With tamper-evident packaging, manufacturers and their contract packaging partners use features designed to provide clear visual proof that a package has been tampered with or that its integrity has been compromised. A number of different methods get the job done for contract packaging companies working with pharmaceuticals, nutraceuticals, and supplements.

How Tamper-Evident Packaging Protects Products

Protecting package contents from tampering falls on pharmaceutical and supplement producers, relying on experienced turnkey packagers to maintain high standards safeguarding consumers. The responsibility is monitored and mandated by Food and Drug Administration (FDA) regulations, ensuring proper practices.

Packaging requirements for over-the-counter (OTC) drug products intended for human consumption, for example, are regulated by the FDA under the federal Food, Drug, and Cosmetic Act. The Act empowers the FDA to establish packaging standards for covered OTC drug products, helping enhance security and support consumer safety. Covered OTC drug products that fail to meet applicable tamper-evident requirements may be considered adulterated under federal law.

Beyond compliance and liability considerations, tamper-evident packaging also strengthens consumer trust. In order to meet FDA regulatory thresholds, tamper-evident materials cannot be reattached or reapplied without leaving clear evidence the package has been breached. When applying the standard to consumer supplements and pharmaceuticals, contract packaging professionals also account for end-user perceptions and preferences relating to package designs.

Why Demand for Tamper-Evident Packaging Is Growing

The tamper-evident packaging market represented just over 2.5 billion USD in 2025. Forecasts anticipate more than 10% CAGR through 2030, by which time the annual market is expected to exceed 4.25 billion dollars. Regulatory compliance mandates are responsible for some of the projected growth, reflecting changes in drug-traceability requirements. Once voluntary pilot programs have now evolved into binding pharmaceutical packaging standards governing unit-level tracking and tamper-evident features. The full force of the US Drug Supply Chain Security Act calls for visible tamper evidence on each pharmaceutical unit, reflecting an ongoing requirement mirrored by the EU Falsified Medicines Directive, which now applies to 27 overseas markets.

Consumer behavior is also at work driving the increased use of tamper-evident packaging (TEP) for drugs and supplements. Not only do modern consumers demand transparency and high food safety standards across international supply chains, but buyers have also changed the way they purchase products like OTC medication and health supplements. Ecommerce growth, resulting in double-digit parcel increases in 2024, creates safety vulnerabilities as packages are stored, shipped, and ultimately reach consumer mailboxes. In order to reduce unnecessary exposure, Amazon and other major retailers have adopted tamper-evident solutions that illustrate package integrity throughout the delivery process.

Logistics providers and insurers also play a role in the rise of tamper-evident innovation, accounting for packaging security measures in their rates and ratings. And specific tampering incidents, such as an Asian counterfeit baby formula breach, have further cemented tamper-evident packaging as a worldwide standard across health and personal care markets.

Common Types of Tamper-Evident Packaging

Digital security measures are applied to some pharmaceuticals, using blockchain technology to track product integrity, but the practice has limitations, which will likely prevail until the cost and availability of digital solutions renders the strategy more accessible and affordable. In the meantime, tamper-evident packaging commonly relies on tape, seals, labels and special blister packs to enhance the safety and security of package contents.

Shrink bands and shrink seals are among the most widely used tamper-evident solutions for OTC packaging. Torn or broken seals indicate a package has been opened, resulting in visible confirmation from package features that cannot be restored. Obvious visual proof of tampering is also achieved using designs that include plastic pieces that break and alert consumers when product packaging integrity is suspect.

Visual messaging is also deployed, showing statements and icons that only appear after a package seal has been breached. Security labels and tamper-evident tapes offer flexible options for common drug and nutraceutical formats, including pill bottles, blister cards, ecommerce mailers, and secondary packaging.

Key Benefits of Tamper-Evident Packaging

Once considered a premium feature, tamper-evident packaging has become an expected standard for food, drugs, and supplements. Pharmaceuticals and related industries still account for the largest share of the tamper-evident packaging market, but the safety measure is now deployed across widespread consumer categories, from meal delivery to Amazon shipments. Consumers overwhelmingly support the technology and expect to see it used by brands they trust.

Among the primary benefits of tamper-evident packaging, the technology helps manage overall production costs and reinforces brand confidence. Incorporating visible features illustrating package integrity decreases the likelihood and incidence of product contamination, including problems arising from deliberate criminal acts. As far back as the 1982 Tylenol tragedy, when several individuals lost their lives after ingesting poisoned pain relievers, tamper-evident seals have added extra layers of security to protect end users from criminal harm. Serving as a line of defense against similar disasters, TEP enhances public safety while reducing liability costs associated with catastrophic tampering.

In addition to individual unit applications, tamper-evident tape is increasingly used on secondary packaging and shipping cartons. The strategy further protects brands and consumers from counterfeiting, theft, and adulteration, ultimately facilitating consumer confidence and building brand loyalty. Tamper-evident packaging designs also reduce loss and theft expense in retail settings, mitigating the temptation to “try before you buy” or steal individual units from supplement and OTC medicine packages. Compromised TEP offers visual proof that contents may have been exposed to conditions accelerating degradation and reducing their effectiveness.

Experienced contract packagers understand how to apply tamper-evident solutions in ways that support compliance, protect product integrity, and give consumers clear visual confirmation.

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Corrugated packaging demand is closely tied to how many physical goods are being produced, shipped, stocked, and delivered. When box shipments soften, it can reflect slower merchandise movement, leaner inventories, and more cautious ordering behavior. While packaging is not a perfect predictor of GDP, it often reacts faster than many headline economic reports.

Cardboard Demand Offers Economic Insight

Because corrugated packaging plays such a prominent role transporting and merchandising a majority of consumer products, studying demand for cardboard packing materials has become a common and effective way to track consumer spending behavior and its subsequent economic impacts. A direct correlation can be drawn between the overall amount of cardboard packaging used and the volume of goods moving through the supply chain. Unfortunately for US economic interests, including contract packagers, cardboard demand is down.

If packaging orders and containerboard output remain weak, it can reinforce signals already visible in other areas like retail inventory posture and goods-related freight activity. It’s best interpreted as a confirming signal, not a standalone forecast.

Estimates indicate 75-80% of consumer goods spend time in corrugated cardboard shipping boxes. Playing an integral role in the delivery of goods, the “cardboard index” is a legitimate and proven short-term indicator for measuring overall consumer spending confidence. Healthy demand for shipping boxes generally reflects robust trade flow and strong consumer spending, while waning need for cardboard packaging materials indicates less overall activity in the consumer sales stream.

Packaging trends may offer particularly valuable insight because of the important distinction between lagging and leading economic indicators. Lagging indicators account for past events, measuring what has already happened, whereas leading economic indicators such as new orders and packaging demand look to the future, anticipating upcoming conditions.

Packaging Demand Downturn Reflects Tariff Uncertainty

Contract packaging companies and cardboard producers are navigating unusual post-COVID conditions that have seen demand drop substantially from peak pandemic levels. US box makers have shut down nearly 10% of production this year, resulting in job losses and plant closures. Inflation in the cost of raw materials and overhead have added further incentive to streamline, prompting producers to reduce output capacity. Similar production downsizing has not been seen in the cardboard box business since the global downturn of 2008, drawing sharp concerns the US is headed for deep recession.

Multiple recent pulp mill closures within the US illustrate reductions to US paper packaging production infrastructure, but domestic competition is not responsible for the upheaval within the cardboard industry. Rather, stalled trade relationships and export uncertainty have come to bear on packaging demand. Trade policy uncertainty (including tariffs and retaliation risk) can suppress export-linked packaging volume by discouraging forward orders and reducing predictability for shippers and manufacturers. 10-15% of US cardboard production capacity facilitates the country’s export shipping needs. Contractions in this segment of the corrugated industry are expected to continue and perhaps worsen in 2026.

Converging Conditions Prompt Packaging Industry Shifts

Half of recently surveyed box manufacturers confirmed a downward trend for packaging orders, indicating demand had worsened, when compared to three months earlier. Although current contractions do follow a period of rapid expansion experienced during the pandemic, cardboard demand has actually slumped to pre-pandemic lows not seen since 2016.

In addition to the impact of tariffs, multiple factors undermine packaging sales in today’s shifting marketplace. Weak consumer spending, dysfunction within the housing market, and general caution among supply chain stakeholders are key concerns slowing orders for packaging producers. Although some of the recent mill closures have been attributed to market repositioning, rather than direct responses to diminished demand, sellers are changing fulfillment strategies to reflect the “new normal.” Ecommerce leaders such as Amazon have moved to lightweight mailers and right sized packaging to reduce their dependence on cardboard.

Packaging Orders Fall Flat During Holiday Shopping Season

Fibre Box Association data showed U.S. corrugated box shipments in Q3 2025 hit their lowest third-quarter level since 2015, an unusual pattern heading into the holiday build season. While third-quarter shipments typically ramp-up for the busy holiday spending season, this year’s lead-up has been marked by orders below normal levels. Viewed as a direct demand indicator, flat packaging sales indicate weak consumer spending and also illustrate cautious expectations among retailers, which may be reluctant to over-invest in seasonal inventory.

Containerboard, the primary raw material for corrugated production, saw third quarter output slump more than 3% year-on-year, resulting in low utilization rates for producers. Weak demand and downward production trends in Q3 served as warnings to stakeholders on every level of the supply chain, and the information gleaned from box sales figures may also point to pending problems in the US economy.

Looking beyond the impacts of short-term movement within the packaging industry, cardboard demand is also shifting on a fundamental level. Per-capita box use has thought to have dropped by at least 20% since peak usage levels in 1999. This trend toward reduced consumer cardboard use underscores the importance of alternative fulfillment formats, right-sized packaging, and innovative, efficient, package design strategies.

Declining consumer demand creates a ripple effect across packaging and logistics industries, resulting in complications such as supply chain bottlenecks and cost increases. As sellers respond to soft consumer demand with inventory adjustments, shippers, packagers, and warehouse operations follow their lead. Facing shifting conditions and diminished demand, agile, adaptable contract packagers are adjusting their approach to incorporate cost-saving innovation and efficiency. Time will tell whether or not today’s weak packaging demand signals tomorrow’s economic crisis.

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Protecting food from external elements, intentional tampering, and physical damage are key responsibilities shared by food producers and contract packagers. Among the universal benefits of well-executed food packaging strategies, utilizing proper packaging increases the shelf-life of food products and ultimately safeguards consumers’ health and well-being.

The Best Food Packaging Preserves Freshness and Quality

Maintaining freshness and preserving food quality are primary objectives shared by producers, manufacturers, retailers, and food packagers. The most effective modern packaging solutions meet or exceed the freshness requirements of package contents, utilizing materials and package designs that work best for each food product. A few common considerations for food producers and their packaging partners, successful food packaging strategies preserve food quality by:

• Controlling moisture – Minimizing moisture loss and gain keeps products from drying out during distribution or becoming too moist, which can lead to lost crispness or off flavors.
• Reducing exposure to light – Light and heat promote bacteria, so packaging foodstuffs in dark enclosures can help keep contents fresh and safe.
• Limiting exposure to air – Contact with air speeds up food degradation, so the most effective packaging solutions help regulate the exchange of oxygen, nitrogen, and carbon dioxide reaching food products.
• Maintaining temperature – Specially designed packaging protects products from temperature extremes.

Food products are grown and manufactured globally, often requiring distant shipment before reaching end users. Throughout the handling process, food packaging may be exposed to pollution and contaminants. Well-designed food packaging incorporates barriers that reduce consumer risk and maintain food quality. Depending upon the items packaged, films and specialized packaging materials are introduced as barriers against air, moisture, and other harmful elements.

As well as devising food-safe packaging solutions, contract packagers also put packaging to the test, pressing their limits to ensure packages are constructed to hold up during distribution and merchandising.

Proper Packaging Provides Protection from Physical Damage

In addition to limiting exposure to air and other elements that threaten freshness and quality, food products also require protection from physical damage. Examples such as egg crates, puncture-resistant pouches, and cardboard cases all offer product-specific protection for the food and beverage industry. Properly deployed, these and other packaging protocols protect against breakage, contamination, and food loss.

Packaging innovation accounts for food safety and consumer preferences, but convenience and economic considerations also drive packaging decisions. Handling remains an important concern for packagers, resulting in tried-and-true methods that have been in service for decades. In one stalwart example drawn from a United States Department of Agriculture (USDA) publication, the food protection offered by cartons, crates, cans, and glass bottles also provides stacking strength for efficient handling.

Food Packaging Acts as an Identifier

On top of providing physical protection during distribution, packaging also enhances product integrity. Educated consumers are adept at checking freshness and food packaging sell-by dates, so it is no surprise shoppers also pay attention to the relationship between packaging and contents.

• Authenticity – Buyers rely on packaging to authenticate products. Information found on packages helps convince consumers they are buying from reputable brands. From logos and ingredient lists to company contact information, well-executed packaging offers assurance that package contents come from legitimate makers.
• Marketing – Distinctive packaging not only protects and preserves food products, but packages also reinforce branding. Comprehensive sales and marketing strategies incorporate effective packaging solutions that create strong brand associations and cannot be easily copied by competitors.
• Counterfeit Goods – Packaging helps expose counterfeit and fake food products. Phony foodstuffs impinge on the legitimate market, so packaging companies keep consumers safe by incorporating holograms, QR codes, and other anti-counterfeit measures.

Enhanced Food Safety Include Tamper-evident Packages

Value-added packaging keeps food products fresher longer, as well as providing barriers against accidental damage and environmental contamination. Unfortunately, products are also vulnerable to intentional tampering. Tamper-evident packaging is designed so that users can see if anything about the package has been changed, damaged, opened, or removed.

According to the FDA definition, a tamper-evident package or seal incorporates one or more indicators or barriers that if breached or missing, provide reasonable evidence that tampering has occurred. Further, the organization stipulates that the indicators or barriers should be distinctive by design, making the tamper-evident enclosures hard to duplicate, without access to packaging industry materials and processes. An important distinction is made between tamper-resistant packaging, designed to discourage tampering, and the tamper-evident packages described by the FDA, which actually offer visual confirmation that product integrity has been compromised.

Certain segments of the tamper-resistant packaging market were already on the rise prior to the pandemic, but demand for safe packaging solutions exploded in the shadow of the global health threat. In the fresh foods grocery aisle, grab-and-go products once accounted for much of the expansion in tamper-evident packaging, until COVID food trends sparked skyrocketing demand.

Responding in part to COVID-related consumer shifts toward third-party food delivery and curbside service, packagers streamlined the number of packaging touchpoints and developed methods for sanitary food delivery, including stickers, seals, and labels indicating tampering. In addition to promoting food safety, tamper-evident packaging also supports quality control, reduces accidental loss, and reinforces trust between producers and consumers.

In Conclusion

Packaging plays a central role preserving food freshness and protecting consumers from foodborne illness. In addition to providing physical fortification during distribution and marketing, effective food packages also incorporate barrier materials that protect food quality and keep out contaminants. Whether incorporating a secondary packaging layer for added product protection or utilizing tamper-evident wraps for shipments, experienced contract packagers understand that proper packaging promotes consumer safety and preserves food quality.

Assemblies Unlimited provides complete contract packaging services across a wide range of product types and industries. With extensive experience in consumer safety and food packaging services, we are positioned to support your packaging compliance needs from concept to completion.

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Labeling accuracy and transparency are essential, shielding consumers from allergic reactions and other unintended, yet potentially catastrophic outcomes. With so much at stake, government agencies such as the Food and Drug Administration (FDA) regulate product labels, calling upon contract packaging companies to meet strict standards for food and supplement labeling. Compliance with established labeling standards is mandatory, so getting it right is an important concern for food and supplement manufacturers and their packaging partners.

US Labeling Standards Must Be Met

Global labeling requirements vary from region to region, but many countries with less stringent labeling standards are taking measures to strengthen requirements. In the United States, the FDA issues clear parameters that must be met, before food and supplements can legally be sold within the US.

Although compliance is expected from most packaged food manufacturers, some producers may qualify for exemptions, allowing them to bring goods to market without meeting general regulatory requirements. Food and supplement producers generating less than $50,000 in annual sales, for example, may not be required to include Nutrition Facts Labels on their products. In other cases, the number of full-time workers employed or the number of units sold annually may qualify for labeling exemptions. Under these special circumstances, the FDA may require makers to file annual exemption claims.

Label Placement is Regulated by the FDA

Compliance with FDA labeling requirements relies on attention to detail. While the general standards put forth by the FDA are not overly complex, labeling requirements are very specific. In order to standardize regulations and ensure compliance across diverse brands and products, food and supplement labels are broken down into distinct parts.

The area of a package most likely to be front-and-center to consumers is known as the primary display panel (PDP). The PDP is strictly defined. On a traditional rectangular box, for instance, the PDP is comprised of the area determined by the box’s height times its width. On cans and other cylindrical packages, the PDP is considered 40-percent of the height times the circumference of the container. Another designated area of importance is known as the information panel or information space, which is located directly to the right of the primary display panel. On a traditional half-gallon milk carton, the PDP would be considered the “front” of the container, and the information panel would be found on the “side” of the carton.

The areas designated by the FDA are important, because the agency not only regulates the information labels contain, but also where the information is placed on each package.

Required Food and Supplement Labeling Elements

The basis for food labels accounts for several features made mandatory by FDA regulations. Among the information conveyed to consumers on food and supplement labels, contract packagers and manufacturers must include components such as:

Distributor, manufacturer, and packer information

In order to comply with US labeling requirements, food and supplement producers must include their company name on each package, along with a statement confirming their relationship with the package contents. This “manufactured by” or “distributed by” qualifying phrase includes the firm’s complete street address. The information is typically on the package’s information panel, but regulations also allow it to be placed within the primary display panel.

Ingredient statement

Food ingredient information must be included on the same panel as the manufacturing information mentioned above. Most often the statement is placed on the PDP or the information panel. The typeface used to describe ingredients must be clearly readable and measure at least 1/16″ tall.

Statement of identity

The statement of identity required on food and supplement labels is not the brand name of a maker. Rather, the statement is the legal name or description of the product. A product’s identity statement must be placed prominently on the PDP, with type that is at least one-half the size of the largest font seen on the package.

Quantity of contents

The amount of food found in each package is represented in the quantity of contents section of food packaging. Depending upon the goods contained in the package, quantities are expressed as either weights, liquid measures, or as a number of items contained in the package. The FDA requires the information to be placed in the lower one-third of the primary display panel. The height of type used to convey quantities is sized according to established FDA standards, which uses the overall display space on the PDP as a guide. On a package with less than five sq. inches of total area, for example, a type height of 1/16^th of an inch complies with legal labeling requirements.

Declaration of allergens

The Food Allergen Labeling and Consumer Protection Act of 2004 (FALCPA) stipulates strict labeling requirements designed to protect consumers from allergens. Under the terms of FALCPA regulation, packagers must declare the presence of major allergens. The declaration is placed on the PDP or information panel, adjacent to the nutrition facts label. Major allergens falling under the regulatory requirement include peanuts, milk, soybeans, fish, eggs, wheat, shellfish, tree nuts, and sesame. In order to comply with the food and supplement packaging requirement, allergens must be identified in parenthesis, within the ingredient statement, or in a separate plain language statement identifying allergens found in the product.

Nutrition facts label

A recognizable feature found on consumer packaged goods, the nutrition facts label conveys information about food products. The format of the familiar, standardized nutrition facts portion of food and supplement labels follows FDA guidelines, based-upon package size and contents. Nutrition facts labels include serving size, expressed as a common household measure or unit, as well as the total number of servings contained in each package. Mandatory nutrient listings are also shared on this part of the label, conveying percentages of fat, sodium, fiber, and sugar, among others.

Additional Labeling Considerations

In addition to meeting labeling standards established by the Food and Drug Administration, manufacturers may also elect to include nutrient content claims on packaging. Common examples include “low fat” and “sugar free.” When nutrient contents claims are made, regulators determine which claims are valid. A label containing a nutrient claim must also reflect the value of the nutrient in the nutrition facts panel.

Although product dating is not required under federal law, state agencies maintain unique labeling standards, outside FDA regulations. Expiration dates and best-by recommendations are mandatory in some markets, so manufacturers and contract packaging professionals must also account for local labeling laws when marketing food and supplements.

Labeling compliance is an essential component of food and supplement marketing; food producers are bound by state and federal labeling regulations. Adding value to their relationships with manufacturers and food and supplement distributors, experienced contract packagers are well-versed in FDA compliance.

Assemblies Unlimited provides complete contract packaging services across a wide range of product types and industries. With deep experience in FDA-compliant labeling and relabeling services, we are positioned to support your packaging compliance needs from concept to completion.

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Tariff Transparency Yields Trade Truths

Armchair economists are weighing in in increasing numbers, decrying the negative potential associated with tariffs. Although big-picture global economics are nuanced and fluid, tariffs are not new or complex. A tariff is nothing more than a tax placed by a particular country on goods imported from another country. Tariffs can be imposed on specific items, classes of goods, or across-the-board, affected everything flowing from one country to another.

Potential negative impacts of US tariffs are mostly associated with the increased costs imposed on businesses affected by tariffs, as well as higher prices in countries exacting tariffs. The financial burden is particularly high on foreign exporters, and it is thought by some that the financial impacts of tariffs may lead to supply chain disruptions.

Tariff detractors are correct pointing out that in modern global trade environments, where producers often cross numerous borders bringing goods to market, tariffs may affect the price of goods at each crossing, resulting in taxation on multiple levels. Because the added tax raises the price of imported materials and finished goods, tariffs commonly impact consumer purchase power within countries responsible for imposing the cost.

The prospect of facing tariff-induced price increases on the heels of recent runaway inflation has US consumer confidence at 28-month lows, which in turn impacts new orders, business investment, and plans for expansion. As the administration continues sorting-out tariff policies and global trade standards, many manufacturers are turning to established US production and packaging relationships for stability in uncertain markets.

Tariff Uncertainty Drives Business to Stable Established US Firms

Trade wrinkles take time to resolve, requiring patience and diplomacy to work out all the details at issue between diverse stakeholders. Although any major shift in US trade policy is likely to give pause, resulting in ambiguity and some degree of instability, Trump’s “here today, gone tomorrow” tariff rollouts have fueled the fire with unprecedented trade uncertainties — even among the United States’ most robust, longstanding trade partners.

While sentiments regarding tariff policies are mixed, many executives are focused on the unknown elements of the emerging import taxes. Faced with challenges planning for uncertain trade environments, “proceed with caution” is the mantra for manufacturers navigating fluid tariff environments. Rather than live or die by tariff policy outcomes, many forward-looking decision-makers are embracing established contract packaging companies and other businesses within the US, enabling producers to sidestep some of the issues associated with tariff transitions.

Benefits of Reshoring Manifest in Time

The short-term outlook related to tariffs may include US inflationary pressure, which could in turn slow the pace of Fed rate cuts. However, as tariff policy congeals, offering greater clarity on the administration’s long-term economic objectives, resulting reshoring of manufacturing businesses to the US could yield long-term economic benefits. Focused on the long-term economic potential of reshoring, committed stakeholders are already doubling down on their relationships with US-based packaging companies and logistics contractors.

Alternate scenarios for a tariff-driven economy recognize the possibility for negative outcomes. For example, reshoring high-value manufacturing to the US follows proven paradigms, in which advanced manufacturing taps into skilled labor forces for consistent production. Low-value manufacturing, on the other hand, is traditionally conducted offshore. Returning low-value manufacturing to the US could result in higher overall production costs for wide-ranging domestic goods.

Consumer sentiment, driven by economic uncertainty, fell to a 28-month low in March. The outlook for businesses is tracking a similar trajectory, with decision makers taking a conservative approach to capital investment. New orders were down in the manufacturing sector during February, further illustrating stakeholders’ cautious sentiment. Rather than embark in unfamiliar territory, many producers are cementing their domestic positions, favoring US stability over uncertain future relationships with trade partners Canada and China.

Domestic Momentum: A Foreshadowing of Post-Tariff Trends

As new tariffs reshape global trade dynamics, manufacturers are increasingly investing in US-based operations to enhance supply chain resilience and meet high-volume production demands. The following case studies illustrate this trend, offering clear signals that reshoring is not just reactive policy, but a structural shift already in motion.

Milwaukee Tool: Expanding US Manufacturing Footprint

Milwaukee Tool opened a new 500,000-square-foot facility in Grenada, Mississippi, backed by an investment exceeding $60 million. The plant currently produces SAWZALL® blades and plans to expand into other product lines, reinforcing Milwaukee’s long-term commitment to domestic high-volume manufacturing.
Source: Greater Grenada Economic Development

Georgia-Pacific: Investing in Corrugated Packaging Capacity

Georgia-Pacific invested over $20 million to upgrade its Lebanon, Tennessee, plant, replacing the existing corrugator with advanced machinery to increase output and quality. The investment supports fast-turnaround packaging solutions for high-volume consumer goods brands.
Source: Georgia-Pacific Newsroom

Unilever: Expanding Production for Liquid IV

Unilever is investing $80 million into its Jefferson City, Missouri facility to scale production of Liquid I.V., its powdered hydration supplement. The upgrade includes automation and new blending rooms, marking a significant reshoring effort for a high-demand wellness brand.
Source: Unilever USA

Campbell Soup Company: Optimizing Supply Chain Operations

Campbell Soup Company is rolling out a $230 million supply chain optimization plan through FY2026. This includes consolidating production and expanding efficient US plants, enabling more scalable, high-volume manufacturing across its soup and snack portfolio.
Source: Campbell’s Newsroom

Sea Change Ahead for US Manufacturing?

Advocates tout reshoring as a generational shift back to the glory days of US manufacturing. Following decades, sacrificing millions of jobs to offshore manufacturing, the current administration strongly believes in the power of reshoring to jump-start the US economy. According to advocates, reshoring is a win/win prospect, setting the stage for increased production, expanded access to emerging markets, and stronger competition among global producers.

It is thought the presidential administration’s sweeping tariffs will spark negotiations, potentially resulting in a trade landscape unlike current conditions. Tariff challengers point to labor force shortfalls, infrastructure concerns, and other stumbling blocks facing US manufacturing resurgence. According to tariff opponents, confidence in reshoring will continue to falter, until US businesses are convinced it’s viable.

Manufacturers doing business across borders will no doubt feel the impacts of tariffs, but it is important to recognize another group of producers already making goods in the United States. For domestic producers, strengthening established US manufacturing, packaging, and logistics partnerships may ultimately strengthen pricing power and offer added consumer appeal, despite new tariffs.

From a tool-maker with a 170-year history of US production, to a veteran-inspired helmet manufacturer scaling domestic fabrication; onshoring production has led to relatively stable conditions, when compared to industries on the front lines of tariff transitions. As diplomatic and economic agendas collide at the tariff talk table, companies already well-partnered within the United States and those on a path toward reshoring are embracing the benefits of working with established packaging contractors and other proven US supply chain partners.

Conclusion: Partnering with Assemblies Unlimited for Contract Packaging Success

As supply chains evolve in response to tariff pressure, shifting global dynamics, and previously with reshoring among the pandemic, many manufacturers are bringing production back to the US to improve stability, reduce lead times, and secure long-term growth. This trend is especially critical for brands managing large production volumes that demand consistent, high-quality packaging solutions.

Assemblies Unlimited provides complete contract packaging services across a wide range of product types and industries. With deep experience in high-MOQ runs, US-based production, and turnkey fulfillment, we are positioned to support your reshoring strategy from concept to completion. For companies looking to strengthen domestic operations and maintain a competitive edge, aligning with a trusted packaging partner is a smart next step.

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Biodegradable packaging and other green initiatives align with a growing, collective, consciousness uniting contract packagers, manufacturers, and an ever-expanding consumer base — all seeking better environmental outcomes.

As an increasing number of food and non-food items call for eco-friendly packing alternatives, supply chain stakeholders are embracing the widespread benefits (and limitations) of biodegradable packaging.

Biodegradable Plastic Addresses Environmental Concerns

Once heralded for its durability, plastic’s primary advantage ultimately became its most impactful downside. Traditional plastics require hundreds, even thousands, of years to break down in the environment.

Recycling and reusing are effective strategies devised to reduce plastics headed for landfills, but consumer consciousness isn’t the only shift yielding environmental benefits. Technological advances, including bioplastics and biodegradable packaging materials, also contribute to greener outcomes. Unlike traditional plastic, the most effective biodegradable plastics used in mainstream packaging can break down in as few as three to six months.

Biodegradable plastics include formulations derived from plant starches, such as corn starch, as well as cellulose based versions. Using renewable resources rather than non-renewable petroleum products to produce plastic leads to substantial long-term environmental benefits. Polylactic biodegradable plastic (PLAs), polyhydroxyalkanoates (PHAs), and Recycled Polyethylene Terephthalate (RPET) represent additional biodegradable plastic alternatives used in consumer packaging.

While reducing packaging waste destined for incinerators and landfills is a primary benefit of biodegradable packaging, the strategy yields additional gains, when compared to traditional polymers.

• More energy-efficient to produce – Manufacturing biodegradable packaging materials can often be accomplished with less energy than that required to produce traditional plastics.
• Fewer emissions during manufacturing – Reducing the amount of energy and fossil fuels required to produce plastic results in lower greenhouse gas emissions.
• Flexible applications – Turnkey packaging companies utilize biodegradable packing materials in a number of ways. The substances can be extruded, injection molded, and foamed, often using modified conventional machinery. Biodegradable material can be colored and its texture can be modified for aesthetic purposes. Some biodegradable packaging material is fortified with additives that increase durability and stability.
• Greater sustainability – Biopolymers and other packaging materials produced from renewable resources contribute to greater overall sustainability. The movement toward eco-friendly packaging aligns with consumer calls for responsible, sustainable, production and packaging.
• Soil enrichment – Under the right conditions, well-executed environmental packaging breaks down into nutrient rich soil, contributing to healthy conditions for growing plants.

Does Biodegradable Packaging Have Limitations?

Although they are conceived and produced expressly to reduce environmental impacts, biodegradable packaging materials have limitations. Cost, durability, and failure to produce desired sustainability benefits are among the chief concerns holding back some biodegradable packaging solutions.

Consumers seeking green packaging alternatives are met with a sometimes confusing landscape, comprised of multiple environmentally conscious packaging designs. Adding to the uncertainty, technical jargon and extraneous marketing claims make it difficult for consumers to distinguish between various packing methods and accurately assess the environmental impacts of each package type.

