In today’s competitive market, packaging is not merely a protective shell; it serves as a crucial element of branding and consumer engagement for many, if not all FMCG companies. This is particularly true in the beauty and beverage sectors.

Tanguy Pellen, senior partner at Skarbek, shares his views on how brands need to adapt, innovate and be future-looking.

“It’s really all about stepping out of the day-to-day grind and taking the time to think about the future,” he tells London Packaging Week. “There’s so much going on at present with changing consumer needs, technology advancing rapidly, and the regulatory environment constantly evolving. These forces often anchor us in the present, but for me it’s imperative that businesses elevate their thinking beyond that. It’s not just about addressing today’s challenges but anticipating what’s coming next.”

In this context, it would be the case that now is the time for brands to look toward the future in order to meet the challenges of today. “The solutions of today won’t be the solutions of tomorrow. So, my message is to step back, take time, and think beyond the immediate. That’s where the magic happens, especially in the world of packaging,” he states.

Embracing change

As companies attempt to deal with the different consumer, technological, and regulatory pressures, some fear that a safety-first approach can lead to a state of uniformity across the industry. “Often when I attend events or exhibitions, I see many companies that are stuck in the present and just repeating the same things over and over again,” Pellen continues.

Those that are bold in their approach and move beyond this to take forward steps in innovation are the ones that will be successful. Pellen, however, argues that it’s imperative that instant success isn’t expected or chased.

“It is about the journey and the steps you take along the way, you do not have to get there on day one but absolutely the vision has to be about becoming a lighthouse for others and daring to invent the future,” says Pellen. “Look at paper bottles: who would have thought that could be a reality in the wine and spirits industry? There is still work to be done to fully realize that concept, but without doubt huge strides are being taken. With all the good work that is happening, the mindset is shifting and we are seeing people becoming more entrepreneurial. It’s a necessity now, and those who do not adapt won’t be here tomorrow. I think that is exciting because who wants to be in a job where nothing changes for years? We are in position now to have a real impact on our industry.”

Beverage innovation

Pellen believes the drinks industry is an area where innovation is natural, in part due to the willingness of companies within the sector to collaborate.

“Innovation thrives when we work together, whether it’s through open innovation or partnerships across industries. Going back to the paper bottle concept I mentioned earlier, that simply wouldn’t have come to life without cross-industry collaboration,” he continues. “Companies like Diageo are working with partners across sectors to tackle the big societal problems, and with that collaboration, scale can be achieved. It’s about learning from the best, partnering with suppliers, academics, even competitors. It’s a shift from the old ‘not invented here’ mentality, which is what can stifle innovation and hold companies and even whole sectors back.”

For the beauty and drinks industries, like many others, sustainability is now a core part of the day to day, from sourcing materials to production and through to the end product itself. In terms of packaging, there is a growing number of people saying that the end-of-life ecosystem for packaging simply cannot keep up with the pace of innovation. This can leave a delicate balancing act between innovation and the need to ensure packaging can be sustainably dealt with after use.

“This point ties back to having a clear lighthouse vision and it being so important,” Pellen remarks. “It’s true that innovation should build capacity for sustainable solutions over time, but ultimately there’s no point in innovating materials if there’s no end-of-life solution. But in terms of innovation, this drives demand which in turn drives the need for recycling solutions.”

Focusing on the consumer

However, it all comes back to consumer needs. As the push for sustainability and innovation continues within the packaging industry, it’s important that companies remain focused on the end user. “It’s a bit of a chicken-and-egg situation. While of course you have to push forward with innovation, you also need to be pragmatic and ensure that what you’re doing and producing makes sense for the mass market,” Pellen says.

“You don’t want to claim you’ve found a great solution if it’s not recyclable in practice. Ultimately, that is a real problem we face. For example, take single-use PET bottles. While they are technically recyclable if they aren’t captured at the end of life, they end up in oceans – which defeats the entire point of the process. From this point of view, we need to have a range of solutions that address both the innovation and the end-of-life stage.”

Other challenges

This issue is just one of the challenges that Pellen foresees the industry facing as it moves forward. Many immediate challenges, including the pressures on the supply chain, which are consistently increasing, and the need to be efficient in work processes and production, it is easy to understand why many in the industry may be at risk of becoming lost in the present as they seek to meet these challenges. Yet the real challenge for Pellen all comes back to the need of the businesses to elevate their thinking.

“Companies need to be ambidextrous; that is the big challenge. And they need to run their day-to-day operations with excellence while also investing in the future,” Pellen notes. “The pressure on supply chains and the need for efficiency is immense, but at the same time you cannot lose sight of where the industry, and your company, is heading.”

Despite this being the key issue to overcome, not all are successful in doing so according to Pellen. “Not many companies manage to balance both well. Innovation cannot just be about incremental improvements alone, it has to address what is coming next. Sustainability is on everyone’s mind, but beyond that, consumer behavior is shifting, for example look at Gen Alpha, they’re digital natives. They were born into a fully connected world that most current leaders have never experienced. Companies need to start thinking about what their business models will look like in 10, 20, or 30 years. Some of our clients are exploring different scenarios for 2050, and that’s where we’re helping them. It’s about creating operating models that let them innovate like a startup while maintaining the efficiency of a multinational.”