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FOOD PACKAGING TRENDS, US - 2021 3 Contents OVERVIEW..................................................................................................................................................................................................... 6 What you need to know .........................................................................................................................................................7 Definition ...............................................................................................................................................................................7 Market context........................................................................................................................................................................7 EXECUTIVE SUMMARY............................................................................................................................................................................. 8 Top takeaways .......................................................................................................................................................................9 Impact of COVID-19 on food packaging...............................................................................................................................10 Figure 1: Short-, medium- and long-term impact of COVID-19 on food packaging, May 2021..................................................................................10 Challenges and opportunities...............................................................................................................................................11 Figure 2: Online shopping for food/beverages, by key demographics, March 2021................................................................................................... 11 Figure 3: Important packaging elements, by location, March 2021............................................................................................................................12 Figure 4: Role of environmental responsibility in shaping purchase choice, March 2021..........................................................................................13 Figure 5: Attitudes toward environmentally friendly packaging, by generation, March 2021......................................................................................13 Figure 6: Environmental responsibility, March 2021...................................................................................................................................................14 THE MARKET...............................................................................................................................................................................................15 Key Takeaways ................................................................................................................................................... 16 COVID-19 pandemic shifts the focus to food at-home.........................................................................................................16 …and shopping online..........................................................................................................................................................16 Shift toward normalcy, with new priorities supported by packaging.....................................................................................16 Market Factors .................................................................................................................................................... 17 Some degree of pandemic-spurred at-home food consumption will remain ............................................................................17 Figure 7: Sales of food at home and food away from home, December 2019-December 2020.................................................................................17 More than half now purchase at least some food/beverages online....................................................................................18 Figure 8: Online shopping for food/beverages, March 2021.......................................................................................................................................18 Figure 9: Online shopping for food/beverages, by key demographics, March 2021...................................................................................................18 A third report buying more large packs due to COVID-19 ...................................................................................................19 Figure 10: Food packaging statements – Packaging sizes, March 2021...................................................................................................................19 Coronavirus exposure worry dropping ................................................................................................................................19 Figure 11: COVID-19, worry about exposure to COVID-19, April 29-May 13, 2021 ..................................................................................................19 Figure 12: COVID-19 attitudes – Shopping and dining indoors, October 29-November 9, 2020 vs April 29, 2021-May 13, 2021.............................20 Consumer confidence is on the rise.....................................................................................................................................20 Figure 13: Consumer Sentiment Index, January 2010-Feb 2021...............................................................................................................................20 Interest in both weight loss and wellness shape food priorities, packaging ........................................................................21 Companies must take the lead on environmental responsibility..........................................................................................21 COMPANIES AND BRANDS...................................................................................................................................................................22 Key Takeaways ................................................................................................................................................... 