Although various green packaging materials are commonly lumped into a single catch-all classification, biodegradable plastics typically fall into two distinct categories — each with unique environmental impacts. In order to leverage the best possible environmental outcomes, consumers must recognize the limitations of biodegradable plastics and other types of packaging marketed as biodegradable. To alleviate confusion over various packaging alternatives, Europe has imposed universal standards for biodegradable plastics and introduced a logo to be placed on compostable items.

The term, bioplastics, refers to plastic packaging material derived from renewable resources. But bioplastics are not exactly the same as biodegradable plastic. The latter is actually produced using petroleum based materials, which have been fortified with additives known to help degrade the plastic under specific conditions. Also known as oxo-degradable plastic, a pro-oxidant additive helps the material biodegrade over time. Unfortunately, there is no independent, verifiable and conclusive guarantee the plastic material will fully break down.

In addition to concerns about biodegradable packaging’s ability to break down with microorganisms, biodegradation technology presents perceived limitations such as:

• Single-use applications – After decades of promoting recycling for the good of the planet, producers are now asking consumers to embrace single-use biodegradable packaging solutions. The change of direction is seen by some as a confusing conflict, as consumer understanding catches up with advances in plastics technology.
• Cost – Manufacturing biodegradable plastic relies on natural raw materials, driving up the cost of producing green packaging alternatives. The production process itself also adds expense, compared to the cost of making traditional plastic. As a result, the cost of creating biodegradable plastics runs roughly 20-30% higher than spending required to manufacture traditional petroleum based packaging plastics. Although higher costs prevail in today’s manufacturing environment, it is thought industry advances will ultimately bring down the price of biodegradable plastic production, on par with traditional plastics.
• Durability – Detractors worry biodegradable plastics won’t fully break-down over time, but some stakeholders share contrary concerns, believing biodegradable packaging lacks the protective lifespan offered by traditional packing materials.
• Limited environmental gains – Unlike true bioplastics, which derive from natural ingredients that break-down on their own, biodegradable plastics are petroleum-based, relying on special additives to promote biodegradation under specific conditions. Though biodegradable plastics are already viewed as a preferred environmental alternative, there is room for continued improvement, as plastics technology advances.

Biodegradable materials serve widespread applications within the contract packaging industry. From food packaging of containers and bags to coffee cups and packaging peanuts, biodegradable solutions provide environmentally sound alternatives for commonly used packaging materials. Whether packing medical devices or consumer packaged goods, experienced packaging contractors are prepared with beneficial biodegradable solutions.

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A popular practice among the many methods conveying products to consumers, shelf-ready packaging continues delivering versatile shipping and merchandising solutions for grocers, big box stores, and retailers operating in various verticals.

Contract Packagers Offer Secondary Packaging Ready for Retail Display

Primary and secondary packaging works in unison, providing product protection, communicating brand messages, and facilitating storage and merchandising requirements for food and non-food items. The most effective packaging solutions cater to unique retail settings, such as big box stores, discount food emporiums, and niche retailers in grocery, health, beauty, and countless CPG categories.

One of the trends continuing to drive packaging innovation, shelf-ready packaging, also known as retail-ready, pallet-ready, and display-ready packaging, creates a value-added convenience for retailers, presenting multiple benefits.

The terms shelf-ready packaging (SRP) and retail-ready packaging (RRP) refer to packing methods enabling retailers to display secondary packaging without unpacking the contents of each box or carton. The strategy often utilizes corrugated material to craft custom merchandising opportunities, which double as both shipping materials and eye-catching in-store displays. In addition to cardboard shelf-ready carton material, reusable plastics are also used to create display cases, trays, and other retail-ready solutions.

Display-ready Packaging is Optimized for Efficiency

Shelf-ready packaging requires less handling by receivers, creating stocking efficiencies without sacrificing product protection or display aesthetics. By reverse engineering the logistics and merchandising requirements of each product, contract packaging companies can now optimize shelf-ready solutions not only for product type and shelf size, but also for quantities, using sales and turnover data to bolster stocking and shelving efficiency.

SRP solutions help reduce costs by cutting stocking time, and the flexible packaging strategy further contributes to increased profitability by stimulating impulse purchases and capitalizing on high quality graphics for heightened brand visibility and easy consumer identification.

By communicating brand messaging and meeting the demand for versatile, efficient shelving solutions, retail-ready store displays not only save money for sellers, but innovative shelf-ready packaging also improves the overall customer experience for end users.

Packaging Companies Meet the Growing Demand for Shelf-ready Packaging

The global shelf-ready packaging market is already valued at more than $60 billion annually, projected to experience compound annual growth of 4%+ through at least 2028.

Flexible, versatile shelf-ready packaging solutions have broad financial appeal for retailers facing high wages and worker shortages, enabling easy, efficient restocking and promoting brisk turnover rates. As discount grocers and large-scale retailers continue driving growth for retail ready packaging, experienced turnkey packagers are well-positioned to meet increased demand, maintaining the equipment, materials, and expertise required to help producers overcome shelf-ready packaging challenges.

In addition to yielding greater efficiency stocking shelves, display-ready packaging also simplifies inventory management, giving way to cost savings and preventing lost sales due to product shortages. Well-designed, custom, shelf-ready boxes and displays also aid damage control, reducing handling points and associated breakage.

Waste-reduction and sustainability benefits further separate shelf-ready displays from traditional secondary packaging, positively impacting the packaging waste stream.

Contract packaging professionals routinely clear common retail-ready packing hurdles, enabling their manufacturing partners to avoid pitfalls and capitalize on cutting-edge contract packaging strategies and services.

Consumption Trends Contribute to Shelf-ready Packaging Innovation

Many consumers have shown willingness to pay a little more for sensible, sustainable packaging. As their disposable income drives packaging choices, modern shoppers’ habits are responsible for increased demand for shelf-ready die-cut cartons. Buyers’ fast-paced lifestyles align with the easily identifiable, responsible, pared-down presentations offered by retail-ready shelving solutions.

For retailers, die-cut secondary cartons facilitate speed stocking and the sturdy containers make efficient use of retail shelf space. Increased consumption of packaged food further contributes to rising demand for versatile, durable, shelf-ready cartons. Boxed beverage tray presentations and corrugated cartons with tear away display-ready cutouts are effective merchandising tools for canned goods, allowing simplified access for shoppers and fewer hours spent facing shelves.

Stand up pouches compete with traditional formats for canned goods and other food and non-food items once marketed in hard sided containers. The durable, adaptable primary packaging pouches lend themselves to standup displays in die cut trays. The pouches stand vertically in stout display-ready boxes with high quality brand graphics, reducing the display footprint when compared to traditional canned good packaging alternatives.

Establishing High Standards for Shelf-ready Packaging

Shelf-ready designs have spread from the U.K across Europe and beyond. U.S. retailers have embraced the benefits of shelf-ready packaging in earnest, requiring a unified approach among supply chain stakeholders. General consensus includes several straightforward standards for effective shelf-ready packaging.  In order to clear the informal industry threshold, retail-ready displays should be “easy” in five distinct ways. At a minimum, the best shelf-ready packages should be easy to identify, open, stock, shop and dispose of.

Although principle players agree on the basic philosophies driving shelf-ready expansion, standardizing retail-ready displays presents challenges, due to the varied nature of retail environments. As diverse stakeholders embrace the benefits of SRP, looming problems may include resolving cost to benefit questions at each level, from production through retail sales.

Although major players such as Walmart, Aldi, Costco, and Kroger have elevated shelf-ready packaging to prominence, innovative RRP solutions speak for themselves. Retail-ready packaging upgrades accommodate the modern supply chain, and consumer benefits validate shelf-ready packaging as a viable forward-looking retail merchandising alternative.

Measuring shelf-ready packaging efficacy, the notions of easy to identify and easy to shop focus on the customer experience, illustrating how SRP benefits buyers. The commitments that shelf-ready packaging should be easy to open and shelve point to two of the advantages welcoming retailers that utilize display-ready packaging. Because stores employ an increasingly smaller workforce responsible for stocking shelves, retailers require streamlined packaging alternatives for fast shelving. And with customer preference demanding on-the-go convenience, shelf-ready packaging alternatives are here to stay.

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Artificial intelligence (AI) simulates human intelligence, predicting future conditions with the help of sophisticated algorithms and computing power. In order to “see” potential outcomes, AI programs and applications analyze large volumes of data, recognizing patterns and correlations that help AI predict what might happen next. The game-changing technology has widespread applications, including uses within the contract packaging industry.

Groundbreaking technological advances offer opportunities to transform business operations. As artificial intelligence capabilities expand, AI solutions are reshaping commerce in several key areas. Among the experts embracing artificial intelligence, forward-looking contract packagers and supply chain professionals are eager to leverage the benefits of AI.

A recent PMMI Business Intelligence Report, entitled “Transforming Packaging and Processing Operations” indicates most packaging and processing industry executives surveyed at the 2024 Top to Top Summit showed a desire to integrate AI solutions into their business operations.

Artificial Intelligence Gains Momentum in the Contract Packaging Industry

The recent groundswell of interest in AI technology extends into the packaging industry, yet many contract packaging companies are still in the early stages of investing in AI solutions. Information gathered at the Top to Top Summit confirmed that despite executive support for the technology, many packaging industry AI projects are still in the research and development stages, with other AI efforts just getting off the ground.

Cost savings, efficiency improvements, and overall equipment effectiveness are key areas where AI is expected to shine, yet obstacles remain for packagers integrating AI. Learning where to best apply AI and how to secure information are critical concerns for innovative packaging professionals tasked with tapping the benefits of artificial intelligence technology.

AI applications offer benefits on manufacturing floors as well as office suites. Contract packaging companies utilizing AI on the production floor may turn to the technology for predictive maintenance, quality control, and automating repetitive tasks. Many packagers expanding their commitments to artificial intelligence presently utilize AI outside production, in areas such as customer service, sales, marketing, and human resources, as well as planning and forecasting.

In some cases, early AI success has empowered packaging companies to invest in the technology’s future, expanding the role of artificial intelligence above and beyond their initial vision for AI in the contract packaging industry. Top to Top participants identified logistics optimization, operational improvements, and flow simulations as a few of the areas they’d explore for future AI application.

We invite you to try our innovative packaging AI tool as a starting point in this exciting and ever-growing industry.

AI Predictive Maintenance for Packaging Operations

AI creates operational efficiencies previously unavailable to contract packagers. Production equipment maintenance, for example, traditionally requires excessive downtime, harmful to the bottom line. With the help of AI technology, it is possible to streamline maintenance processes, resulting in production efficiencies and cost savings.

Proper machine maintenance once followed preset inspection schedules. Operators regularly ceased production to inspect equipment and replace machine components, following a predetermined preventative maintenance calendar. Although thorough, the practice often results in unnecessary idle time for packaging and manufacturing equipment. AI-enabled predictive maintenance minimizes unnecessary down-time associated with preventative maintenance, using data-driven insight to predict maintenance and replacement needs.

Representing one of the most common AI packaging applications utilized in 2023, a survey found 71% of respondents already using some form of predictive maintenance technology at their packaging and processing plants. The number was up from a similar study conducted just 2 years prior, which indicated only 45% of those queried were utilizing AI to help predict maintenance needs.

Sensors on machines provide game changing insight, allowing operators to monitor key parameters in real time. Sensors trained on vibration, temperature, pressure and other metrics provide data, which is then analyzed using machine learning algorithms. The cutting edge AI practice leads to cost savings and reduces overall maintenance budgets, enabling operators to identify performance patterns and avoid both costly breakdowns and unnecessary maintenance stoppage. Moreover, as AI continues learning from performance data, predictive maintenance solutions grow even more accurate and efficient over time.

Key AI Applications for Contract Packaging Companies

AI enables packaging companies and their manufacturing partners to automate complex and repetitive processes. The technology also helps contract packagers enhance and streamline operations in various ways, including the following packaging practices in which AI increasingly plays a role.

Inventory Management and Supply Chain Optimization

AI provides real-time data-driven insight, which would otherwise be out of reach for most supply chain stakeholders. By analyzing vast volumes of historical information and then making informed predictions about the future, AI-powered applications accurately predict demand patterns, which in turn supports efficient production and inventory management practices. In addition to tracking sales, inventory, and market trends, AI and blockchain technologies in packaging can also yield shipping efficiencies, furnishing route optimization algorithms that reduce transport costs.

Customization and Personalization

Analyzing consumer data identifies user preferences, enabling packaging companies to offer custom solutions, based on AI insights. The technology supports consumer engagement and brand loyalty, providing the information required to efficiently cater to personal preferences.

Quality Control and Material Inspection

AI helps packagers streamline inspection and quality control practices. AI vision systems efficiently scan packaging materials for damage and defects, reducing the number of faulty items shipped. By ensuring quality standards are met, AI-powered quality control reduces turnaround times and inspection expense, without sacrificing accuracy and consistency. Advanced AI solutions can also tell shippers which packaging methods are most effective and reliable for transporting particular items, based on data drawn from prior shipping outcomes.

Advanced Robotics

Smart robots enhance accuracy and precision during manufacturing. The AI-backed technology leads to faster production speeds for producers and packagers, without giving up high quality output. Whether the intelligent robots pick, place, or package items, the AI-driven machines free workers to complete other important tasks. Smart robots use AI to learn and adapt, making the machines very versatile for contract packaging projects.

Date Labelling

AI and machine learning can help companies reduce or eliminate mislabeled goods, guarding against inspection failures and financial losses due to avoidable human error. Used in date labeling applications, AI raises the reliability standard, reducing food waste and customer complaints, while increasing efficiency.

Contract Packaging Companies are Just Getting Started with AI

Machine learning and artificial intelligence have widespread applications across the packaging industry. Contract packagers already use the technology to improve customer support, streamline production processes, and generate logistics efficiency. These benefits offer a glimpse of AI’s potential, which has only begun to transform contract packaging practices.

As packaging contractors and their supply chain partners continue embracing machine learning and data-driven AI solutions, the technology is raising the packaging standard for producers and consumers.

The post How AI is Transforming the Contract Packaging Industry: Efficiency, Precision, and Innovation appeared first on Assemblies Unlimited.

These sustainably-sourced innovations account for an expanding share of the overall packaging market, appealing to eco-conscious consumers and contributing to greener packaging outcomes.

Experienced contract packaging companies operate on the cutting edge of sustainable packaging innovation, offering versatile packaging solutions that don’t rely on petroleum-based polymers.

Environmental Impacts of Plastic

To say global plastic usage has risen dramatically since the first form of plastic was introduced in 1907 is an understatement. By 2010, annual plastic production had reached 270 metric tons, with plastic waste accounting for 275 metric tons (exceeding the annual production figure due to plastic waste from material produced in prior years). Since its introduction, more than 9.5 billion metric tons of plastic had been manufactured by 2019, representing at least 2200 pounds of plastic generated for each person alive at that time.

Among the distinct disadvantages of utilizing traditional plastics are that fossil fuels are depleted during the manufacturing process, and conventional plastic does not readily degrade. Plastic production itself pollutes the environment, and it is also thought conventional plastics take 500-1000 years to break down — during which the material releases harmful substances into the environment. Recycling eases the overall impact of plastic waste, but a relatively small percentage of plastic is ultimately recycled.

Although plastic is used in diverse applications across many global industries, plastic utilized for packaging accounts for more than 50 percent of total global plastic production, drastically outpacing construction, textiles, and other industries reliant on traditional petroleum-based plastics. Packaging production continues shifting toward greener packing alternatives with the effects of traditional petroleum-based plastic products stacking up against the environment and consumer sentiment embracing sustainability.

Materials innovation and commitments from manufacturers and packaging companies offer promising advances, mitigating the downsides of traditional plastic packaging. Among the new wave of ideas fueling greener outcomes, sustainable packaging alternatives are replacing conventional plastic in many cases, including shipping and packaging applications.

Bioplastics Facilitate Versatile and Sustainable Packaging Solutions

Sustainable plastic alternatives include bioplastics, which offer many qualities of petroleum-based plastic, with the added benefit of sustainable sourcing. Several forms of bioplastic are in use, contributing to greater environmental accountability, especially in the packaging industry, which relies heavily on the protective, durable features of plastic products. Single-use items, in particular, add volumes to the waste stream; bioplastic innovation presents opportunities to reduce pollution, without sacrificing consumer convenience and product integrity.

Various bioplastics serve as substitutes for petroleum-based plastic. Although they are derived from natural resources, bioplastics are not necessarily biodegradable. Care must be taken distinguishing how these substances are treated in the packaging waste stream. To be considered biodegradable, material must break down in a relatively short period of time, often limited to one year. To earn this distinction, bioplastics must degrade with the help of microorganisms such as bacteria and fungi, ultimately producing carbon dioxide, methane, biomass, and inorganic compounds.

Compostable bioplastics similarly degrade but decompose into nutrient-rich biomass that does not leave behind residue or toxins. Some compostable packaging alternatives can be processed at home, while others require special conditions offered only at specialized composting facilities.

Bio-based Sustainable Packaging Alternatives Gaining Momentum

• Starch-based plastic – Derived from corn starch, examples of starch-based bioplastic applications include compostable food and yard bags, as well as food packaging and disposable containers used in food service.
• Cellulose-based – In addition to eyeglass frames and other consumer goods, plastic applications with bioplastic derived from cellulose include thermoplastics and extruded films used in the packaging industry.
• Protein-based – Plant based packaging and animal protein-based materials provide workable plastic alternatives for the food packaging industry. Packaging companies utilize the eco-friendly approach, which relies on wheat gluten, casein, and milk to produce films and coatings for food packaging. Protein-based packaging protects freshness and food integrity without the downsides of petroleum-based plastics.
• Bio-derived polyethylene – Shipping and packaging material derived from sugarcane and corn has widespread applications within the packaging industry, including drums and bulk packaging, as well as crates, trays, bottles, and caps.
• Aliphatic polyesters – A group of bio-based polyesters that are suitable for replacing traditional plastics in some instances, aliphatic material includes polylactic acid (PLA), a form of recyclable and biodegradable polyester made from renewable sources. The material has applications across diverse manufacturing segments, including the packaging industry, where PLA serves as a sustainable alternative to traditional petroleum-based polymers.

Sustainable Paper and Cardboard Packaging Solutions Outperform Plastic

Recycling paper packaging into pulp and reusing the material to make new products is a relatively low-impact process, compared to creating post-consumer recycled plastics. Paper packaging can be recycled multiple times, helping paper packaging alternatives outperform even bioplastics, in terms of environmental sustainability.

Paper packages are derived from a renewable resource, and green paper manufacturing can be successfully undertaken with few or no chemical reactions, producing environmentally responsible recyclable or compostable paper packaging.

Paper packaging innovation includes versatile hot and cold food containers such as compostable clamshells, and even bubble wrap is no longer limited to plastic construction. Newly developed eco-friendly shipping materials such as paper bubble wrap get the job done without creating plastic waste. In addition to utilizing cardboard and paper to replace traditional plastic food containers and shipping components, contract packagers also offer paper-packaged alternatives in health, beauty, and other consumer segments.

Whether shifting toward bioplastics or embracing the benefits of paper packaging alternatives, established contract packagers maintain cutting-edge expertise in the growing sustainable packaging sector, an experienced packaging partner can help manufacturers reduce waste and negative environmental impacts during production and distribution, catering to the needs of modern eco-conscious consumers.

At Assemblies Unlimited, our innovation and resourcefulness can meet your packaging project needs. Whether you require a “plastic packaging alternative” solution or have other unique contract packaging requirements, please fill out the form to request a quote, and a packaging specialist will contact you to discuss your project.

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Sustainability concerns have altered global manufacturing standards, raising the stakes for green innovation and environmentally sound production practices. As public planetary awareness grows, consumer spending increasingly favors green initiatives, leading makers and marketers to embrace sustainable methods and messaging. To that end, contract packagers are tasked with reducing the environmental impact of consumer packaged goods.

Among the forward-looking solutions for managing packaging waste and boosting sustainability, plant-based packaging materials have emerged as important features in the move toward greater eco-consciousness.

Environmental Impacts of Plastic Packaging

Plastic packaging has experienced a long run, dominating the consumer packaging marketplace. Convenient, effective plastic packages once represented the cutting edge of the packaging industry, providing go-to packing solutions for diverse products.

However, with the emergence of new technology and lasting shifts in consumer preferences, the downsides of petroleum-based packaging have eclipsed its benefits, in many cases, leading to greener plant-based packaging solutions.

One clear problem with plastic packaging is the pollution created by petroleum-based wraps and containers. Although some plastic packaging is recyclable, many traditional, recognizable plastic packages create waste directly destined for landfills, accounting for millions of tons of annual food packaging waste. Plastic materials are stable, so they don’t readily decompose, particularly when buried without exposure to sunlight.

In addition to contributing solid waste to the environment, plastic packaging is also known to release harmful chemicals into the air. According to the United States Environmental Protection Agency’s (EPA) Toxics Release Inventory Program (TRI), plastics are responsible for releasing chemicals such as trichloroethane, acetone, benzene, and styrene, among others.

The EPA initiative tracking toxic releases helps companies, communities, and government agencies make informed plastic usage and disposal decisions, including contract food packaging strategies. The manufacturing and refining processes used during plastic production release further harmful emissions, adding to the negative impact of some plastic packaging solutions.

Plastics’ negative health effects are a genuine cause for concern, contributing to the rise of plant-based packaging. In some cases, toxic additives and problem chemicals can migrate from fossil fuel plastics into packaged food products, potentially exposing consumers to unhealthy agents. With multiple downsides diminishing the appeal of some traditional packaging methods, plant-based materials technology has given rise to advanced packaging alternatives that rely less on petroleum polymers and paper-based materials.

Shifting Attitudes and Emerging Technology Prompt Plant-based Innovation

Both public and environmental intolerance for unsustainable materials have surpassed action stage, fueling demand for sustainable plastic alternatives. As much as 40-percent of global plastic use has been attributed to packaging, prompting action from materials innovators and packaging professionals. Responding to consumers’ calls for sustainable packaging solutions, stakeholders have turned to plant-based packaging, yielding workable alternatives to traditional petroleum-based packages.

Bioplastics and plant-based versions share some of the same benefits offered by traditional plastic packaging, which is relatively inexpensive, effective, and easily produced. Given the well-documented downsides of plastics, plant-based alternatives represent a sea change in the contract packaging industry.

Bioplastics are made from renewable resources rather than the fossil fuels behind traditional plastics. Innovative plant-based solutions are versatile, like their forebears, yet can often be composted. Rather than petroleum, the basis for bioplastics includes vegetable oils, corn starches, sugar cane, algae, and other sustainable resources.

Plastics Derived From Plants

The science distinguishing plant-based, bio-based, and traditional plastics involves the source of the molecules comprising the material. Traditionally derived from fossil fuels, familiar plastics rely on petroleum-based molecules. In contrast, plant-based plastic is made from plant-derived molecules. Both types of plastic are comprised of polymers, but the chains of molecules come from different sources.

Tracking the demand for renewable solutions, plant-based packaging utilizes everything from agricultural waste to seaweed. However, despite their association with sustainable resources, not all of the materials are fully biodegradable. In order to degrade, substances must first be able to disintegrate into smaller pieces before being ingested by microorganisms. Not all plant-based packaging meets these criteria, but many options rise to the standard, yielding substantial benefits compared to their petroleum-based counterparts.While plant-based plastics may help circumvent non-renewable fossil fuels, the innovation doesn’t offer a catch-all solution for plastic pollution. Because some plant-sourced polymers don’t degrade or require precise conditions to biodegrade, end-of-life packaging challenges remain, providing further opportunities for green packaging innovation.

Undoubtedly, biodegradable and compostable packaging materials appeal to green consumers, but recent studies highlight problems with compostable plastic claims.

Many innovative materials are designated industrial compostable only, and plastics promoted as home compostable don’t always perform well. One look at home composting showed 60-percent of home compostables don’t fully decompose, creating soil pollution

Packaging Dominates Bioplastics and Plant-based Material Applications

According to Innova Marketing Insights, food and beverage packaging claiming to be biodegradable or compostable has tripled since 2018, with more than half the claims coming from tea, coffee, and confectionary producers.

Consumers, in-turn, have a positive view of paper and bioplastic materials; only six to seven-percent of shoppers view paper and bioplastics as unsustainable. Supported by consumers’ growing commitment to environmental concerns, bioplastics production is expected to continue growing steadily, forecast to nearly triple by 2027.

As more marketers directly target eco-conscious buyers, packaging plays a primary role in the future of bioplastics. Although greener materials are in demand across the board, packaging represents as much as 48% of the bioplastics industry by weight, driving growth and innovation of plant-based alternatives.

Forward-looking CPGs and co-packers continue advancing the science behind plant-based packaging solutions, devising drop-in solutions that directly replace polluting plastics. One such manufacturer claims end-of-life “bio-assimilation,” creating food for microorganisms that fertilize soil. The producer, Xampla, mirrors public sentiment with their mission to cut greenhouse gases from plastic production, efficiently use plant and agricultural waste, and eliminate plastic pollution. The company’s versatile solutions offer some of the same benefits as traditional petroleum-based plastics, enabling contract packagers to substitute plant-based solutions, without retooling.

As green packaging technology catches up with buyers’ preference for green alternatives, diverse brands have committed to reducing packaging waste. Unilever, PepsiCo, Ben and Jerry’s, and Coca-Cola are only a few of the CPG giants that have established timelines for phasing out environmentally unsound production and packaging strategies.

Bioplastics and plant-based packaging materials represent a growing segment of the ongoing green revolution. As consumers increasingly spend with sustainability in mind, greener packaging alternatives have moved to the mainstream, creating new ways for turnkey contract packaging companies to excel.

At Assemblies Unlimited, our innovation and resourcefulness can meet your packaging project needs. Whether you require a compostable packaging solution or other unique contract packaging requirements, please request a quote, and a sales specialist will reach out to discuss your project.

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Although some consumer-driven packaging solutions are short-lived, reflecting momentary trends or seasonal cycles, consumer concerns can also lead to lasting transformations. Among the important trends driving the future of packaging innovation, consumers’ growing commitment to sustainable solutions strongly influences modern packaging choices.

Green Alternatives Rooted in Consumer Consciousness

Environmental consciousness is on the rise, transforming the consumer landscape. As buyers strengthen their commitment to sustainability and eco-friendly packaging and distribution practices, forward-looking companies are positioning their brands alongside sustainable packaging solutions.

A recent study proves that when environmental consciousness and ecological concerns merge with commerce, sustainable packaging is an increasingly important factor for consumers’ spending decisions. Surveying 10,000 respondents, from 17 countries, the Global Sustainability Study found at least 60% of respondents rated sustainability as an important purchase criterion. In the United States, 61% of those studied rated sustainability as important.

Viewing themselves as agents for change, consumers from recent generations are more likely than older shoppers to pay the financial price for holding producers accountable for sustainable practices. Putting their money to work for the environment, Millennials and consumers from Generation Z are most willing to pay a premium for sustainable alternatives. Compared to Baby Boomers, who are prepared to pay a 14% premium for sustainability, Generation Z will pay a 32% premium to buy sustainable products and services.

Overall, more than 50% of those polled rated sustainability as a top-five value driver. According to the study, the US topped the list of shoppers willing to pay extra for sustainable practices; 42% of US study subjects expressed willingness to pay more in exchange for sustainability. The National Association of Convenience Stores cites another comprehensive study looking at consumers’ relationship with sustainability, reporting 67% of respondents expressed it is important for the products they buy to be packaged using recyclable materials.

The evolving sustainability movement is committed to meeting present-day needs without compromising future generations’ ability to do the same. More than a passing trend, the drive for sustainability has momentum, generating incentives for brands seeking ways to incorporate green innovation into their packaging and production strategies. Aligning brand values with consumer-held environmental concerns is a sound business practice in today’s greening marketplace, and the expanding environmental consciousness shared by younger consumers ensures a prominent future for sustainable packaging practices.

Sustainable Packaging Industry Growth and Innovation Opportunities

According to the longstanding definition adopted by the Sustainable Packaging Coalition, sustainable packaging must be beneficial, safe, and healthy for individuals and communities throughout its life cycle. In addition, the packaging must be sourced, manufactured, transported, and recycled using renewable energy. Sustainable packaging is also designed to maximize materials and energy and optimize the use of renewable and recycled source materials.

As consumer demand regulates back toward pre-pandemic levels, the sustainable packaging industry is poised for a CAGR above 5% through 2028. One recent sustainability industry study predicts the value of the global sustainable packaging industry is expected to rise from $258 billion in 2020, to more than $385 billion in 2028. Green food packaging, in particular, is in high demand. Once production and demand achieve lasting balance, the stakes are high for producers and packagers committed to going green. Although adopting sustainable practices often comes at a price, investing in sustainability not only yields environmental benefits, but also strengthens brand relationships with eco-conscious consumers.

Sustainable Packaging Strategies for the Future

Unified by the shared goal of protecting and preserving natural resources, sustainability efforts encompass wide-ranging activities designed to reduce humans’ impact on the environment. Moves toward sustainable packaging include reducing or eliminating the use of non-degradable materials, as well as adopting efficient strategies for transporting raw materials and finished goods.

As consumers adopt sustainable practices, contract packagers and other supply chain stakeholders follow suit with green packaging solutions, designed to reduce waste, optimize raw materials, and capitalize on sustainable technology advances. With comprehensive sustainability programs still on the horizon for many companies, the following strategies are already producing results.

Reduce the Amount of Material Used in Packaging

Packaging innovation includes high-tech solutions such as bio-based materials, but getting back to basics also yields sustainability benefits. When measuring the overall environmental impact of common packaging methods, significant gains are possible by reducing the volume of material required for each packaging job, without sacrificing protection and presentation.

Adopting a less is more strategy includes lightweighting, a universal effort focused on thinning and streamlining containers. Corrugated boxes, in particular, are rightsized for greater efficiency and lightweighted to reduce waste. The corrugated industry represents such a large segment of the packaging industry; even small reductions translate into measurable sustainability benefits. In another example of streamlining success, utilizing thinner PET bottles is thought to have reduced the amount of plastic used in ketchup, salad dressing, and soda bottles by as much as 50%.

Re-evaluate and Redesign Packaging for Functionality

Every stage of packaging and distribution offers opportunities for greater environmental efficiency. Reimagining product packaging might be as simple as altering package shapes for better boxing efficiency or as advanced as developing new material technologies.

