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The shift to private brands, locally-sourced products, and sustainable packaging is impacting this thriving sector.
November 25, 2020
By: Greg Hrinya
Editor
During the last year, food labeling has never been more important. The ongoing COVID-19 pandemic has created an influx of orders for food items, which have been some of the first products to fly off the shelves. Food labeling is not just a vibrant and diverse marketplace because of increased demand. On the contrary, brands are utilizing all the latest printing trends to capitalize on this booming sector. Flexible packaging, personalized packaging, and a host of other trends have impacted food labeling. “Food is a diverse and ever-changing category, in which packaging needs can be broad,” explains Laetitia Kasl, senior product manager at Avery Dennison. “Regulatory compliance and functionality, like freshness protection, are just the beginning. Designers also have to factor in shelf appeal and brand protection.” Avery Dennison has identified a shift toward private label brands. Private label products continue to gain share, notes Kasl, with 3% vs 1% for national brands. Premium private label products are driving the growth, and 40% of Americans say they would pay the same or more for the right store-branded products, while only 26% feel that name brands are worth the extra price. Consumers are also increasingly likely to switch brands, as 46% are more likely to try new brands today compared to five years ago. Transparency and sourcing locally are two other key trends. “Consumers are looking for concise, clean and clear labels showing natural ingredients and ingredient names that they understand,” says Kasl. “Three in 10 consumers say that recognizing the ingredients and trust in the brand have a great impact on their purchasing decisions. Consumers are looking for brands that share transparency to the product, as well as reflect their own personal values.” Local products, meanwhile, generate a sense of pride and individuality. According to Kasl, more than 50% of consumers think that local products are more authentic than products from other areas. In North America, the shopping mall and chain retail experience is becoming less appealing, as people prefer to connect with their neighborhood again and support local, independent traders. Food and beverages are among the leading industries for local production with 85% of production sold within the producer nations on average. Substrates play a pivotal role in boosting this segment. Avery Dennison’s core film and paper portfolios, which include premium papers, reclosure solutions and intelligent labels, have been engineered to engage consumers and reduce food waste. Avery Dennison also offers a selection of sustainable film and paper labels designed to help meet the recyclability and other sustainability goals set by food brands, which are ever increasing. “We are seeing more and more sustainable materials and designs that complement them,” notes Kasl. “That could include sharing the brands sustainable story, or using elements and colors to drive home the sustainable feel of the overall package. Colors, patterns and type that complement the brand and stand off the shelf are always eye-catching. The brands that tell their story best are the ones that create meaningful connections with their consumers.” With safety and health on everyone’s mind, tamper-evidence and security labeling are paramount. These trends will only increase in the future. They will also become more critical as consumers become more comfortable with shopping for foods online. Kasl notes that 64% of shoppers prefer mobile contactless pickup options, while 85% of consumers have increased their use of the curbside pickup options during the COVID-19 pandemic. In the near term, 90% of consumers prefer home delivery over in-store options. The shift toward e-commerce and curbside pickups will require packaging that is safe and secure. Food packaging can be functional, as well. “In order to deliver the best consumer experience and reduce waste, food needs to be maintained in a specific atmosphere until consumed,” states Kasl. “Various foods need various types of atmosphere in order to stay fresh. For example, produce releases gases which could accelerate decay if contained. On the other end, cheese needs to be in a specific mix including carbon dioxide. Packaging should be designed based on the need to allow for ventilation or to prevent the established atmosphere from escaping.” Ultimately, the needs and desires of the consumer are driving this ever-changing landscape, adds Kasl. “Consumers are demanding more transparency in their food products,” she says. “That could mean simply being able to pronounce and understand the ingredients within a product, or in the case of some proteins, how was it raised and sourced. We have seen an increase in use cases where brands are able to show the way their products were ethically raised, prove provenance, and prove that the product is actually what the label claims it is by pairing an intelligent label with a block chain solution. In the future, we believe that there is an opportunity for NFC labels to play a role in food labeling. Imagine if you could simply tap your smartphone to your food item to learn more about the brand’s sustainability initiatives, or virtual cooking lessons to help prepare the item as intended.”
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