23 Packaging must meet consumer demand for information, experience................................................................................23 Larger sizes, transparent windows and functional packaging drive interest .......................................................................23 Environmental claims fall, as plastics remain primary material ...........................................................................................23 Packaging will drive technological path forward ..................................................................................................................23 Competitive Strategies........................................................................................................................................ 24 New packaging integrated into new varieties and products.................................................................................................24 Figure 14: Share of food launches, by launch type, 2018-21*....................................................................................................................................24 PREVIOUS © Mintel Group Ltd. 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FOOD PACKAGING TRENDS, US - 2021 4 Snacks continue to lead in new packaging launches...........................................................................................................24 Figure 15: Types of product launches, by leading categories, April 2020-March 2021...............................................................................................24 Bold graphics, bright colors and large images define effective packaging ..........................................................................25 Fun family-focused packaging with games, toys and playful features.................................................................................27 Packaging showcases nostalgic brands and indulgent treats .............................................................................................28 Suggesting satisfaction through comfort food and health food ...........................................................................................28 Consumers value transparency…except when they don’t...................................................................................................29 Pandemic drives demand for variety in pack sizes..............................................................................................................31 Figure 16: Food packaging statements – Packaging sizes, March 2021...................................................................................................................31 Packaging that is functional: portable, resealable, microwavable........................................................................................32 Functional packaging often found in pouches and closures ................................................................................................33 Market Opportunities ......................................................................................................................................... 34 Online and multi-channel retailing will increasingly shape how consumers shop, engage with packaging.........................34 Smart labels and NFC chips bring technology, interactivity into packaging.........................................................................34 A renewed, revitalized commitment to environmentalism....................................................................................................34 Figure 17: Share of food launches, by packaging material, 2018-21*........................................................................................................................35 Eco-friendly programs and products....................................................................................................................................35 Refillable containers and bulk packaging will return…in time .............................................................................................36 THE CONSUMER........................................................................................................................................................................................37 Key Takeaways ................................................................................................................................................... 38 In-store, consumers factor more packaging features into choice ........................................................................................38 Core nutrition and health information is key for in-store packaging.....................................................................................38 Half of online shoppers turn to brands they would buy in-store ..........................................................................................38 Environmental engagement high by many measures..........................................................................................................38 Two-thirds hold manufacturers responsible for eco-friendly choices....................................................................................38 Important Food Packaging Features................................................................................................................. 