In one example yielding greater sustainability for shippers, traditional hard corner inserts typically used to reinforce pallets before wrapping can now be eliminated in many cases. A special pre-stretched, reinforced wrap reduces the amount of packaging required for each pallet, without compromising the load. Another expanding food and beverage packaging practice, directly printing labels on glass and cans, is a sustainability measure, reducing the use of paper and glue.

Utilize Readily Recyclable and Reusable Materials

Paper packaging alternatives effectively replace plastic packaging in some cases, but paper products commonly require many times more bulk than their plastic counterparts, limiting the overall benefits of replacing polymers with paper. Facing popular demand for convenient, single-use packaging solutions, manufacturers and packagers must continue devising sustainable packaging alternatives comprised of paper and other readily recycled materials.

Embrace Bio-based Packaging Materials and Sustainability Advances

Bio-based packaging innovations include coatings and films, as well as solid and semi-solid containers. The game-changing packaging alternatives are comprised of substances gathered from plants and animal biomass. Proteins, polylactic acid, polysaccharides, cellulose, and xanthan are all utilized in sustainable bio-based packaging alternatives.

One emerging plant-based packaging innovation uses dairy-based packaging materials to reduce reliance on synthetic polymers. The food packaging alternative incorporates casein and whey derived from milk, creating food packaging films. The films are biodegradable and improved versions are becoming more effective providing barrier protection.

Manufacturers, producers, and their contract packaging partners continually cater to consumer preferences, ultimately reflecting their customers’ values. One important feature of the modern marketplace, sustainable packaging is a prominent value driver, influencing how shoppers spend their money. As packaging and logistics strategies continue evolving, sustainable packaging is poised for further growth, shaping packaging practices into the future.

Our team of packaging experts has over 30 years of industry experience and is ready to help with your next packaging project. Please reach out to us using the RFQ form, calling directly, or using our contact page information to locate the sales office closest to you. We look forward to partnering with you!

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As demand for flexible solutions expands within the contract packaging industry, custom flexible packaging alternatives enhance product protection, reduce food waste, cater to consumer convenience, and streamline logistics in many cases. With considerable packaging benefits already known, flexible packaging innovation is poised for further gains in the food, beverage, and nutritional supplement industries.

Benefits of Transitioning to Flexible Packaging

Flexible Packaging Assessment results shared online indicate flexible packaging now accounts for forty percent of global packages. According to the study, food represents the largest flexible packaging market share for end users, with noted growth in sweet and savory snacks and bars. In particular, smaller pouches are in demand for nuts, dried fruits, and nutrition bars. In addition to healthier snack choices, consumers also embrace mix-in powders and other dietary supplements, creating further opportunities to replace rigid containers with flexible packaging alternatives.

With the help of established contract packaging companies, a growing number of manufacturers are transitioning to flexible packaging. An industry study surveyed brand owners, with approximately forty percent citing production costs, shipping efficiencies, convenience, and consumer lifestyle trends as reasons for the shift to flexible packaging. More than half of survey respondents were able to reduce production costs by transitioning to flexible packages, and a similar share of businesses also reported sales increases after expanding their use of flexible packaging materials.

In one example illustrating multiple advantages of flexible packaging, baked goods are increasingly moving to bags and stand-up pouches. Utilizing flexible alternatives has helped producers lower packaging costs, extend the shelf life of baked goods, and increase product visibility.

Consumer Convenience and Satisfaction

The most effective packages keep food products fresh and provide preferred portion sizes; flexible packaging excels in both categories. Many modern consumers crave food and nutritional supplements on the go, so flexible packaging offers a nimble alternative to rigid packaging traditions. Catering to fast-paced, convenience-driven lifestyles, flexible solutions are well-suited for packing individual food portions as well as gummies, powders, energy drinks, protein bars, and other dietary supplements.

Easy handling is an important consideration for consumers requiring mobility and portability. Flexible solutions add value by incorporating user-friendly features such as re-sealable convenience and dispensing options. Ultralight materials add further appeal, providing mechanical strength without adding excess weight or waste.

Marking a shift from a rigid packaging tradition, powdered supplement makers are turning to flexible packaging for protein and powdered supplements. Supplement packagers overcome past problems with powder-clogging ordinary seals by incorporating powder-proof re-sealable closures.

Commitment to Safety and Sustainability

The Flexible Packaging Association identifies sustainability as one of the hallmarks of flexible packaging solutions. In practice, flexible packaging harnesses all the advantages of materials such as plastic, paper, foil, and film while minimizing the overall amount of material required to protect and preserve food and supplements.

Although flexible solutions are more sustainable and require less energy to produce than some of their rigid counterparts, end-of-life recycling challenges remain. Separating multi-material laminated films is difficult, limiting available recycling options with today’s infrastructure. Industry-wide efforts are underway to improve the sustainability profile of modern packages. Among the initiatives aimed at improving flexible packaging’s environmental performance are advancing flexible material sortation methods and improving recycling outcomes. As new technologies emerge, compostable packaging and bio-based flexible packaging materials are also on the rise.

Flexible food packaging enhances consumer safety. Where appropriate, flexible food packaging solutions employ antimicrobial food contact surfaces, reducing the risk of bacteria growth, chemical reactions, and fungi concentration. It is also possible to add modified atmosphere packaging (MAP), pairing the advantages of MAP and advanced flexible film qualities for sturdy mechanical strength and resistance to bacterial contamination.

Versatile and Customizable Flexible Solutions

Gummy supplements, powders, tablets, and countless food products each have distinct packaging requirements, calling for custom solutions. Because non-rigid packaging incorporates multiple layers and materials, the adaptable solution is very versatile, enabling packagers to create bags and pouches with precisely the protective qualities needed for each packaged product.

Transparency and product visibility are more important to shoppers than ever before. Along with interest in product origins and production practices, curious consumers also want to visually inspect food products before heading to the checkout. Flexible packaging alternatives boost shelf appeal, putting visible package contents on display for shoppers.

Versatile design options help flexible packaging professionals streamline shipping requirements without sacrificing protection – barrier layers keep oxygen out, and puncture-resistant features keep contents intact. In many cases, space-saving flexible packaging designs reduce transportation costs, resulting in a lower carbon footprint compared to some traditional packaging methods.

According to future market insights, the global nutraceutical flexible packaging industry experienced growth of 5.1% CAGR for the 2018-2022 period. It is thought the market will continue on a similar trajectory in the coming decade, predicted to grow at a rate of 6.9% CAGR. The global market value for flexible nutraceutical packaging is anticipated to exceed $4 billion in 2023.

Driven in part by consumer shifts toward healthier, more convenient lifestyle choices, flexible packaging is one of the fastest-growing packaging industry segments.

Reshaping packing traditions for food and supplements, flexible packaging is heralded for its many advantages, including reduced costs, space-saving shipping efficiency, customer convenience, and its positive sustainability profile. Industry innovation continues expanding the possibilities for flexible packaging alternatives, offering new ways for brands to benefit from the technology.

Our team of packaging experts has over 30 years of experience with flexible packaging solutions, and we are ready to help with your next packaging project. Please reach out to us using the RFQ form, calling directly, or using our contact page information to locate the sales office closest to you. We look forward to partnering and working with you!

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Supplement Packaging Connects With Consumers

Packaging’s protective value is only one of the design features under consideration when developing supplement packaging solutions. In addition to keeping goods safe and secure during transit and merchandising, supplement packages also provide opportunities for brands to stand out in an increasingly crowded category.

Niche brands, in particular, lean on well-executed supplement packaging designs to elevate their presence on store shelves. Even more than name recognition, packaging can help supplement manufacturers make lasting connections with consumers.

According to Nutritional Outlook, niche and mainstream companies alike are tasked with making personal connections with shoppers, even in mass markets. Unique, disruptive packaging designs are essential marketing tools for progressive supplement producers striving to break through. The best designs share important brand messages, conveying values that resonate with consumers.

Appealing to each buyer on a personal level while marketing to the masses poses challenges for supplement manufacturers. The process has been described as marketing from the inside out, beginning with natural food and supplement producers’ values and then working outward to convey brand identity and messaging.

Turnkey contract packaging companies help makers find their voice, tracking industry trends that stimulate sales. Successful campaigns utilize packaging designs illustrating the product attributes and company values that are most important to consumers.

Modern Packaging Design Reflects Product Innovation and Consumer Values

Natural product shopping trends emphasize innovation, as health-hungry consumers seek the latest breakthroughs in healthy food and supplements. In order to reach modern buyers, effective packaging designs find ways to promote forward-looking product innovation without sacrificing simplicity, a feature that is also important to supplement buyers.

Although simplified, successful supplement packages remain bold, often utilizing striking colors and purposeful graphics to make the desired impression with shoppers.

Supplement packaging innovation aligns with consumer expectations and mirrors advancements in the industry. As new dietary supplements emerge, competing for consumers’ attention, transparency plays a dual role in the marketing process. Not only do modern supplement users demand transparency in ingredient sourcing and production practices, but shoppers also literally want to see what they are buying, before making purchases.

To satisfy both requirements, supplement sellers and packaging companies have increased the amount of product information available to consumers and frequently use translucent supplement packaging to put their products on full display for buyers.

In much the same way modern consumers embrace brands committed to sustainability and supply-chain traceability, supplement users also identify with packaging conveying similar values. In today’s healthy food and supplement marketplace, buyers embrace recyclable packaging and expect streamlined solutions whenever possible. Manufacturers and their packaging partners have responded by removing secondary packaging and reducing the overall amount of material used for packing dietary supplements.

Moving away from plastic packaging is an important value shared by young, responsible consumers driving supplement sales, so makers have not only shifted packaging methods but have also directly integrated sustainability into their brand identities and messaging.

Supplement Solids, Powders, and Liquids Require Diverse Packaging Solutions

Dietary supplements come in many different forms, promising wide-ranging benefits. Marketing success in the expanding segment requires solutions for powders, liquids, capsules, tablets, and solids in various sizes and configurations. Packaging companies are up to the challenge, starting with eye-catching designs.

Package designs typically include must-haves such as ingredient lists, quantities, product names, dosage, manufacturing origins, distributor information, and barcodes. Beyond these requirements, consumers appreciate captivating presentations that are also functional for their contents and intended uses. Among the many effective packaging choices available within the industry, supplement packaging innovations include design trends such as:

Dropper Bottles

Small glass bottles featuring screw-on droppers are effective for dispensing some types of dietary supplements. CBD products in tinctures, for example, have emerged as a natural cure-all, drawing curiosity and sales from health-minded consumers. Dropper bottles facilitate precise dosing, enabling users to dispense a drop or two as needed.

Traditional Screw Top Vitamin Bottles

Proven pill packaging solutions provide effective, economical containers for capsules and tablets. In addition to traditional vitamin applications, screw-top bottles are also ideal for gummy bears and supplement gummies. These chewy supplements are in demand, offering an alternative delivery method for vitamins and other dietary add-ons. Vibrant colors and texture upgrades from glossy shrink labels can help elevate the appeal of labels found on traditional screw-top vitamin bottles.

Blister Cards

Blister packaging designs are ideal for daily vitamin and supplement usage, offering efficient dispensing and visual confirmation of each dose.

Canisters

Wide-mouth canisters are a mainstay for packaging protein powders and other dietary supplements. The versatile containers facilitate measured portion control, utilizing scoops to dispense doses dissolved in liquids. Often wrapped in multiples for bulk users, canisters are not necessarily limited to plastic options.

Though plastic versions are typically recyclable, some supplement powder canisters are constructed of cardboard, appealing to users committed to plastic alternatives.

Various Wraps

In addition to functional liquids and powdered vitamins/supplements, wholesome snacks and bars are also in demand among health-conscious consumers. Whether they are formulated to boost protein or deliver vitamins, solid supplements are well-served by various wrapping techniques, such as pet products. The single-serving wraps are both portable for consumers and economical for manufacturers.

Glass Jars and Bottles

Advanced materials often eclipse the benefits of glass, but fish oil supplements, coconut oil, and functional health drinks may be good candidates for glass packaging designs. Honey packaging is a prime use-case example for glass containers.

Flexible Pouches

Pouches are among the most versatile packages available for supplements, accommodating both liquids and powders. As substitutes for plastic canisters, powder pouches incorporate sliders and zipper locks to reseal the containers between uses.

At the same time, their tough, multi-layer construction streamlines supplement storage and shipping footprints. Spouted pouch designs are ideal for liquid dietary supplements and baby food packaging, incorporating upright construction and screw caps for functional liquids.

Stick Packs and Single Serving Pouches

Packaging design trends reflect consumers’ call for convenience and portability. Single-serving pouches and stick packages enable supplement users to dispense powdered mixes with the greatest possible ease, precisely regulating individual servings without needing to measure each dose.

Conclusion

Effective packaging design choices account for a product’s target market and the goals established by each brand. To that end, the latest trends in supplement packaging design leverage innovation and aesthetics to form connections with consumers and reflect values shared by producers and consumers.

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Packaging Trends Favor a Greater Variety of Package Choices and Sizes

Past packaging preferences mirrored many shoppers’ desire for “family” or “party” sized portions, enabling them to purchase sizable quantities of snacks and other packaged goods in a single bag or box. The trend was in line with club store marketing, which emphasized low prices for members buying big containers and multi-packs of food and household goods. While some buyers still embrace the ‘bigger is better’ standard, a new wave of modern consumers would rather have access to greater variety and product choices, across a wider spectrum of package sizes.

The multi-faceted shift from larger sizes to convenience and greater variety is due, in part, to buyers exercising more control and freedom in the checkout lane. Rather than committing to a big box or bag of food or household products, many shoppers prefer to sample multiple varieties, packed in smaller containers. Catering to the demand for more choices includes devising convenient ways to match package sizes to the expressed needs of modern consumers.

Portability and Portion Control Shape Packaging Preferences

Health and wellness concerns continue driving recent growth in nutraceutical and dietary supplement sales. Responding to rising interest in healthy food alternatives, packaging companies support producers, offering convenient solutions for marketing vitamins, chewable gummies, energy powders, and various supplemental food products aimed at healthy lifestyles.

In addition to the convenience of reclosable containers used for protein powders, gummies, and tablets, convenient dosage solutions also include single-serving packs that dispense the proper amount of powder, as well as blister cards for dispensing individual vitamins and supplement tablets.

The demand for portion control packaging extends beyond health food; consumers also demand single-serving sizes for everything from meat snacks to confections, using the packages themselves to prevent overindulgence. Built-in portability is also in demand among busy consumers, who are increasingly enjoying meals and snacks while on the move.

Rather than breaking down bulk packages for kids’ lunches and portioning portable bags of food for mom and dad, parents embrace simplified portable packaging made possible by advances in pouching and other sturdy packaging that holds up on the go.

Packaging Convenience Accounts for Freshness, Product Integrity, and Food Safety

Although they are committed to reducing packaging waste, younger consumers are also concerned with product integrity, often favoring food packages sized for individual consumption. The trend requires contract packagers to cater to this consumer group with packages that not only keep contents fresh, but also meet young buyers’ perceptions of sustainable packaging.

Many members of recent generations do not maintain set meal schedules favored by older consumers. Rather than sticking to traditional meal times, active young people commonly eat small portions of various foods throughout the day. For this growing cohort, convenience-sized packaging may be perceived as a way to control food waste and ensure freshness. Advanced barriers and other packaging material innovation keeps food fresh longer, expanding the range of edible products suitable for convenient, portion-controlled, portable packaging. Stand-up pouches, for example, present flexible solutions for diverse food products, allowing packagers to incorporate spouts and sliders to make the packages convenient for grazing on the go.

Packaging Innovation Overcomes Convenience Packaging Challenges

Multi-channel fulfillment poses challenges for manufacturers and packagers. In order to remain competitive, modern producers and their contract packaging partners must meet the needs of consumers on various levels. Not only are effective packages required for grocery stores and warehouse-style club retailers, but packagers must also devise suitable solutions for convenience stores and e-commerce merchants.

In a diversified marketplace, big-box warehouses may require pallet-sized presentations, while convenience stores specialize in single servings and grab-and-go food options. The convenience store category has also evolved beyond snacks and confections, now requiring effective and convenient portable packaging for meal stand-ins representing breakfast, lunch, and dinner, as well as traditional between-meal indulgences.

E-commerce solidified its place as the ultimate convenience during the pandemic, creating a paradigm shift for procuring consumer goods. Already on the rise before COVID-19 emerged, home delivery is now an essential approach to meeting consumer demand for convenience. In order to keep up with the demand for convenient home delivery options, packaging contractors rely on durable films and package designs that are fortified to withstand handling during transport.

Demand for Packaging Convenience Extends Beyond Food Products

Meeting consumer demand for convenient packaging isn’t reserved for food aisles, packagers also innovate accessible, durable solutions for beauty, personal hygiene, and household products. The convenience consumers expect include the ubiquitous COVID-era gel sanitizer and hand soap bottles equipped with pumps. And because household chemicals and cleaning agents also rose to greater prominence during the global pandemic, packaging trends emphasize easily accessible yet sturdy packaging, with adequate barrier properties.

Resealable closures are essential in non-food categories, making products convenient to use and as easy as possible to dispense. Consumer perception about the quality of products is often closely tied to how users interact with packaging. Pouching with convenient reclosable sliders, for example, reinforces the perception of high-quality contents, compared to bags requiring the user to clip or tie the package after each use.

Meeting consumer demand for convenience is a top-tier requirement for contract packaging companies. As shifting consumer preferences underscore convenience, experienced turnkey packagers account for each unique packaging application, supplying end-users with the most convenient package type for their intended use.

The post The Role of Packaging in Meeting Consumer Demand for Convenience appeared first on Assemblies Unlimited.

A modern recession, for example, may not manifest uniformly across the entire economy, instead sparing some sectors, even as other segments are hit hard. As post-covid commerce continues evolving, manufacturing and trade businesses, including packaging companies, are locked in a recession that isn’t apparent in other areas of the global economy.

Recent Report Points to Packaging Industry Recession

Although the packaging industry is historically resilient, a recent report issued by the chief global investment strategist at Charles Schwab & Co. suggests the packaging industry is in recession. In addition to conducting surveys of purchasing managers, the study looked at industrial production, trade volume, and job growth across various industries. In particular, the report analyzed data tracking cardboard demand, illustrating a notable downturn in demand for cardboard in 2023.

Demand for cardboard boxes serves as an excellent economic indicator, tracking consumer spending. While demand for boxes peaked at historically high levels during the pandemic, the downside has been steep, resulting in rapidly declining demand for boxes and cardboard shipping materials.

The Fibre Box Association offers data showing that the current decline in demand for corrugated liner board mirrors drops experienced during past recessions, further supporting evidence the US packaging industry has fallen into a “cardboard box recession.” Contrary to hopeful analysis projecting increased demand for boxes in early 2023, the actual annual outlook may not include rising demand before the year’s end.

The American Forest and Paper Association reported soft first-quarter demand for boxboard, resulting in production 5% lower than the same period in 2022. According to the AF&PA, the first-quarter boxboard operating rate was also down compared to last year, slipping more than 6%. Similar conditions are visible across the industry, with paper and packaging producers logging substantial production downtime in 2023. Packaging Corp., North America’s third largest containerboard producer confirmed shipments were down 13%, ranking early 2023 performance alongside declines experienced during the depths of the Great Financial Crisis of 2009.

Contract Packagers Support Clients Navigating Packaging Industry Recession

Recessionary conditions pose challenges for producers, reinforcing the value of trusted packaging partnerships. When economic conditions trend in the wrong direction, contract packaging companies offer strategies and resources that reduce the impact of industry downturns. Responding to recession, the most effective packaging companies take measures to keep costs down, while still delivering at a high level. Working with an experienced, adaptable packaging company offers widespread benefits.

Added Value

Skilled contract packagers bring diverse industry expertise, adding value to any packaging project — particularly when economic conditions are less than ideal. Professional packaging contractors’ design and merchandising knowledge and experience help clients identify the best custom packing solutions, adding value when stock boxes are not the best choice. Packagers’ familiarity with cutting-edge printing and shipping practices creates a competitive advantage for companies partnered with turnkey packaging providers. And when conditions change, effective packagers adjust in real time, switching materials or tweaking logistics for savings and efficiency.

Seamless Project Management

Packaging errors and inconsistencies undermine the flow of goods, resulting in slow turnaround and cost overruns. Start-to-finish project management reduces the chance problems will arise, providing oversight at each stage of production and distribution. Beginning with a client’s vision and design ideas, carrying all the way through product placement on store shelves, well-established packagers protect producers’ interests, reducing the impact of packaging industry recession.

Adaptability

Market conditions regularly fluctuate, including the onset of recessionary trends that strain manufacturers and packagers. Agile contract packaging partners understand adaptability is essential. Their experience facing economic adversity equips packaging contractors to pivot as conditions evolve, reducing the impact of recession and other industry challenges. Changing timelines, materials, processes, or other approaches may be all it takes to alleviate inconsistencies and ease the downside of packaging industry recession.

Established Supply Chain Relationships

Turnkey packagers operate across multiple supply chain disciplines, relying on a wide network of partners to move and market goods. Leveraging established relationships enables well-connected packaging experts to weather the storm, when recession sets in. Whether packaging contractors are sourcing raw materials or managing logistics, maintaining established relationships with proven partners facilitates preferred access for manufacturers and food producers.

Operational Efficiency

Profitability generally increases with efficiency, so the most effective packaging companies maximize production and devise efficient logistics solutions. Maintaining multiple regional processing and packaging facilities, for example, cuts distribution costs and supports swift product turnover without excessive warehousing. Turnkey contractors offer one-stop fulfillment, allowing producers to focus on manufacturing, while their packaging partners fill, blend, pack, label, and manage efficient distribution.

Cost-of-living Crisis Driving Packaging Trends Amid Industry Recession

In the wake of the global pandemic, which shifted shopping trends to online orders and remote fulfillment, consumers now face high prices due to shortages and inflation. As shoppers return to stores following the COVID crisis, their spending power has eroded, influencing their retail behavior. Packaging industry conditions directly reflect the economic uncertainty consumers are experiencing, resulting in a recession among packaging companies and associated businesses.

Packaging companies are united with manufacturers and food producers in efforts to overcome inflation and ease recessionary pressure. In order to court cash-strapped consumers, brands, and packagers are focused on value propositions and pursuing products and packaging that align with current consumer purchasing power. By leveraging established supplier relationships and proven logistics solutions, turnkey packaging companies minimize the impacts of industrywide recession, without sacrificing quality.

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Packaging Design Supports Fundamental Functions

Turnkey packaging companies account for various packaging functions, implementing designs that help build brand awareness. Among the important functional concerns driving design decisions, producers and contract packagers focus on key packaging considerations, including ways to:

Differentiate Brands

Food and supplement brands utilize design elements to differentiate their packaging from that of competing brands. Logos, graphics, packaging shapes, and distinctive materials are all used to establish recognizable brand-forward packaging, turning each package into a unique marketing device.

Inform Consumers

Consumers increasingly favor brand transparency, requiring modern manufacturers to share more information than did past producers. Informative packaging designs offer opportunities to share mandated information such as ingredient lists and nutritional facts and space to feature unique brand messages. Health claims, dosage information, and usage instructions are also conveyed on food and supplement packaging, along with expiration dates and other vital news about the package contents.

Protect Contents

Protective qualities are a fundamental feature of product packaging that keeps package contents intact during transit and storage. Well-designed retail packaging also accounts for merchandising needs, protecting goods from shelf-wear and handling and keeping contents safe from tampering.

Attract Buyers

Packaging design decisions directly influence purchasing choices. Eye-catching graphics, colors, and custom packaging features stand out on store shelves and in online marketing campaigns. Buyers unfamiliar with a particular product may have only its exterior presentation to rely upon when making purchasing decisions. Well-conceived designs attract attention for all the right reasons, drawing buyers to further investigate the most appealing options, especially when supported by tools like an AI presentation maker to showcase them effectively.

Strong Associations Link Brands with Packaging Designs

Consumers make strong associations between brands and packages. Over time, the line may blur enough to make a particular package design synonymous with its contents. A distinctively shaped liquor bottle, for example, may grow familiar enough to consumers that it is more readily recognized than the actual name of the spirits inside.

A functional design, such as a box dispensing facial tissue, may ultimately serve as the industry standard for packaging a particular product, creating long-lasting associations between contents and containers.

Experienced package designers create functional and aesthetic associations, relying on memorable designs that make purchasing decisions “automatic” for conditioned consumers. Shapes, colors, and value-added features cement the notion that a brand is responsible for the “original” version of a given product.

Positive First Impressions Lead to Long-term Brand Relationships

Positive first impressions left by well-executed packaging designs can lead to long-lasting brand loyalties. Eye-catching, upbeat, packaging designs foster positive takeaways, creating connections with consumers. On the other hand, failed first impressions, conveying the wrong mood or message, reduce shoppers’ incentive to investigate brands further.

While it may be true, there is only one opportunity to make a first impression, a memorable package design can nonetheless help food and supplement producers build brand awareness and spark lasting interest.

Packaging Designs Tell Stories and Answers Questions

Modern branding conveys manufacturers’ values and related information; packaging provides opportunities to share desired messaging and answer questions, before they are asked. Boxes, cartons, pouches, bottles, cans, and other containers serve as extensions of the brands behind the products, so the best packaging designs capture brand philosophies and emulate company values.

A company committed to sustainability, for example, should convey that message to consumers, using packages to connect with shoppers’ shared green visions.

Because packaging creates perceptions about producers and the contents of individual packages, dialing-in designs is the first step toward increased sales. Until they actually try a product, shoppers have little to go on, judging the efficacy or appeal of what’s inside a box or bag. The essential connection made by attractive, informative, and interesting package designs can’t be overstated; good packaging sells products.

Contract packaging companies work to make it as easy as possible for consumers to embrace CPGs. Not only do they design packages that are easy to open, but experienced packagers also promote easily understood designs.

While producers purposefully strive to influence shoppers, it is also important to convey truthful brand messaging, accurately portraying the benefits and features of packaged food and supplements. Answering basic questions about brands and products is a straightforward approach to informing and attracting buyers.

Who is the Target Buyer?

Identifying likely buyers helps shape packaging designs, providing direction for designers and contract packagers, creating brand-centric primary and secondary packaging for specific target markets.

What is the Product?

Describing a food or supplement product defines what it is, but “what” also refers to the brand. The best packaging designs capture a brand’s aesthetic, reflecting the maker’s position in the marketplace. Does a package contain health food? Luxury goods? Discount dietary aids? Package designs that accurately answer “what?” help bridge the gap between brands and buyers, illuminating the facts and features of both the product and the brand.

Where is the Manufacturing?

Consumers’ calls for transparency and traceability are often answered by packaging design. Production and sourcing information is routinely included on packages, as well as information leading consumers to additional information about brands and their manufacturing processes and facilities.

How is the Product Helpful?

Packaging design helps convey the benefits and qualities of package contents. Supplements and dietary aids, in particular, commonly share healthy claims and imagery on packages. Answering the question: “How will this product help me?” makes it easier for consumers to take the next step toward the checkout lane or online shopping cart.

Modern consumers are inundated with hundreds, even thousands, of marketing messages daily. Most are not meaningfully processed, leading to low recall levels for brands that don’t make proper introductions.

Branded packaging offers opportunities to break through the noise, sharing stories shoppers remember. The most effective packaging designs equate brand stories with goods and services of high quality. In addition to maximizing benefits on the shelf, the value of attractive, informative packaging extends after products are purchased, enhancing the customer experience beyond the point of sale.

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In today’s evolving marketplace, it is more important than ever to streamline packaging costs, particularly as shifting consumer preferences such as sustainability and direct-to-consumer distribution impact the flow of CPGs.

Despite inflationary pressure, established turnkey packagers are well-equipped to optimize food packaging and supplement packaging expenses, utilizing internal and external cost-saving strategies to reduce spending for manufacturers and distributors.

Assessment is the First Step Toward Lower Packaging Expenses

Overall, packaging expense is multidimensional, accounting for various aspects influencing the flow of goods. Packing expenses can generally be divided into broad categories, such as

• Packaging materials
• Packaging operations
• Distribution
• Expenses related to damage and returns

Before setting out to save money on packaging expenses, it is essential to identify areas for improvement. Although using fewer films and corrugated products may help trim spending, materials are only one of the expenses driving packaging costs. A recent article identified a few of the factors affecting excess spending on packaging, including these shortcomings.

• Long processing times for packaging
• Overpaying for package dimensions rather than paying for product dimensions
• Poorly designed packaging lines and storage facilities
• Damage caused by ineffective packing materials
• Shipping expense
• Inefficiency during manufacturing

Each case is unique, so individual assessment is always the best way to bring money-saving strategies to light. The above examples illustrate common shortfalls, but each plant and packaging project offers unique cost-saving opportunities.

Armed with comprehensive and accurate information about current packing expenses, it becomes easier to look to the future with cost-savings in mind. For example, if warehouse layout is a problem, assessing materials inventory and reorganizing could help reduce food and supplement packaging costs.

Design Innovation Reduces Packaging Costs

Packaging serves more than one function, so cost-saving strategies account for product protection and consumer appeal, among other objectives. Design innovation can yield savings without sacrificing quality, effectiveness, or shelf-appeal.

Primary, secondary, and tertiary food and supplement packaging each offer opportunities for design savings. With modern materials advances, for instance, it may be possible to eliminate secondary or tertiary packaging requirements, leading to lower materials expenses.

The actual function of each packaging layer is a primary consideration when analyzing overall packaging costs. Does the product itself require physical support provided by tertiary packaging? Or is containment the main function of the packaging? Rigid bottles and cans, for example, require little support, so designs aimed primarily at containment can reduce packing costs for products packed in rigid containers.

Primary packaging innovation can also yield savings. Advances in glass, plastic, and metal manufacturing enable packaging companies to define material density variations within a primary package. The advanced material-reducing strategy also cuts costs, creating packaging efficiencies that strengthen a particular part of a bottle or can, adding material only where it is most needed. Fine-tuning the containers not only reduces material spending, but density variations also pare shipping costs by reducing the overall weight of each container.

Design agility represents another strategy for realizing and maintaining savings on food and supplement packaging — the concept builds in the ability to alter designs without completely redesigning packages. When contract packagers experience price hikes on particular package components, for instance, design agility accommodates adjustments, enabling packagers to tweak package designs for savings.

Monitor, Measure, and Reduce Waste to Lower Packaging Costs

Establishing effective plant management systems can lead to real savings, particularly when the cost of materials is high. Monitoring and measuring wasted boxes, bags, and bottles is a good start, but inflationary conditions mandate an even closer look at food and supplement packaging waste.

