To protect and to promote. That’s been the code through the ages. But technological shifts and expectations have dragged along every product and marketing mix element – including packaging.
To stay ahead of the competition, businesses realise they need to offer more than just quality products. They also need a forward-thinking mindset and flexible adaptation to changing consumer expectations. In addition, they must be willing to embrace innovative solutions.
Enter innovative packaging, a by-product of today’s fast-paced business landscape.
What is Innovative Packaging?
Innovative packaging refers to cutting-edge packaging solutions with various extras for enhanced benefits. When we say “cutting-edge”, think leveraging interactive voice response to receive automated voice prompts with product details like instructions or personalised recommendations.
Historically, packaging played a simple but vital role: protecting and containing products. It has since evolved to include promotional functions, so much so that it is now considered an essential marketing component. Two good examples are Apple and McDonald’s who lean on packaging to reinforce their brand identities.
However, innovative packaging goes beyond visual branding tactics, incorporating intelligent components and technologies for various purposes. It may interact actively with the product and environment to ensure optimal outcomes. Alternatively, innovative packaging may provide real-time information for enhanced experiences throughout the supply chain. Moreover, it could combine both.
The innovative packaging market reflects consumers’ and businesses’ desire for smart products and technologies. According to reports, its estimated value will reach $35.79B in 2030. That represents a compound annual growth rate (CAGR) of around 11.90%.
Types of packaging
Innovative packaging falls into two broad categories: active and intelligent packaging. Let’s explore each in more detail.
Producers may add active components to packaging to enhance a product’s quality and extend its shelf life. These components interact with the product or its environment to guarantee optimal conditions that preserve its integrity.
Consider oxygen scavengers or absorbers. They retain food flavour, maintain freshness, and protect the product from oxidative deterioration or corrosion. They’re common in various goods, from dairy products to pharmaceuticals and electronics.
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There are several other examples. Moisture control, antimicrobial packaging, ethylene absorbers, and light-filtering materials are all active components that can extend your product’s shelf life.
Things get a lot more techy here. Intelligent packaging focuses on generating information about the product using advanced technologies. With interactive capabilities, it can relay this info to manufacturers, retailers, consumers, and regulators.
Intelligent packaging is a newer concept that’s driven by technological advancements. Sensors, QR codes, Near Field Communication (NFC), Augmented Reality (AR), Radio Frequency Identification (RFID), and blockchain technologies grant “intelligent” packaging functionality, allowing for a plethora of uses.
For instance, food package QR codes allow buyers to access detailed product information, including ingredients and allergen alerts. You could even include scannable virtual numbers for recipients to easily call you online – an excellent customer service tactic.
Meanwhile, blockchain and RFID tech enable package tracking throughout the supply chain, and AR unlocks mind-blowing product demonstrations that can reel in your audience.
Case study: Innovating a tired product
What does innovative packaging look like in practice? Coca-Cola’s successful “Share a Coke” campaign is a great example of innovative food packaging design.
Departing from its traditional approach, the company replaced its iconic brand logo with popular names. The company encouraged buyers to find bottles or cans with personalised versions through its marketing material. This simple yet effective strategy instantly captured the attention of millions of consumers.
But it didn’t stop there. Coca-Cola took it further by incorporating scannable QR codes on the packaging. The interactive element allowed consumers to access exclusive content and promotions and share their experiences across social media. Coca-Cola’s innovative food packaging design transformed the product and established a deeper connection with its audience.
The benefits of Innovative Packaging
Here are some key advantages.
Product quality and safety
The ability to maintain optimal conditions is a significant pointer toward the massive adoption of innovative packaging in certain industries.
For instance, innovative food packaging design can significantly lengthen freshness in the food and beverage industry. It considers factors like temperature, humidity, and oxygen levels, effectively limiting degradation. Embedded sensors and indicators also monitor current conditions, showing whether or not food products are compromised.
Pharmaceuticals, cosmetics, and chemical industries are other sectors where innovative packaging can detect low-quality products and effectively extend shelf life.
Another key element is counterfeit protection with the integration of authentication features. Unique identifiers like QR codes, RFID tags, and tamper-evident seals allow easy confirmation of your product’s authenticity.
