Mobility is one of the key global megatrends being studied by brand owners - one that changes the way people eat and drink, as well as work, think and communicate. SIG recently produced a white paper on the challenges and opportunities this trend presents for the beverage producer. Tim Sykes spoke to My Siüo Lê, senior product manager, Single Serve at SIG, about the implications.
Tim Sykes:
What insights does your white paper seek to reveal?
My Siüo Lê:
The purpose of our new whitepaper is to provide insights on the global megatrend of mobility in a clear and concise way – not only for the food and beverage industry, but for all stakeholders affected by the effects of this movement. Our aim was not only to present the challenges, but also to highlight the opportunities and chances arising from the mobility trend.
For us, there is not the one and only mobile consumer. He/she may have different faces. It can be the busy professional who travels a lot in his job, but we also mean the group of consumers who are always on the move in their spare time, or those who have made travel to their hobby and want to discover the world.
Trend leaders in the field of mobility include, above all, are the Millennials - consumers born between 1980 and 2000. In the next few years, this group of today‘s 17- to 37-year-olds will reach the stage of life with the best earning potential.
.jpg)
TS:
What socio-demographic trends and what technologies are giving rise to increased mobility?
MSL:
The main social and demographic trends underlying the mobility phenomenon include a completely new way of working flexibly and anywhere; commuting – whether professional or private; and increasing urbanisation.
Millennials are the first generation that has grown up with mobile telephones and the internet. That shapes their use of media as adults. Millennials use media to socialise and they move into cities. More often than the generations before them, they eat, drink, work and communicate on the go. They are attracted to cities where they can enjoy mobile and flexible lifestyles with a variety of recreational opportunities.
First and foremost, digitisation with all its achievements contributes to an increased mobility phenomenon. Anyone can be reached anytime and anywhere. Modern communication technology makes it possible that it doesn't matter where someone works – theoretically also from an island in Fiji. To a greater extent, people are more connected than ever before.
TS:
What are the implications of these technologies and opportunities for lifestyle? How does this affect the way we consume food and drink and our expectations of it?
MSL:
In today’s on-demand culture and digitised world, consumers are more enlightened and empowered than ever. They know more about what they want, how they want it and who they want it from. Businesses therefore need more valuable and intelligent insights that truly understand consumer immersion activities and thinking. And they want products in advanced packaging that connects them and connects to them and can easily provide valuable product data.
People are more connected to work than ever before. And this has also affected the time they take for breaks, like lunch hour. More and more, people take half an hour for lunch, eat at the desk or on the go. As a consequence, snacking has become more popular.
As people eat more often on the go and as a ‘quick fix’, small portion sizes are best suited to this kind of snacking. According to our internal market data base, the market for packaging sizes with less than 200 ml of volume will grow by 18% by 2021.
The move to urban areas has an impact on food and beverages, also. Cities all over the world become more cosmopolitan and are able to offer multi-national cuisines. 52% of millennials state that their taste in food has changed due to exposure to other cultures. Appetite for new and innovative food and beverages continues to grow, making the availability of delicious and interesting food and drink options a must-have at restaurants, cafés, kiosks and supermarkets. The more varied the offering to the consumer with regard to taste, volume size or packaging shape, the more interesting a product range becomes.
Millennials desire a rich and varied range of food and beverages that they expect to match their lifestyles. They want to make choices based on their personalities and beliefs.
TS:
How should brand owners respond in order to meet the needs of increasingly mobile consumers?
MSL:
In a fiercely competitive market, businesses need to build brand loyalty or fall behind. New digital consumers, meanwhile, are constantly sharing experiences online and are looking for new ways to interact with brands. Producers therefore need to engage with consumers across multiple platforms with innovative marketing, communication and thus entertainment tools. Crucially, they should consider that every product can operate as a data-driven, interactive and entertaining media source.
With higher competitive pressure and consumer demands, businesses need to find new ways to reliably manage their supply chain. And ensure visibility at all times to guarantee efficiency, control and safety. IoT innovations are opening up new possibilities but the key is using this technology effectively. For consumers, meanwhile, the priority is that their products of choice come from trusted sources of quality and are 100% genuine.
