Ease, sustainability to lead trends in packaging sector

GLOBAL demand for packaging will remain bullish, says Smithers Pira, which is forecasting a growth of 4% per year to 2018, with sales anticipated to reach more than $1 trillion by then. Within the same period, it says food packaging has the potential of growing 3.4% on average, while beverage packaging, a close 3.3%. At such rates, their value would be in the region of $284 billion and $102 billion, respectively, by 2018.

Industry insiders are betting on flexible packaging, owing to its relatively lower cost and added functionality. Rigid plastic is also expected to perform well given its high level of stiffness, impact strength, and ability to keep freshness in and degradation out. Folding carton, metal can and aseptic carton are likely to maintain their single-digit percentage share in production, while glass bottles may see a drop in business due to weight and portability issues.

The main trends of barrier, convenience, sustainability, aesthetics and efficiency in production and logistics are set to keep steering production. They are likewise expected to push stakeholders across industries and regions to work better at managing the 3Ps: people, profit and planet.

“Trends on the global level will continue through 2016, and apply across F&B in Asia and every region,” says packaging veteran Mayuree Paklamjeak. Currently an adviser to the Thai Packaging Association, the Thai Printing Association and Plastic Institute of Thailand, Ms Paklamjeak expects higher barrier in packaging to further extend product shelf life and seal in freshness.

She adds that convenience will also figure prominently in the coming year with growing preference noted for products that are easy to carry around, open, dose, portion, re-seal, microwave and dispose of.

Mayuree Paklamjeak is adviser to the Thai Packaging Association, the Thai Printing Association and Plastic Institute of Thailand

Among such products are flip-on-and-off caps, which are increasingly being used even for bottled water; single-serving portions that now extends to rice and wine; and microwavable packaging with hot air release features.

Greening the industry

Sustainability is another trend that Ms Paklamjeak sees opening opportunities for lightweight, bioplastic and biodegradable alternatives but admits more has to be done.

She explains that while bioplastics and biodegradable or compostable plastics for F&B packaging are being developed in Thailand, they are not widely implemented commercially due to their high cost and lower barrier efficiency. “We don’t have environmental laws to push the use of these materials. However, some food exporters have used them for shipments to Europe to comply with environmental laws there.” She maintains that “biodegradable or compostable plastic packaging should focus on F&B, which does not require or require very short shelf life, such as products sold in food service or coffee/bakery shops in the country. As packaging cost is quite sensitive trade-wise, this will never happen without law enforcement.”

In contrast, reducing and recycling efforts are well received and implemented in Thailand. “Promoting waste separation at source for efficient recycling system is an ongoing policy of the country,” explains Ms Paklamjeak. “Reducing current packaging materials of F&B is promising and has been successful, such as thinner laminate film for food pouches that maintain all the required properties, as well as lighter-weight PET bottles for beverages.”

A leading provider of renewable solutions in packaging, biomaterials, wood and paper in global markets, Stora Enso, expects increasing end-consumer pressure and intensifying regulations to drive environmental aspects throughout the value chain. In an earlier report it published regarding packaging trends, it noted that “retailers and brand owners alike are upping their game, changing sustainability from a buzzword to an actual business issue”.

Meidi-Ya Co. Ltd is one of them. From using cans, the Japanese company now uses Oxyguard containers for its corned beef. The high-barrier plastic containers, which absorb residual internal oxygen, not only offer up to three years of shelf life, they also come with easy-peel lid, are microwavable and easy to dispose.

Birdy Robusta Ice Coffee in Thailand, meanwhile, still uses cans but has opted for two-piece instead of three-piece aluminium ones. The result: 30 percent material savings, lighter weight, less transport energy and 17% less CO2 emission.

With 1.3 billion tons of food wasted globally every year, food wastage is another issue spurring sustainability.

In 2014 LiquiGlide ran a survey that involved more than one thousand consumers and focused on waste awareness and attitudes regarding consumer waste. “Results of that survey show that consumers hate waste,” notes LiquiGlide CEO and co-founder, Dave Smith. “Respondents were saying it’s not just the loss of money, it’s also about the principle of the matter and the environmental impact. The survey also shows us that consumers crave a solution. In fact, an overwhelming majority of respondents say they are willing to try new packaging if it will let them get the contents out easily.”