39 In-store, consumers factor more packaging features into product choice ...........................................................................39 Figure 18: Important packaging elements, by location, March 2021..........................................................................................................................40 Nutrition information.............................................................................................................................................................41 Figure 19: Important packaging elements – Clear nutritional information, by gender, March 2021............................................................................41 Figure 20: Important packaging elements – Advertises health benefits, by gender, March 2021...............................................................................41 Figure 21: Important packaging elements – Clear nutritional information, by generation, March 2021......................................................................42 Figure 22: Important packaging elements – Advertises health benefits, by generation, March 2021.........................................................................42 Figure 23: Important packaging elements – Clear nutritional information, by parental status, March 2021...............................................................43 Figure 24: Important packaging elements – Advertises health benefits, by parental status, March 2021..................................................................43 Portability and durability.......................................................................................................................................................44 Figure 25: Important packaging elements – Durable, by generation, March 2021.....................................................................................................44 Figure 26: Important packaging elements – Portable, by generation, March 2021....................................................................................................44 Food Packaging and Shopping Online.............................................................................................................. 45 Half of online shoppers turn to brands they would buy in-store ..........................................................................................45 Figure 27: Food packaging and shopping online, March 2021...................................................................................................................................45 When online shopping, men open to new brands, larger sizes............................................................................................46 Figure 28: Food packaging and shopping online, by gender, March 2021.................................................................................................................46 Millennials navigate online shopping space more easily, expansively ................................................................................46 Figure 29: Food packaging and shopping online, by generation, March 2021...........................................................................................................46 Parents embrace online shopping for different brands, larger sizes ...................................................................................47 Figure 30: Attitudes and behaviors about packaging when online shopping, by parental status, March 2021...........................................................47 Perceptions of Food Packaging Formats.......................................................................................................... 48 Packaging has strongest perceived impact on food freshness............................................................................................48 Figure 31: Perceptions of food packaging formats, March 2021................................................................................................................................49 PREVIOUS © Mintel Group Ltd. 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FOOD PACKAGING TRENDS, US - 2021 5 Environmental Responsibility Attitudes and Behaviors.................................................................................. 50 Importance of environmental responsibility..........................................................................................................................50 Figure 32: Role of environmental responsibility in shaping purchase choice, March 2021........................................................................................50 Figure 33: Role of environmental responsibility in shaping purchase choice, by generation, March 2021................................................................51 Figure 34: Role of environmental responsibility in shaping purchase choice, by parental status, March 2021..........................................................51 Who’s responsible for environmentally friendly choices.......................................................................................................52 Figure 35: Environmental responsibility, March 2021.................................................................................................................................................52 Figure 36: Environmental responsibility, by gender, March 2021...............................................................................................................................52 Figure 37: Environmental responsibility, by generation, March 2021.........................................................................................................................53 Sustainability habits..............................................................................................................................................................53 Figure 38: Sustainable food/beverage habits, March 2021........................................................................................................................................53 Figure 39: Sustainable food/beverage habits, by gender, March 2021......................................................................................................................54 Figure 40: Sustainable food/beverage habits, by generation, March 2021................................................................................................................54 Perceptions of cost and quality............................................................................................................................................55 Figure 41: Attitudes toward environmentally friendly packaging, March 2021............................................................................................................55 Figure 42: Attitudes toward environmentally friendly packaging, by generation, March 2021....................................................................................55 Packaging Features Seen as Environmentally Friendly.................................................................................. 