Without a comprehensive management system in place, tape, glue, and other “minor” expenses may fall through the cracks. Strict monitoring strategies can help account for waste loss across the board. The more closely a plant monitors and measures waste, the more information is available for crafting effective food and supplement packaging cost-saving strategies. Follow-up leads to the best outcomes, sharing details across various departments to analyze waste data and devise money-saving solutions.

Adding Value with Turnkey Packaging Relationships

Supply chain problems experienced during the global pandemic held valuable lessons for food and supplement producers. As material scarcity and logistics problems disrupted access to supply-chain necessities, many producers came up short, meeting demand for CPGs.Finding themselves with limited packaging relationships, ill-equipped manufacturers were left scrambling for supplies and services, at precisely the wrong time.

Despite deteriorating conditions, established relationships with turnkey packaging contractors empowered some producers to weather the storm, without prohibitive price increases.

Experienced packagers maintain widespread industry connections, providing partnerships that can help producers overcome unexpected challenges and unfavorable marketplace conditions. In addition to leveraging contacts, established packaging companies are able to negotiate quantity discounts with multiple suppliers. Cost savings ultimately flow through to manufacturers and distributors, adding value to their partnerships with contract packagers.

Optimize, Customize, and Automate for Savings

In most manufacturing settings, inefficiency leads to unnecessary spending. In order to reduce the cost of food and supplement packaging, successful packagers optimize operations. Beginning with training, attention to detail ensures each production staff member is versed in operational efficiencies that lower packaging costs. In addition to laying the groundwork with comprehensive training, efficient organizations also create channels for feedback, using employee recommendations to improve food and supplement packaging processes.

Modern packaging facilities rely on emerging technology to increase efficiency and convey cost-savings. Machinery and materials advances can help reduce turnaround times, which in-turn lowers overall production and distribution expense. Regular maintenance keeps packing lines operating at peak production levels, reducing downtime and maximizing output, without sacrificing quality. A proactive approach limits lag times and streamlines warehousing, ultimately reducing labor costs and optimizing the flow of goods.

Custom packaging solutions cut costs associated with a one-size-fits-all approach. Utilizing custom packaging appropriately sizes containers to fit their contents, reducing packaging void space. The cost-saving strategy not only reduces the use of filler and inserts, but using the proper package for each job also pares packaging weight, which reduces shipping costs.

Controlling costs is essential in competitive retail environments; packaging presents opportunities to reduce unnecessary spending. From process optimization to design innovation, cost-conscious food and supplement packagers devise and implement critical cost-saving measures to increase profitability and strengthen packaging partnerships.

Whether you’re just getting started or expanding an established brand, our packaging specialists can meet the demand of your supplement packaging or food packaging project. Simply complete the Request For Quote form or call our office to start a discussion.

The post Cost-Saving Strategies for Food and Supplement Packaging appeared first on Assemblies Unlimited.

Co-packers offer an extensive suite of services that can help take concepts from ideation to product launch, providing valuable assistance in navigating food and supplement markets.

Rather than go it alone, many food and supplement makers have partnered with experienced contract packaging professionals, synching packaging, fulfillment, warehousing, and distribution, along with other CPG services. In particular, co-packers offer invaluable assistance in launching new labels and businesses, drawing upon food and supplement industry expertise to create an advantage.

Flexible Scalability Without Infrastructure Investment

New businesses may lack the capital required to invest in manufacturing and distribution technology. Yet startups and expanding businesses need the ability to quickly scale as demand for their products grows. Contract packaging companies cater to new businesses, providing the infrastructure and experience required to manage growth in the food and supplement industries.

In the beverage industry, for example, co-packers have the ability to fill, label, bottle, store, and distribute beverages while managing the entire supply chain. The advantages of contract packaging partnerships enable producers to market new products quickly without expensive overhead. As consumer beverage preferences continue shifting toward healthier, functional beverage options and craft beverage production expands, the contract packaging industry market value is positioned to double from 2019-2025.

By partnering with co-packers, brand owners reduce their investment in staff, technology, and packaging facilities, without sacrificing the ability to scale quickly. The pairings enable new food and supplement businesses to focus on raising brand and product awareness while experienced packaging professionals handle various aspects of production and distribution.

Diverse Packaging Capabilities for Food and Supplement Markets

Packaging capabilities continually evolve, driven partly by design innovation and improved materials technology. Contract packaging professionals have the knowledge and experience necessary to guide supplement start-ups and new food producers to the best possible packaging solutions. Diverse packing capabilities cater to consumer food and supplement trends, as well as the merchandising and transport requirements of each product.

Innovative packaging solutions account for powdered supplements, gummies, capsules, gels, and liquids. And food packaging solutions are highly customizable, offering distinctive designs for product protection and brand identification. Flexible pouches, blister packs, bottles, cartons, and wraps are only a few of the options available for packaging food.

Additional production support, such as contract blending and filling services, helps new brands bring powders and liquids to market, relying on co-packers’ established facilities to move projects forward quickly. As well as managing sourcing and ingredient considerations, contract packaging companies offer hot-filling and pasteurization, as needed.

Comprehensive Service from Ideation to Fulfillment

While executing successful packaging strategies is a mainstay for co-packers, turnkey packaging companies offer value above and beyond boxes, bags, cartons, and pouches.

Established contract packagers offer wide-ranging services, as well as supply chain expertise and experience with cutting-edge packaging trends and technology.

Co-packers not only devise effective primary and secondary packaging solutions but also versatile packaging contractors who offer design, development, and regulatory assistance, as well as logistics and merchandising knowledge and capabilities.

From co-packers experience sourcing materials to their operational expertise, emerging businesses benefit from established packaging provider partnerships, resulting in short turnaround times and efficient supply chain management.

Finding the Right Co-packer for Your Food or Supplement Business

Productive packaging partnerships deliver added value, so choosing the right co-packer is a top priority for new food businesses. Above all, contractors should be able to meet the packaging and distribution requirements of each food or nutraceutical product. When selecting co-packers, established manufacturers and food and supplement start-ups account for these and other important considerations:

Location/Proximity

Well-positioned packaging facilities simplify logistics and support efficient turnaround times. Co-packers maintain production plants and warehouses that facilitate distribution, so the most successful food producers partner with contract packagers equipped to cover desired territories. Turnkey packaging companies with multiple locations provide advantages for new manufacturers, allowing brands to expand and grow with the same packaging partner.

Packaging Costs

Small to medium food manufacturers and supplement startups are cost-conscious, so the bottom line is an important consideration before making packaging commitments. However, it is hard to put a price on the advantages of contract packaging experience and expertise. For the best possible outcomes, it helps to maximize packaging costs and evaluate the overall value rather than individual line-item pricing.

Customer Relationships

Joining forces on packaging and distribution projects brings together at least two independent organizations. The most fruitful partnerships pair food and supplement businesses with compatible packaging companies. Before contracting services, successful food and supplement entrepreneurs align expectations with their packaging partners, cementing relationships that stand the test of time. Reviews and testimonials from past and present customers offer valuable insight into working with a particular provider.

Provider Size

Packaging providers of all sizes offer unique benefits; the best co-packers are equipped to meet the flexible needs of new food and supplement ventures. Large contract packaging operations are outfitted with the machines and capabilities to scale to any level. Their economies of scale may be beneficial, yielding lower prices for high-volume packaging projects. Small co-packers may not have the same extensive resources offered by large-scale providers, but may be able to add a personal touch.

In Conclusion

Food and supplement makers face widespread challenges, from production problems to supply chain slowdowns. As new businesses enter the food and supplement industries, many brand owners partner with established contract packaging companies to increase efficiency and reduce risk.

Not only do turnkey packagers deliver functional and protective packaging, but co-packers also offer supporting services, enabling emerging brands to focus on sales and marketing, rather than logistics infrastructure.

Whether you’re just getting started or expanding an established brand, co-packers can help launch your food or supplement business. At Assemblies, our packaging specialists can meet the demand of your supplement packaging or food packaging project. Simply complete the Request For Quote form or call our office to start a discussion.

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3PL isn’t right for every business, but the beneficial services can help stakeholders reduce the cost of bringing goods to market, among other advantages. If you are weighing the upside of outsourcing or wonder whether you’re a good candidate for third-party services, it is important to consider a few key points before establishing a 3PL partnership.

There’s More to 3PL Services Than Warehousing and Transportation

In some settings, third-party logistics refers primarily to storage and shipping solutions, but 3PL partners offer diverse services. Establishing 3PL partnerships is not a one-size-fits-all process.

While some partners may outsource one or two elements of their procurement and fulfillment processes, other companies utilize 3PL partnerships offering a wide array of services, addressing various aspects of supply chain management.

Some 3PL providers emphasize a single specialty, while others provide a full range of services addressing procurement needs, order fulfillment, storage, and transportation. Among other services, 3PL partnerships often address these customer requirements:

• Warehousing
• Inventory Management
• Kitting
• Picking
• Custom Packaging
• Shipping
• Returns (reverse logistics)

To simplify distribution, a growing number of sellers choose to partner with 3PL providers capable of managing the entire fulfillment process. In addition to standard e-commerce logistics solutions, comprehensive partners may provide specialized packaging, international freight options, data analytics, business-to-business capabilities, expedited shipping, and other services.

Every case is unique, but sellers commonly follow a similar path to third-party solutions. According to Inc., many brands launch with an in-house warehousing and fulfillment strategy. Once off the ground and after starting to turn a profit, the ventures may turn to 3PL partnerships to scale and reduce the cost of fulfilling orders.

Advantages of Third-party Logistics Partnerships

Progressively expanding its role in the supply chain, third-party logistics frequently cater to e-commerce, enabling sellers to streamline infrastructure and operations without sacrificing fast fulfillment. In addition to simplified logistics, contracting the right 3PL partner offers these benefits:

Reduced Costs

3PL partners can leverage the best rates from freight companies, using the collective needs of multiple customers to establish volume discounts. In addition to reducing the cost of individual projects, outsourcing also reduces logistics infrastructure expenses, freeing funds for other spending priorities.

Less Risk

Recent supply chain slowdowns underscore the logistics risks facing manufacturers and suppliers. 3PL partners can help mitigate risk, drawing from their resources to solve unexpected problems when they arise.

Access to Knowledge and Insight

Outside logistics experts have knowledge and experience you may not have in-house, so it makes sense to lean on seasoned professionals when navigating a complex supply chain. A seasoned logistics partner can help you avoid expensive mistakes. And your 3PL provider’s watchful eye on inventory and distribution management allows you to focus on other aspects of your business.

Better Customer Experience

Fast shipping is no longer a competitive advantage; customers expect quick turnarounds. Amazon and others have changed the paradigm for sellers, creating shipping expectations that may be hard to meet in-house. 3PL partners are equipped for fast fulfillment, using established, efficient distribution networks to ensure timely deliveries.

International Capabilities

Experienced 3PL partners enable sellers to hit the ground running, fulfilling international orders. Experienced with duties, customs, and paperwork, established third-party logistics partners to facilitate expansion without investing in local infrastructure and staff.

Flexible Scalability

Top 3PL partners are prepared to scale output based on customers’ needs. The right partner can help ease seasonal transitions, expand fulfillment volume, and reduce labor costs, compared to in-house distribution efforts.

Things to Consider Before Contracting Third-party Logistics Services

The U.S. Chamber of Commerce advises not evaluating 3PL alternatives based solely on cost. According to a recent article shared by the agency, trust is an essential feature of successful 3PL relationships. In addition, The Chamber recommends considering the following features when vetting 3PL providers.

Reputation

A positive reputation enables a 3PL partner to leverage a network of vendors to your advantage. A partner’s past productivity and established relationships can help you devise efficient solutions for your projects, opening doors you may not have knocked on without your partner’s help.

Customization Capabilities

Is your 3PL partner capable of catering to your custom logistics requirements? Broad-line providers may excel in certain specialties, so it is important to vet prospective partners with your needs in mind. For the best outcomes, evaluate 3PL partner processes and look for partners familiar with the marketplaces you use most.

Scalability

Successful partnerships allow your business to grow without straining 3PL resources. Before signing a service contract, evaluate your expected evolution and match with a provider positioned for growth.

Compatible Technology

Technology can help create competitive advantages within the supply chain. In addition to well-run facilities, the best 3PL partners are equipped with enterprise technology that enhances efficiency and productivity.

Customer Service

Whether responding to supply chain issues or devising distribution strategies, the most effective 3PL partners provide seamless customer service. By collaborating closely with clients at every stage of planning and execution, service-oriented 3PL providers reduce the likelihood of surprises along the way.

Evaluating these essentials is a good start, and you must also consider specific requirements unique to your business. For the best third-party logistics outcomes, choose established, experienced, financially sound providers offering the value and expertise your projects demand.

The post Establishing 3PL Partnerships — Fulfillment and Distribution appeared first on Assemblies Unlimited.

As economic analysts and political pundits debate the finer points of prevailing supply chain problems, US consumers are caught in an expensive cycle, feeling the financial pinch from supply irregularities. And to digest the scope and severity of the problem, it is important to first distinguish between key individual elements involved in bringing CPG or consumer packaged goods to market.

Logistics and supply chain are two distinct disciplines within the complex apparatus required to keep finished goods and raw materials moving. Though the two concepts are often lumped together as a single concern, logistics and supply chain are not exactly the same thing.

Supply Chain Takes Center Stage

While supply concerns may seem to have emerged overnight, complex relationships have long posed challenges between suppliers, manufacturers, packaging companies, shippers, warehousing facilities, wholesalers, retailers, and other supply chain stakeholders. The system faltered, and conditions rapidly worsened as the COVID-19 pandemic exacerbated existing difficulties and brought new problems to the surface.

Global shortages and production slowdowns quickly rippled throughout US distribution channels, resulting in bare shelves and rising prices. In response, voices have grown louder, calling for greater supply chain security and reduced US dependence on offshore suppliers. With every aspect of manufacturing and distribution under scrutiny, lasting supply chain improvements are closely tied to reliable logistics solutions.

A recent Michigan State University article includes input from industry insiders, sharing their views on the relationship between logistics and supply chains. According to the author and survey participants, supply chain management is most accurately defined as a comprehensive undertaking linking and coordinating various processes for competitive advantage.

Among the disciplines associated with supply chain management, logistics and distribution are prominent supply chain sub-processes. Others include:

• Purchasing
• Sourcing
• Packaging
• Product Development
• Service
• Manufacturing
• Operations

Each of these supply chain functions is ultimately involved in the sourcing, processing, and delivery of goods to consumers. A well-articulated supply chain efficiently manages activities between various entities and organizations working together delivering finished products to consumers. Among the key elements required to maintain a consistent flow of consumer goods, workable logistics solutions keep goods moving at the proper rate.

Logistics Support Healthy Supply Chain

A healthy supply chain network connects suppliers and their customers, as well as linking producers with packagers and other partners. A well-managed supply chain results in manufacturing and distribution efficiencies, which ultimately adds value to finished products. Logistics is one discipline supporting a robust supply chain, adding value with cost-effective transportation and storage solutions.

The Council of Supply Chain Management Professionals acknowledges logistics as an essential arm of the supply chain, responsible for the movement and storage of goods, services, and related information. By addressing internal movement and storage needs, logistics moves goods from the point of origin all the way to the point of consumption. Effective logistics solutions also help to synchronize the supply chain, relying on warehousing, packaging, transportation, and other activities to properly position products within the marketplace.

In practice, successful logistics solutions deliver the proper quality product, on-time, to the right location, and at the best possible price. Logistics is divided into two distinct sub-processes, addressing inbound and outbound activities.

• Inbound Logistics — On the inbound side, logistics activities assist with obtaining, handling, storing, and transporting materials and supplies.
• Outbound Logistics — Outbound logistics activities include solutions responsible for collection and distribution processes and moving goods out to consumers.

Although logistics management is heavily focused on moving freight, a wide range of activities supports inbound and outbound logistics, including warehousing, packing and fulfillment, managing inventory, and maintaining a balance between supply and demand.

Evolving Logistics and Supply Chain Demands

In some ways, logistics is seen as the old standard, while supply chain management is viewed as its comprehensive cohort, capable of accounting for not only logistical concerns but also for the additional processes required by the modern marketplace.

Noted differences exist between logistics and supply chain management, and the disciplines are complementary and interconnected. Some distinctions include:

• Logistics management is focused on maintaining and moving goods in and out of an organization, while supply chain management is responsible for coordinating and managing all of the partners and processing operations within the supply chain.
• Effective supply chain management creates efficiencies and competitive advantages, while the overarching function of logistics is delivering goods that meet customer requirements.
• Supply chain management responds to various aspects of the supply chain, addressing logistics as a sub-process integral to the seamless flow of materials and finished goods.
• With roots in military movement, the concept of logistics has been around longer than the newer notion of comprehensive supply chain management.

Although logistics and supply chain are often referenced interchangeably, they are not one and the same. While logistics specifically encompasses the movement, storage, and positioning of raw materials and finished goods, supply chain activities go further, linking and coordinating various processes responsible for bringing consumer packaged goods to market.

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From using responsibly sourced materials to maximizing supply-chain efficiency, earth-conscious consumers expect producers and packagers to adopt sustainable practices, bringing goods to market. Among the expanding initiatives for going green, committing to compostable packaging alternatives can make a difference for the planet.

Compostables, Bioplastics, and Biodegradable Packaging Solutions

Various materials support earth-friendly packaging efforts, but key differences distinguish biodegradable packing materials from compostables and other types of green packaging, showing distinctions within the circular packaging space, and clarifying some of the misconceptions consumers hold. Plant-based packaging, for instance, isn’t always compostable or biodegradable. And just because a certain packaging material is compostable doesn’t assure it is also biodegradable.

Three types of packaging material variations are commonly utilized for green applications. Bioplastics, comprised of natural materials, serve as stand-ins for their oil-based counterparts. In some cases, such as bio-PET, natural substances are fermented to make environmentally friendly substitutes for traditional plastics. Various packaging bioplastics are made from starches and cellulose derived from natural ingredients like corn, potatoes, soybeans, and wood.

Another environmentally conscious packaging approach utilizes biodegradable material, which breaks down over time, reducing the long-term environmental impact of packaging and containers. By definition, biodegradable packages convert into the soil without assistance, ultimately integrating as a natural material. A landfill biodegradable designation requires that the material must be able to complete the cycle without the aid of oxygen. A different set of parameters applies to packaging considered marine biodegradable, which must fully degrade in water within six months.

A third popular green packaging alternative, compostable material breaks down with the help of bacteria, insects, fungi, and additional organisms, resulting in a nutrient-rich fertilizer that can improve soil quality. Compostables diverge from biodegradable material because they will not degrade without oxygen or in water. As a result of the environment they require in order to degrade, biodegradable materials will not form compost.

Two designations distinguish various forms of compostable material; the substances are either considered home compostable or industrial compostable.

Compostable packaging can be composted by consumers alongside food scraps and other organic material traditionally held in home compost bins. In order to meet the established standard for home compostable packaging, the component material must physically break down within six months and chemically break down within twelve months.

Industrial compostables require a more rigid set of conditions to effectively break down, including higher temperatures and calibrated nitrogen, oxygen, and carbon levels. Under the prescribed conditions, certified industrial compostable material forms compost in 180 days or less.

Maximizing the Benefits of Compostable Packaging

Understanding distinctions between various alternative packaging solutions has implications for the waste cycle — each material class requires different treatment to achieve the maximum desired environmental benefit. Therefore, compostable packaging lends itself to specific applications.

When less barrier protection is called for, and products have a relatively short shelf life, compostables may offer a viable alternative to traditional packaging. Without waste management mechanisms in place to receive compostables, however, their effectiveness is limited to home compostable options in some regions.

For example, some of the compostable bags now available replace traditional plastics and can be managed at home with standard composting efforts. In cases when reusable designs are inappropriate or instances in which obstacles impede traditional recycling, compostable packaging alternatives may present a more eco-friendly alternative.

Packaging that becomes soiled with food waste, thus ending up in landfills, also offers an opportunity for better outcomes with compostable packaging.

Compostable packaging is made from natural elements, sometimes blended with naturally derived polymers. Examples of materials used in compostable packaging solutions include wood, fungi, potato starch, palm leaves, and other fully compostable substances. Wheat, corn, and other additions are also present in many types of compostables, resulting in not only fully compostable food cartons and boxes but also paper versions of bubble wrap and other familiar packaging staples.

Paper packaging products are compostable when they contain only paper, but those with oil-based plastic additives or coatings may not fully compost. In order to ensure you’re doing your part for the planet, ecocycle.org recommends keeping plastic-coated packaging out of your compost bin. The organization promotes straightforward strategies for limiting inadvertent plastic pollution that can occur, despite consumers’ commitment to sustainability and responsible packaging practices.

• Look for the BPI label certifying material as compostable – In order to earn the designation from BPI, compostables undergo testing and evaluation that confirm the material will break down in commercial composting facilities.
• Reuse durable products – Utilizing multi-use containers and other durable goods is an effective starting point for reducing waste. Compostables offer earth-friendly solutions when durable, reusable packaging is impractical or unavailable, but only when the material is free of plastics.
• Embrace PLA – An early green solution replacing petroleum-based plastics, poly-lactic acid (PLA) bioplastics are compostable. Material labeled #7 PLA is made of natural substances that produce compost.
• Pay attention to paper – Recycling cardboard, mail, magazines, and newspaper is still the best way to dispose of material that can be made into new paper. On the other hand, paper towels, napkins, and paper scraps can be effectively composted. When processing paper waste, it is important to distinguish between certified compostable cartons, containers, paper plates, and carryout packages, and others containing plastic and coatings that prevent them from creating compost.

Packaging innovation continues to yield eco-friendly alternatives, replacing traditional packaging materials. Though the expanding green packaging space can be confusing for consumers, compostables offer clear advantages for many packing applications.

Not only do earth-conscious compostable packaging approaches reduce waste and lower greenhouse gas emissions, but compostable packaging also converts to a nutrient-rich soil additive. As consumer awareness continues growing, producers and their packaging partners offer increasingly diverse compostable packaging solutions.

At Assemblies Unlimited, our innovation and resourcefulness can meet your packaging project needs. Whether you require a compostable packaging solution or other unique contract packaging requirements, please request a quote, and a specialist will reach out to discuss your project.

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Analysts Forecast Further Inflation for Packaging Materials

The packaging industry has recently struggled to keep pace with strong consumer demand. Fueled in part by increased ecommerce packaging requirements and other abrupt marketplace shifts brought on by the COVID-19 crisis, the call for packaging materials has at times exceeded production growth within the industry. Unfortunately for the long-term health of the US economy, climbing costs in an unusually tight packaging industry are being pushed even higher by rising inflation.

Already facing higher energy, transportation, and labor costs, manufacturers and contract packagers are also feeling the effects of global events, such as the war between Russia and Ukraine. Although US packaging companies may be somewhat insulated from the direct effects of the war, a recent report linked global events and international economies with packaging industry predictions. According to the Rabobank study, for example, high European energy costs and other global supply chain factors will contribute to food packaging price increases in North America during the next twelve months.

In their effort to meet brisk consumer demand, US packaging companies have encountered inflated operating costs across key materials, including aluminum cans, PET milk containers, and corrugated boxes. Although related packaging costs have partially spiked in response to the surging 14.3% growth in ecommerce sales since 2020, the impacts of inflation are also apparent within the packaging industry. For example, US corrugated containerboard had experienced only a half-dozen price adjustments in the past decade; the materials have seen five price increases in the two-year span since the onset of the pandemic.

With energy inflation on the rise, paper packaging production costs are expected to grow by at least 3% due to petroleum price increases alone. And related transportation costs are expected to add a further 2.3%-3.6% inflation premium to the cost of packaging. Even cornstarch, a relatively limited papermaking ingredient, must be accounted for, as corn prices continue rising under the strain of high demand and global instability. According to the Rabobank report, corrugated price increases may soar into double-digits during 2022, but the sector is well-positioned with production prospects coming online in 2023.

Plastics Supply Chain Bears the Weight of Inflation

Plastic packaging materials remain in high demand even as costs climb within the industry. Attributed in part to weather events, infrastructure problems, labor shortages, and of course the pandemic, widely used packaging resins such as PET saw price increases of nearly 50% in 2021. And because North American makers rely on imported materials for resin packaging production, short-term price relief is not expected for polyethylene and polystyrene packaging projects. The Rabobank report indicates new plants set to begin production this year may ease polyethylene prices in 2023.

Inflation isn’t responsible for the supply gap thwarting the aluminum packaging industry, but the cost of the familiar material is up 40% during the past two years. Faced with high materials costs and the possibility of can shortages, beverage producers are taking-on massive packaging cost increases as inflationary pressure complicates aluminum beverage packaging in 2022. Energy uncertainty in Europe is expected to inflate the cost of glass packaging, as well. As a major glass importer, US users can expect continued upward pricing pressure from the energy-intensive industry.

Perfect Storm of Inflation Affects Chemicals, Fuel, Supplies, and Materials

Manufacturers, producers, and contract packaging companies regularly respond to market shifts. Although business leaders would prefer predictable economic chemistry and consistent results at every level of the supply chain, adapting to short-term price increases and overcoming temporary supply disruptions are common concerns for seasoned professionals working in production, packaging, and logistics. Despite their experience in these areas, however, even well-prepared operators have struggled under recent conditions, facing unprecedented financial pressure from multiple fronts.

Labor shortages, supply chain disruptions, and unrelenting consumer demand have all taken their toll on packagers and producers since the onset of the coronavirus. Higher prices on raw materials and energy have elevated production, transportation, and packaging costs, forcing makers to pass-on higher prices to consumers. Business leaders continue predicting additional near-term price increases in most categories. News of runaway inflation adds another layer to the economic storm, further complicating an already uncertain economic outlook for 2022 and beyond.

Lead Times Suffer in Inflationary Environment

Limited materials availability, regular supply disruptions, labor shortages, and across-the-board price hikes are responsible for unprecedented conditions affecting contract packagers. Among the unusual dynamics weighing on the packaging supply chain, inflationary pressure not only places a premium on packaging materials, but inflation also undermines lead times and planning efforts, making it harder for packaging providers to maintain consistent fulfillment standards.

Some observers are optimistic about corrugated materials, forecasting some improvement in the next six months, but lead times are generally long under scarce, inflationary conditions. According to a recent article, the packaging industry may not return to normal until at least 2023. The article cites dramatic lead time performance shifts experienced across the packaging industry, including downgrades from four to six-week lead times, to the six-month lead times frequently encountered today. Label lead times, once a four-week proposition, may now exceed 16 weeks.

From long lead times to double-digit price increases on materials, 2022 may have additional challenges in store for US packagers. Although packaging contractors cannot entirely escape the high cost of doing business, supply chain resilience, expanding production capacity, and smart sourcing alternatives offer hope of softening future news of packaging supply chain inflation.

The post Inflation News Points to Rising Prices on Packaging Materials appeared first on Assemblies Unlimited.

Among the testing options now available in the fight against COVID-19, polymerase chain reaction (PCR) tests were approved for widespread use in February 2020 and continue as the gold standard for testing accuracy and reliability. PCR test kits are now available for home use, enabling users to collect samples before returning them by mail for lab analysis.

Coronavirus Testing Methods Include Rapid Antigen Tests and PCR Test Kits

Multiple COVID-19 testing protocols are in use, each type relying on specific science to generate results. An important distinction exists between popular rapid antigen testing and PCR test kits, which are considered molecular tests.

Rapid antigen tests are useful in identifying active and symptomatic infections that may spread disease. The tests pick up on proteins found on the surface of the COVID-causing virus, yielding a positive result when the protein is present. Using a different mechanism to expose infected patients, molecular test types such as PCR test kits actually detect the presence of genetic material associated with the virus responsible for causing COVID. In practice, PCR tests amplify existing genetic material that may be found in a sample, making the testing method highly accurate, even when the test subject is asymptomatic.

At-home Testing Slows Community Spread

Time is of the essence for individuals suspecting they may have been exposed to the virus causing COVID-19. Without timely test results, community spread unknowingly occurs when asymptomatic patients fail to isolate or follow distancing mandates.

To eliminate lag times, rapid at-home tests are available, offering quick results without traveling to testing centers for in-person assessments. The Biden administration has launched an initiative providing a number of free at-home tests for anyone completing a delivery request from the US Postal Service.

Despite the importance of testing, no single test is thought to provide absolutely definitive results for the presence of coronavirus. Rapid antigen test results, for example, are best interpreted alongside community COVID-19 data. In areas where coronavirus is not widespread, false positives are more likely to occur than in regions beset with high numbers of COVID cases.

In contrast, tests conducted in locales suffering high caseloads and transmission rates may generate rapid-test false negatives that don’t reflect conditions in the region. When such inconsistencies arise, patients are advised to confirm rapid antigen test results with PCR test kits, which are known to be more accurate than other forms of testing.

Are PCR Test Kits Available for Home Use?

Because PCR tests evaluate samples at the molecular level, the testing method produces results that are more accurate than rapid antigen tests commonly used at home. Unfortunately for self-test consumers, PCR test kits do not offer the same accessibility and timely results built-in to rapid antigen home testing alternatives.

PCR test kits are available for home use, but the samples collected often require analysis at a lab in order to generate results. Though samples are collected with nasal swabs just like antigen tests, the swabs must be sent out by mail, resulting in days-long lags before test results are returned. For decisions about keeping kids in school, returning to the workplace, and interacting socially, lengthy turnaround times undercut the value of PCR testing.

In addition to at-home PCR tests requiring lab analysis, rapid PCR test kits have also been developed for home use. Emerging as another line of defense against coronavirus spread, the testing alternative offers some of the advantages of antigen tests. However, rapid PCR testing falls short in an important area; the cost of rapid home PCR test kits remains higher than other testing methods.

One of the primary advantages of at-home COVID-19 testing is the ability to test regularly, generating immediate results that guide users down the safest path. Repeating the tests reinforces their effectiveness in limiting the spread of coronavirus so pricey home PCR test kits do not always answer the call for quick, cheap, accessible at-home testing. In order to reduce waiting times for PCR test results, Meijer pharmacies now offer home PCR test kits, which are picked up and returned to the same pharmacy location for results within 48-72 hours.

Packaging COVID Test Kits

PCR test kits are assembled from components that include vials, swabs, slide-lock bags, boxes, and labels for samples and fulfillment services. Thermoformed features may also be boxed with PCR test kits, incorporating custom protection and user-friendly designs. Each test kit shipper is designed not only to safely transport PCR testing contents but also to instruct users and facilitate accurate test results.

