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Pack Expo InternationalMeat and Poultry Industry NewsMeat and Poultry ProcessingPackagingSpecial Reports

Packaging Update

Convenience drives packaging category

Consumers are valuing one thing above the rest: convenience.

By Sammy Bredar
processingPackaging.jpg

Photo credit: Multivac

September 30, 2024

In a tough economic environment, everyone is making changes—from consumers to suppliers, the strain of the economy continues to have a strong impact. In the face of economic uncertainty and struggle, food manufacturers are looking at ways to minimize cost yet still meet consumer demands. Luckily, consumers are valuing one thing above the rest: convenience.

Consumer trends

MULTIVAC Group’s Chris Coad, technical product manager, thermoforming, noted that consumers are enjoying their protein in snack packs, opting for on-the-go protein offerings. Additionally, MULTIVAC Group is seeing popularity in bulk packaging for Bix Box stores. This points to another trend – consumers want convenience, but they’re also trying to manage high price points, leading them to buy in bulk, Coad said.

Slicing, automation and packaging solutions manufacturer Weber has found that consumer demand for convenient, portable packaging is creating clear market opportunities. “This trend is driving innovations such as easy-open features, resealable packs, and portion-controlled packaging,” the company said.

Convenience is on the rise not only for consumer-packaged goods, but for fresh meats as well. According to Technavio, “The global fresh meat packaging market size is estimated to grow by USD 473.65 million from 2024 to 2028,” increasing at a compound annual growth rate of 3.19%. As labor concerns and high equipment costs linger, case-ready packaging for fresh meat offers a way for retailers to better meet consumer needs while managing ongoing challenges.

SOMIC Packaging Inc.’s CEO, Peter Fox, noted that popularity of retail-ready applications is driving display tray packaging. “Having a machine with the capability of running display trays, as well as with wraparound cases, provides a manufacturer the flexibility to serve both retail markets with one machine,” Fox said.

While chicken is a common case-ready protein, case-ready packaging is trending for many protein types including beef, pork and lamb, according to Technavio.

In addition to convenience, sustainability is another attribute consumers heavily value. Coad said MULTIVAC Group anticipates sustainable packaging to be a huge food industry trend, even more than it already is.

Weber anticipates a similar trend, as consumers and regulators alike want materials that are eco-friendly and support a circular economy. “Companies are exploring packaging solutions that align with the circular economy model, which focuses on reducing waste and maximizing resource use,” Weber said.

In an uncertain economic climate that simultaneously demands sustainability efforts, Weber sees potential for packaging solutions that address sustainability concerns and are cost effective. “Solutions like recyclable materials or energy-efficient technologies could gain traction as processors look for ways to meet sustainability goals while managing costs,” Weber said.

Managing high costs

An equipment update can be costly. In today’s environment, that reality can be more daunting than usual. To adjust to high price points, end-users can retrofit their equipment their packing needs change. Coad noted that this creates flexibility for end-users, allowing them to shift their operations as needed without investing in entirely new machines.

Fox said that companies have slowed down in their replacements of older machines, opting for repairs or retrofits for now.

To avoid high up-front costs with an equipment upgrade, Weber recommends investing in modular equipment and scalable solutions. “Modular and scalable packaging systems are gaining popularity for their ability to adapt to changing production needs and product lines,” the company said. “These systems allow companies to start with essential features and expand or upgrade as needed.”

Another option to keep equipment upgrade costs low is to utilize a financial plan, spreading costs out over time to help manage the expense, Coad said. “Leasing equipment can be a cost-effective way to access advanced technology without the upfront capital investment,” Weber said. “Leasing agreements often include maintenance and support services, which can further reduce costs.”

Fox noted that, as companies are looking to preserve capital, they are pursuing more long-term financial options as well as third-party equipment leasing.

SOMIC expects high interest rates and economic uncertainty to likely impact capital spending for packaging materials and equipment. “However, in many situations where producers do not have the staff required to hand pack product, the demand has remained strong,” Fox said.

Weber sees clear demand for automation and efficient solutions for meat packaging. “Processors may seek packaging solutions that offer greater efficiency or longer shelf life to offset rising material costs,” the company said. “This could drive demand for advanced packaging technologies that reduce waste or enhance product longevity.”

KEYWORDS: case ready operational efficiency sustainability

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Group Editor, The National Provisioner & Dairy Foods

Sammy Bredar has previously worked as a freelance writer and assistant editor. She graduated from Ball State University in 2022 with a BA in English.

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