LiquiGlide is the first company to create permanently wet, slippery surfaces that enable viscous liquids to slide easily. In 2011, Mr Smith and co-inventor of LiquiGlide technology, Professor Kripa Varanasi, were trying to solve the problem of methane hydrate build-ups in oil and gas pipelines by using liquid-impregnated, slippery surfaces. With some success in the area, they began thinking about other possible applications, including packaging problems for sticky consumer goods such as ketchup and honey. “Existing slippery coatings – superhydrophobics – are not good solutions for these problems because they’re only temporary and aren’t safe for use with food,” explains Mr Smith.

Dave Smith, CEO and co-founder of LiquiGlide

LiquiGlide combines a textured solid and a liquid in its coatings, and custom-designs them for specific application. “For food products, we use natural materials that are often foods that people consume every day – things like vegetable oil. LiquiGlide coatings for food products are made of only FDA-approved, food-safe ingredients.”  The company has recently signed an exclusivity agreement with European CPG brand Orkla for mayonnaise packaging in specific geographical regions.

Design and shelf standout

As the retail landscape becomes increasingly cut-throat, experts say design and shelf standout will be another dealmaker in the coming year.

“With 30,000-40,000 products in an average supermarket and hypermarket, consumers only have 8 to 10 seconds to identify a product,” says Thailand’s Ms Paklamjeak.

According Stora Enso, “Brand owners and retailers alike are increasingly fighting for consumers’ attention at point of sale, and use packaging as a tool to do so. Secondary packaging will grow in importance as a brand vehicle and retailers and brand owners will increasingly invest in higher quality printing and differentiating design solutions.”

Ms Paklamjeak agrees. “Digital printing on paper materials, plastic films, label materials will be the hot trend next year especially for products of many Stock Keeping Units (SKUs), small volume/SKU, speed to market and consistent high print quality. These benefits are important for business competitiveness locally, regionally and globally.

“As for in-mold labeling, while it offers many benefits it is not popular in Thailand because of the investment required, the high cost of  label stock as they are imported, and the frequent change of label artwork, which renders running IML/artwork ineffective. If the total cost of IML can be lowered to compete with the cost of normal pressure-sensitive label, brand owners will definitely be interested in using it.”

It’s all about efficiency

As smart packaging holds the key to greater efficiency in the supply chain, both its importance and use are expected to increase in time.  “Its adoption in the F&B industry has already started at a rapid rate,” says Rick Yeo Chee Keong, director for Emerging Applications Centre at SIMTech – A*STAR in Singapore.  “And it will continue to help improve brand loyalty, reduce food wastage and improve sales.”

He also concedes that a number of hurdles remain, however, and overcoming them means having all hands on deck.

Industry setbacks

Among the difficulties are creating sustainable smart packaging products rather than one-off projects; insufficient knowledge in printed electronics and smart packing design that works for customers; brand owners’ reluctance to pay additional cost; the lack of experienced integrators that can provide total solution, and the lack of expertise to combine effective marketing strategy to maximise the impact of smart packaging.

“This is why we started the Collaborative Industry Project (CIP) on application of printed electronics on smart packaging to address these challenges,” reveals Mr Yeo.

The CIP approach enables Mr Yeo’s team to work with group of companies, from brand owners, such as Nestle, P&G, to packaging houses, such as KPP & Starlite, as well as integrators/contract manufacturers, industry associations, printing services and system software solution providers. It uses a 3-step approach: Learn (training), Practice (Product design & prototyping) and Promote (help to market and secure customers).

It has recently wrapped up the first phase of the project and is currently consolidating feedback from CIP members and the industry to help modify its program and launch a repeat of it. And Mr Yeo remains upbeat about the next run. “There are many other technologies that can still be incorporated into this program, such as printed temperature sensor, gas sensor–for freshness detection, humidity sensor, RFID and NFC for internet of things.” – Jean Alingod