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TopicTop Trends in Packaging Market

  • Fri 18th Oct 2019 - 11:26am

    As the saying goes, time is money. Every second counts on a world market as competitive as that of the distribution. Being able to identify products in a store or quickly replenish a shelf can provide substantial savings, as well as free up time for staff to focus on the customer: these are just some of the reasons we see such growth of ready-to-sell packaging (PAV), in which the secondary packaging can be directly used on the shelf as an integral part of it. In this way the products do not have to be unpacked individually.

    In addition to the possibility of "express" replenishment, consumers and store staff consider that VAPs make it easier to find products through better brand visibility. The VAPs would provide the department with a more attractive and neat appearance, while facilitating inventory management and racking arrangements. From the distributor's point of view, an additional saving is noticeable, particularly because of the reduction in losses due to poor handling.

    As urbanization, population and economies around the world continue to grow, the number of supermarkets continues to grow. As distributors carefully evaluate the products they store, producers must be innovative to stay competitive. It is perhaps for this reason that 79% of packaging producers are confident in the development of "ready-to-sell", the latter planning to increase their production by 88% in two years.

    Developed regions are relatively mature markets for "ready-to-sell" packaging. Nevertheless, while there are growth opportunities in Europe and North America, Asia, Africa, Central America and South America are now the fastest growing markets. For Asia alone, an increase in demand of more than 6% per year is expected between 2012 and 2017. Thanks to the continuous development of the Asian market, suppliers of VAP have the opportunity to demonstrate the qualities of this type of packaging. for specific markets. Thus, packaging formats are particularly suitable for the rapid development of small sales areas or small supermarkets, requiring an optimization of their space even more important than in supermarkets.

    Cost control is one of the main motivations for the development of "ready-to-sell" packaging. A significant portion of these costs is incurred in the last 50 meters of transportation from the distribution center. The possibility of streamlining this step through the use of VPAs can have a positive impact on profitability. In fact, distributors are under constant pressure to reduce their cost and improve margins, while continuing to offer consumers a pleasant shopping experience. In this context, "ready-to-sell" packaging is of increasing interest.

    Finally, as previously mentioned, VAPs allow products to be visible on the shelves. Sometimes it can be as simple as making sure that the products are well organized and oriented in the right direction: a problem that is often found on the shelves of small products, such as confectionery or animal feed.

    However, the latest VAP models go even further to deliver more product information. For example, Fairy, the Procter & Gamble brand of dishwashing liquid, won the UK Packaging Award in 2013 with a simple design that highlights the brand's promise to clean more efficiently than its competitors. The packaging is also easy to store and handle for store employees. Bringing the consumer's attention to the product's competitive advantages is an example of how "ready-to-sell" packaging can add value to brands.

  • Tue 22nd Oct 2019 - 8:52pm

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