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    Online Exclusives

    Packaging & the Pandemic

    Paul Day explains the challenges facing suppliers during COVID-19.

    Packaging & the Pandemic
    Consumers are rethinking their packaging decisions now more than ever.
    Packaging & the Pandemic
    Paul Day
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    Tom Branna, Editorial Director11.10.20
    Paul Day, packaging consultant & NPD specialist,  will lead a session at the In-Cosmetics Formulation Summit on Wednesday, November 18. The session is entitled, "Challenges to cosmetic packaging—Post COVID-19."  The three-day Summit will be held virutally, November 17-19, 2020. Day recently discussed several packaging issues with Happi.


    What were the challenges facing packaging suppliers pre-COVID-19?

    Paul Day: Key to developing a packaging pipeline is having knowledgeable experts at the manufacturer/retailer and a strong NPD strategy. Pre-COVID-19 saw a decline in NPD launches of any volume. The proliferation of small start-ups and mega choice on the shelf impacts the packaging supplier’s ability to deliver high volume production and therefore better profits. As manufacturers put pressure on prices and resources become harder to find, contingency for materials and constant specification changes add to the delay in launches. 


    Pressure from consumers on plastics and waste meant customers were looking at packaging reduction and material changes, all of which require testing at production level. Adding high levels of recycled content bring real challenges to packaging manufacture, where the performance of the recycled content has to be thoroughly tested when packing products and through the distribution chain. All of this work needs to be completed and results accepted or modified, which adds to the time frame for new products on the shelf. 

    The sourcing of recycled materials for smaller companies became a real problem where any volume was being taken by the global players. There was much work to be done with the waste management industry on processing the different materials and finding volume and value in the finished recycled materials. Removal or moves away from plastic will have seen a shift in focus onto production of alternatives. 

    Partnerships for packaging recovery and refilling packs were in full flow and there were some strong changes that would be evident to the consumer in the months to come. Sadly, the pandemic has changed the retail model either permanently or for the long term.   

     
    How well was the beauty industry doing on issues such as sustainability/ renewable resources?

    Day: Based on observations and industry news, the beauty industry had a mix of brands that focused on totally sustainable or renewable sourcing for packaging materials. Many brands are focused on presentation and a premium feel, which means excessive processing for containers where print and colour are paramount to the success of the product. My personal feeling is that a truly sustainable or closed-loop approach was being developed by some major brands but in general, there was more marketing hype on composting, recycling and biodegrading, than expansive changes to the packaging used. There was still a proliferation of plastic usage throughout the beauty and cosmetics industry and only a few brands are seriously looking to change materials. It is well known that many of the components in the industry are not recyclable and have to go to landfill. However, it would mean a fundamental change in manufacturing techniques and massive investment to change the packaging for most cosmetic sectors. There are opportunities to add recycled content to plastics and simplify the many plastic formulations used by the industry, but these will take time to develop and test. They also rely on waste industry management to suitably grade the recycled material to prevent contamination and protect consumers. 

    The use of recycled content and plastics alternatives was key to the industry in pre-Covid-19 NPD. 

     
    How has Covid-19 made life more difficult for packaging professionals?
    Day: The Covid-19 pandemic has changed the face of retail shopping globally. The way consumers interact with packaging and brands has changed for the long term and it is likely that consumers massing in giant retail parks will never occur again. This step-change in consumerism will have a long term impact on the way packaging is used and although certain areas of materials and packaging conversion will thrive, the face of the packaging industry has certainly changed forever.

    As manufacturers and retailers struggle to get products in front of users, the opportunity for browsing, trying, testing and leisurely shopping has gone. As consumers are confined to their homes, a massive upsurge in online shopping will mean a greater emphasis on transit materials and protection through the distribution cycle of e-commerce purchasing. Packaging professionals will focus on sustainable, cost-effective changes to materials and testing to a high degree prior to implementation at production level.

    Sourcing resilient packaging supply chains and new materials will be the priority. The ability to simply recycle materials by the customer in standard material waste streams will enable a flow of limited materials to build the volumes required to increase the recycled content and use fewer virgin resources.