56 Recyclability leads food package features seen as environmentally friendly ......................................................................56 Figure 43: Features associated with environmentally friendly packaging, March 2021..............................................................................................56 Older generations focused on recyclability...........................................................................................................................56 Figure 44: Features associated with environmentally friendly packaging, by generation, March 2021......................................................................57 APPENDIX....................................................................................................................................................................................................58 Data Sources and Abbreviations....................................................................................................................... 59 Consumer survey data.........................................................................................................................................................59 Abbreviations and terms.......................................................................................................................................................59 RESEARCH METHODOLOGY................................................................................................................................................................61 US Research Methodology................................................................................................................................. 62 Consumer research..............................................................................................................................................................62 The Mintel fan chart..............................................................................................................................................................66 PREVIOUS © Mintel Group Ltd. 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FOOD PACKAGING TRENDS, US - 2021 7 What you need to know Definition In addition to playing a functional role, packaging serves as a For the purposes of this Report, Mintel will cover trends in food vital communication platform for engaging consumers in-store packaging, including all packaging types commonly used for shelf- or online. It can entice shoppers while also relaying a range of stable, refrigerated and frozen food items. In addition, food labeling practical information (nutrition, health benefits, preparation). and claims are discussed, particularly as they relate to themes Packaging’s role in food safety, storage and freshness was applicable to the Report. thrust into the spotlight during the COVID-19 pandemic, as at- home food consumption soared. The pandemic also changed Market context shopping habits, leading to a growth in use of online retailers to order groceries for delivery or pickup. Emerging from the Economic and other assumptions pandemic, there are new opportunities for packaging to continue to respond to evolving consumer needs, interests and shopping Mintel bases its expectations for economic growth on projections habits, including embracing new technologies and meeting the provided by the CBO, the FOMC, the Conference Board and other environmentally friendly desires. public sources. Consensus estimates forecast US GDP to increase by 6.5% in 2021. Unemployment has been forecast to decline to as Key issues covered in this Report low as 4.1% by the end of 2021 with an average of 5.7% for the year. • How food packaging has responded to and been shaped by COVID-19: US context COVID-19 The first COVID-19 case was confirmed in the US in January 2020. • The impact of ecommerce on food packaging It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders • Food packaging formats, including consumer attitudes and were put in place in Spring 2020, and nonessential businesses perceptions and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local • Packaging trends related to format, size, materials and diverse governments relaxed and reinforced guidelines according to the claims spread of the virus in each region. • The importance of environmental responsibility in food Vaccine distribution began in December 2020, and it is expected packaging take anywhere from July to December 2021 for 70-90% of the population to be vaccinated to reach herd immunity. Mintel This Report builds off of Food Packaging Trends – US, July 2020 anticipates business operations in the US will remain in a state of was written in May 2021. flux through 2021 as vaccines are widely administered. PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 9 FOOD PACKAGING HAS BEEN FRONT OF MIND DURING THE COVID-19 PANDEMIC AS A VITAL TOOL FOR KEEPING FOOD SAFE AND STOCKING UP IN THE PANDEMIC AS WELL AS SUPPORTING CONSUMERS MAKING MORE AT-HOME MEALS AND SNACKS. FOOD HAS BEEN A GREAT SOURCE OF PLEASURE IN THE PANDEMIC, AND PACKAGING HAS PLAYED A CRITICAL ROLE IN ENGAGING AND ENTICING CUSTOMERS. LOOKING FORWARD, PACKAGING WILL NEED TO ATTRACT CONSUMERS ACROSS ONLINE AND IN-STORE CHANNELS, AS THE ADOPTION OF ONLINE CHANNELS FOR FOOD AND DRINK SHOPPING WAS ACCELERATED BY THE PANDEMIC. ATTENTION WILL ALSO SHIFT WITH GREATER FOCUS TOWARD ENVIRONMENTAL ISSUES, WHICH HAVE LONG BEEN A FACTOR AT PLAY FOR PACKAGING. Beth Bloom, Associate Director US Food and Drink Reports Top takeaways Pandemic drives at-home Packaging can support a renewed Consumer interest in new consumption, shapes packaging focus on wellness packaging solutions needs The COVID-19 pandemic highlighted Packaging will play an important role in The environment will again be a central packaging’s role in food safety, providing health and nutrition information for focus, driven by consumer demand convenience and experience. Homebound consumers