Packing a Punch

This article previously ran in the March 2020 issue of PS Magazine.

On the retail shelf, effective packaging is often the difference between a mere glance and a sale. It can lead shoppers to open their eyes, then their wallets, and create an emotional connection that literally means business.

While packaging serves a wide range of purposes and comes in diverse colors, shapes, materials and designs, distributors say the starting point for solutions is always the same: What goes inside, and how does it need to be presented or protected?

“All packaging must be manufactured in a way that enables it to fulfill its primary function, be it protection, logistics or marketing,” says David Roberge, marketing manager of Industrial Packaging, Worcester, Massachusetts. “It’s a fascinating industry because aside from considering the packaged material itself, the right solution involves consumer wishes, brand standards, design, technology, distribution and logistics.”

For those reasons, consultation with each customer is crucial, and that makes packaging an ideal growth area for PSDA distributors who are used to taking time to understand each project’s goal before suggesting an answer.

In 2020, an increasing number of progressive industry pros have their eyes set on a growing area of the packaging world: flexible packaging. It’s a niche that is fast replacing bulky rigid packaging such as plastic bottles, glass containers, cans and wax-lined cardboard containers.

Battling to Win in a ‘Flexible’ Market

While rigid containers tie up valuable inventory space in warehouses and on store shelves, flexible packaging reduces shipping costs and enables key placement of products in retail locations where rigid packaging is simply too bulky (think of point-of-purchase displays at the cash register).

Consumers appreciate flexible packaging for its convenience, lighter weight, superior protection from oxygen and moisture, and high degree of environmental sustainability, says Tony Heinl, president of manufacturer Repacorp, Tipp City, Ohio.

Common examples of flexible packaging include product samples, travel-sized pouches, single-serve snacks, promotional items and unit-dose pharmaceutical products. The market is particularly ripe for distributors already selling to food and beverage, health care and retail clients. (See “Flexible Packaging 101” on p. 21.)

The Flexible Packaging Association (FPA) estimates that U.S. sales of flexible packaging totaled $25.9 billion in 2018, or about 18% of the overall packaging industry. Over the last decade, flexible packaging’s compound annual growth rate was 3.4%, the FPA says.

That’s a lot of pouches, bags and stick packs for PSDA distributors to sell. “The good economy has brought new brands and products that need labeling, whether in the form of a label, shrink sleeve or flexible package,” Heinl says. “We are seeing brands moving from pressure-sensitive labels to flexible packaging. We speculate flexible packaging will see a lot of growth next year.”

For distributors to stay competitive, Heinl says, they need to be more innovative than ever, employing new strategies to capture accounts. “Smart print resellers are reinventing themselves to become more valuable to their customers. As personalization and customization become more important to brands, those end users want to be perceived as original and unique.” That’s why flexible packaging sales are growing among distributors, he says.

Repacorp recently purchased flexible packaging equipment for its Wisconsin facility and hired three people to educate distributors on market trends and sales opportunities. The company targets short to medium runs on its seven-color HD digital equipment. “Flexible packaging might be the most convenient and environmentally friendly option for the consumer, and the most cost efficient packaging solution for the customer when factoring in waste, shipping weight and per-foot storage costs,” Heinl says. Other PSDA firms selling flexible packaging solutions include Marathon Label, Outlook Group and RR Donnelley.

Champion of the Food and Beverage Market

  Large bags sold by a producer of animal feed were failing during distribution due to poor materials and design. Bag seams were breaking, and the producer faced its worst nightmare — a complete product recall.

The company then called Excel Packaging Corp., a distributor in Irvine, California, hoping to solve the issue quickly. The challenge was to create new, high-quality 22 lb., 5 lb. and 3 lb. flexible packages, all with brilliant metallic graphics.

Flexible packaging is a specialty of Excel Packaging. “We know how important it is to help a brand stand out in a crowded marketplace,” says CEO Mike Sommers. His team consulted with the animal feed company’s sales, marketing, design, research and development, and customer service teams to get a full perspective on the project. Excel Packaging’s analysis mainly pointed to inferior materials used in the problematic bags.

  Excel Packaging tested sample bags for strength and durability. “We even challenged the customer’s shipping personnel to try and break the packages through heavy abuse,” Sommers says. The distributor sized each package and assembled and filled prototype bags to ensure an ideal fit and shelf appeal, and then produced full-color digital printed samples to use for sales presentations and product brochures. The feed company soon launched the three new bag sizes for its leading brand.

“We pride ourselves in being able to adapt to the individual needs of each customer with our customizable packaging solutions,” Sommers says. “The new bags are performing as required throughout shipping and distribution, and sales continue to grow.”

Growth in the flexible packaging sector is common when food and beverages are involved. Retail food (47% of the market) is the highest revenue sector, according to the FPA, as food brands aim to make their consumer packaged goods more noticeable, lightweight and user-friendly. Even foods with high liquid contents such as soups are being transitioned from rigid packaging containers to flexible pouches, and the fastest advances toward flexible packaging through 2021 are anticipated for beverages, according to a recent study by The Freedonia Group  . 

According to distributors and manufacturers that sell flexible packaging, here are the main reasons why it’s ideal for food and beverage businesses:  

• Convenience and ease of use. It’s lightweight and easy to open, carry, store and reseal with features like zip locks and spouts. “Traditional packaging solutions can be bulky and add weight to freight costs. Why are you paying for extra freight that you don’t need?” says Jeremy Concannon, co-owner of Innovative Packaging Co., Portland, Oregon. Flexible food packaging offers you an alternative solution.
• Extended shelf life. Flexible packaging extends the shelf life of many food products because it leverages materials capable of maintaining appropriate temperatures and controlling the transmission of oxygen, carbon dioxide, ethylene and water vapors.
• Food safety. Flexible packaging often incorporates barrier material that blocks ultraviolet rays from the sun.
• Environmental friendliness. Flexible packaging requires less energy to manufacture and transport, and it generates smaller quantities of greenhouse gases on its way to market. The recyclability and sustainability of some flexible packaging options, as well as their minimization of materials, can boost product appeal to consumers who prefer buying from companies that take steps to reduce their environmental impact and ecological footprint. “We are seeing more initiative to be greener in the form of recyclable materials, post-consumer waste materials and compostable materials, especially in flexible packaging,” Heinl of Repacorp says. (See “Sustainability Goes Beyond the Package,”right.)

Branding functionality and adaptability. Flexible packaging provides an opportunity for brands to maximize shelf appeal, make their products more visible, and employ creative presentation and marketing options. “In any market, your product package is the last piece of marketable real estate you have to make a difference in which product or brand your consumers purchase,” Concannon says. “Standing out is vital to your business’ success, especially when you consider that one-third of consumers purchase decisions will be made at the shelf, based on package design.”

Darin Painter is editor-in-chief of PS Magazine.