started adopted new normal, got familiar where you now comfortably sit at home and order groceries/other food items online.

Now you read the brand name, reviews, benefits, quality, and many more before you click on the buy button. Here you can make out the trend is growing towards branded products compared to loose products which were previously sold at any store.

With the increasing demand for packaged food products majorly being meat and agriculture produce over loose. So that will limit the manhandling of the products and packets can be easily sanitized at home. Packaging also makes transportation of products more comfortable and faster.

CHANGE IN CUSTOMER PREFERENCES

Customers are smart now, after pandemic they want to consume food which is safe hygienic hence make sure to order from only those stores which are branded and following all safety measures.

Home food was initially preferred by many of us but due to hectic schedules and people being tired of home food so they are getting Ready To Eat meals, soups which can be heated and cooked. It also ensures virus-free as you cook it at 100 deg at home.

Hence the Demand of ready food and frozen food is also grown with a 20-30% increase in sales. Do it yourself, Fix meals, do-it-yourself meal kits, packaged foods ready to eat products have seen a vast and sustained uptick in Demand during the lockdown. Source

BOOM IN E-COMMERCE DEMAND

It is expected that the global food and beverage e-commerce market will grow to $22.4 bn by the end of 2020. As now most people are doing work from home; hence they prefer to purchase food, beverages and other groceries through online platforms. The market is expected to reach $34.6 bin at a CAGR of 23.4% through 2023. Source

Online shopping, along with necessity, has to lead to lifestyle change as we adjust to the news every day, keeping safety a main priority.

The pandemic is a sort of inflexion point for the e-commerce industry in India as more consumers are now willing to shop online.

The Demand is likely to shift majorly in the food industry as the pandemic shuts down restaurants and food-service outlets. Due to fear, consumers will thus continue to move to grocery, meat, vegetables, fruits, dairy shopping online.

E-commerce-approved packaging will require to be tested to prevent product breakage, optimized for e-commerce channels, tech-enabled for filling speed and productivity. E-commerce packaging is now needed to be three to four times stronger compared to the traditional packagings.

E-retailers are increasingly using AI automated machines to fill orders and stock warehouse products which are free from human touch. These technologies will enhance speed and productivity will require novel approaches to packaging and redesign;

How will packaging design play a crucial role?

The pandemic has reshaped the megatrends buffeting the $900 bn-a-year packaging industry be ready for these changes and the move to the next stage of being average or else you will lose the competitive advantage in the market.

Brands should think packaging design beyond “must-haves,” such as reasonable costs, convenience, and performance. Three significant changes we have to check out in 2020, are good sustainability narrative, a design which represents hygiene n safety and makes sure your system is e-commerce oriented which is ship ready and direct to consumer needs.

Few things that should be taken care in packaging design are as below:

1. Brand story on the packaging

You have heard the brand story being important part always but now after COVID-19 people want to know more about your brand. How you came into existence? What is the purpose of the brand? What is your vision, values, mission? What is your USP? How are you different than others and also how better are you.

To justify your part one has to come up with creative, realistic, yet innovative packaging design. The story can be conveyed through creative graphics, colour where for example farm to fresh can be portrayed through farms, earthy natural colours and creative content.
Back of the packaging brand story will also keep customers connected.

2. Brand message

Since people are very conscious now and are investing in food products which are a value-oriented in terms of health. So make sure designing is communicating products benefits, high-value ingredients, and nutritional value information along with the immunity boosting features will add value to your packaging design.

3. Consistent with brand guidelines

As now a lot of people are shopping online, so food products do reach home, and they do stay back there so make sure your packaging designs plays a significant role in increasing the brand recall, that is done by maintaining consistency.

Decide brand guidelines such as type of font, colour, images, message which should flow same from website, packaging, logo to social media platforms. Only then the packaging design will have a substantial impact on customers buying them.

Also Read: Fast Food Branding & Packaging Design Inspiration 2020

Trends in the packaging in COVID-19

1. The world will now shift to hygienic living, which will include contactless deliveries with sanitization, personal hygiene practices, social distancing. You will now prefer buying conscious hygiene products. Hence globally, regulatory bodies, government may strengthen the needs related to food packaging and processing to provide safe food to consumers. So make sure your food label is updated.

2. E-commerce industry will take a boom, and thus its packaging will increase the importance in the amount of packaging used. The total packaging material involved in the overall packing of a particular product will need to be optimized. The trend of packaging in which minimum manhandling is engaged and the product reaches the customer with minimum touch.

3. Due to the collapse in economic activities, there is a drift towards cost-effective solutions in the industry of packaging as most of the brands will reduce their operational budgets. So the future may see a growth in product with reduced thickness, material savings or the overall reduction of packaging cost.

4. A lot of new technology will enter in food packaging world can be active packaging where your packaging will communicate with you about your food before you consume it.
Example – A few months back online food ordering brand Zomato has invented 100% tamper-proof after a video got leaked where a Zomato delivery driver is opening and consuming customer food.

5. Home delivery guys will bring food in UV sanitization boxes; packaging materials will shift to Ultra high-temperature film for tetra n juices and Permanent Antimicrobial coating of packaging surfaces which will help to keep the virus away.

6. Even food items which were not seen in the pre-packaged form will also be seen now. Fruits, vegetables, spoons, tissues will be seen with thin packaging coat to keep it safe.

7. Business for local restaurant owners, the new food delivery giants, individual local restaurant and food businesses are also now launching their own delivery or food takeaway services. Adapting their business models to meet the new consumer need all of which requires packaging to ensure the food that is delivered is safe, warm and appealing.

8. Sustainable options are reconsidered because people do not prefer anything which can be reused, refill, even the edible packaging seems to look unsure due to sudden crisis.

9. It is also said water packaging will reach CAGR of 4.17% to $142.2bn by 2023, people preferring branded water when they are out will increase demand for PET bottles, and liquid packaging cartons will be in demand as it has a longer shelf life and is easy in transportation. Source

 

CONCLUSION

With e-commerce everywhere, rapidly changing customer pain points, preferences, hygiene, safety, strong communication, lots of things are going on and will go on henceforth.

The consumer’s perceptions of the actual product and brand value depend highly on packaging design which should connect emotionally.

Increasing concern for food safety the packaging world will see a historical growth post-pandemic along with various innovation, diversity and technology.

If you are still in business with no new updates in your packaging design, connect us today and depending upon your niche in the food industry, we will structure or restructure your packaging.

Author: Megha Malik

As a passionate entrepreneur and creative brand consultant with experience of 14 years in digital, branding and packaging industry, it is my honest effort to put my experiences and knowledge of industry towards readers. A chartered accountant by degree but a marketing personality in blood has motivated her to take in designing industry as a career. With her fun-loving personality and sharp branding skills, she is a great motivational speaker on her YouTube channel, an active member in various business channels offline as well as online. Do connect me personally via my LinkedIn and I love to share my expertise with you.