intent on taking better care of for environmentally friendly packaging eating drove demand for variety in pack their health post-pandemic, including clear solutions. This may result in pursuit of size and convenient multipacks. Packaging nutritional information on-pack, portionability more recyclable materials, as well as has also made consumers feel good, and, thanks to smart labels, helping usage of more reusable, compostable, connecting them to nostalgic brands, customers track nutrients and calories. biodegradable options. Consumers expect indulgent treats and comfort foods. companies to be leaders proposing solutions. PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 10 Impact of COVID-19 on food packaging The following Figure provides a traditional stoplight analysis of the impact of COVID-19 on food packaging which includes analysis for when Mintel anticipates consumer behavior to resume to more normal or traditional levels prior to COVID-19. FIGURE 1: SHORT-, MEDIUM- AND LONG-TERM IMPACT OF COVID-19 ON FOOD PACKAGING, MAY 2021 Source: Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 11 Challenges and opportunities FIGURE 2: ONLINE SHOPPING FOR FOOD/BEVERAGES, BY KEY DEMOGRAPHICS, MARCH 2021 COVID-19 drives many to ecommerce, as half purchase at “Which of the following best describes your current food/drink shopping behavior?” least some food online The pandemic accelerated the shift toward 24% All 29% shopping online, making it a major channel for food/beverage retail (see Market Factors). More than half surveyed (53%) report doing at least some of their food/drink 18% Female shopping online, with 24% saying it is most 31% of their shopping. 30% Male 26% Key demographic groups such as Millennials and parents, are especially likely to report they do most or some of their food/beverage shopping online. Not only 17% Generation Z 31% are younger generations immersed in the digital landscape, and at ease navigating Millennials 39% and shopping online, they also are more 32% likely to value the time-saving, ease and 17% Generation X and older convenience of shopping online. This 27% reinforces the importance of taking online shopping needs and habits into account when designing product packaging. 25% $50K+ 29% With many now familiar with online shopping for food/beverages, a lasting shift 20% Less than $50K 29% in shopping behaviors with far-reaching effects on packaging creates a challenge for packaging suppliers. How packaging appears online, and its suitability for Parent of children under 41% shipping and delivery, will become key 18s 32% factors (see Food Packaging and Shopping 14% Online). Further, consumer habits in finding Not a parent 27% and exploring products are different in the online environment, where brand allegiance, I shop for most of my food/drinks online previous product selections and other I shop for some of my food/drinks online algorithms may drive choice and selection more than the direct appeal of packaging, Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping when found on the shelf. Source: Lightspeed/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 12 When in-store, consumers weigh a consumers to browse less, and simply panels or via smart labels with QR codes. range of packaging features, less turn to familiar brands and products, or be Online, far fewer such on-pack information, so online influenced by other factors – ie product either prioritizing secondary features or recommendations, previous purchases, and finding the information sought though other Consumers are likely to consider a much promotional pop-ups. online tools. wider range of packaging elements important when shopping in-store as When shopping in stores, the majority of Brands must also account for the needs of compared to shopping online or once the shoppers look for clear nutrition information, consumers once the product is at home. product is home (see Important Packaging health benefits and preparation information. Three factors – resealability, preparation Features). Whereas packaging appears This can be a challenge to fit on a package instructions and portion control – stand as a primary way to reach consumers in without clutter, creating a challenge out as especially important features to brick-and-mortar retailers, the “click and addressed by prioritizing key claims and consumers once home. go” quality of online shopping can lead relegating more detailed information to back FIGURE 3: IMPORTANT PACKAGING ELEMENTS, BY LOCATION, MARCH 2021 “Which of the following food packaging elements would be important to you during each of these situations? Please select all that apply” 71% 61% 60% 58% 55% 53% 44% 44% 43% 41% 38% 37% 34% 30% 30% 28% 24% 25% 18% 15% 16% 13% 13% 12% Clear nutritional Durable Environmentally Advertises health Includes preparation Resealable information responsible ¹ benefits instructions 54% 53% 52% 52% 50% 41% 34% 33% 31% 30% 28% 29% 26% 28% 27% 23% 23% 23% 24% 21% 22% 16% 16% 14% Minimal packaging See-through Portable Portion-control Pleasing artwork on Tells the story of the packaging the packaging brand/maker When choosing a product in-store When choosing a product online Once the package is in my house This is not important to me Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping in the household ¹ 1,074 internet users aged 18+ for whom environment responsibility drives most or some food/drink purchase choices Source: Lightspeed/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 13 Environmental responsibility it. This suggests a greater commitment for environmentally responsible packaging. a driver for more than half of to investing in eco-friendly products, This shows that younger generations— consumers regardless of cost. those likely to drive the market going forward—are ready to invest in responsible Environmental responsibility factors in to While Gen Z consumers have more packaging solutions, creating a specific the purchase choice of 56% of shoppers at moderate attitudes in terms of cost and need and a viable market for suppliers to least some of the time (see Environmental quality, but they are also ready to pay more respond to. Responsibility Attitudes