The Changing Tide in Food and Beverage Packaging

By focusing on functional and minimalist designs, ensuring transparency in labeling and embracing sustainable materials and processes, food and beverage brands can position themselves for success. © JackF – stock.adobe.com.

Packaging can make or break a sale.

By Paul Bradley, Senior Director of Product Marketing, TraceGains

In today’s fast-paced food and beverage industry, innovation extends far beyond creating satisfying new consumer products. As shoppers shift their preferences towards healthier items, the demand for ethically sourced food and eco-friendly packaging has risen, too. Growing expectations for transparency are reshaping industry practices, and food and beverage brands are responding with new packaging strategies to remain competitive.

There’s never been a more transformational time in food packaging. A recent report from TraceGains on product innovation in the food and beverage industry found that nearly half (48%) of brands believe packaging will have the biggest impact on food innovation in the year ahead, underscoring its critical importance in driving future trends and consumer preferences. From packaging design, labeling, and sustainability, aligning with shifting consumer values is essential in a crowded market, not just for success, but for survival.

Packaging Makes or Breaks a Sale

Packaging is more than just a protective shell for food and beverage products. It’s a crucial element that influences purchasing decisions for nearly three-fourths (72%) of American consumers. With the growing role of packaging as a key market differentiator, forward-thinking brands understand that packaging must resonate with shoppers seeking convenience and ease of use.

Think minimalist, functional designs like resealable packaging, easy-open features, and portion-controlled options. Not only do these kinds of designs appeal to consumers’ evolving aesthetic preferences, they also serve a practical purpose: using fewer materials and reducing waste.

Functional packaging also helps extend product shelf life, limit spoilage and maintain ingredient freshness. By investing in smart packaging technologies that offer detailed product information, like freshness indicators and interactive QR codes, brands can offer even more value to eco-conscious consumers.

The Role of Clear Labeling

Consumers and regulators alike expect clear and accurate labeling, and rightfully so. A misstep in labeling and claims can jeopardize trust, pose significant health risks and lead to regulatory action.  According to the Food & Drug Administration (FDA), in 2023 incorrect allergen declarations and labeling topped the list of causes for product recalls, increasing by almost 20% from the year prior.

To avoid similar pitfalls and risk losing shopper loyalty, brands must prioritize accurate and transparent labeling. This requires staying up-to-date with changing regulatory requirements, and implementing robust quality control processes. Doing so safeguards their reputation and helps build stronger relationships with consumers.

The Growing Emphasis on ESG Compliance

Sustainability is no longer a niche concern. It’s an industry wide expectation, with brands assessing their own environmental, societal and governance (ESG) efforts like measuring supply chain carbon emissions, deforestation, ethical labor and sustainability. New data show that 42% of brands are already incorporating sustainable ingredients in their packaging, like biodegradable plastics, compostable materials, and renewable resources like bamboo or sugarcane.

The food and beverage industry is also exploring alternatives to single-use plastics to further reduce their environmental footprint. Innovations like reusable and refillable packaging options are becoming more popular, offering consumers the opportunity to reduce waste and support a circular economy.

ESG compliance also extends to the entire lifecycle of packaging, from reducing the carbon emissions it takes to produce and transport packaging, to implementing recycling programs to ensure packaging materials are properly disposed of or repurposed.

Packaging as a Competitive Differentiator

The key to thriving in today’s food and beverage industry hinges on innovation. Driven by competitive pressures and concerns over recipe formulations and intellectual property, more than half of today’s brands (57%) now keep packaging in-house. This commitment to maintain control over quality and sustainability initiatives demonstrates the importance of packaging in the process. And with global retailers putting increasing pressure on brands to deliver sustainable products, innovative and sustainable packaging solutions will continue to be a key part of the ongoing battle for retail shelf space.

Thinking Holistically About Packaging and Food Innovation

Finally, it’s worth noting that as packaging evolves, food and beverage products will continue to evolve alongside them. More sustainable packaging options may also require modifications to recipes and product formulations in order to maintain shelf life and quality.

As brands innovate in terms of product packaging, those efforts will need to align with other product development goals, ranging from product cost to healthier formulations and sustainable food ingredients. Forward-thinking R&D teams will benefit from building effective cross-team collaboration to align sourcing, product development, packaging and logistics strategies around a solid sustainability strategy.

Conclusion

By focusing on functional and minimalist designs, ensuring transparency in labeling, and embracing sustainable materials and processes, food and beverage brands can meet the current demands of eco-conscious consumers, enhance their own competitive edge, and best position themselves for success in otherwise undifferentiated markets.

About the Author

Paul Bradley is the Senior Director of Product Marketing with TraceGains. Paul is an experienced technology professional with over 20 years of experience in the learning, telecommunications, software development and consulting industries. He is a leader in the development of modern, mobile-first solutions for workplace education and human development, leveraging the emerging xAPI eLearning standard. Learn more at https://tracegains.com.