Supply chain efficiency
Innovative packaging is revolutionising product tracking, management, and transportation throughout the supply chain.
Visibility and traceability are both essential for the supply chain to function smoothly. They form the base for transparency, allowing companies to pinpoint inefficiencies and eliminate complexities.
With various technologies, real-time monitoring and data capture is possible at every stage of your supply chain. The result? Accurate and up-to-date information on the location, status, and movement of products at your fingertips. You can also accurately track stock levels, monitor expiration dates, and identify potential bottlenecks.
RFID tags, barcodes, and the blockchain are some technologies that make a difference in this area.
From optimising social media content to choosing between chatbots, VoIP or landlines, companies constantly seek better ways to interact with customers. With its ability to create engagement, personalisation, and memorable interactions, smart packaging is an excellent way to foster stronger connections.
Scanning a QR code on product packaging or using AR applications can give your customers access to helpful product information. Interactive packaging designs may also reveal hidden surprises, throwing in an element of delight.
Take the loyalty program “PepCoin”, where customers could scan codes found on specially marked packages of PepsiCo products to earn cash rewards. Social media integration offers an easy means to provide feedback or leave reviews directly through the packaging.
You also get something else in return. With analytics on the collected data, you gain valuable insights into consumer preferences, purchase history, and demographics.
It’s shocking to think that 1.3 billion tons of food goes to waste – roughly one-third of the global production. Combine this staggering statistic with the usage and disposal of packaging materials, and there’s no wonder a growing demand for sustainable alternatives exists.
Traditional packaging usually involves excessive resource use and overreliance on non-recyclable or non-biodegradable materials. Optimised resource usage and eco-friendly packaging are ways that smart packaging minimises waste throughout the product lifecycle.
Innovative design techniques reduce the amount of material manufacturers need to create packaging while keeping it effective. Furthermore, with QA testing by Global App Testing and other solutions, you can identify and address any flaws in the intelligent design before the packaging reaches the market.
The increased shelf-life advantage overlaps here, drastically cutting down wastage.
Localised Customer Engagement
By incorporating location-based features into the packaging, you can tailor offerings and engage with customers more locally and personally.
Say you are an e-commerce platform with a .nz domain. QR codes with geolocation capabilities or smart sensors can gather relevant data from your target regions. You can use this to deliver targeted promotions or location-specific offers that resonate with customers in those areas.
This localised effort enhances customer satisfaction and increases the chances of building long-term loyalty.
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But are there any challenges?
It offers many benefits and applications, but smart packaging is an emerging concept plagued by nibbling challenges.
Chief among these is cost. The good old cardboard box may be affordable, but innovative packaging solutions are not – especially the intelligent variety. Expenses arise from research and development and acquiring and implementing the necessary technologies. That said, costs are bound to reduce as it approaches mass adoption.
Technical and legal complexities are also significant issues. For instance, sensors or tracking devices may have range limitations, accuracy issues, or power constraints. And because there are so many different components, you must monitor many regulations and legislation.
Furthermore, while it can drive sustainability, innovative packaging is not synonymous with sustainable packaging. That’s because batteries, circuits, sensors, and displays are not easily recycled. Before diving in, test for environmental impacts and put long-term viability strategies in place.
Finally, innovative packaging generates and utilises a vast amount of data. As a business, ensuring the security and privacy of this data is paramount. Setting up appropriate measures may expose you to harsh penalties and reputation loss.
Innovative Packaging: An innovative game-changer
Innovative packaging presents an excellent opportunity to breathe new life into your products and revolutionise your operations. The benefits are far-reaching, from facilitating product quality to improved supply chain efficiency and sustainability. Moreover, it offers exciting ways to foster customer connection and engagement.
With this solution, you can gather valuable data, optimise resource usage, and protect your products from counterfeiting.
But switching to innovative packaging for your business is not exactly a no-brainer. Several associated challenges mean you must consider all factors and challenges and set clear mitigating strategies.
It’s worth asking yourself: how can innovative packaging revolutionise your product’s usability, convenience, or functionality to meet modern consumer demands?