and Behaviors). While how this translates into concrete product features and packaging options FIGURE 4: ROLE OF ENVIRONMENTAL RESPONSIBILITY IN SHAPING PURCHASE is widely interpreted, it underscores the CHOICE, MARCH 2021 importance of this wider issue for many consumers. An additional 22% report that “Which of the following statements about environmental responsibility best while environmental responsibility is not describes you?” currently a driver, they anticipate it will be in the future. Continuing to develop an environmentally responsible approach to food production and packaging, and making this an aspect of branding and marketing, Environmental responsibility does not Environmental should be integral to suppliers and retailers responsibility drives most drive my food/drink alike. purchase choices, and I of my food/drink don't anticipate it will in purchase choices 19% Younger shoppers willing to pay the future more for environmentally friendly 21% products Environmental responsibility does not Attitudes toward environmentally friendly drive my food/drink Environmental packaging vary across generations, purchase choices, but I responsibility drives some anticipate it will in the of my food/drink reflecting different beliefs about what purchase choices future features constitute responsible packaging 37% 22% as well as the overall primacy of environmental issues in consumers’ lives. Both Millennials and older generations (Gen X and older) are more likely to agree that environmentally responsible packaging costs more. However, Millennials are more likely to also associate this with higher Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping in the household quality and appear ready to pay more for Source: Lightspeed/Mintel FIGURE 5: ATTITUDES TOWARD ENVIRONMENTALLY FRIENDLY PACKAGING, BY GENERATION, MARCH 2021 “Which of the following statements related to food packaging do you agree with? Please select all that apply.” 33% 33% 34% 32% 26% 27% 27% 24% 24% 22% 18% 19% Environmentally responsible Environmentally responsible I'd pay more for environmentally packaging costs shoppers more packaging is a sign of higher product responsible packaging quality Total Generation Z Millennials Generation X and older Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping Source: Lightspeed/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 14 Consumers largely believe FIGURE 6: ENVIRONMENTAL RESPONSIBILITY, MARCH 2021 environment is industry’s responsibility “Who do you believe is responsible for environmentally friendly food/drink choices? Please select all that apply.” Most consumers think a range of players have responsibility for environmentally Food/beverage manufacturers (eg Coca-Cola, friendly choices, and top among these are Kellogg's) 63% food and beverage manufacturers. While this places a burden on suppliers, it also Packaging manufacturers 55% creates an opportunity for them to take a lead in this arena and be proactive not Consumers 51% only in product offerings but also in broad promotion of recycling, composting and Food/beverage retailers (eg Kroger, Aldi) 38% other eco-friendly practices. More than half of consumers also think that packaging Government/municipalities 31% manufacturers hold responsibility, showing their expectation for innovation in packaging Waste disposal facilities 21% with recycled, reusable, biodegradable and compostable materials. Other, please specify 1% Consumers acknowledge that they too have None of the above 5% an important role, but are clearly looking for manufacturers to take the lead. Other Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping players that consumers look to include Source: Lightspeed/Mintel retailers, government actors and waste disposal facilities. Indeed, suppliers may benefit by working in close coordination with these players to provide end-of-line solutions for areas in which their offerings fall short. PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
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FOOD PACKAGING TRENDS, US - 2021 16 Key Takeaways COVID-19 pandemic shifts the focus to food at-home Shift toward normalcy, with new priorities supported by packaging While the gap between food spend at home and away from home had been narrowing and was nearly equal in December 2019, While some pandemic concerns remain, there are signs of normalcy the COVID-19 pandemic drove at-home spend on food to initially returning and stronger consumer confidence. Consumers will be spike, while away-from-home consumption plummeted (see Market focused on wellness and, for some, weight loss as we move out Factors). the pandemic. Nutritional, health-related information on pack and portion control are among the most important packaging features to …and shopping online consumers surveyed for this Report. Environmental issues will also come to the fore, with environmental responsibility a purchase factor The pandemic accelerated the trend toward shopping in the online for more than half of consumers. marketplace across categories, and made it an important channel for food/beverages. In March 2021, more than half surveyed for this Report say at least some of their food/drink shopping is conducted online, with a quarter saying doing most of their shopping this way. The ease and convenience of shopping online will contribute to a lasting shift in grocery retail, and require packaging to respond. PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 17 Market Factors Mintel’s Global Trend Drivers, seven narrowing and was nearly equal in been eating more lunches and snacks at core factors – Wellbeing, Experiences, December 2019, the COVID-19 pandemic home. There has also been higher use of Technology, Rights, Identity, Value drove at-home spend on food to initially online shopping and delivery services, as and Surroundings – that influence or spike, while away-from-home consumption some have been hesitant to enter grocery drive consumer behavior. They are not plummeted. Away-from-home food spend stores to shop in-person. mutually exclusive, although some are has been slowly increasing since its low more prominent at this time than others. in April 2020, as