    There will be more D2C development and sustainable testers in the mail, which will allow new products and fragrances to be tried. This model needs to show consumers that the packaging material is recycled and recyclable, gaining the seal of approval for disposable packaging options.

    The across the board work on refillable products and packaging has been put on hold by the pandemic so, until a safety factor can be built into refillable containers, dispensing and bulk management, I cannot see this expanding across the industry.

    As consumers rely more on what they know and revert to trusted brands and products they like, the production of packaging for key brands will continue to sustain the packaging industry. However, the days of massive choice on the shelf are limited and supplying a quality product that gains a 5-star approval from customers will be the way forward. Packaging will play a major part in this cycle and gaining public support. Change from plastic to other materials will show how brands support the environment, nature, sustainability and resource management, which are all critical to future successful brands. 

    Social media and fast negative feedback mean packaging needs to endorse the brand’s principles. One way for this to happen is to link all the testing and specifications through a central core system that allows clear visibility and reporting across the business. There are some cost-effective new players that have ‘cloud’ based system power to launch NPD and EPD in the shortest time and at the lowest cost. My recommendation would be to use this type of system to manage and control the many changes required at a global level for specifications, formulations and artwork, to overcome the variations from country to country. 

     
    If consumers adopt the idea of fewer in-store purchases how will this impact the beauty packaging industry?

    Day: The need for eye-catching graphics and premium finishes that capture the customers' attention will be limited and this will restrict the number of print colours required and the intricate design graphics previously used. The days of 15 colours and 3 varnishes have gone, as texture and varnish variations will no longer be needed to sell the product.  This purchasing change will enable brands to simplify the individual pack graphics and concentrate on the product quality and brand endorsement to win repeat purchases. The consumer has already made the choice of ordering online so delivering a safe and pristine product is the key driver, with online support about provenance, sourcing, ingredients and efficacy being led by marketing and e-commerce personnel.

    Brands supported by online bloggers will find the volumes to make a profit. It is astounding that leaders in cosmetics can have up to 50 million followers who will be swayed to purchase based on recommendations. If this choice is already made, only the dispenser or container needs to be used and getting it safely to the purchaser in good condition will be key, as well as fast efficient packing methods. Opportunities arise in developing the right sustainable packaging that technically will deliver the right consumer experience and maintain safety and efficacy.  

    The delivery of a gift-wrapping service for premium gift products will also enhance the experience but this will be driven by the online brand experience either through the distributor or via the brand itself. 

    Depending on the sector, production volumes will decrease and effectively costs rise or margins be squeezed. This may have a detrimental effect on the NPD cycle with more EPD around existing trusted brands. The reduction in brand diversity will be driven by the need to drive volumes and limit choice for manufacturing. Control of the sales volumes and simple stock control reduction will enable manufacturers to reverse to overall brand volume reductions.  


    What sectors of the packaging industry have the most to lose/gain post Covid-19?

    LOSERS:
    • Print and graphics will slow as retailers simplify the choice on shelf, which will mainly be driven by less supply options as well as the ability to manufacture and move ingredients and products through the system.
    • Plastics and even bio plastics development will slow as manufacturers rely on existing supplier relations/contracts to deliver products. The use of recycled content will grow but the conversion from plastics to alternative materials may see a slower uptake. There will be a reduction in the plastics formulations currently used with a simple effective approach that encompasses current recycling streams that consumers understand and add to. 
    • All special effects suppliers like varnishes and specialist finishes will see a decline in volume, certainly not the growth that would have taken place under normal retail conditions.
    • Engineering plastics like Polystyrene, SAN, ABS will also decline due to no recycling streams. 

    WINNERS:
    • Corrugated board and packing suppliers due to D2C proliferation
    • Packing materials suppliers
    • Label suppliers
    • Paper & board suppliers
    • Common plastics like Polypropylene and Polyester
    • Equivalent bio plastics when recycling streams are developed
    • Aluminium and tinplate as brands convert from plastics.
     
     



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