Packaging

Scorecarding is a growing practice by both brand owners and retailers. Retailers like WalMart and Tesco have stated ambitious goals in the area of sustainability, and are requiring more and more environmental information from their suppliers. Waste reduction is also a huge cost reduction for these companies, which helps further drive the sustainability trend.

Kodak is very dedicated to sustainability with regard to its packaging portfolio.

Our Prinergy PowerpackWorkflow Solutions automate and streamline labor-intensive processes, reducing errors, waste and redundancy, while our prepress solutions for flexo, offset and letterpress printing plates offer industry-leading pressroom performance, helping reduce overall plate usage and optimize environmentally-advantaged processing. For example:  Miraclon Letterpress Plates process with tap water, and Trillian SP Thermal Plates significantly reduce chemistry and energy usage. We also offer process optimization consulting services that can help our customers automate processes, and reduce waste and environmental footprint without sacrificing shelf appeal in the final printed package.

Learn about one of Kodak’s sustainable printing solutions(PDF). 

In developed nations, populations are aging and companies that sell packaged goods are working to design and produce packages that appeal to older consumers. Labels are easier to read, and tabs and tops are easier to grip and open. In the packaged food market, smaller portion sizes are increasingly available, and there’s a shift toward packaged prepared meals.

In emerging markets, populations are migrating from rural to urban areas, resulting in higher demand for packaged goods, particularly foods. Incomes are also on the rise, driving demand for packaged goods. In these markets, brand piracy is a growing concern.

From a manufacturer’s perspective, urbanization raises labor costs, driving a manufacturing shift to lower-cost labor markets such as Vietnam and Bulgaria. Corporate headquarters tend to remain in the developed nations.

These global demographic trends signal several market opportunities:

1. Emerging markets where high growth in packaging products is predicted
2. An increased need for brand protection solutions
3. The ability for brand owners to communicate and execute package design and manufacture globally 

Retailers are using their increasing leverage to compete against CPGs with private label store brands that bring retailers higher margins than the CPG brands they sell. In fact, private label brands in developed nations far exceed the growth of national brands from CPGs. Private labels now account for 45 - 50% of the sale of supermarket goods in Europe and 19 - 20% in the United States, and have become a rich source of revenue for large retailers worldwide. While private label brands initially competed mostly on price, now retailers want their private label packages to capture the attention of discerning consumers and compete on quality and value with national brands. 

Brand owners and retailers have also discovered the impact of highly targeted marketing and have moved away from mass marketing techniques. Better, more unique packaging graphics that incorporate more local and regional promotions, and the use QR codes to give consumers more information, will result in shorter packaging runs, more SKU versions and the need to bring products to market quicker.