With various testing methods offering complementary advantages, public and private stakeholders are investing heavily in the fight against coronavirus spread. Contract packaging companies and logistics professionals are key partners bringing PCR test kits and other testing solutions to pharmacies, health agencies, municipal testing facilities, and home users.

Please reach out to our sales team by submitting a request for quote or contacting us directly to help with your packaging needs.

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From materials shortages to production slowdowns, widespread industries have suffered setbacks as momentum builds for economic growth. Among the problems holding back a more robust recovery, worker shortages, employee retention, and rising overall labor costs are straining the supply chain. As producers, suppliers, and distributors struggle with never-before-seen conditions in the labor market, transportation and logistics industries have been hit particularly hard.

Labor Supply Falls Short of Demand

In much the same way supply and demand influence the cost of consumer goods, the relationship between supply and demand also comes to bear on labor costs. As demand for workers goes up, the call for staff sometimes overshadows the available supply of qualified job candidates, inflating the price of labor. Employment irregularities set in motion by the COVID-19 pandemic have disrupted the balance between labor supply and demand, created a bonafide worker shortage.

As employers compete to recruit, train, and retain an adequate workforce, the cost of doing business is on the rise at every level of the supply chain. According to a recent McKinsey report identifying a historic “mismatch” present in today’s labor market, wages are increasing at more than twice the long-term rate experienced prior to the onset of the COVID crisis.

While it is thought that some recent workforce challenges trace directly to fallout from the pandemic, others labor issues may be due to underlying shifts unrelated to COVID-19. Accelerated retirement, for example, may impact labor conditions in the future, as well as evolving employment preferences held by workers. On the demand side, shifts emphasizing goods over services may also persist beyond the pandemic.

Current job openings stand at a level approximately 50 percent higher than the number of positions available prior to the COVID shakeup. In what would normally be considered a “hot” labor market, today’s workforce has tightened, leaving employers to compete for job seekers still actively seeking positions. This competition for a diminished labor pool, felt across the entire value chain, has sparked rapidly accelerating wages.

With many industries averaging twice the overall pre-pandemic increase rate, wages in sectors such as warehousing and transportation are actually rising at 4 times their pre-pandemic pace. As far back as the first quarter of 2020, worker demand spurred wage spikes within the transport industry, foreshadowing the ongoing wage increases affecting supply chain stakeholders throughout 2021.

Are Wages Simply Catching Up?

The pace of wage increases typically ebbs and flows over time, responding to economic conditions and mandates from the workforce. Why are today’s wages increasing so fast?

By some estimates, domestic wages have long been overdue for a hike. The sentiment is evidenced by some companies’ recent minimum wage commitments, including minimum pay overhauls by companies such as Bank of America, McDonald’s, and Under Armour, which recently bumped hourly minimums from $10 to $15 for many employees.

With so many independent factors at play in a pandemic economy, it may not be possible to fully isolate all of the individual influences weighing on today’s labor market. Time will tell whether wages are experiencing a one-time correction, or whether a contracted labor market will continue boosting take-home pay for US workers.

Economists predict continued wage gains in 2022, warning of the lasting effects of wage increases. Unlike temporary conditions such as raw materials shortages and gas price spikes, wages stay on employers’ balance sheets. As supply chain problems work out and the economic impacts of recent government stimulus are no longer felt throughout the economy, high labor costs will be harder for packagers, shippers, and other supply chain stakeholders to reconcile.

In the present economy, charged with marked pent-up demand, high labor costs can be readily passed on to consumers, because sellers and service providers have leverage to raise prices. Should consumer demand come up short of paying for skyrocketing labor costs, high wages will ultimately reduce profitability for packagers, logistics specialists, and other hard-hit sectors of the post-pandemic economy.

High Attrition Complicates Competition for Labor

In addition to labor shortages traced directly to temporary shut-downs and work-from-home orders, many members of the workforce are choosing to step away from regular employment roles. Even as the number of job openings increased, near-record numbers of workers quit their jobs in October. Although the figure is down from September, it is thought more than 4 million people quit their jobs in October.

Facing a shrinking labor pool, contract packaging companies and their logistics partners are encountering stiff competition for qualified candidates. October job openings reached near-record highs, as employment sectors hurt by the pandemic attempt to meet the pent up demand fueling recovery. Unfortunately, as competition for labor continues driving up the cost of doing business, employees continue quitting their jobs, hoping for better prospects.

The high number of job openings marking recent months may be related to a slowdown in the number of coronavirus cases among consumers, but October data was gathered before the Omicron variant emerged. The highly transmissible variant has pushed infection rates higher since October, foreshadowing continued labor shortages and high wages for packagers, shippers, and producers in the pandemic’s hardest hit sectors.

With lockdowns looming to address the spread of Omicron, suppliers, producers, and service providers are making adjustments for the long haul, assuming coronavirus won’t go away any time soon. Demand for packaging remains high, so materials shortages also prevail alongside labor shortfalls. It was hoped expiring unemployment benefits and no new COVID relief payments would lead workers back to employers, but the numbers of new hires and employees returning to work have stalled, leaving higher wages in their wake. In some cases, labor and materials shortages have forced companies to cut shifts and prioritize packing and shipping only their most popular items.

Contract packagers and other supply chain stakeholders face an uphill labor battle, as the marketplace struggles to normalize following prolonged shutdowns and irregular access to consumers. With substantial pent-up demand and stimulus efforts still driving economic recovery, high labor costs are expected to prevail during 2022.

The post Labor Shortages and Wage Increases Drive Up Packaging Costs appeared first on Assemblies Unlimited.

Among the most daunting challenges facing producers and their contract packaging partners, global supply chain problems continue to frustrate rapid recovery efforts. As manufacturers struggle to obtain affordable raw materials required to meet rebounding consumer demand, packaging companies confront delays and logistics setbacks unique to this transitional period.

Global Pandemic Fuels Supply Chain Disruptions

A recent article published by the Biden administration identified several factors impacting today’s supply chain. According to The White House, shortages and other supply chain problems are widespread and one group is particularly vulnerable. Businesses with complex supply chains may be most sensitive to COVID’s economic effects because many manufacturers rely on consistent input from other supply chain stakeholders. Each time shortages and slowdowns disrupt the supply chain, downstream businesses suffer the consequences.

• Low Inventory-to-Sales Ratios – Pandemic supply chain impacts have trickled down to small businesses operating across many sectors, with 36 percent overall reporting delays with suppliers. Complicating supply chain slowdowns are low existing seller inventory levels brought about by the abrupt onset of the coronavirus pandemic. Retailers and producers still carrying low inventories from the pandemic sales shake-up now face an uphill climb restoring raw materials and finished goods to pre-pandemic levels. As sellers and manufacturers ramp up inventory levels, many experience delays related to lagging supply chain conditions.
• Consumer Spending Shifts – As the worst days of the pandemic yield better conditions, consumers continue making major purchases. Home and car sales have exceeded forecasts, placing builders and carmakers a step behind market demand. Supply chain problems such as semiconductor shortages and lack of lumber have left these industries reeling. And as plastics shortages challenge producers and packagers, most sectors of the economy remain on track for further disruption.
• Labor Market Shortages – Coronavirus worries and uncertainty within the labor force have resulted in worker shortages for many industries. With consumer demand on the rise, many firms report difficulty hiring adequate staff to maximize production and keep pace with post-pandemic supply chain demands.

Shortages Result in Across-the-Board Price Increases

Shortages, delays, and other supply chain irregularities impose costs on consumer goods, exacting a price on makers, sellers, packagers, and shippers. End-users ultimately pay the price for production and fulfillment problems, as evidenced by recent inflation and price increases directly related to the coronavirus pandemic.

Between May 2020 and May 2021, commodities prices tracked by the Producer Price Index rose by nearly 20 percent. The climb represents the largest annual increase experienced since 1974.

The current administration predicts supply chain disruptions will be largely transitory, resulting in lower prices on the horizon. Lagging delivery times, for example, are expected to rapidly return to normal, according to surveys conducted by three regional Federal Reserve Banks. As supply chain obstacles diminish and production, packaging, and fulfillment industries once again find their stride, the cost of consumer goods should begin to reflect falling commodities prices.

Carrying the weight of soaring polymer resin costs and other raw material price increases, the packaging industry continues facing disruption first experienced at the pandemic’s onset in 2020. After experiencing falling overall demand in 2019-2020, the global packaging industry faces future challenges responding to post-pandemic consumer shifts.

As lagging sales for consumer goods such as personal care items rebound, sustainability, and consumer experiences are back in the spotlight, raising the stakes for producers and packagers. In order to meet demand and hedge against future supply chain disruption, US industry leaders plan to reshore the supply of raw materials, stock deeper inventories, and source sustainable packaging materials.

Efforts Underway to Strengthen the Supply Chain

A US task force formed to address supply chain problems is focused on both short-term strains hampering economic recovery and long-term issues needing reform. Diversifying the manufacturing supply base and adapting inventory practices are among the supply chain improvements under consideration.

• Production concentrated in too few hands – The COVID-19 health crisis is directly responsible for some supply problems, but in many cases, the coronavirus pandemic accelerated or exposed existing shortcomings within the supply chain. Among them, reliance on too few produces for key components proved disastrous for automakers and other industries beset by slowdown. Modern goods incorporate highly technical components, as well as specialized materials. Combined with the expertise necessary to manufacture consumer goods, makers count on access to critical parts, which often source from a limited number of vendors. When crucial elements of production are concentrated in too few hands, the rest of the supply chain operates at the mercy of its weakest link. According to the Harvard Business Review, identifying and correcting this type of risk and vulnerability is essential to shaping a stronger supply chain for the future. A “China plus one” strategy has been put forth, incorporating regional backup production at sites in Vietnam, Thailand, and similar locales but detractors feel conditions call for greater geographic diversity.
• Resilience without sacrificing competitiveness – As a rule, adaptability benefits businesses; the coronavirus crisis underscored the importance of supply chain resiliency. Given the number of electronics and technical input required to make modern components, manufacturers are not likely to take up in-house production for everything needed, producing finished goods. However, by mapping risk and identifying vulnerabilities specific to their production practices, it is hoped firms in the future will avoid the types of exposure responsible for COVID-related supply chain disruptions. Despite conditions presently undermining the supply chain, consumer demand for low prices has not waned. A challenge looms for makers and sellers; while devising better ways to bounce back under adversity, successful companies must also maintain competitiveness.
• Rethinking lean manufacturing practices – A robust supply chain allows manufacturers to operate “lean” strategies, limiting the number of raw materials held at any given time. Though low inventory levels offer cash flow benefits for makers, overly lean manufacturing practices exposed supply chain weaknesses related to COVID-19. Without abandoning lean efficiencies, companies coping with pandemic fallout may reimagine production practices with supply chain vulnerability in mind.

Established contract packagers are well-positioned to support the flow of consumer goods, but when supply chain infrastructure strains under extraordinary conditions, packaging companies are not immune to disruptive effects. A recent Flexible Packaging article points out supply chain irregularities are nothing new to packaging professionals. Yet the sweeping nature of disruptions associated with COVID-19 and the depth of its global impacts have created a supply chain crisis unlike any other.

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With a growing group of consumers flocking to virtual storefronts, scaling e-commerce operations became a top priority for online sellers, including packaging strategies for safe, efficient shipping. Among the distribution solutions embraced by producers and their packaging partners, flexible packaging has become an integral part of any forward-looking e-commerce and shipping strategy.

What is Flexible Packaging?

A flexible package or container is one made from easily yielding materials and readily changes shape when filled or closed. Applications for flexible packaging include consumer and institutional goods, as well as industrial uses, providing protection for various products during marketing and distribution.

Comprised of high-quality materials such as foil, plastic film, and paper, flexible packaging takes shape in the forms of bags, lids, liners, pouches, wraps, sleeves, and other yielding enclosures and packaging components.

Although flexible packaging has been on the scene for decades; adaptable, flexible, packing and shipping solutions are more valuable than ever to brand owners and packaging professionals. In addition, advancing technology and shifting consumer habits have contributed to the trend favoring flexible packaging alternatives, particularly during the COVID-19 crisis, as e-commerce plays a vital, expanded, role in distributing consumer goods.

E-Commerce on the Rise

E-commerce has gradually gained popularity among consumers, resulting in a relatively slow but steady migration to online shopping platforms. As digital consumers embrace online buying alternatives, the COVID-19 pandemic has accelerated e-commerce expansion, requiring workable distribution solutions.

2020 saw explosive e-commerce growth, reaching beyond sectors traditionally associated with online shopping trends. In particular, an increasing number of grocery items and consumer packaged goods typically acquired in person were instead shipped directly to consumers.

Prior to the COVID-19 crisis, analyst eMarketer predicted a 2020 e-commerce sales increase of 13.2 percent, over total online sales logged in 2019. However, after revising their numbers to account for remote shopping during the pandemic, the organization now estimates e-commerce sales in 2020 rose by more than 33 percent.

As in-person shopping rebounds, following the worst of the crisis, it is thought e-commerce sales will continue on an upward trajectory in 2021, though growing at a slower rate than they did last year. Current eMarketer projections anticipate 2021 annual e-commerce gains of approximately 13.7 percent. Beyond the current-year forecast, the organization expects e-commerce sales to top one trillion dollars in 2022. Although the figure represents less than 20 percent of total retail sales projected, e-commerce is here to stay, calling on packagers and producers to meet growing demand with innovative solutions. Among the adaptable distribution solutions carrying e-commerce into the future, flexible packaging is poised for an essential role in retail e-commerce strategies.

Flexible Packages Support E-Commerce and Shipping Strategies

For retailers and packagers developing e-commerce and shipping strategies, flexible packaging offers multiple advantages, compared to rigid packaging traditions. The pandemic called for a rapid shift, devising packaging solutions best-suited for e-commerce transactions, rather than in-person retail sales. Flexible packaging alternatives rose to the challenge, helping brands and packaging companies keep pace with e-commerce demand.

An online article recently published on plasticstoday.com highlights three key considerations facing producers and packagers. The author illustrates how flexible packaging outperforms rigid alternatives, addressing sellers’ e-commerce and shipping requirements.

• Product Protection – It is thought goods sold online are handled at least three times more often than items sold through traditional retail outlets. Whereas glass and similar packing materials present shipping challenges, flexible packaging offers inherent protection, beyond traditional packing methods once designed almost exclusively for retail stores. Flexible packaging is customizable, enabling users to incorporate appropriate layers of protection for liquids, powders, and a diverse selection of food items. The added durability reduces breakage as well as inhibiting spills.
• Environmental Impact – As the number of direct-to-consumer shipments increases, shippers continue seeking ways to reduce the amount of material in the distribution stream. To that end, durable, flexible packaging affords opportunities to reduce the amount of material comprising outer packaging, often eliminating a layer of cardboard or overbox. By omitting corrugated material once required for enhanced product protection, flexible pouches can help reduce the overall footprint of each shipment. In many cases, a flexible packaging solution reduces fossil fuel use and greenhouse gas production compared to shipping with a cardboard overbox. And well-designed flexible packing solutions also facilitate returns without generating additional packaging material for the return trip.
• Shipping Rates – In addition to reducing package weight for lower shipping costs, sellers can also use flexible, space-efficient containers to keep rates low. Utilizing pouches and other flexible packing alternatives enables packaging companies to minimize airspace in shipments, resulting in reduced freight charges for end-users.

Flexible Packaging Positioned for E-Commerce Growth

The COVID-19 crisis caught consumers and suppliers off-guard, yet experienced packaging professionals found workable ways to meet increased shipping demand. Among their solutions, flexible packaging alternatives replaced glass and other traditional materials commonly seen on store shelves. Pouches and other flexible containers lend enhanced durability and space efficiency, keeping direct-to-consumer shipments protected for e-commerce.

A timely study indicates 67 percent of consumers plan to utilize e-commerce more often this year than they did in 2020. According to the data, shoppers are also paying attention to packaging waste and other e-commerce issues. As retailers scramble to identify trends, following the global pandemic, flexible packaging is poised to play a prominent role in e-commerce and shipping strategies.

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Related growth within the collagen industry presents challenges and opportunities not only for producers bringing powdered supplements, gummies, tablets, capsules, drinks, and nutricosmetics to market, but also for their logistics and packaging partners.

Contract packaging companies are responding to increased collagen demand with both time-tested supplement packaging strategies and innovative merchandising and direct-to-consumer solutions for retail collagen products.

Supplement Benefits Brought to Light

Reflecting the increased public focus on health concerns and responsible dietary choices, consumers from diverse demographic groups continue embracing supplements for various health and wellness benefits. Among the substances receiving attention from buyers, collagen has caught on as an anti-aging aid, spiking demand for collagen supplements and topical collagen products.

An integral component of skin, muscle, and connective tissue, natural collagen is present throughout the human body; it is found in blood vessels, teeth, and eyes. The widespread substance tops the list of human proteins, accounting for one-third of the total protein found in the human body.

Several types of collagen naturally occur in humans, each taking on specific roles. Of the four primary types of collagen utilized by your body, a densely packed form of the substance is concentrated in the skin, bones, teeth, connective tissue, and fibrous cartilage. This single abundant variety accounts for 90 percent of the body’s collagen. Other important natural collagen is believed to support healthy muscles, organs, and arteries, as well as cushioning joints and fulfilling filtration functions on the skin.

Since aging affects both the quality and quantity of naturally occurring collagen, supplemental sources are thought to keep the collagen in balance, potentially countering some of the degenerative effects of growing older. Whether dissolved in liquid or taken as a capsule or tablet, collagen peptides and similar supplements may offer personal care benefits in areas such as:

• Digestive Health
• Skin, Nails, and Hair
• Bone and Joint Health
• Immune Support
• Muscle Development
• Moderating Blood Pressure and Sugar Levels

Further studies are required, highlighting collagen’s efficacy in addressing health and wellness concerns, but early indications point to skin and joint health benefits. Collagen supplements are marketed as bone broth, gelatin, collagen peptides, and hydrolyzed collagen; a powdered version is among the most popular consumer sources of supplemental collagen. Sugar and gluten-free options are promoted, and while bovine sources are prevalent, marine collagen, derived from fish skin, is also touted for its health and beauty benefits.

Collagen Demand Drives Industry Expansion

Consumer demand has placed collagen sales on an upward trajectory, reflecting general trends in the supplement market, as well as buyers’ unique interest in collagen goods. One recent analysis looked at trends in the industry, examining factors such as geography, collagen distribution channels, forms of collagen, and how the substance is sourced.

According to the report, consumers’ desire to counter the appearance of premature aging has led to surging interest in collagen products. In addition to individual health care preferences, general trends also favor growth within the supplement market, as consumers embrace alternative wellness strategies in order to help control rising health care costs. Among key market trends, forecasts predict the global collagen market will experience an annual compound growth rate of more than 6 percent during the period spanning 2020-2025.

North America is positioned for strong growth, but the report also pointed to an aging European market, with 25% of the population aged 60 and over. Residents appear receptive to the potential advantages of consuming collagen; an industry survey reported 70 percent of respondents from Italy, German, and France said they’d consider buying a joint health supplement.

Complementing general health-minded consumer spending trends, three key developments are set to further support collagen supplement sales through 2025.

• Increased Consumer Awareness – As seen with many emerging health and beauty trends, collagen sales are projected to grow alongside increased consumer awareness. As word spreads about collagen peptides and marketing efforts pay dividends, new buyers will fuel sales – even as short-term users come and go.
• Scientific Evidence – Evidence supporting the health benefits of collagen supplements is sure to strengthen sales, as studies prove collagen efficacy. To date, research shows benefits to skin elasticity and hydration, with further studies underway.
• New Delivery Methods – The collagen contained in supplements is different than what naturally occurs in your body, making the substance easier to ingest. Gummies and other delivery innovations expand appeal among consumers, so developing new ways to take-in the beneficial substance is one way to generate interest and sales.

Flavor and format are key differences setting apart collagen brands, helping producers maintain an edge in what has become a highly competitive industry. Expanding markets, such as the Asian Pacific region, are poised to provide fertile ground for future collagen sales as societal preferences develop, welcoming healthful dietary supplements. Global revenue from the sale of collagen products is set to top $6 billion by 2026.

Collagen Packaging Options for Growing Global Markets

Collagen peptides and hydrolyzed collagen come to market in various formats, offering multiple ways to ingest the beneficial protein. Powdered versions are among the top sellers, requiring large screw-top jars and stand-up pouch presentations appropriate for both in-store applications and direct-to-consumer online sales. Often incorporating scoops or measuring aids, the go-to packaging method fits in with other familiar powdered supplements lining store shelves. Individual serving-sized packaging is also effective for delivering powdered collagen supplements, offering convenience and on-the-go dosing capabilities.

In addition to resealable stand-up pouches and wide-mouth jars used for powdered collagen products, makers also require glass and plastic pill bottles for collagen tablets and capsules. In its liquid form, collagen drinks and shots are packaged in both glass and plastic bottles. Collagen-infused coffee and tea products follow familiar packaging formats, bringing bulk tea jars, sachets, coffee creamer, and vented stand-up coffee bags to the collagen aisle. Complementing beverages and powdered delivery alternatives, collagen snacks and bars are also gaining traction among supplement consumers, requiring bags, wraps, and secondary packaging.

Whether consumed in a smoothie or a fruit-flavored gummy, collagen continues gaining momentum as an essential supplement. As the collagen industry continues expanding, offering new ways to ingest the healthful supplement, contract companies are well-positioned to provide the expertise and packaging innovation required to sustain growth in the industry.

If you have questions on collagen packaging or have another product in this space in need of custom packaging solutions, please reach out, and one of our sales associates can provide a quote.

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Among the consumer segments experiencing heightened CBD consciousness, the compound is increasingly visible in the health and beauty space. Cosmetics, oils, balms, relief creams, and other topical products are abundant in the industry.

As more and more people embrace the potential benefits of CBD, packagers are called upon for innovative solutions, bringing CBD-enhanced health and beauty products to market.

What is CBD?

Cannabidiol (CBD) is a compound derived from cannabis plants. The substance is present in marijuana but is more commonly drawn from hemp strains, which don’t possess psychoactive properties. To utilize the compound, CBD is extracted from the plants and then mixed with hemp seed oil, coconut oil, and other carriers. Cannabidiol is thought to possess health and wellness benefits, so the business is booming for manufacturers incorporating CBD into their products, as well as health and beauty packagers responsible for bringing CBD SKUs to store shelves.

Though its benefits have been endorsed for years, many questions remain about the usefulness of CBD and its potential promoting health and wellness. As CBD science continues evolving, advocates promote potential benefits such as:

• Pain Relief
• Skin Care Benefits/Acne Treatment
• Seizure Relief for Epilepsy Patients
• Reduced Inflammation
• Neurological Benefits
• Stress Relief
• Reduced Side-effects From Cancer Treatment
• Enhanced Substance Abuse Treatment Success

CBD Catches Fire in Health/Beauty Aisles

CDB is one of many compounds found in hemp and marijuana plants. Until recently, the focus was on another compound called THC, the substance known for getting marijuana users “high.” As legalized “weed” continues spreading from state to state, the stigma surrounding the plant has diminished, legitimizing its compounds for mainstream use. Paired with emerging science about CBD benefits, the normalization of hemp products has sparked heightened interest among consumers, including trending CBD use in health and beauty products.

Equally as important to its rapid rise in popularity, a “boutique” effect has taken hold, influencing public perception about CBD products. Not only are the goods packaged for high-end appeal, but CBD products have also generated a media buzz. Top health and wellness publications have highlighted hemp trends, featuring write-ups about the benefits of CBD-infused cosmetics and beauty products. Celebrity endorsements and social media momentum have also contributed to the rising popularity of Cannabidiol in the health and beauty space. As CBD has entered the mainstream in full stride, utilizing related products has become trendy and fashionable.

Skin Serums and Relief Creams

Because the science of CBD benefits remains unsettled, consumer goods produced with added CBD cannot make specific claims about outcomes for users. Instead, makers emphasize general overall health and the natural element of incorporating the plant-based compound.

Within the most widely accepted potential for CBD, advocates point to its anti-inflammatory and pain-killing properties. Because inflammation plays a prominent role in skin conditions, comprehensive skincare emphasizes the benefits of anti-inflammatory skin cream additives. As a result, CBD is finding its way into restorative relief creams, serums, and lotions. Preliminary research indicates the compound may be beneficial in treating dry skin, eczema, and psoriasis, and the additive may suppress acne outbreaks, by regulating oil production.

As anecdotal and scientific evidence about CBD continues expanding, positive outcomes further legitimize its use in relief creams and cosmetics. And the same analgesic benefits touted to treat arthritis and sore muscles make the compound a promising additive for face creams.

Packaging Practices Highlight Versatile CBD Applications

In many cases, contract packagers devise upscale presentations for CBD-infused health and beauty products. The approach brings an exclusive feel to the goods, which may be enhanced by incorporating natural elements, such as wooden lids. Graphic secondary packaging is also utilized in the health/beauty space, communicating wellness claims about Cannabidiol. In addition to jars, packagers frequently use tubes, pumps, bottles, and glass vials with droppers to package CBD cosmetics, lotions, and oils. Innovative packaging solutions for CBD-infused goods include:

• Relief Creams – Promoting analgesic and anti-inflammatory benefits, relief creams and salves are frequently packaged in low-profile screw-top jars and tubes of various sizes.
• Pain patches – Commonly merchandised in pouches with hang tags, CBD pain patches promote the compound’s benefits of relieving pain. Patches are also available as sleep aids and for minimizing the effects of hangovers.
• Anti-aging balms – CBD balms come to market in glass and plastic jars, hinting at slowing the effects of aging. Distinctive lids, including wood-look varieties, are used to showcase the natural and organic components of products derived from hemp plants.
• Bath bombs – Dissolving bath bombs infused with CBD arrive at stores in individual cardboard boxes or creative see-through netting, suitable for vertical merchandising using hang tags.
• Infused lip balm – Sold in familiar tubes, like other lip care products, CBD-infused lip balms offer protection with the added benefits of Cannabidiol.
• Lotion – Flip-top plastic bottles and glass versions outfitted with pumps provide popular presentations for moisturizing lotion fortified with the hemp compound.
• Roll-ons – Various health and beauty aids utilize roll-on mechanisms, attached to small glass bottles, for applying the compound topically.
• Sprays – Non-aerosol spray bottles deliver CBD-infused mist, providing a distinctive vehicle for the trendy health and beauty compound.
• Topical Gel – Full-sized tubes incorporate CBD gels for ease of use, and travel-size versions enable users to take their favorite hemp gels on the road.

As regulatory changes and public perception continue propelling cannabis commerce in the mainstream marketplace, contract packaging companies are stepping-up with flexible solutions for CBD-infused cosmetics and other hemp-derived health and beauty products.

If you have questions on CBD packaging or have a retail product in this space in need of custom packaging solutions, please reach out and one of our sales associates can provide a quote.

The post CBD Products Surge in the Health and Beauty Space appeared first on Assemblies Unlimited.

Usually, you want to source your materials and manufacture the goods independently. But through private label branding, all you need to do is find the best product online to add your brand name and sell that product online.

This guide will discuss everything you must know about private labels before you can sell one. More importantly, you will learn the crucial role that packaging plays in the world of private-label branding.

What Does Private Label Mean?

Private label allows you to outsource the manufacturing of products to a company and then purchase the rights for selling them.

You may have purchased private label products before in supermarkets. Private-label brands make up 15% of supermarket sales. And while it seems like a small figure, there is foreseeable growth to niche private-label brands. We will discuss a few examples later.

Aside from supermarkets, lots of private-label brands sell their products online. The Amazon FBA (Fulfillment By Amazon) program enables sellers to generate orders for their private label products. Once customers place the orders, Amazon will package and ship the items to the buyers.

According to Marketplace Pulse, 66% of the top 10,000 sellers are part of the FBA program. The selling point of Amazon FBA is its massive reach. With over 12 online marketplaces across the globe and product sales of up to $119 billion, it’s not typical for a private label business to make north of $70,000 in FBA sales per month.

How Does Private Labeling Work?

Private label manufacturers strike an agreement with brands that will use their products.

For example, a brand wants to add bath soap and expand its personal care product line. Instead of making the soap bar, they can purchase the soap from a manufacturer who will allow the brand to promote the soap as their own.

It’s also possible for brands to look for private-label products that they can use as ingredients for their product. Let’s say the brand already has a line of soap. They can find a coconut oil supplier, a natural ingredient of soap, to help them create the product they’re after.

Finally, brands will promote the product as their own without any mention of the supplier. Once the private label manufacturer agrees to sell the products to the brand, the latter can promote the product in any way it wants.

Businesses go to private label branding for a variety of reasons. For one, it is a highly scalable venture that allows you to manage the cost and profitability without investing too much into it.

For example, you might find there’s increased demand in the market for products you’re not selling. Therefore, instead of bending to people’s will and investing in workforce and equipment to create this product, you can reach out to manufacturers and acquire their private label rights.

Once the product starts getting traction, you can consider ordering more from the manufacturer or set up your manufacturing plant for the product.

Of course, when branding private label products, you also need to worry about their packaging. You cannot correctly sell a private-label product without the correct labeling and packaging. And there’s a chance that you don’t have the materials to create the right container for your product.

Therefore, it is crucial that you also check the availability of contract packaging along with your private-label products. Securing one that will supply the best containers depending on your product and customer demands will determine this business venture’s success and profitability.

White Label vs. Private Label

There’s often confusion between “white-label” and private-label. While they are similar in approach, they have an obvious differentiator.

With white labeling, manufacturers can sell the products to as many brands as they wish. So if brands purchase soap bars from the same manufacturer, they run the risk of having products that people can’t distinguish in the market.

You can’t say the same thing about private-label products. Once you agree with a manufacturer regarding private labeling, you have exclusive rights to the product. Nobody else except you can sell and brand the product as yours.

Therefore, if you want to make your product unique and different from everyone else’s in the market, go with private label branding.

Private Brand Examples

To see how private label branding works, below are examples of large brands selling private label products.

They prove that private labeling works at all levels of the supply chain. Even if you have an established brand, selling private label products is smart to turn a profit and lower costs.

Costco

Lots of people love the warehouse store Costco for a variety of reasons. One of them is Kirkland Signature, an in-house store brand that offers premium products at low prices.