consumers waded in to While there are signs of a return to All of these are at play to some extent in takeout and foodservice delivery options normalcy at the time of the writing of effective food packaging and promotion, and restaurants have been allowed to this Report (May 2021), COVID-19 has but a number – especially Wellbeing, loosen restriction and open. However, shaped demand for more groceries in Value, Surroundings and Technology – spending on food away from home still general and a greater range of foods for can offer key insights into how brands remains well below that of at-home at-home consumption. It has also shaped can more deeply understand consumers’ spending. packaging needs in relation to health and wants and needs and respond with product safety, as well as reached consumers development, packaging and promotion. During the pandemic, consumers stocked across both traditional and online retail pantries and ate at home more often. settings. Some degree of pandemic-spurred at- There has been an increased consumption home food consumption will remain of familiar favorites, comfort food and snacks, as well as more at-home baking While the gap between food spend at and cooking. With schools and businesses home and away from home had been closed or in hybrid mode, families have FIGURE 7: SALES OF FOOD AT HOME AND FOOD AWAY FROM HOME, DECEMBER 2019-DECEMBER 2020 90,000.00 80,000.00 70,000.00 Dollars - millions 60,000.00 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 FAH FAFH Based on the following USDA categories: FAH = food at home, FAFH = food away from home. These estimates are for sales only and exclude food furnished, donated, home produced and served at educational institutions. The monthly sales are benchmarked to the annual sales, except for the most current year. Source: USDA, Economic Research Service – Calculated from various sources, February 17, 2021/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 18 More than half now purchase at FIGURE 8: ONLINE SHOPPING FOR FOOD/BEVERAGES, MARCH 2021 least some food/beverages online “Which of the following best describes your current food/drink shopping behavior?” The pandemic accelerated the trend toward online shopping across categories, and 33% made it an important channel for food/ 29% beverages. More than half of consumers 24% conduct at least some of their food/drink shopping is online, with a quarter saying 15% most is done online. While some attrition will be seen, the ease and convenience of online shopping, and greater willingness to turn online for basic grocery shopping, not just specialized purchases, will contribute to I shop for most of I shop for some of I don't shop for I don't shop for a lasting shift in grocery retail. my food/drinks my food/drinks food/drinks online, food/drinks online, online online but anticipate and don't anticipate In addition to Amazon, with its dominant doing so in the doing so in the future future online marketplace and expansion into the traditional brick-and-mortar grocery space Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping (thanks to its purchase of Whole Foods Source: Lightspeed/Mintel and development of Amazon Go stores), a range of mass merchandisers and grocery FIGURE 9: ONLINE SHOPPING FOR FOOD/BEVERAGES, BY KEY stores have also expanded online shopping DEMOGRAPHICS, MARCH 2021 resources in the past year. This includes increased delivery and curbside pickup, “Which of the following best describes your current food/drink shopping behavior?” which have been embraced by consumers wary of going into stores for fear of virus 24% All 29% exposure. Online services and apps such as Instacart expanded their reach during the pandemic. This will have lasting effects on packaging, as how products appear online 18% Female 31% as well as their suitability for easy delivery 30% or shipping will be increasingly important Male 26% factors for suppliers and retailers in the online space (see Food Packaging and Shopping Online). 17% Generation Z 31% Key demographic groups – Millennials and 39% Millennials parents – who are especially likely to be 32% robust consumers with larger households Generation X and older 17% 27% are especially likely to report they do most or some of their food/beverage shopping online. This has reinforced the importance 25% of taking online shopping needs and habits $50K+ 29% into account when designing product 20% packaging. Less than $50K 29% 41% Parent of children under 18s 32% 14% Not a parent 27% I shop for most of my food/drinks online I shop for some of my food/drinks online Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping Source: Lightspeed/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 19 A third report buying more large FIGURE 10: FOOD PACKAGING STATEMENTS – PACKAGING SIZES, MARCH packs due to COVID-19 2021 Demand for larger pack sizes grew during “Which of the following statements related to food packaging do you agree with? the pandemic, and allowed shoppers to Please select all that apply.” stock up, avoid extra trips to the market and take on more at-home cooking and 36% snacking. Demand for small-pack sizes is likely to increase in the year ahead, 12% presuming the pandemic continues to become more manageable and more people return to work and school and there are more activities beyond the home. Smaller I've bought more large pack I've bought more small pack packages should be promoted for ease, sizes due to COVID-19 (eg multi- sizes dues to COVID-19 (eg portability and convenience and also for serving) single-serving) offering safe, sanitary single portions. All Coronavirus exposure worry Base: 1,916 internet users aged 18+ who are responsible for food/beverage shopping dropping Source: Lightspeed/Mintel Mintel’s COVID-19’s Impact on US Consumers Tracker – April 29-May 13, 2021, shows a significant drop in worry about catching COVID-19. Indeed, growing rates of vaccination paired with falling case numbers seem to have led to a shift in consumer concern. The April 29-May 13, 2021 survey shows the lowest level of concern since early March, when the pandemic was just emerging in the US. FIGURE 11: COVID-19, WORRY ABOUT EXPOSURE TO COVID-19, APRIL 29-MAY 13, 2021 “How worried are you about the risk of being exposed to the coronavirus (also known as COVID-19)?” 