Smart packaging could boost grocery sales

Online grocery shopping is growing at a double-digit rate, while traditional stores are being reinvented, merging together into an omnichannel where consumers expect to be able to buy whenever, wherever and however they choose, often relying on their smartphones.

Packaging will play an important role in response to the trends that are shaping the growth of on-line grocery, said Tetra Pak.

The Tetra Pak Index 2018 highlights the four key trends shaping the growth of online grocery:

Convenience – the main driver for on-line consumer take-up, and key opportunities include easy product replenishment, voice, and convenient packaging

Sustainability – pressure on plastic and awareness of the circular economy will continue to grow, and recycling will become ever more important.

Personalisation – customisation of products and personalisation in the consumer journey will be important differentiators going forward. As many as 80% of consumer-packaged goods companies are predicted to migrate to this model by 2025

Technology – Super-fast delivery in as little as 10 minutes is expected by 2025, changing consumer behaviour to buy more frequently and in smaller amounts, adding more complexity to the logistics.

Smart packaging technologies based on unique digital codes allow each and every product package to be given a unique identifier.

It creates an interactive channel with individual consumers, allowing brands to have a real time conversation with the consumer, sharing details on the sourcing of raw materials, nutritional facts, as well as games, promotions and environmental information.

E-retailers are also calling for unique identifiers compatible with the robotic technology used in their warehouse and distribution, as this is widely seen as the key to success in e-commerce. Data and full traceability helps them navigate complex logistics and improve efficiency, moving closer to real-time order fulfilment.

Alexandre Carvalho, director global marketing services at Tetra Pak, said: “The rise of online grocery is a great opportunity for food and beverage brands, and packaging plays a key role in supporting their success. In particular, smart packaging helps drive greater transparency and efficiency in the supply chain, up and down stream, while also enabling a direct, interactive relationship with the consumer. We believe this rapidly developing technology, tried and tested by us since 2016 and now being deployed in Europe, can help our customers explore new avenues, driving growth in the years ahead.”

Tetra Pak Index 2018 is based on consumer research conducted in US, UK, China, Saudi Arabia and Korea, a global market segmentation study, as well as interviews with e-retailers in the US, Europe and China.