Under the Kirkland Signature flagship, Costco sells various products, from nuts to clothing and luggage, to gasoline.

If you have tried Kirkland products before, you would notice their similarities to high-end brands. It’s because Costco struck a deal with the same brands to private label the products. For example, Starbucks provides coffee beans and grounds sold under Kirkland Signature Coffee.

And in true Kirkland fashion, you can buy Starbucks coffee at Costco at lower prices. You can buy a 20 lb. bag of Kirkland Signature House Coffee at $10.49 (31¢/oz). At Target, you can purchase a 20oz pack of Starbucks coffee for almost twice the price ($12.79, 60¢/oz).

You can see other brands working with Costco in this article.

Suffice to say, if you want to get the most value for your buck, then you’re better off spending it on Kirkland products.

In fact, more and more people are lining up to buy Kirkland goods. According to Costco’s annual report in 2018, the store increased its sales from $35 billion last year to $39 billion. Aside from growing its sales by 10%, Kirkland also comprises a third of Costco’s total sales.

This goes to show that private label, when done right, can yield your brand profits.

Great Value

Retail giant Walmart is synonymous with affordable products. And nothing is more affordable than its line of Great Value products.

Similar to what Kirkland Signature is to CostCo, Great Value is the flagship brand of Walmart. Through the brand, Walmart offers traditional grocery products to consumers.

Aside from Great Value, the store carries multiple private-label brands like Equate (health and beauty items), Mainstays (kitchen utensils and home decor), etc.

In fact, Walmart went all-in with private-label branding. 40% of the products it sells are private label brands.

AmazonBasics

With the ever-increasing popularity of e-commerce, it only fits that Amazon threw its hat in the private label branding ring.

The online store launched multiple brands to varying successes. However, AmazonBasics serves to be its most popular one.

Starting in 2009, the brand sells household goods and electronics to customers.

It accounts for 58% of sales from all their private label products. It is far ahead of the following top brands: Amazon Collection (8%) and Amazon Essentials (5%).

In 2020, AmazonBasics was looking to sell its products offline, starting in India to expand its market reach.

Because, at this point, Amazon private label sales aren’t pushing the needle in terms of value. According to an Amazon spokesperson, private label brands comprise less than 1% of total sales.

Nonetheless, you cannot count out Amazon just yet despite the lackluster performance of its private brands. Look for the online store to find ways to push its products to people first ahead of other brands.

For example, when you ask Alexa where to buy batteries, it gives you Amazon Basics suggestions to purchase.

How to Start a Private Label Business

At this point, you now know how profitable and economical private-label products are. So, you’re thinking of ways to penetrate your market using them.

Launching a private label business is a tall order if you don’t know where to begin. Lucky for you, below is a quick step-by-step guide on how to secure private-label products.

Conduct Product Research

You must research the product you will sell in your brand. Ideally, you want products related to your business. However, the most profitable products to white label may not be relevant at all.

For instance, many people use products for different reasons: to look and stay healthy, slow down aging, protect their skin, and others.

However, what’s more, important is that the skincare industry has a projected market share of $180 billion in 2020. The number speaks for itself: there is a huge market and demand for skincare products.

It won’t make sense to sell skincare products if you’re in the food or automobile industry. It doesn’t matter how lucrative a product is. Selling a product outside your brand would be a hard sell.

Instead, you need to choose products that you feel confident in selling. Also, the profitability of the products depends on your niche. It may not drive millions of dollars in your yearly revenue, but the product should be in line with your business.

Next, consider how many people are searching for this product. You can start by looking for Facebook Groups and other online communities related to the product. The more members there are in these groups, the bigger the demand for the product.

Also, consider looking at how many people are searching online for your product. You can use almost any keyword research tool to get an idea of a product’s monthly search volume.

Choosing the Right Manufacturer

You want a manufacturer that produces high-quality products at low costs. Not to mention, you want those that can deliver the products fast.

Filtering out manufacturers about these factors is made easy using online marketplaces like Alibaba and Salehoo. These are the top places to contact product suppliers.

Using these platforms, you can also see each manufacturer’s customer rating, the number of orders received and delivered, and a percentage score for their response and delivery rate. These help you further narrow down your list of suppliers to contact.

Once you have finalized your list, reach out to each and ask anything else you want to know about them. Be as thorough as possible to help you determine the best ones from the rest.

Applying Your Branding on the Packaging

Once you have secured the products, you need to package them with your branding on it.

For customers, appearance is everything.

Assuming they can’t try the product, they will judge products based on their looks and how much they cost. Regarding the former, you need to package these products to reflect your branding. Also, the quality of the packaging material should be top-notch.

According to studies, hard packaging evokes a feeling of stability, which is good. On the contrary, consumers interpret rigid packaging as harsh and difficult. What people feel about the packaging can influence their buying decisions.

If you want to create a perception of an upscale brand, then your packaging must reflect that. At least, that’s what 61% of consumers feel.

Therefore, you must consider these factors when presenting your private-label products. How good the product it won’t matter if the packaging does not compel people to buy.

In Conclusion

As discussed above, there is value in implementing private-label branding into your business. Not only will you bring in greater revenue, but you will also provide consumers with a more affordable alternative to an established brand. It’s a win-win on both sides.

However, you can only win with private-label products if you do it the right way. The key is doing your research and finding the right products to sell under your brand.

The tips above are an overview of how to get your private-label goods off the ground. It would be best if you did things regarding private labeling, which is dependent on your industry and is a case-to-case basis.

Nonetheless, this guide covered everything you need to know about private labeling and how you can implement it.

With regard to packaging, you may want to consider us at Assemblies as your packaging company of choice. We offer custom packaging solutions for every product, with quick turnaround and excellent customer service.

More importantly, we can handle fulfillment services for your private-label products.

To learn more about how we can help you with your packaging needs, please request a quote.

The post What is Private Label Branding: A Beginner’s Guide appeared first on Assemblies Unlimited.

Their recognizable form tempts children of all ages, adding to their appeal. So much so that gummy bears are no longer reserved for the candy aisle.

In addition to filling bags and bottles with chewy treats, gummy bears have also become a common delivery system for vitamins and health supplements, including bears infused with cannabidiol (CBD).

Enduring Gummy Bear Traditions

Gummy bears have a devoted following. Though they are most often associated with German origins, the candy may have roots in Turkish and Japanese confections. The treats draw from an age-old tradition of cooking fruit with sugar to extend the harvest beyond fresh fruit spoilage. Early Turkish and Japanese derivations were more commonly produced using rice and corn, so Haribo founder Hans Riegel’s gelatin-based bear-shaped versions improved upon the originals.

Gumdrops, Jujubes, and Chuckles predate Riegel’s gummy bear confections, appearing as early as 1909. Though popular, earlier candies didn’t include the bear appeal associated with Riegel’s gummies, so his unique spin propelled popularity among German children, embracing the “dancing bears.” Originally established in the 1920s, Haribo grew then suffered through WWII before Riegel’s sons revived the brand. The rest is history; since the 1980s, competing US makers market gummy bears alongside the pioneering German brand, which also produces gummy bears stateside.

Gummy bears are typically comprised of gelatin, sugar, starch, flavoring, glucose syrup, and citric acid; pectin versions are also available, catering to vegan consumers. The production process employs a starch mogul approach, using stamp trays in bear shapes. The trays, made from a master mold, are first lined with powdered starch, before being filled with liquid, colored, flavored gummy formulas.

The small fruit candies consumers have come to know are approximately 2 centimeters long, though commercial examples include a wide assortment of gummy (gummi) shapes and sizes. To create the hallmark look, the face of the molded trays is fashioned in a bear shape, while the back of the individual candies remain flat. After filling with warm liquid, the trays are allowed to cool overnight, resulting in the rubbery yet appealing texture distinguishing gummy bears from other chewable candies.

Flexible Functions Drive Gummy Bear Sales

Gummy vitamins have become mainstays in the market, offering multi-vitamin formulas, as well as gummy bears containing a single vitamin, such as C or D. Calcium gummies represent another supplement segment, complementing a wide variety of gummy bear vitamin alternatives.

Children may shy away from tablets and capsules, reducing access to recommended vitamins. Gummies, particularly kid-appeal ones, have a better chance of landing nutrients than traditional pills. Children’s chewable supplements shaped like bears are an easy sell, relying on the gummies’ familiar shape and size to get kids’ attention. In addition to kids reluctant to swallow pills, gummy bear vitamins can help children

• experiencing nutrient deficiencies,
• with absorption issues,
• requiring increased amounts of nutrients, for one reason, or another,
• known as “picky eaters,” which may reduce their natural intake of vitamins

For adults requiring supplemental vitamins, gummy bears reduce a phenomenon referred to as “pill fatigue.” They taste good, so adults are just as drawn to chewable vitamins as their children are, essentially green-lighting a piece of candy for its supplemental nutritional value. Stored properly, the flexible, chewable candies stay fresh for months, though gummy bears incorporating supplements may have expiration dates.

The ever-increasing sales growth of this non-traditional pill form naturally drives more demand for gummy bear packaging in the CPG market.

Consumers Embrace CBD Infused Gummy Bears

CBD infused gummy bears have helped propel the cannabis-derived additive to new heights in mainstream health and wellness circles. Now present in everything from cosmetics to chewable gummies, CBD has captured public attention for its potential benefits. The substance is derived from hemp strains of the cannabis plant and is believed to be beneficial for treating various ailments.

Though science is yet inconclusive about the benefits of CBD, users point to properties that may help manage conditions, such as:

• Insomnia – Some research indicates CBD is beneficial in helping insomniacs fall asleep and even wake up.
• Epilepsy – CBD has been linked to seizure reduction in cases of childhood epilepsy. An FDA approved CBD treatment leads the way in drug innovation, incorporating the benefits of CBD.
• Pain – CBD may relieve pain for chronic sufferers.
• Inflammation
• Anxiety and Depression – It is thought anxiety sufferers may find relief in CBD gummy bears and other supplements containing the cannabis-derived compound.
• Heart Health – CBD has shown promise in promoting heart health in limited studies.
• Skin Conditions – Acne sufferers have experienced symptom reduction tied to CBD use.
• Digestive Issues
• Arthritis – Topical CBD applications have been shown to reduce inflammation caused by arthritis.

Relaxed marijuana laws and increased public awareness about cannabis/hemp products have given sustained momentum to CBD sales trends. The compound is blended for topical use and formed into gummies for consumption. Companies such as Not Pot utilize the recognizable gummy bear shape for infused chewables, sold in jars.

Hang tags are popular for grocery aisle gummy sales applications and for smaller quantities of bears. Gummies are also wrapped and boxed for health store placement. Glass and plastic jars of all shapes and sizes prepare diverse CBD goods for the market, including clear containers and dark jars used for hemp-infused gummy bears.

First gaining popularity a whimsical yet curiously satisfying confection nearly 100 years ago, gummy bears still have a strong presence in the candy aisle. But the familiar treat has also crossed over into health and wellness markets, including vitamins and supplements. The dancing bear appeal specifically targets kids, in some cases, supporting ease of use and better success rates delivering nutrients.

As popular as they are with children, gummy bears’ staying power is also an adult phenomenon. From supplemental nutrients to CBD and individual or blended vitamins, the chewable alternatives help adults overcome pill fatigue, offering a flavorful distraction from tablet supplements.

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Growth Trends Prior to Coronavirus Pandemic

The hand sanitizer manufacturing industry represents a $74 million segment of the economy. During the five years to 2020, the industry experienced annualized growth amounting to just under 4-percent. In addition to heightened consumer awareness surrounding good health practices, it is thought increased marketing attention from operators has also contributed to the strong performance seen in the hand sanitizer industry. In particular, suppliers that have been able to leverage distribution relationships have experienced robust growth in the competitive hand sanitizer market.

Increased Demand Due to COVID-19

After displaying steady annual growth of 3.9-percent, hand sanitizer sales have jumped substantially amid the Coronavirus pandemic. Supply issues prevail, so the figure doesn’t represent true demand. Gel-based hand sanitizers alone saw a 73% sales uptick in March, illustrating the upward trajectory inspired by health safety concerns amid the COVID-19 crisis.

Overall, the US hand sanitizer market is expected to show a 20% growth for the period 2019-2025, according to a recent market report. The world’s largest market for hand hygiene products, sales in the United States have been fueled, in part, by a series of epidemics occurring since 2000.  The rise in consciousness and popularity of hand disinfection solutions has arisen partially due to the SARS outbreak of 2004, as well as the spread of the H5N1 Avian Flu in 2005 and the Swine Flu epidemic occurring in 2009.

Consumer concern about contagions has promoted sales increases, but the rise in popularity of antibacterial hand sanitizers is also propelled by scientific confirmation, illustrating the effectiveness of hand hygiene products. According to research, the spread of gastrointestinal illness can be curbed by 50% with regular use of hand disinfectants.

Coronavirus concerns have prompted explosive growth in the sale of hand disinfectant products. In addition to heightened awareness and purchases attributed to individual consumers, institutional sales have also reached peak levels, as healthcare and other facilities address the COVID-19 crisis with enhanced sanitization efforts. Commercial and industrial applications have also expanded, fueling further growth in the industry.

As demand outpaces supply in the current environment, various businesses are retooling outside their specialties, in order to produce hand disinfectants. Distilleries, including major world alcohol producers, are contributing hand disinfectants to meet medical demands. And a noted plastics company has also shifted production to hand sanitization. In addition to pumps for dispensing liquid and gel products, contract packaging partners are also filling increased numbers of small, “pocket bottles” for personal protection from infectious disease. Fragrance companies are also assisting with sanitizer packaging efforts.

Industry Growth Forecast

It is thought robust sales trends will continue for at least 2 years, beforehand sanitizer markets stabilize, following the global pandemic. According to the market report, which considered supply and demand conditions, the present state of the hand sanitizer market, and other restraints and potential enablers; a few key factors are likely to contribute to a period of growth spanning 2019-2025.

• A growing number of infections
• Increased health consciousness among consumers
• New demand for organic and flavored sanitizers

Showing a strong uptick in use during the March response to Coronavirus, gel sanitizers aimed primarily at healthcare settings are expected to continue selling well after the COVID-19 crisis. While healthcare environments are substantial end-users for gel products, manufacturing settings account for a large share of liquid disinfectant use. As infection concerns grow in manufacturing, strong liquid hand sanitizer sales are expected.

The institutional segment of the disinfectant market, encompassing schools, colleges, and commercial industries such as hospitality, favor foams – deemed effective with concentrations of at least 70% ethyl alcohol content. According to analysts, spray sanitizers, frequently utilized in gyms and health clubs, will also see growth propelled by niche users.

The hand sanitizer market, valued at $1.2 billion in 2019, is predicted to become a $2.1 billion industry by 2027.

Retail Opportunities

Healthcare end-users are responsible for explosive growth during the Coronavirus pandemic and will likely continue driving industry expansion for years to come. Retail opportunities are also expected to grow during the upcoming five-year period, calling on contract packagers and industry vendors to meet the demand for hygiene hand rubs. Bottles, pumps, wipes, and sprays each present unique opportunities for producers and their packaging partners, marketing directly to individual consumers influenced by the increased call for hand hygiene.

By one estimate, the UK saw hand sanitizer sales spike 255% in February, responding to the COVID-19 pandemic. Rationing policies and price hikes have emerged at retail locations, and there is evidence Asian buyers are stockpiling personal hygiene products in the wake of the pandemic.

In Italy and parts of the US, sales were up more than 1000%, compared to same-period sales last year. Online venues are commonly sold-out of hand hygiene products and price increases have been widely reported among online vendors. While these conditions directly reflect the use of disinfectants during the unfolding crisis, retail opportunities for alcohol-based hand sanitizers and non-alcohol versions are not expected to wane for years.

Packaging During Critical Demand

More than 1500 companies have recently registered with the FDA to produce hand sanitizer. The unprecedented demand has an impact on packagers’ ability to keep up with retail needs. Fulfillment capacity is stretched, but a bigger problem lies with availability of materials needed to package and distribute related products. Plastics companies have expanded operations, producing flip-top closures and PET bottles. Competition for limited enclosures is not contained within the hand sanitizer industry – food producers are also ramping-up output, requiring similar plastics to bring edible goods to market.

Lotion pumps and sanitizer caps are also in high demand; specialized producers are responding with higher output and innovative redesigns, utilizing caps and containers originally intended for beverages, cosmetics, and household cleaners. One automotive fluids company, pitching in with sanitizer production, has resorted to packaging hygiene products in bottles traditionally associated with motor oil distribution.

Hand sanitizer demand is expected to remain strong, well beyond the current COVID crisis. Producers and packagers continue adapting to shortages and remain committed to healthcare priorities, battling the spread of the infection. As conditions normalize, new retail opportunities are sure to shape the enduring market for hand hygiene products.

Assemblies Unlimited has turn-key capabilities to manage your hand sanitizer packaging project through completion.

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As reshoring efforts continue expanding, the Coronavirus pandemic adds another layer of concern for US companies weighing the pros and cons of various approaches.

Historic Offshoring Trends

Offshoring is a form of outsourcing, sending manufacturing overseas. The trend typically involves moving part or all of the production process from a highly industrialized region to less developed countries. The practice is principally undertaken to take advantage of lower labor costs in other parts of the world, but offshoring historically helped companies benefit from:

• access to raw materials
• favorable tax laws
• lenient environmental regulations
• fewer mandates for workers

Early offshoring was largely limited to unskilled jobs, but as the trend carried over into the 21^st century, skilled work was also moved to other countries.

As offshore regions developed more sophisticated labor resources, IT jobs, and technology positions in software engineering, code writing, chip design, and other disciplines migrated to places like India and Malaysia. Despite the economic benefits of offshoring, the practice poses problems for US firms, fueling reshoring trends currently underway among domestic manufacturers.

Reshoring Responds to Offshore Failures

Businesses typically move manufacturing overseas to save money. According to a publication by Kinkel, et al, Measuring Reshoring Trends in the EU and US, reshoring, or returning some or all aspects of production to the US, occurs when the trade-offs for cost savings no longer present advantages for US companies.

In its 2019 Survey of Global Manufacturing, The Changing Trends of Reshoring in the United States, Reshoring Institute examined some of the factors that influence manufacturers’ decisions to return operations to the US. According to the publication, which surveyed diverse industries, respondents experienced problems in the following areas:

• More than 70% of businesses surveyed indicated they had experienced delays in shipping. In addition, 60% identified production schedule delays as a problem of sourcing overseas.
• Inconsistent quality was a common problem for respondents, with 55% pointing to quality issues overseas.
• 31% of those surveyed shared the view that IP theft is a noted concern, resulting from offshore input sourcing.

Among the reasons shared for engaging in reshoring during the prior year, survey participants identified the following motivational factors for making changes:

• Logistics costs – nearly 70%
• Proximity to markets – 55%
• Risk mitigation – 50%
• Quality concerns – more than 48%
• Latency in the supply chain – nearly 45%
• Time to market – more than 43%
• IP issues – 34%
• Rising labor costs – 30%

Reshoring in the Trump Era

Various factors are at play in increasing reshoring efforts in recent years. Trump administration tax cuts have provided a shot in the arm for manufacturers contemplating reshoring. Although high domestic labor costs and lack of US facilities have slowed some companies’ efforts, the Trump tax cuts made the US more competitive with overseas tax policies, incentivizing reshoring.

The Jobs Act of 2017 represents another proactive move made by the Trump administration, supporting the President’s pledge to bring jobs back to the US. Before the Coronavirus pandemic disrupted the economy, strong job growth was a continuing facet of the decade-long economic expansion experienced in the US. Despite the gains, a New York Times article points to mixed results fulfilling reshoring expectations.

As part of the President’s multi-pronged plan to bring back jobs; tax cuts, relaxed regulation, and tariffs have been touted by the administration as top reasons for recent job growth. Though 2018 unquestionably contributed manufacturing jobs to a US economy showing 2.5-percent growth for the year, Trump detractors minimize the policies’ impact on reshoring.

According to the Reshoring Institute, companies announced plans to relocate 145,000 to the United States during Trump’s first two years in office. The figure represents a record-high number for the Institute’s decades-long reporting but pales in comparison to regular job growth during the country’s sustained expansion. According to some observers, tariff uncertainty, combined with a strong US dollar, Washington dysfunction, and a skilled workforce shortage may have stymied a larger surge in reshoring efforts.

COVID-19 concerns have added another consideration for manufacturers, joining tax reform, global supply chain efficiency, eased regulation, and other factors influencing reshoring decisions.

COVID-19 and Reshoring

Millions of Americans have lost work due to the Coronavirus pandemic. As governors, federal officials, and health experts contemplate reopening the US economy, economic analysts point to reshoring as an essential ingredient for a swift recovery.

Chinese exports are being held up to make sure the Coronavirus does not travel with goods, slowing the supply chain for raw food, food ingredients, and other key imports. As a result of shifts related to the pandemic and its crushing impact on US employment, COVID-19 concerns are making manufacturers and US commercial stakeholders rethink the country’s dependence on overseas manufacturing. Post-COVID conditions may re-ignite the US manufacturing base, increasing job opportunities, and rebuilding domestic infrastructure.

According to experts, bringing jobs back to the US from China may be a vital component during recovery. In addition to stimulating the economy with employment opportunities, the practice would also enhance national security, helping to manage future public health crises.

China is experiencing direct fallout, suspected of hiding the truth about Coronavirus during the early outbreak in that country. It is thought low-interest loans and tax incentives from the US government would help lure jobs back to the United States manufacturing sector, favored over increased dependence on China, following the global health crisis.

While such measures may prove effective in boosting US manufacturing, the moves will likely be secondary to post-COVID realities, shaping how US companies rebound from the pandemic. More important than policymakers’ desire to bring jobs back from China; US companies will have no choice but to rethink their supply chains following the pandemic. Conditions will be dramatically different in the wake of the global event.

The Coronavirus pandemic has put US supply practices in the spotlight, illuminating the country’s tenuous position, concentrating capabilities in one region. The medical industry and other sectors are likely to seek decreased dependency on China, bringing jobs back to the United States. It is thought the unreliable, inconsistent nature of the country’s current supply arrangements will prompt incentives from the Federal Government and spark retraining among American workers – each measure expanding reshoring efforts in the US. From the dark cloud of Coronavirus may emerge a stronger US manufacturing base and better preparedness for future crises.

To learn more about reshoring capabilities, reach out to Assemblies Unlimited.

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By getting customers’ attention with your POP displays successfully, you can increase your sales without spending more.

There might only be so much you can do with point-of-purchase displays, given that they are printed materials and might burn a hole in your pocket. However, all you need is creativity to get more eyeballs on your products which could result in greater purchases.

To help get your imagination up and running, below are point-of-purchase display examples. They can give you ideas on approaching your POP displays that match your brand.

Centrum: Shelf-Takers

Also known as hang tags, they appear on grocery isles where you can find products on the shelf. They help direct passersby where the brand for a particular type of item is.

In this example, Centrum vitamins are now non-GMO and gluten-free, as shown in big, bold letters. Customers will also see the appearance of the packaging to identify it from other Centrum products.

The main catch of the display, however, is the coupons at the bottom. People can get one to save $3 for every purchase of the products.

Another interesting thing about the display is its placement. You’d expect it to appear along the aisles where people can find vitamins. However, you can see the display in the snacks section where brands like Planters surround it.

However, the placement may be deliberate. Whenever shoppers are looking to buy snacks, the display will remind them of their health. This could lead to them getting a Centrum using the coupon before checking out.

L’Oréal: End Caps

End caps are arguably the best places to set up a display for your brand. Displays from this part of an establishment are the first thing people see before going down the aisle. They are also large enough for people to see from far away.

This example for L’Oréal shows you how eye-catching end caps display can be. The brand took advantage of the space by printing out the tagline “The World’s #1 Facial Skincare Brand” along with graphics to match. More importantly, it stocks its best products there so shoppers can get their hands on L’Oréal before they can even check out other brands on the shelves.

Tic Tac: Sidekick Display

Also called a power wing, sidekick displays allow you to efficiently maximize product sales by placing them near areas in the store with the highest foot traffic.

These small hanging cardboard displays mostly hang on the side of end cap displays, but they can also appear near the cash register. And due to their size, you can easily find space to showcase them.

You’ve probably seen sidekick displays of Tic Tac in your local stores before checkout. And there’s a good chance you grabbed at least one to include in your purchases. This quality of sidekick displays makes it one of the better choices to feature your snacks and small food products. It also doesn’t hurt that Tic Tac has a sleek and attractive-looking display that stands out. The display takes shape and color of the ever-popular and recognizable breath mints.

Pringles: Gravity Feed Display

This display type is a great way to showcase products with unconventional packaging or those in-cylinder canisters. What this display allows is stacking your products from top to bottom. Then, there is an opening in the display where shoppers can get the item. Once they pull it out, another item drops in its place.

A great example of a gravity feed display in action is the one from Pringles.

As you can see, whenever you take a Pringles can from the display, another one rolls down to replace the one you just took. Therefore, instead of stocking them on the shelves, gravity feed displays let you showcase your products uniquely and memorably.

Motril: Floor Display

This display type is a space-saving way to make people notice your brand in stores. Floor displays don’t protrude along the aisles and stick out like a sore thumb. On the downside, since they appear exclusively on the floor, it will be a bit more challenging to get people’s attention.

However, floor displays are very effective if you get creative with them. A perfect example is this display by Motrin.

Motrin is an over-the-counter pain reliever brand. It’s arguably not as popular as Advil and others, but it is just as effective. It’s just a matter of marketing it properly and raising more awareness about the brand, which is what its floor display did.

The image of a person squashed by the aisle is a lighthearted way to communicate its message. The copy also helps show the effectiveness of the pain reliever.

The placement of the display feels strategic as well. The bottom row of the aisle shows Advil products. So, whenever people bend or look down for them, they can’t help but also see the Motril display.

Bulleit: Free-Standing

Unlike other displays in this post, you can promote your brand using free-standing without a shelf or wall. This way, you can choose whichever location you wish in an establishment to maximize your brand’s impressions from customers.

The great thing about free-standing displays is that there is more freedom for you to fashion your brand around it. In this example, Bulleit has a relatively simple design for its display. But what makes it stand out is the design that matches its brand. The rustic colors of the display capture the feel of the product, which also helps customers decide whether to try out the product. The appearance helps tingle the other senses.

Kit Kat: Dump Bins

There are products that shoppers don’t list down as part of the essentials, like candy bars and small food items. However, these are also the easiest to sell if done correctly. Dump bins allow you to do just that.

Just like free-standing displays, you can set up this type anywhere in a store without needing shelves. With the right design and setup for your display, you can encourage impulse buying from shoppers even if they’re not actively looking for your product.

This Kit Kat dump bin display is the perfect example of impulse buying. After buying groceries for the family, it’s time to do something nice for yourself. Therefore, a pack of Kit Kat is in order. With its design resembling what’s inside the pack, it’s hard to resist this offer.

Scotch Tape and Glade: Pallet display

If you want shoppers to see your brand in full display, then the pallet display is for you. They are as big as they come and are impossible to miss. They come in different sizes: full, half, and quarter – the first one being the biggest.

Aside from its size, another advantage of pallet display is that it also works as its transport packaging. Therefore, once the store receives the package, it can merely unbox and display it without little to no set up involved.

This example by Scotch Tapes shows how brands can use this full pallet display to its full effect. Since it occupies a lot of space inside a store, you can put as many products as you want of your brand. This way, you don’t have to stock them in the aisles along with the others.

Half-pallet displays achieve the same effect as a smaller scale. In this example, Glade holds different Glade products in a single display. It also carries refills complete with the text below the display. This part works to Glade’s advantage because people will want to buy as many refills as they can so they don’t have to come back again and again.

Conclusion

There’s a lot you can do and achieve with the right point-of-purchase display for your brand. Remember that some products work best on specific displays, so consider which display you should use based on the examples above.

Also, be creative and come up with unique ideas for your displays. Ultimately, what captures people’s attention regarding these displays is how much you can say about them despite the limited space. Of course, you need the display to be in line with your brand. You don’t want to showcase your products on displays that aren’t in line with your brand mission.

Finally, the displays need to be made from high-quality materials. It’s all too common for pallet displays, for instance, to break and tear because they can’t carry all the products on their shelves

With our POP display assembly service, we can also deliver on time based on your specifications and volume. This way, you can feature your products prominently in stores without worrying about the display’s quality.

For more information on how we can help you, click here and fill out our quote form.

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Understanding Fulfillment Practices

To fully comprehend the benefits of various packaging approaches, it helps to understand the role packaging plays in the supply chain. This function ultimately determines the cost of a given application, so taking-in the big picture can help packagers and other supply chain stakeholders measure the value of automation.

Packaging is more than a generic solution for moving and merchandising consumer goods. On the contrary, comprehensive packaging concerns include materials considerations, distribution planning, storage needs, and finally, merchandising methods.

Each of these applies to brick and mortar locations, but rapidly rising e-commerce packaging and sales add another layer of fulfillment concerns to address. In order to keep shipping and fulfillment costs down, the distribution process is becoming more and more automated, especially for online sellers.

Producers and manufacturers have an early decision to make, bringing goods to market. Is it efficient and cost-effective to fulfill orders internally? Or does it make more sense to outsource the service?

Warehouse distribution is an effective approach for some online retailers, which may also be part of a combination approach, including brick and mortar retail locations. For others, space and inventory limitations may interfere with efficient in-house fulfillment. In such cases, third-party logistics providers furnish a fresh alternative, benefitting some sellers.

Expanding Options for Shippers

Sellers have more options for fulfillment services than ever, so the number, size, and flow of an organization’s orders can help determine the best approach for packing and shipping them. The number of parcels shipping daily can be used as a starting point, measuring current and projected sales volume and evaluating the need for automation.

Major players like Amazon have changed the playing field for sellers of all sizes, particularly smaller retail organizations trying to compete among giants. The distribution powerhouse ships more than 5 million packages daily, giving them substantial sway over shipping and fulfillment costs. With that level of volume, the company can reduce the cost of sending each package, shipping them for less than independent retailers can.

At the same time, Amazon offers flat rate fulfillment pricing, handling packages weighing less than one pound for under two-dollars and fifty-cents each. Outside Amazon’s network, the price commonly rises to more than three-fifty. Automation is one of the ways the company maintains its low-cost distribution model, providing proof that automated packing works on a large scale.

As automation and other efficiencies continue to create cost-savings, the reasonable threshold for outsourcing the service has also come down. Third-party fulfillment is now well-within the grasp of companies whose sales volume would not have made them good candidates for the service as recently as a few years ago.