61% 58% 58% 55% 55% 55% 43% 36% March 4, 2020 - March 27, 2020 - April 29, 2020- June 25, 2020- August 27, 2020- October 29, January 28, April 29, 2021- March 6, 2020* April 2, 2020 May 6, 2020 July 7, 2020 September 8, 2020- November 2021- February May 13, 2021 2020 9, 2020 10, 2021 Base: 2,000 internet users aged 18+ Source: Lightspeed/Mintel; Mintel’s Global COVID-19 Tracker PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 20 This in turn is leading consumers to be far toward food and food packaging and focus low price or “budget” offerings, which may less worried about shopping inside and also more attention on quality, wellness and even be especially important for lower-earning eating away from home, including dining environmental issues. households. Value can also embrace indoors at a restaurant. While consumers getting better quality, ease or convenience. may still have some hesitation, if the pattern Mintel’s The Impact of COVID-19 on In packaging, value can drive interest in of falling cases continues, there will likely Food and Drink Retailing – US, June economy sizing but also in features such as be a rebound in away-from-home food 2020 underscored that value will ever be microwavable bags, which allow for easy, consumption, as well as a rise in in-store an important consideration for grocery one-step food preparation (see Competitive grocery shopping, with fewer using special shoppers. This can be true for traditional Strategies). services such as curbside pickup, delivery and online shopping. FIGURE 12: COVID-19 ATTITUDES – SHOPPING AND DINING INDOORS, Consumer confidence is on the rise OCTOBER 29-NOVEMBER 9, 2020 VS APRIL 29, 2021-MAY 13, 2021 There are signs that a more robust recovery “How comfortable are you doing each of the following?” – shopping indoors / may at last be coming, and with it, stronger grocery shopping, dining indoors consumer confidence. Consumer sentiment rose in March 2021, reaching its highest 94% level in a year—mainly due to the third disbursement of relief checks and better- 74% than-anticipated vaccination progress. 64% Consumers reported much more favorable assessments of the national economy. 43% However, despite stimulus payments, a stronger economy, job gains and increases in home and stock values, uncertainty lingers. Few consumers reported improved financial expectations – just 33% in March, Shopping in-store/grocery shopping - Any Dining indoors - Any comfortable down from 36% last month and just above comfortable the May 2020 low of 32%. Rising consumer October 29-November 9, 2020 April 29-May 13, 2021 confidence can allow consumers to ease their purse strings somewhat but also to Base: 2,000 internet users aged 18+ potentially take a more expansive attitude Source: Lightspeed/Mintel; Mintel’s Global COVID-19 Tracker FIGURE 13: CONSUMER SENTIMENT INDEX, JANUARY 2010-FEB 2021 Source: Thomson Reuters/University of Michigan Survey of Consumers/Mintel PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
FOOD PACKAGING TRENDS, US - 2021 21 Interest in both weight loss and freshness and offers a platform for affirming While with COVID-19, food safety may wellness shape food priorities, key BFY qualities. have come to the fore when it comes to packaging packaging, consumer concerns about the Packaging can support health and wellness environment have not faded and are likely to While overall health, wellness and by displaying clear nutrition information take on greater urgency going forward. immunity have long been important, and and showcasing health benefits. It can also have become even greater priorities during help with weight loss by calling out calories, Environmental responsibility is a factor in the pandemic, at-home snacking, indulging carbs and fat and supporting portion control some or most of the time for more than in comfort food and limited gym access with single-serve packages. half (56%) of consumers when making have also led many to gain weight. Weight food purchase choices (see Environmental loss in particular may become a greater Mintel’s COVID-19’s Impact on US Responsibility Attitudes and Behaviors). priority in the year ahead. Consumers Tracker – April 29-May 13, 2021 An additional fifth (22%) report that while found that when asked what the COVID-19 it is not currently a driver, they anticipate Already, prior to the pandemic, the CDC pandemic made them realize they wanted it will be in the future, underscoring the reported about 40% of the people in the to do, 58% reported, “take better care of importance of this issue moving forward. US suffered from obesity. According to an my health.” Indeed, the lasting impact of American Psychological Association survey the virus may be the connection many Mintel’s 2030 Global Packaging Trends, of 3,000 people in March 2021, 61% of US consumers make between diet, immunity which highlight key opportunities in the adults report undesired weight changes and holistic Wellbeing, one of Mintel’s core decade ahead, singled out Packaging since the COVID-19 outbreak. Two in five global trend drivers. Reset as a trend whereby consumers will reported gaining weight, with an average seek leadership on environment and social of 29 pounds per person. The return to Companies must take the lead on ethical causes, especially in the packaging “normalcy” may thus also mean a return environmental responsibility arena. 63% of consumers think that food to getting back on track with health and and beverage manufacturers should be weight loss goals, supporting demand for Mintel Trend Driver Surroundings looks responsible for environmentally friendly healthier, lower-calorie, BFY foods and at the way consumers’ connection to their packaging. It is a key opportunity for snacks, which can be promoted with more external environment impacts purchase companies to gain customer allegiance with effective packaging, that both ensures choice, including the impact of sustainability. more eco-friendly products and packaging. PREVIOUS © Mintel Group Ltd. All rights reserved. NEXT
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