Boston — Packaging is an area of growing investment among CPG manufacturers, with 80 percent of brand executives reporting it as a crucial feature for a successful product and half expecting to increase spending in the sector during the next two years, according to L.E.K. Consulting.
Another trend in the market includes an increased focus on sustainability, with 40 percent of brand owners reporting plans to make packs more green in the coming two years. The majority of respondents said they are preparing to source a portion of packaging volume from sustainable sources during the next five years, the global consulting company reports.
Further, nearly half of respondents report they are expanding their “price-pack architecture” offerings, such as snack size and mini-cans of soda, during the coming five years. L.E.K. notes not only do these novel packs attract attention, they also command higher SRPs that consumers have shown a willingness to pay.
“The packing landscape is going through a transformation,” says Thilo Henkes, managing director at L.E.K. “Brand owners have confirmed for us some notable shifts — namely the increase in sustainable packaging and new formats for packaging because of novel new sizes and ‘price-packs.’”
The findings are based on a survey of more than 200 brand managers and other packaging decision-makers at CPG companies.