In-house fulfillment benefits from automation too, but the scale of self-fulfillment operations may not warrant investment in the most elaborate solutions. Each case is unique, so consulting with an established packaging company highlights the best-automated solutions for each task.

Advances in Automation Technology

Professional packagers weigh several variables, deciding which semi-automated and fully-automated packing solutions to use. Consistency, worker safety, productivity, and of course, profitability are only a few of the critical considerations driving the use of automation in the contract packaging industry.

Progressive packaging companies know the value of robotics and automated materials handling equipment, reaping reduced labor costs and other benefits from the technology. According to one recent market study, this type of automation will grow to a forty-eight billion-dollar industry by 2023.

The benefits of automation are recognized and continue to expand as technology opens new doors. A few of the advantages drawing packaging companies to automate:

• Flexibility – Modern machines can be fitted to accommodate various designs, increasing the utility of the technology. Shape, size, and package structure are not a problem for automated packaging line machines.
• Reduced Human Error – Human error directly undermines productivity, so removing manual labor from some packaging processes helps optimize output.
• Consistency – Automation eliminates deviation. Products are packed consistently, meeting producer and consumer expectations every time. Automated handling can be particularly beneficial for packing fragile and irregularly sized items vulnerable to manual damage.

Stakeholders are increasingly investing in automated infrastructure, outfitting warehouses, and distribution centers with state of the art equipment. The expansion of automated systems doesn’t just reduce labor costs, but also leads to higher quality output in many cases. Increased efficiency is one verifiable advantage, but reliability and results are also behind the push, prompting growth across the industry.

Semi-automated packing systems incorporate advanced machinery alongside workers, enabling the human component to ensure the automated aspect functions properly. When a production floor issue requires a reasoned solution, for example, the worker can step in to keep the line running without losing productivity. Under fully automated conditions, machines take over the entire packing process, eliminating all packaging variations.

Fully automated packing is particularly valuable in pharmaceutical and related industries, where human error is thought to account for as much as eighty-perfect of packing deviations. Adding further accountability to automated packaging lines, some facilities now incorporate smart sensors on their machines. The sensors detect problems along packing lines, giving operators the information needed to make corrections in real-time.

In Conclusion

The requirements of each project ultimately determine the best ways to pack and deliver goods, but automation provides across-the-board packaging benefits, under wide-ranging conditions.

Whether contracted through a third-party provider or accomplished in-house, automated packing methods can help cut distribution costs and boost quality and consistency.

Feel free to reach out to us for more information about the advantages of various fulfillment and packaging options available.

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Modern packaging realities would have been unimaginable to observers studying the state of the industry decades ago. But like most progressive, demand-driven businesses the consumer packaging industry continually evolves, responding to technological advances and marketplace preferences.

Although consumer cues positively shape the direction of the contract packaging industry, technology can change the playing field altogether – leading to breakthroughs like smart packaging. As new things become possible, the fast-growing segment is poised for further expansion, fusing creativity, and technology in unique smart packaging designs. If you are involved in the consumer supply chain, smart packaging is bound to play an increasingly important role in your future.

Smart Packaging Defined

Smart packaging has been a part of the landscape for years, but each new advance raises its profile. Also known as interactive packaging, intelligent packaging, or simply active packaging, the innovative approach adds another dimension of functionality to consumer packages, enabling the containers themselves to provide information about package contents.

To capture the various types of smart packaging now in use, its definition is necessarily broad.:

In some cases, the interaction occurs directly with consumers, providing tactile sensations and other valuable feedback. In other applications, smart packaging interacts with consumer electronics, enabling smartphones and other devices to pick-up data from product packaging.

The Technology Behind Smart Packaging Trends

Smart packaging offers expanded functions, beyond the traditional need to protect and transport consumer goods. In its simplest form, that translates to sounds, tactile feedback, and other sensations experienced by consumers interacting with an intelligent product container. But this is only the beginning for smart, interactive packaging, which now benefits from cutting-edge electronic technology, capable of sensing and sharing wide-ranging information.

Diverse producers and brand owners now use smart packaging to monitor and improve shipping times, maintain product freshness, and reinforce safe handling practices. And as a direct conduit to end-users, smart packaging promotes consumer convenience and supply chain transparency, increasing sales and brand loyalty for tech-forward suppliers tuned-in to these important lifestyle values.

One rapidly advancing area, “printed electronics” refers to the ability to blend advanced electronic technology with thin packaging substrates. In supply chain applications, the thin, flexible material is made smart, using printing techniques capable of incorporating thin circuitry, miniature sensors, and tiny paper-thin battery power sources. Combined with advances in smartphone capabilities, intelligent packaging presents unlimited opportunities to expand package functionality and consumer interaction within competitive retail environments.

Miniaturization and electronic printing innovations have made new things possible, but advances in related technology have also made the process less costly, opening the door to its use in high-volume applications. As a result, demand for smart packaging is poised for further growth in the coming years, potentially driving the global market to levels above $28 billion annually by 2024.

Intelligent and Active Packaging in the Marketplace

Smart packaging executes specific functions in the marketplace, benefiting diverse consumer industries. The strategies currently in use can be roughly broken into two distinct categories. Active packaging most often refers to product packaging capable of sensing and regulating a package environment.

In practice, substances are deliberately added to the packaging material to enhance the shelf stability of various products, better controlling the effects of time, temperature, and other variables. Used effectively, the technology bolsters the protective function of a package, resulting in better handling conditions and product integrity. Oxygen scavengers, antimicrobial agents, and various specialized barriers are examples of active packaging technology commonly used in food-related applications.

The smart packaging subset often referred to as intelligent packaging, emphasizes the communication function of a package. Intelligent packaging sends messages to supply chain stakeholders and interacts directly with consumers and their devices. The growing use of technology responds to shifting buyer expectations, which now calls-upon savvy marketers to inform and interact with each consumer on a personal level. Applied correctly, intelligent packaging can:

• Streamline supply-chain management
• Assist product authentication with anti-counterfeit technology
• Monitor pathology within a package
• Share marketing and branding information

Smart Packaging Moves Forward

Cost-efficiency and consumer preferences drive packaging trends, so affordable smart packaging alternatives are changing the playing field for forward-looking contract packagers. In search of supply chain integrity and transparency, it appears consumers are willing to pay extra for packaging, reflecting their lifestyle values. So as high-volume smart packaging solutions have become more affordable, use of the intelligent designs has taken hold in pharma, automotive, health and beauty, and other specialized segments. As innovation tests new frontiers, cost-effective interactive packages are replacing standard options across the entire food supply chain. Examples include:

• Milk containers equipped with special carton liners designed to extend the shelf life of perishable contents
• Meat packaging labeled with smart technology, including color-changing labels indicating the contents is beyond their expiration date.
• Produce packaging capable of reducing food odors
• Specialty marketing, such as a recent campaign incorporating LEDs into consumer beverage bottles
• Time-temperature sensors furnishing feedback about perishable deliveries
• Antimicrobial packaging used to inhibit germ growth and spoilage
• Coded packages equipped to interact with smartphones, sharing anti-counterfeit protection, marketing messages, and direct consumer engagement

Although price competition may slow the rise of smart packaging in some consumer segments, the technology continues to expand into new markets. The tech-forward approach syncs with lifestyles sensitive to product and supply chain integrity, so effective brand owners use smart packages to create personal connections and stimulate brand loyalty.

As innovation and technology continue to serve-up affordable smart packaging solutions, more and more producers will benefit from gains in quality, value, and consumer confidence.

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Packagers use blockchain to improve package tracking, strengthen security, and better accommodate the call for supply chain transparency.

Benefits of Blockchain

Blockchain is a decentralized distributed ledger using a peer-to-peer (P2P) network, allowing users to add “blocks” logging actions and transactions. To clarify the concept, one recent Coindesk article likened the structure to Wikipedia.

Like Wikipedia, blockchain allows many different individuals to make entries into a record, which is ultimately controlled by the community of users. Because the entries originate from multiple sources, no single individual has domain over the information. Though similarities are apparent, blockchain has a unique digital structure that sets it apart from Wikipedia.

Wikipedia and blockchain both rely on the internet, but the former is based upon a client-server network model. The scheme lets users with certain account permissions alter Wikipedia entries stored on centralized servers. The centralized structure means owners control updates and access to their databases. The distributed database created by blockchain has a different digital makeup than the Wikipedia example; blockchain entries are not controlled by a central party.

Instead of relying on a “master copy” of the records, like Wikipedia does, blockchain networks update independently, resulting in a collective, de facto master. Entries cannot be changed once logged to the database, so eliminating the central authority makes blockchain reliable, secure, and trusted among supply chain stakeholders. Blockchain’s most prominent distinction is that the system is transparent and public, making it less susceptible to corruption or manipulation.

Blockchain and Packaging

According to Chainalytics contributor, Eric Carlson, blockchain’s biggest contributions to the packaging industry may be felt in three key areas:

• Tracing and Tracking Packages
• Facilitating Consumer Awareness
• Protecting Brands from Counterfeit Production

The author suggests blockchain technology is poised to experience a rapid adoption rate, as advances continue making it easier to access the technology.

Historically, keeping tabs on packages relied on physical paperwork and security measures traveling with the goods. Blockchain changes the paradigm, enabling packages to communicate with the web, end-users, and the supply chain itself.

Rather than packing slips and bills of lading providing assurance, serial numbers, barcodes, RFID, additional security features, and other measures are now used to convey authenticity. As technology continues adding capabilities, QR codes and smartphones are also increasing direct engagement between consumers and product packaging.

Transparency Beyond the Label

Product packaging serves many functions; one of its most important roles is informing consumers. As the call for greater transparency continues gaining momentum, consumer’s thirst for product knowledge and provenance appears unquenchable. It is thought as many as 50 percent of consumers want more information about the products they buy. Responding to the consumer mandate, blockchain is beefing up labeling data, creating more opportunities for producers to connect with buyers.

Label and Narrow Web author, Amy White, recently discussed blockchain in practice. The technology has been adopted by Walmart and major European retailer, Carrefour, attempting to trace goods from farm to shelf. In one noted pilot program undertaken by the US giant, Walmart deployed blockchain technology to track mangoes. Using blockchain technology, the company was able to trace individual mangos to their source farms in just over two seconds. Without the advanced capability, the same task would have taken more than 6 days.

The stakes are high for sellers – White shared a 2018 survey suggesting 75 percent of consumers would be willing to switch brands for in-depth product information, going beyond traditional package labeling. Examples of the way blockchain is being adopted in the marketplace include these developments:

• In a forward-looking application of blockchain in packaging, an all-natural sparkling drink has come to market packaged in cans with 2D unique scannable codes. The cans are the first beverage containers outfitted with unique digital identifiers. Buyers will ultimately be able to use codes on the cans to unlock rewards and learn more about the beverage company behind the tech-inspired packaging effort.
• Bumble Bee Foods has entered the blockchain arena, launching an ambitious partnership with SAP. The campaign traces yellowfin tuna from the Indonesian ocean where it’s caught to the can on store shelves. By scanning a QR code, curious consumers can access data such as the location of the catch, its weight, and whether or not the product has been certified sustainable.
• Alcohol counterfeits are a growing concern, so Ardnamurchan distillery has turned to blockchain for added security. The Scottish company markets a single-malt scotch with a QR code on the bottle neck. Consumers scan the code to authentic the bottle, ensuring they get the product they pay for.
• Multiple beer makers have overcome the problem of subtly incorporating QR codes by working them directly into brand logos. One such blockchain beer with a QR-laden label provides not only timestamps tracing the beers path, but also videos and other content that completes the story of the beer’s journey.
• A Walmart initiative uses blockchain technology to automate elements of the delivery process. The innovation uses a network of delivery lockers, placed in homes, delivery hubs, and other locations, to accommodate package delivery when no one is available onsite to accept items in person. A blockchain component enables the lockers to communicate, providing real-time data about which units are empty and available for use, as well as facilitating reservations through blockchain’s public ledger.

Blockchain technology is adding security and accountability to the supply chain. From tracking and traceability, to transparency and direct consumer engagement, producers and packagers are only beginning to tap blockchain’s untold potential. Coupled with AI technologies in contract packaging, the future of innovation in the industry continues advancing in bold and exciting frontiers.

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In addition to its protective functions, secondary packaging plays an increasingly visible role in branding and display strategies. Club stores and other retail outlets rely on the “higher assembly” for graphics and brand messaging to inform consumers and to “lure” them into a purchase.  Popular “big box” stores use bundled multi-packs, POP displays, variety packs, and BOGOs as a huge advantage for volume shopping.

Secondary packaging protects products and provides opportunities to inform consumers, share brand messaging, and stand up for the environment. Effective contract packagers help their partners balance form and function, allowing secondary packaging to excel in its many roles.  As technology, e-commerce, marketing, and consumer preferences continue evolving, so do secondary packaging and its place in the global supply chain.

Secondary Packaging in Evolving Consumer Markets

Experienced contract packaging companies respond to trends and tendencies driving consumer markets by providing end-of-line or secondary packaging solutions. Customers and CPG clients collaborate with their co-manufacturing partners to create operational efficiencies by building a custom line that hosts primary filling options while adding machinery or manual labor to handle any secondary functions.

Examples of these secondary steps in the contract packaging process include shrink wrapping, registered bundling, cartoning, counting, bagging, tipping, overwrapping blister packaging, clamshell packaging, club packs, point-of-purchase displays, and more.  Forward-looking contract packagers realize that these secondary solutions add value and are always eager to support these secondary packaging requirements for their clients.

Integrated Functions

Modern packaging increasingly integrates the functions of housing, protecting, and marketing consumer goods. Each packaging layer contributes equally, accomplishing production, distribution, and promotional goals. Integrating packaging functions ensures that graphics and branding translate to exposure at every stage of distribution and that goods are at home in diverse retail environments.

Primary packaging is the level of packaging closest to the product. This is where the packaging materials “touch” the raw ingredient, powder, liquid or main component, whether food or non-food.

Examples of primary packaging would include spices in a shaker bottle, soup mix in a pouch, shampoo filled into a bottle, potato chips filled into a bag, or drink flavor mix filled into a stick pack.

Secondary packaging is a supplemental packaging layer in which primary packages are enclosed. They are typically the final package and message that a customer will see at the retail level.

Examples of secondary packaging using the references above are:

• 2 spice bottles may be shrink-wrapped together and sold as a “bonus” pack
• the soup mix pouch would go into a printed chipboard folding carton
• the shampoo bottle could get a neck hanger added to it for promotional purposes
• the potato chip bag could go into a variety pack tray and then shrink-wrapped as a back-to-school item
• a stick pack would be packaged 30 units to a retail box for a 1 month’s supply

More Automation

Automation adds efficiency and makes custom production lines possible for contract packagers and their clients. In addition to displacing a diminishing workforce, automation results in consistent, dependable, repeatable, and high-quality output at every step of production. Some emerging secondary packaging improvements are owed to automation. Easy-to-use case formers, band sealers and cartoning machines are all examples of secondary machinery that allows a contract packaging company to take advantage of technology that is fast, consistent, and can be easily adapted for various applications.

For many manufacturers, secondary packaging costs have been greatly reduced with the emergence of Amazon and online shopping in general.  Many products that would require an attractive outer “retail” friendly box or colorful pouch to entice a sale may only need something generic because the goods have already been purchased.

Minimalism

Biodegradable plastics and other eco-friendly packaging innovations raise the bar for environmentally responsible secondary packaging. While these game-changing advances up the ante, minimizing materials is still an effective, accessible solution for creating environmentally responsible packaging.

Consumers and supply-chain stakeholders are united in their commitment to using fewer resources, including reductions in the packaging waste stream. Modern secondary packaging trends encourage using the smallest amount of materials and fewest resources possible to effectively ship, store, and merchandise consumer goods.

The streamlined approach not only results in reduced waste but uses less material and also drives down the cost of producing packaging. With less material on board, transportation costs also decline when packaging is kept to a minimum.

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Cannabidiol (CBD) is a substance derived from cannabis plants, most often hemp strains.

To prepare it for use, CBD is first extracted from the plants before being mixed with carriers, such as coconut oil and hemp seed oil.

CBD’s growing popularity provides opportunities for producers and packagers, likened to the next “gold rush.” And there are many questions surrounding CBD.

But first, let’s review CBD applications and guidelines, then discuss the CBD packaging options.

Potential Benefits of CBD Products

Advocates have touted the benefits of the substance for years, but CBD products continue growing more visible in the marketplace, following a trend of relaxing marijuana laws across the country. Though it is derived from cannabis, CBD doesn’t contain the psychoactive component, Tetrahydrocannabinol (THC), known to cause the high experience with marijuana use.

More research is needed to confirm its effectiveness in treating various conditions, but it is thought some of the benefits associated with the therapeutic substance may include:

• Relieves pain
• Reduces anxiety and depression
• Lessens cancer treatment side effects such as pain, vomiting, and nausea
• Reduces acne breakouts
• Possesses protective benefits for people with neurological disorders
• Boosts heart health
• Combats inflammation
• Lowers the incidence of seizures associated with childhood epilepsy
• Has an antipsychotic effect
• Helps prevent diabetes
• Aids in substance abuse treatment

The jury may still be out on its value in addressing these health concerns, but that hasn’t stopped believers from embracing CBD oil, butter, balms, and supplements.

FDA Developing Regulatory Guidelines

CBD can be extracted from marijuana or hemp plants, the former containing THC, so the substance still occupies a legal gray area in many areas. Throw in the complicated range of laws regulating medicinal and recreational marijuana use, which vary from state to state. It can be hard to know where you stand selling CBD oil and other CBD products.

Though CBD-enhanced goods are poised to break into the mainstream, producers must remain mindful of claims made about the substance. The US Food and Drug Administration (FDA) recently warned against making unsubstantiated statements about the benefits of CBD. Together with the Federal Trade Commission (FTC), the FDA sent letters to three CBD companies. The correspondence identified several unfounded claims about health benefits and medical uses of cannabidiol, giving the companies a limited time to take action or face legal action.

Despite the enforcement activities initiated by the FDA and other consumer protection agencies, the organizations remain committed to developing legal, regulated pathways for sellers bringing CBD products to market.

CBD Industry Poised for Further Growth

Even if you haven’t been diligent in tracking the growing CBD industry, you’re probably becoming more aware of the emerging market for cannabidiol products. Currently, one of the hottest health and wellness trends, CBD, is showing up in everything from dog treats to anti-aging serums.

Though cannabidiol scarcely represented a distinct product category as recently as 2015, CBD sales rose to more than $500 million in 2018. And it is thought the industry could serve a $22 billion market within a few years. According to a Brightfield Group study, the lofty projection for 2022 and beyond accounts for more than CBD’s growing presence in the nutraceutical industry.

Although it is expected to perform exceptionally well in the category due to anecdotal and clinical evidence of its benefits, which resonates particularly well with nutraceutical devotees, the substance also has applications in diverse industries, propelling its growth.

Brightfield research points to the possibility of explosive, sustained market growth for hemp-derived CBD products. And moves by big businesses seem to support the prospect, drawing attention and investment from diverse players such as Petco, Amazon, Estee Lauder, and beer maker Corona.

Packaging Options for Emerging CBD Products

Most initial CDB applications were marketed as supplements, oils, and tinctures, but the substance is now widespread in various channels.

Creative CBD packaging solutions that align well with hemp and CBD products now include metal cans and other recyclable options, as well as compostable bags and pouches and CBD containers made from reclaimed ocean plastic.

With continued growth on the horizon, packaging innovation continues to meet the demand for unique and responsible presentations, including upscale solutions incorporating glossy paperboard cartons, cloth bags, premium graphics, and other high-end materials.

A few of the expanding opportunities for CBD packagers include:

• Beauty and Personal Care – Health and beauty aids fortified with CBD have some of the same packaging requirements as similar products sold without the ingredient added. The substance is now incorporated into creams, gels, lotions, and balms, making pumps, tubes, jars, and other common packaging methods ideal for CBD applications.
• CBD Oils and Tinctures – Like many other oils, CBD products benefit from cool, dark storage. Amber and other dark glass meet this packaging requirement. Dropper-style bottles are well suited for CBD tinctures, often dosed in a drop or two placed under the user’s tongue.
• Supplements – In addition to oils and liquids, CBD supplements are also made available as tablets, capsules, gummies, and soft gels, requiring conventional glass and plastic jars and other pill packaging.
• Beverages – CBD drinks are packaged in cans, pouches, and bottles, including small plastic versions, made popular in the energy shot category, as well as full-sized containers for CBD-infused water. Beer has recently entered the CBD product category, packaged in traditional aluminum cans.
• Snacks – Bags of CBD popcorn and other snacks are appearing in dedicated CBD stores as well as traditional food outlets. Bars and bite-sized CBD snacks are also coming to market in wraps, pouches, and wide-mouth plastic jars.
• Pet Care Items – Pet care producers tout some of the same CBD benefits for animals that advocate promoting human use. CBD pet products aimed at anxiety, pain relief, and inflammation now include transdermal applications, as well as oils, soft chew supplements, and even CBD-infused peanut butter for dogs.

CBD oil and other CBD variants represent one of today’s most explosive growth products. The substance has already been incorporated into countless consumer goods across many different channels. As the regulatory picture becomes clearer, hemp-derived oil is expected to continue its march to the mainstream. With billions in the balance, forward-looking CBD producers and their packaging partners are poised to make the most of the opportunity.

At Assemblies Unlimited, our innovation and resourcefulness can meet your packaging project needs. Whether you require a CBD packaging solution or other unique contract packaging requirements, please request a quote, and a packaging specialist will reach out to discuss your project.

The post CBD Packaging: Industry, Growth, Emerging Packaging Options appeared first on Assemblies Unlimited.

The public’s commitment to sustainability and ethical practices is another important driving force in the industry, illustrating how social values shape packaging decisions.

The following trends represent a few of the emerging and ongoing tendencies influencing modern packaging.

Growing Online Sales Require Unique Packaging Solutions

Package designs are often born of necessity, following trends in consumer markets. Before fast food, cardboard carriers for cups and condiments didn’t exist. But, drive-through food holders are now a modern staple, having been re-imagined and customized countless times. Packaging for online purchases continues to evolve in much the same way, as retailers and packagers work to balance form and function.

The shift from in-store shopping to ordering online has not slowed, so retailers are increasingly reliant on Internet sales. Without in-person visits, packaging experiences may serve as the only physical interactions online shoppers have with a particular brand. As a result, more attention is being paid to engaging consumers with e-commerce packaging.

Package Shape, Size and Structure Support Brand Identity

A package is more than a functional container for your product. On the contrary, package size, shape, and structure all come to be associated with your brand. Used to your best advantage, distinctive packaging sets your products apart on retail shelves and reinforces positive consumer perception. Fail to distinguish yourself with proprietary package designs, on the other hand, and risk blending in among similarly presented competitors.

According to market research conducted by Mintel, consumers associate high quality packaging with the integrity of the products inside. That means pedestrian packaging draws an uninspired response from shoppers, giving them little reason to engage with your brand.

The importance of package structure for selling retail units is another example of the personal connections required to build brand loyalty among modern consumers. Packagers help brand owners take advantage of the trend by incorporating ergonomic design features, unconventional shapes, and functional enhancements into their product packaging.

In one noted example, the makers of Daisy sour cream successfully launched a stand up inverted dispensing pouch by keeping brand graphics consistent on the new packaging format. By mirroring their original presence on store shelves, the company was able to quickly associate the new shape with its brand identity.

Smart Packaging Continues to Captivate Consumers

Shoppers’ thirst for product knowledge is unquenchable. According to Mintel, as much as half of the US population may be interested in scanning food packaging to track the source of fresh produce. Fortunately, technology continues giving packagers and producers new ways to share product provenance.

Some smart packaging operates behind the scenes, providing logistical assistance and helping monitor freshness during distribution. Other types of interactive smart packaging educate and entertain consumers, furnishing direct connections between shoppers and brands. Forward-looking smart packaging alternatives also protect against counterfeiting and can even help monitor medications.

Examples of smart packaging innovation include:

• Color changing labels indicating freshness
• Scannable labels linked to apps providing brand and product details
• Printed electronics on labels
• Augmented reality experiences
• Pharmaceutical packaging capable of tracking doses
• Cloud connected packaging

Connections and Experiences Drive Sales

The stakes continue rising for packagers and manufacturers. Consumers are more demanding than ever, so the push is on to make personal connections and associate brands with positive experiences. Packaging plays a key role spreading favorable perception and building brand identity. Not only is shoppers’ immediate, in-store experience with packaging important, but the most effective examples also make lasting impressions, prompting repeat purchases.

Shoppers face a sea of goods, homogenized to move efficiently through the supply chain. The resulting “sameness” can be an advantage for creative marketers and packagers tuned-in to the expanded role of modern packaging. A package serving as a reusable storage container, a spice jar equipped with a grinding mechanism, and an interactive, smart feature are all examples of effective experiential package designs, leaving buyers with positive brand perceptions.

Customers Call for Transparency and Environmentally Responsible Practices

Consumer attention is focused on where products come from and how they are produced. Packagers committed to values like reducing packaging waste and using less energy create a competitive advantage, appealing to like-minded shoppers.

Progressive packagers continue finding new ways to reduce the environmental impact of packaging. For instance, using less material provides relief across the entire supply chain, so flexible packaging solutions are replacing cumbersome rigid containers.

And, reusable packaging alternatives are becoming more common, streamlining distribution and cutting waste. These durable shipping items are being used to deliver finished goods and improve efficiency at processing and distribution facilities.

Distinctive Designs Draw From the Past and Future

Aesthetic originality is a major driver distinguishing brands. To make their mark, packagers are turning to both the future and past with nostalgic and modern designs. Retro and vintage-inspired presentations incorporate traditional fonts and colors to instill trust and confidence. While modern packaging interpretations use cutting edge concepts and materials, creating a futuristic appeal.

Adding texture to packaging creates a tactile interaction brands are exploring. And, geometric patterns are being printed on packaging to create a unique textural appearance. Themes and humor are also finding favor among marketers, reinforcing consumer comfort and brand familiarity. Minimalistic packaging is a proven seller, offering exclusive classy presentations. Yet at the same time, graphic and text intensive aesthetics also attract attention and spur sales.

Global packaging trends are influenced by consumer behavior and industry capabilities. In today’s marketplace, transparency, integrity, and authenticity are important brand messages. Effective packaging conveys these ideals. And, as technology creates new opportunities, the best packaging examples incorporate advanced features, facilitating positive experiences and making connections with consumers.

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With benefits ranging from reduced material use to enhanced product freshness, premade flexible standup pouches are here to stay. Not only does the convenient packaging format appeal to modern consumers, but flexible pouches also contribute efficiency within the supply chain. Pouch packaging innovation has already come a long way, in a relatively short period of time. As a greater number of producers embrace the advantages of flexible pouches, standardization efforts are sure to add even more value to flexible packaging solutions.

Consumers and Producers Embrace Flexible Pouching Solutions

The relationships between products, packaging, and consumers are complex. Although it is demand for consumer goods that drives sales, packaging plays a key role connecting consumers with the products they crave. The best packaging solutions address consumer concerns and lifestyle trends. Today, that means effective product packaging must be convenient, secure, and portable. Flexible standup pouches meet all three consumer demands, providing an ideal packaging format for widespread food and non-food items.

Call for Convenience

Japan was early to embrace pouched convenience, paving the way for today’s spouted pouch advances. As the country experienced social shifts, introducing a greater number of women into the workforce, accessible food preparation became a necessity for Japanese families. This call for convenience sparked flexible pouch innovations such as time-saving boil-in-bag and microwavable food packages. Current U.S. pouch trends reflect a similar mandate from consumers – particularly young shoppers, who demand convenient dining solutions at home and food packaged for life on the go. With so much spending power behind them, Millennials’ continued call for convenience is a driving force lifting flexible pouches into a growing number of mainstream applications.

Adaptable Solutions

Flexible pouch packaging continues to evolve. Pouches can be made in various shapes and sizes. They can be constructed of a basic laminated layer of material or multilayer designs incorporating barriers appropriate for wide-ranging consumer goods. Depending upon the application, flexible standup pouches can be produced from roll-stock on line or provided as pre-made units, ready to be filled and sealed.

Further customization of flexible plastic pouches adapts the versatile format to suit whatever’s inside. Adding zip closures or sliders to pouches, as well as incorporating spouts and dispensing features into pouch designs make them more functional and expands their utility for producers and consumers. As a result, adaptable modern pouch solutions are now widely used in food, pharma, and beverage applications. Convenient, ready-to-pour spouted pouches represent the high-barrier flexible packaging industry’s fastest growing market segment.

E-commerce Benefits

The growth of e-commerce doesn’t show signs of slowing, so the most effective packaging solutions accommodate Amazon and other online sellers. Spouted pouches and flexible packaging options have distinct advantages compared to other types of packaging. The format continues gaining momentum as companies move to pouches for e-commerce.

As a greater number of products make their way to households by way of UPS and other shippers, breakage in transit is a growing concern. Bottles and other containers break during handling; pouches with spouts do not. According to one study, more than 40% of consumers negatively associate breakage inconvenience with the brand, rather than the shipper. The flexible format protects brand owners with a reliable alternative to rigid packaging, so pouch use is surging.

Seal and Barrier Innovation

Pouch technology enables packaging companies to build multilayer containers suitable for a wide variety of contents. As pouches have become more popular, barrier properties have advanced, adding value to the packaging format. These improved barrier properties increase food stability across the supply chain, resulting in longer shelf lives for consumables and consistent product integrity for non-food items packaged in flexible pouches.

Because pouches keep food fresh longer than some traditional packages, the format helps sellers market a greater variety of products and make goods available to a larger number of consumers.

Competitive Advantages

Packaging represents a substantial cost of doing business for producers, so cost-efficient packaging is always desirable. In addition to keeping per unit costs in line, bringing home the highest possible level of added value from packaging choices helps create a competitive advantage. Flexible standup pouches help producers compete in these and other ways:

• Multilayer pouches provide superior protection, resulting in less product loss.
• Pouches provide marketing opportunities that may not be appropriate for traditional containers. For instance, pouches can be merchandised as stand-alone units on shelves, or packed in shelf-ready formats. Pouches are also well-suited for use in multi-packed cases and cartons and some types of flexible pouches can also be hung for display.
• Pouches move efficiently through the supply chain, reducing freight costs when compared to some traditional packaging methods.

