Competition in the beverage industry remains strong. Of the 4,245 new beverage introductions in 2013, 22 percent were new packaging, 40 percent were new products, and 35 percent were variety/range extensions. Brands must dedicate innovation to eco-friendly, altruistic and ergonomic packaging designs to meet consumers’ important packaging attributes on multiple levels.
Three in five respondents read nutritional and/or ingredient labels on drinks before they purchase them. Consumers want to learn what is in their beverages and what ingredients are and are not good for them. Less than half of respondents agree they trust what companies say on drink labels, and this percentage decreases with age.
Brands should look at the following areas to make sure packaging is helping its consumers aged 18-65+ make purchase decisions:
Sustainability: Confusion surrounding which beverage packs are recyclable may lead consumers to assume that unless it is clearly labeled, it is not recyclable. In addition to plainly marking recyclability on packaging, companies like Coca-Cola are reformulating packaging material to create less work for the consumer.
Labeling: Brands targeting Millennials may consider volunteering ingredient information or including claims appreciated by the group. Some manufacturers are offering product origin labels but more can be done. One solution is to increase affiliations with trusted organizations and state them on the packaging.
Trust: Product recalls, questionable claims, shady business practices and the recession have made consumers more suspicious and conscientious shoppers. The necessity for brands to be transparent has never been higher. Brands can establish and reassure consumers of quality and authenticity by emphasizing history and origins. Nostalgic packaging also can be leveraged to instill similar values and display a company’s longstanding history.