.jpg)
TS:
What role does the packaging industry have in this?
MSL:
As consumers increasingly embrace mobile eating and drinking habits, the food and beverage industry evolves with them and must continue to do so. Along with enticing recipes and ingredients, manufacturers must consider packaging that not only ensures safety and freshness, but which also satisfies key marketing functions: it must stand clearly out on the shelf, inform consumers about the product’s contents, deliver an excellent sensory experience and, sometimes, even entertain with games or completions on the packaging.
When manufacturers take into account the needs of their customers, the more tailored their products will become. To remain viable, the industry needs to develop innovative product and packaging concepts tailored to lifestyles characterised by mobility and time.
We identified four key requirements for packaging that suits the demands and requirements of the mobile consumer and that should to be considered by the food and beverage industry:
- Packaging size: The demand for smaller and more practical snack packaging solutions is growing as they are well suited to single serve on-the-go consumption.
- Product concepts and opportunities: Consumers want the right product for the right occasion. To meet current trends, manufacturers must be able to provide the taste to match at reasonable prices and always at an early stage. New product concepts with a variety of flavours and nutritious ingredients such as cereals, fruit pieces or chia seeds are in demand.
- Flexibility: Consumers want packaging that is easy to handle and that fits into handbags, backpacks or car drink holders. When it comes to beverages, they want more in how products are opened and consumed, such as screw tops and straws. Manufacturers must quickly adapt their production to these needs.
- Transparency: With products coming from all over the world today, consumers are curious about the origin of the ingredients in the products they buy. Tracking ingredients using imprints and QR codes are two ways of doing this.
TS:
How does SIG channel these insights into product development and business approach with regard to realigning your R&D and product offering, supporting brand owners and facilitating the digital / data extensions of physical packaging?
MSL:
As an engineering company, SIG stands for more than 40 years of experience in aseptic filling and packaging for the food industry. We develop holistic solutions with the aim of providing our customers with the perfect packaging solution at all times. Our customers grow with us and increase their performance as we help open up to new market opportunities.
Armed with consumer-focused insights and marketing intelligence, SIG delivers innovative product and packaging solutions that enable businesses to satisfy ever-changing needs. We continually develop new product and packaging solutions that allow more creative design concepts and more filling potential for unique products to enter the market. By offering our customers complete solutions, from concept development to final product, we enable greater product and packaging possibilities to develop the right product.
We’re investing more resources in product and packaging solutions than ever before. And we’re continuously expanding our offering with a growing team of product and technical engineers, while developing our test facilities to perfectly prototype product ideas:
- Co-create new products from conception to launch
- Enable more product possibilities, recipes and concepts
- Prototype products in our test-filling facilities
- Innovate packaging solutions to meet changing needs
- Develop fitting secondary pack solutions for products
Using new digital technologies and unique track-and-trace solutions, SIG can deliver 100 % connectivity and traceability within every single pack. With more traceability, customers can have greater insight and control over the entire supply chain – from source to shelf.
Our interactive packaging and on-pack digital communication is helping producers win the hearts and minds of today’s consumer. This means delivering digital engagement and transparency within every pack – with interactive features such as augmented reality and smarter track-and-trace data that improve brand recognition and provide quality assurance.
Our unique on-pack QR codes, for example, allow consumers to view all relevant product information on their smartphone, and also create more possibilities for digital marketing activities and optimising production processes.
SIG is enabling connected packs with its new One Pack One Code solution. This digital solution integrates the whole value chain by using one global language (QR codes) that connects raw material sources, suppliers, manufacturers, retailers and consumers. Our QR codes are readable by industrial scanners with manufacturers, retailers and logistics. They are also easily read by consumers using their smartphones.
Creative applications such as Augmented Reality (AR) can create an added value experience for consumers with games, recipes, videos and good-to-know facts. They enable consumers to digitally interact with products and unlock personalised content for rewarding brand experiences. They can also provide data that brands can use to evaluate the effectiveness of a campaign, such as geographic location or time spent on specific content.
.jpg)
