Avery Dennison Discusses Functional Packaging
- Published: May 10, 2018
MENTOR, OH | Avery Dennison has released a white paper highlighting new consumer insights from what it says is the rapidly growing functional packaging market. Entitled “Consumer Perceptions of Functional Packaging,” the paper reveals which features and benefits consumers seek when considering functional packaging. The paper is based on research the company conducted earlier this year and can be downloaded at this link. 
Functional packaging is changing the way consumers shop for and interact with products and brands, says Avery Dennison. According to Euromonitor International, 190 billion retail units in the food industry will transition to flexible packaging in the next three to five years. Euromonitor also predicts pressure-sensitive reclosures to be the fastest growing closure type globally, with a compound annual growth rate (CAGR) of 6% through 2020. Meanwhile, Micromarket Monitor predicts the US flexible pouch market will grow to $29.64 billion by 2021. That’s an estimated CAGR of 5%. This growth is driven by several factors, Avery Dennison says, including consumers’ growing desire for convenience and ease of use, portability, freshness, and safety, as revealed by its research.
“The message from Euromonitor’s and other experts’ market data is that label converters have a tremendous opportunity to expand their business with functional packaging,” says Frank Loncar, global director, marketing, Avery Dennison. “Meanwhile, our own research is helping us understand, in greater detail than ever, just what consumers want and expect at the point of sale and beyond.”
“Functional” packaging, the white paper explains, is that which is designed to provide value-added consumer benefits, such as greater convenience or ease of use. It may incorporate flexible packaging and pressure-sensitive films, reclosure solutions, and intelligent label technologies, in new and creative ways.
“Intelligent Labels” can enable brands and retailers to enhance multiple levels of the supply chain and retail by storing and capturing information and wirelessly transmit data to enhance experiences. UHF RFID (Ultra High Frequency Radio Frequency Identification) is frequently used for apparel, beauty, and food, as well as NFC which enables consumer interaction and TT Sensor Plus, which provides temperature sensing. Intelligent labels, the reports notes, can be also be integrated into the packaging, for example through NFC or QR codes, to enhance the consumer experience—including item-level customization, delivering product reviews, and product authentication—while enabling brands and retailers to track inventory more accurately and thereby meet customer demand as never before
“Avery Dennison is poised to provide both the technologies and insights that label converters need to grow their functional packaging business,” Loncar says. “As a global leader in packaging solutions, and as a company that works to stay a step ahead of trends, [we are] eager to help converters capitalize on this fast-growing trend. Our product portfolios include key functional technologies, including intelligent labels, flexible packaging, and reclosure solutions—the full range of functional packaging.”
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