Benefits of Packaging Standardization

Flexible spouted pouches are fast becoming a packaging industry standard, within an infrastructure designed for other types of packages. Versatile flexible plastic pouches replace containers made of glass, paper, metal, and rigid plastic. Moving away from these types of packaging to flexible alternatives already yields cost-savings for some stakeholders, but standardization within the industry may lead to further financial efficiency.

Standardization that limits the number of packaging styles can yield savings throughout the supply chain. During the packaging process, for example, standardization can reduce the amount of equipment that’s needed and result in fewer equipment changes on the packaging line. Using a standard packaging format can also lead to quantity discounts, when packagers use a single package type for widespread applications.

Because flexible spouted pouches are so versatile, standardization within food and beverage packaging applications could substantially streamline the procurement and packaging processes. In addition to direct savings and efficiency resulting from pouch standardization, it may be possible to cut costs on related accessories. From labels to closures, standardizing auxiliary pouch features adds another layer of efficiency to the packaging process. Finally, standardization results in additional savings during distribution. Transportation, storage, and handling costs can all be reduced by establishing uniformity within logistics channels.

Flexible pouches, particularly spouted, standup versions have fundamentally changed the packaging industry. Replacing bulky, heavy, breakable materials, flexible pouches are widely used for packaging food and beverages, as well as diverse non-food items. As the format continues expanding and consumers embrace the convenience and functionality of flexible packaging alternatives, standardization can help producers and their contract packaging partners increase efficiency and squeeze added value from modern flexible pouching innovation.

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The advent of refrigeration and improved food storage capabilities changed kitchen output dramatically, enabling home cooks to prepare food in advance and run their residential kitchens more efficiently. As food science advanced, researchers developed preservatives further to extend the shelf life of food and perishable ingredients.

The longstanding tradition of cooking from scratch was all but abandoned by many home cooks as busy families embraced the convenience of processed foods and shelf-stable goods. As consumer values evolve, a modern food renaissance is again reinventing Americans’ approach to dining.

Meal Delivery Kits – The Industry

Among young eaters, shifting values currently trend toward healthy eating and sustainable food sourcing. Some of the processed products that helped past generations cope with family food responsibilities are unacceptable to young home cooks. At the same time, modern lifestyles demand the same ease and convenience that make processed foods attractive. The latest wave of culinary convenience, meal kits, have caught on with socially conscious young American shoppers because the packaged recipe kits bridge the gap between simple preparation and healthy, high-quality fare.

As producers jockey for position in the expanding market segment, various methods have emerged for getting meal kits into the hands of consumers. Many food companies now deliver meal kits directly to consumer doorsteps. And more and more retail locations offer meal kits for in-store pick-up.

Will home meal delivery services from companies like Blue Apron, Plated, Freshly, and others prevail, or does in-store pick-up represent the future of the meal kit industry?

Convenience, Quality, and Nutrition – Home Cooks Want all Three

Food research highlights noted differences between each generation’s approach to dining. Overall, recent generations are more inclined to eat out than their parents and grandparents are. As a result, millennials and young people spend less on food at home than past generations did. Convenience is very important to this group of young consumers, so members of the demographic purchase more prepared and ready-to-eat foods than older shoppers do. Meal delivery kits fill a niche enabling young home cooks to embrace cooking from scratch without devoting precious time to menu-planning, tedious grocery shopping, and recipe trial and error.

Food habits help define family dynamics in the US and vice versa. That means effective food innovation must account for hectic modern lifestyles. Home food delivery represents the ultimate shopping convenience, so the once unheard-of meal kit category has exploded into a mainstream method for putting food on the table. Yet the industry has already undergone significant transformations during the relatively short time meal delivery kits have been available. As the niche matures, the original meal kit sales model, built on direct home delivery, may itself be losing favor to in-person kit pick-up.

Learning Meal Kit Lessons

Blue Apron and other meal kit trailblazers are riding the front of the curve, so these companies provide case studies for the industry. Among other lessons gleaned from the industry’s growth and development, meal kit companies and their packaging partners are quickly learning online sales alone may not be enough to sustain profits.

Meal kit delivery companies like Blue Apron have arrived at a crossroads. Bringing on new subscribers for home meal kit delivery is now only part of the recipe for future success. To compete, meal providers must also find new ways to connect with buyers.

Eagerly embraced by consumers hungry for a new approach to food preparation, Blue Apron is now learning lessons from the niche the company itself created. Amid growing competition and distribution challenges, Blue Apron currently serves 24% fewer customers than it did one year ago. And, though the company recently grew its subscriber base by 5%, compared to the prior quarter, the gain may not provide a lasting sales boost. Meal kit users are known for leaving their delivery subscriptions after only a few months.

It may be the case that placing orders online and taking home delivery isn’t the best way to get meal kits into the hands of consumers. According to some experts, the writing is already on the wall; an in-store presence is an essential ingredient for meal kit success.

In order to gain a competitive advantage, online meal kit providers have been forced to discount their products and offer generous incentives to lure new customers. While the approach has helped Blue Apron and others get consumers’ attention, the price is too steep for a sustainable business model. Instead, it is thought companies need to offer a wider variety and flexible in-store pickup options.

In-store Distribution Reduces Packaging Material and Delivery Costs

In addition to lack of variety, consumers cite cumbersome product packaging and high delivery costs as obstacles to home delivery. Pick-up generates less waste than delivery because packaging companies are able to reduce the amount of material used when meal kits are distributed through retailers. In-person pick-up also eliminates shipping charges. Stocking meal kits in stores responds to consumers’ call for greater variety. Instead of ordering a week ahead and selecting recipes for delivery, meal kit users can spontaneously select dishes at stocked retail locations.

As Blue Apron experiments with a meal kit program at Costco stores, grocery retailers have begun rolling out their own branded kits. In addition to Kroger and Albertson’s taking steps to provide meal kits in their stores, retail giants Walmart and Amazon have also shared plans to launch supermarket meal kit sales at their brick and mortar locations.

Start Your Own Monthly Kit Delivery Service

One of the latest trends in internet startup companies is popping up on social media sites like Pinterest and TikTok. Monthly kit deliveries have become a popular way to start up a business without requiring a lot of overhead and carrying an inventory.

How To Get Started In Three Easy Steps

1. The first step in starting a monthly kit delivery service is to find your niche. There are kits for crafters, foodies, health nuts, and eco-conscious people. So start researching what’s already being offered, the price point for similar-sized kits, and your market.
2. Start shopping for your items. Once you’ve set a theme, you’ll need to start getting wholesale quotes on the items that you’ll fill your kits with each month. Wholesale companies and manufacturers will require a tax ID number to sell to you. You’ll also need to research tax laws to see the sales tax requirements to sell your kit over the internet.
3. Figure out your fulfillment, inventory, and delivery strategy. One of the reasons that delivery kits are a good startup opportunity is that you can outsource the actual work of packing and shipping the kits to a fulfillment company, leaving you time to do the buying and marketing. Look for a fulfillment house that offers gift set packaging, pick and pack, and kitting services. The fulfillment company will be able to provide a custom quote based on your volume and amount of products per kit. Many fulfillment companies also offer custom packaging services so that you can have custom-designed and imprinted boxes for your kit.

Standing Out in a Crowded Space

While meal kit companies continue expanding distribution options, the crowded, competitive sector poses new sales and marketing challenges. To broaden their consumer appeal, online sellers are already responding with expanded kit options designed for groups and meal kits that include appetizers and desserts. At the retail level, sellers are focused on healthy kits. With Weight Watchers poised to enter the grocery store meal kit market, it is thought healthy themes will continue selling well for other kit makers too.

Traditional meal kit companies face a distinct disadvantage in distributing through retail stores. Meal kit makers package their recipe kits remotely before transporting the meals to store shelves. But grocers build their kits in-house, so they can quickly replenish their stock as units sell through. This crucial efficiency advantage may be all grocery stores need to compete effectively with outside meal kit vendors.

In order to compete in an increasingly crowded retail segment, meal kit makers need to find ways to stand out from the competition. Innovative packaging design plays a key role in the evolving meal kit industry, helping producers put a proprietary stamp on their kits. As in-store pick-up continues to challenge home delivery as consumers’ meal kit preference, product packaging companies are paving the way with marketing and merchandising solutions for the evolving industry.

Convenient home delivery services have catapulted meal kits into the mainstream. However, the original delivery paradigm is losing favor to pick-up alternatives.  As meal kit companies scramble for in-person retail sales, time will tell whether home delivery rebounds or retail distribution takes over the meal kit industry.

The post Will Meal Kit Delivery Survive? Is In-store Pick-up the Future of the Industry? appeared first on Assemblies Unlimited.

The global honey market is divided into distinct zones. And while the Asia Pacific region is slated to maintain a strong honey position in the coming years; Europe, North America, and other parts of the world are also expected to do well as the honey market expands through 2023.

Asia’s increased manufacturing volume and developing honey intake put the region in a position to dominate growth within the honey market in the next five years, but sales across the “rest of the world”, places such as the Middle East, Latin America, and Africa are also projected to experience a compound annual growth rate of more then 7% during the period. With growth on the horizon, contract packaging companies are experiencing an increased call for creative honey packaging solutions.

Honey Market Research

A 2018 study analyzed honey market trends, evaluating information by honey type, application, packaging, and region. The research results paint a positive picture, indicating a strong five-year future for the honey industry. According to the Market Research Future findings, the honey market is expected to expand at a compound adjusted growth rate of 7.22% through 2023.

In addition to uses within food and beverage industries, honey has widespread applications outside food and drink markets. For example, personal care products and the pharmaceutical sector are driving increases in demand for honey. Harvesting of a greater number of honey varieties is helping producers keep up with the new demand and the trend is also expanding profitability within the honey market.

Like many other consumer-driven industries, it is thought personal preferences and evolving tastes among honey users will be the definitive factors guiding the industry for the next five years. In addition to familiar varieties such as clover, buckwheat, wildflower, alfalfa, and acacia, buyers are paying attention to the potential health and wellness benefits of Leptospermum honey, commonly known as Manuka honey. Packagers are responding to demand for specialty honeys such as Manuka, and conditions point to ongoing honey packaging opportunities for contract companies that are familiar with the benefits of these unique honey products.

Manuka and Other Specialty Honey

Much like the growth once experienced within the supplements market and the surging sales of protein powders, consumers increasingly embrace honey for its perceived health benefits. It has long been known honey has antibacterial qualities, but health-conscious shoppers are now focused on particular benefits of specific varieties. Honey’s health benefits are tied to the type of honey used and the time and location of its harvest.

One healthy variety, Manuka honey, is getting a lot of attention from producers, packagers, distributors, and end users. The unique substance comes from New Zealand, where it is produced by natural pollinators of the native Manuka bush. Whereas most honey naturally produces Hydrogen Peroxide, one source of its antibiotic properties, Manuka also possesses additional qualities that contribute to its antibacterial effects. MG, or methylglyoxal is found in most honey, but only in relatively small quantities. The nectar of the Manuka flower causes the amount of MG to be elevated in Manuka honey, so the benefits of the compound are thought to be more pronounced in this type of honey.

Because its benefits vary, producers have imposed a scale on Manuka honey, rating its potency. The Unique Manuka Factor is thought to account for the various compounds contributing to Manuka’s unique properties, scoring each sample with a number. The UMF rating theoretically identifies the strength of the Manuka being sold, but it is not a scientific ratings system. Honey that scores above 10 on the UMF scale is considered Active Manuka Honey, also called UMF Manuka Honey.

Health and wellness benefits not only boost sales of food and beverages containing Manuka and other types of specialty honey, but healthful honeys also helps drive sales in personal care and pharmacy. For contract packagers, that means honey packaging opportunities are not limited to a single style of container. On the contrary, producers incorporating honey into their products bring the goods to market in jars, bottles, tubs, tubes, and other creative package designs.

Innovative Packaging Solutions

Honey isn’t a new product, but creative packaging companies are reshaping the market with a flood of forward-looking package designs. One example places a glass jar of honey inside a frosted paper structure, designed to resemble a milk carton. The shape of the carton associates the contents with agriculture, yet the arty frosted material gives buyers a sense of anticipation for the traditional jar inside. Incorporating wood into honey package designs is another accessible way makers add a natural element, appealing to health-minded shoppers.

Glass jars and bottles are expected to capture much of the growth through 2023, but even traditional containers offer customization opportunities. Committed to the repeating shape seen in beehives, Hexagon Honey sells its natural honey in hex-shaped bottles that are packed and stacked in crates to maximize the effect. And True Honey Co. uses packaging graphics to reinforce the authenticity of its branded Manuka products. These are only a few of the packagers have elevated honey designs to focus on unique varieties and get attention from consumers seeking premium honey alternatives.

Buyer Preferences Drive Honey Market Growth

Consumer preferences and evolving demographics continue driving growth in the global honey industry. Organic offerings lead the way, boosting the overall honey category. Not surprisingly, plastic bottles are widely used for honey packaging and the trend will continue. However, increased competition and discerning customers are prompting producers and their packaging partners to look beyond pedestrian honey packaging solutions. Jugs, tubs, and the classic honey bear may be underperforming, compared to plastic bottles, but premium honey producers are also turning to non-traditional designs in order to add exclusivity and marketing value to their packaging.

Honey sales are strong, due in part to buyers’ belief certain varieties have medicinal properties.  Honey’s antibacterial features are documented, and some types, such as Manuka, may possess additional healing qualities. Recent research about honey shows demand for diversity is drawing consumers to explore unfamiliar honey varieties and embrace products made with honey. Contract packagers are in turn finding new ways to protect and present honey goods, in food, beverage, personal care, and wellness markets.

If you’re looking to explore options in honey packaging or have a product ready for market, please use the request quote button on this page. One of our sales professionals will get in touch with you immediately.

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If you are not yet riding this responsible, money saving wave, you may be a step behind the competition.

What is Reusable Packaging?

Also known as returnable transport packaging (RTP), returnable packaging, and reusable transport items, reusable distribution packaging consists of various shipping materials designed for multiple uses. The category includes racks, bulk containers, shipping braces and supports, heavy-duty hand containers, and other reusable items. The systems can be fitted for widespread applications, replacing traditional single trip packaging options.

Reusable packaging is expressly designed to make multiple trips, so it is constructed of durable, lasting materials. The initial cost of this type of distribution packaging is more than the price of single use throwaway containers, but the investment is quickly recovered through repeated uses.

Depending upon the environment in which they are deployed, reusable designs incorporate wood, plastics, metal, corrugated cardboard and other materials. Durable plastic reusable packaging, for example, replaces things like single trip boxes and also branding benefits with increased purchase intent.

Reusable packaging programs utilize these and other multiple use items:

• Bulk shipping containers
• Pallets
• Pallet caps
• Trays
• Boxes
• Totes
• Bins
• Racks

Supporting Sustainability

In addition to cost savings over time, using returnable transport packaging brings additional benefits, including better performance and higher productivity. One of the most recognizable rewards of reusing distribution packaging relates to sustainability. Adopting reusable designs supports a larger push to minimize the environmental impact of packaging. And in a marketplace increasingly concerned with supply chain transparency, committing to sustainable distribution methods reinforces positive perception and brand integrity.

The environmental benefits of reusable packaging furnish across-the-board improvements when compared to single use alternatives. One reusable packaging study conducted by the Reusable Packaging Association (RPA) analyzed the environmental impacts of various types of packaging over their life cycles.

Tracking ten fresh produce applications, the organization found that reusable solutions required 39 % less total energy to execute. In addition, research found committing to reusable distribution solutions generated 95% less solid waste and 29% less greenhouse gas than traditional single trip approaches.

As they reach the end of their useful lives, most reusable items can themselves be recycled in conventional streams, bringing their sustainability benefits full circle.

Performance Advantages

The transition to reusable packaging systems brings new technology and designs to the distribution process, making packaging more functional. For starters, RTP alternatives can be more efficient to move and store, saving space, time, and money. The reusable containers are designed to better protect contents than one-trip packages, so using sturdy reusable distribution equipment contributes to lower loss rates. Food safety features can also be added to reusable transport systems, further expanding their added value, when compared to traditional distribution methods.

A few more advantages and cost saving benefits of reusable distribution methods include:

• Standardized sizing
• Better inventory tracking capabilities
• Efficient trucking and loading dock operations
• Safer work environments free of packaging refuse
• Reduced materials costs
• Less waste and waste management spending
• Enhanced food freshness

Spreading the Value of Reuse

The advantages of reusable distribution packaging are apparent in widespread industries. Not only do custom reusable packaging solutions facilitate storing and transporting finished goods, but switching to reusable items also boosts efficiency at other points along the supply chain. Your trusted packaging partner can help explore reusable options for your organization. And additional assistance is available from public agencies, such as this Minnesota initiative.

The benefits of sustainable packaging alternatives have spread to these and other industries:

• Nutraceuticals
• Automotive manufacturing
• Baking and confections
• Beverage
• Meat and poultry
• Produce
• Dairy

Reusable packaging is most effective within closed distribution networks, where it is easy to return and redeploy the packaging multiple times. Substantial loss of reusable items may necessitate further oversight and control measures for keeping tabs on the reusables.

Inbound materials and ingredients are particularly well suited for reusable containers. Processing plants and manufacturing facilities effectively deploy them for moving and storing ingredients and components in-house, as well as within controlled distribution systems. Whether working with auto parts, delicate electronic components, or fresh produce, reusable containers streamline production processes and improve supply chain efficiency.

Bottom Line Benefits

Cost-effective packaging and distribution solutions increase profitability, so reusable alternatives will continue to gain ground, as long as they contribute to a healthy bottom line. Fortunately, reusable technology presents money saving opportunities. Cost efficiencies are seen in the following areas:

• Faster turnaround times – Streamlined distribution processes take less time to execute, so a reusable system can cut the length of production and packaging cycles.
• Space efficiency – Standardized sizes and consistent, predictable reusable packaging help maximize storage and distribution space.
• Better inventory management – Reusable packaging contributes to better inventory management. By tracking and distributing inventory with precision, the standardized systems keep inventory moving, in a productive state.
• Less packaging waste – Single trip packaging solutions result in excess cardboard and pallet waste. On the other hand, reusable versions are either in use or ready to be put into action – at all times. Cleanup times and disposal costs are both reduced by returnable transport packaging.
• Lower materials spending – Reuse cuts the cost of packaging materials over time. Plastic and other reusables can last for years, so each trip they make reduces costs. Savings add up to substantial sums as the durable items continue providing reliable service without additional investment.
• Reduced labor expense – Standardized reusable items contribute to a consistent work flow, resulting in greater labor efficiency.
• Safer handling – Sturdy containers do a better job protecting goods in transit, resulting in less breakage and loss. And reusable designs are ergonomically friendly, supporting a healthier work force.

Moving from traditional single trip package designs to modern reusable distribution packaging leads to multiple benefits. Reusable packaging not only reduces costs and enhance efficiency, but the re-imagined approach also boosts product safety, reduces transport times, and supports sustainability initiatives. As part of a comprehensive distribution plan, utilizing reusable alternatives contributes to a well-managed supply chain and increases profitability.

The post Tapping the Cost & Sustainability Benefits of Reusable Distribution Packaging appeared first on Assemblies Unlimited.

Packaged Protein Moves to the Mainstream

The protein supplement market has seen steady growth as consumers embrace the perceived benefits of boosting their individual protein intake. Whey, soy, and casein are primary sources of protein powders packaged for retail sale.

In the early days of protein marketing, promoting the substance focused on a specialized niche of consumers. The oversized tubs and bottles used to market protein products almost always featured graphics depicting toned and rippling musculature, highlighting the segment’s target market. Protein powders were aimed at weight lifters, bodybuilders, and committed fitness enthusiasts, often using the products to build mass and help their bodies recover after workouts.

During the early period of protein industry sales growth, increases were closely tied to the burgeoning fitness industry, as health clubs, fitness centers, and gyms became more affordable and accessible. Rising sales of protein products counted on devotees’ belief the goods play an integral role in maximizing the benefits of working out.

As growing numbers of consumers embrace healthy living, the appeal of protein powders and ready-to-drink supplements is no longer limited to hardcore weight lifters and fitness fanatics. Weight trainers and elite athletes are still a core component of the overall protein market. Still, casual users represent substantial consumer interest, creating opportunities for producers and their packaging partners.

Protein Industry Facts and Figures

According to Statista, sports nutrition, nutrition bars, and sports drink categories are expected to reach over $85B in market value by 2030.

Supplements aimed at the sports market continue performing well, particularly for traditional, established brands. But non-sports protein products also have taken off, promoting general health. As more consumers become aware of the emerging brands, event sponsorships, sampling, and campaigns targeting “ordinary” users have elevated protein’s position in areas once seen as sports-only markets dominated by fitness elites.

Their growing appeal has opened mainstream doors for protein powders and drinks, now routinely appearing in mass channels at stores like CVS, Walmart, Walgreens, and Target. The steady growth also reflects particularly robust success selling online, cementing remote sales’ place within the swelling protein industry.

Buyers’ rising desire to consume more protein is not limited to powders and drinks but reflects a trend among young people on the general health benefits of a protein-rich diet. The future looks bright for protein. Competition to accommodate the demand for protein will continue to spark new products and innovation, challenging contract packaging companies to keep pace with market shifts.

Protein Packaging Alternatives

Whether the products are derived from soy, whey, or casein sources, protein packaging solutions address merchandising, marketing, and transportation concerns, alongside the need to maintain product integrity and provide a positive user experience. Though it sounds like a tall order, progressive packaging companies turn to several effective options, bringing popular proteins to consumers. These include:

Plastic Jars and Tubs

Familiar straight-sided plastic jars are ideal for packaging protein powders, along with other bioplastics options. The containers are easily outfitted with plastic scoops, accommodating precise measurements when mixing proteins with liquids for consumption. Wrap-around labels are commonly used for brand messaging and merchandising appeal. To further set-apart individual brands, some makers choose jars with irregular shapes for packaging protein. Square and triangular footprints provide the same benefits as conventional tubs, with added merchandising value for standing out among competing products. Clear and opaque versions are also available, further personalizing protein packaging choices.

Bottle Filling

Tapered-neck protein packaging solutions resemble traditional vitamin bottles, available in standard and oversized versions. Equipped with smaller screw-top caps than their straight-sided counterparts, the bottles are glass or plastic. Their shape enhances nutritional perception among consumers, who associate the bottles with pharmaceutical applications. Metallic lids with coated inserts can also be added, distinguishing the packaging from regular plastic versions. And branded color schemes can be matched, incorporating colored caps into the protein bottle designs. Like plastic jars and tubs, the bottle filling can be outfitted with safety seals, ensuring product integrity at the time of purchase.

Cardboard and Metal Canisters

Coated cardboard canisters replace plastic and glass protein containers. The economic alternatives use snap-on plastic lids to keep contents fresh and accommodate dispensing individual servings. The familiar form has traditionally been used for packaging powdered baby formula and dry milk.

The metal canisters sometimes used for protein powders are recognizable to consumers as once-popular coffee cans, relying on similar plastic lids for easy repeat access.

Stand-up Pouches

Reducing the need for rigid containers, packagers frequently turn to pouching solutions for protein products. The durable, lightweight bags are constructed of layered material, accommodating the freshness needs of pouch contents.

Gusseted bottoms enhance stability, making it easy and cost-effective to transport and display goods in retail environments. Clear viewing windows are sometimes added, allowing shoppers to inspect smoothie powders and protein drink mixes without opening the containers.

Many of the pouches incorporate zip seals or sliders, but protein powders are also packaged in stand-up bags reminiscent of those used for coffee – complete with attached bendable closures.

Food-Grade Packaging

Protein powders, along with nutrition bars and most supplements, require food-grade packaging and cGMP in the packaging process.  Packaging companies help the food industry battle natural threats to the integrity of their products by offering a wider variety of food-safe options.

Rigid containers, flexible film with a foil barrier, and induction seals are other packaging methods often closely related to protein powder packaging. CPG firms have shifted their focus to be more supportive of the rapidly growing fitness industry that promotes shelf-stable products.

Increased Demand for Convenience

Another aspect of the growing protein segment is an increasing demand for convenience. Juice boxes, energy gels, and yogurt-on-the-go are just a few examples of products that feature the adaptability and durability now required of packaging designs. Consumers demand convenient snack-sized packaging designs that fit easily into a pocket, purse, or gym bag.

For smaller health-related items that are more expensive, blister packs and other forms of rigid packaging solutions are also in greater demand. Pouches with a “canoe” fitment are extremely popular due to the convenience and re-usability feature.

Advantages of Adaptability

Just as being physically healthy helps an individual fight off infection and stress, so has the packaging industry demonstrated its healthy responsiveness to these new and changing demands. Health and protein supplements are often made available in blends that must be accurately calculated to create a consistent product that is convenient and protected from light, air, and moisture.

In Summary

The customer base for protein powders and drinks continues to expand beyond weight trainers and fitness enthusiasts. The surge not only creates opportunities for protein producers but also for forward-looking packagers prepared to meet the rising demand. Stand-up pouches, jars, bottles, and lidded canisters are only a few cost-effective solutions recommended for packaging these increasingly sought-after products.

Working with experienced packaging professionals ensures timely fulfillment and creates a competitive edge for protein brands marketed online and in retail stores.

Whether you have a specific packaging need for powdered protein or other supplement packaging needs, feel free to request a quote, and a packaging specialist will reach out to learn more about your project requirements.

The post Packaging Protein Powders & Drinks, Plus Industry Facts and Applications appeared first on Assemblies Unlimited.

As buyers seek healthful food alternatives and natural solutions in nearly every retail category, coconut oil continues answering the call, showing-up in countless foods, health and beauty items, and even pet products. The best contract packaging companies are prepared to ride the wave of interest, creating custom solutions for coconut oil packaging.

Coconut Oil Industry Trends

Demand for coconuts has risen in recent years. The spike is not only related to increased use of coconut oil, but also water, sugar, and other related goods extracted from coconuts. Tracking the term “coconut” in Google searches during the past decade sheds light on the trend, indicating a substantial upturn around 2011, when interest in coconut products really took off.

The trajectory for “coconut water” and “coconut oil” web searches mirrors the pattern, illustrating how consumers have browsed websites to satisfy their curiosity about coconut products. And it isn’t an idle phenomenon; the demand for natural foods and other coconut products has followed along, carving-out a lasting presence in retail markets.

Because various products draw from the same material used to make coconut oil, expanding sales of related goods leaves less raw coconut available to process into oil. As a result, climbing demand for all things coconut has pushed oil prices higher. And as more products substitute coconut oil as a constituent ingredient, demand for the substance continues to grow. Unfortunately, at the same time, production has lost ground.

Coconuts are grown in places like India, Indonesia, and Philippines, where many of the trees are well past their prime. The Philippines alone export one-billion dollars’ worth of coconuts to the United States annually, even as production growth lags behind rising demand – by at least 8 percent.

Efforts are underway to revitalize production, including planting more acreage and developing hybrids capable of producing higher yields. But the world supply of coconut oil dropped from 6.094 million metric tons in 2010 to 5.488 million in 2016, so turning around the trend could take years.

Growing Visibility Across Retail Segments

The sale of coconut oil and related products has exploded in several retail segments, creating opportunities for producers and packagers. In some cases, new products coming to market add coconut oil as a replacement for other oils or ingredients, but many of the most sought after coconut items are entirely new concepts, adding to the overall retail base. These advances represent new business for packaging companies positioned to meet the demand.

Coconut in Food Products

Coconut oil is widely added to packaged foodstuffs and also stands alone, marketed as a 100% pure, organic, and/or fair trade product. It is consumed as a food supplement, added to smoothies, hot beverages, and baked goods. The oil is also used for frying and general stovetop applications.

As consumers continue to embrace its dietary benefits, progressive packaging professionals devise effective ways to bring coconut oil SKUs to market, in both brick and mortar retail environments and online stores.

When packaging coconut food products, effective solutions include glass and plastic bottles for liquid oils, as well as screw top jars, tubs, and other versatile containers for coconut oil goods sold as pastes or solids.

Resealable bags and pouches answer the call for packaging chips prepared in coconut oil and various form, fill, and seal wraps are ideal for coconut-infused energy bars and other single serving applications. Coconut dietary supplements in capsule, tablet and pill form are well-suited for packaging in vitamin bottles and foil-backed blister cards designed to easily dispense individual doses.

Foods containing coconut oil include:

• Non-dairy alternatives for yogurt, creamer, and ice cream
• Snack foods and chips fried in coconut oil, rather than canola or soybean oil
• Energy and nutrition bars
• Dietary supplements

Coconut in Cosmetics and Beauty Aids

Coconut oil applications extend far beyond food categories, crossing over into cosmetics and other health and beauty aids. The substance is found in eye creams, lip gloss, cuticle oil, as well as balms and lotions for the body.

Creative packaging solutions for coconut oil products include glass jars with metal lids, promoting an exclusive impression for lip moisturizer and face creams, as well as glass and plastic bottles for coconut infused lotions and oils. These containers can be fitted with consumer-friendly caps, enabling users to efficiently dispense small quantities of liquid. Flip-top plastic squeeze bottles and tubes are appropriate for coconut cream and gel moisturizers, commonly marketed for softening skin and reducing/preventing stretch marks.

Celebrity endorsements have helped bring coconut oil into the mainstream; it is particularly well-represented in hair care lines. The substance is touted to make hair shinier, softer, and more manageable, reducing hair frizz and tangles. Coconut oil hair products are packaged in bottles, jars, squeeze tubes and plastic tubs. Spritzers and pump bottles are also utilized, making it easier to dispense spray-on coconut conditioners and oil infused shampoo.

Coconut in Pet Products

Consumers don’t hesitate, bringing the benefits of coconut oil to non-human family members. Balms and conditions similar to people products are used to care for animals’ coats. And the substance is also added to pet diets as a digestive and general health aid.

Many of the pet presentations resemble packaging chosen for human coconut oil products, including jars, oversized tubs, and wide mouth bottles made of glass or plastic. Pet treats with coconut oil added are conveniently packaged in resealable zip top pouches, keeping dog and cat biscuits fresh. And specialty pet hygiene products containing the substance incorporate droppers, pumps, and a familiar type of screw top dispenser often seen on glue bottles.

In Summary

Demand for oil and other products derived from coconuts hasn’t waned since consumer interest began climbing several years ago. As the sought-after ingredients migrate across retail markets; nutrition, beauty, pet care, and other segments continue to fuel the demand for coconut-infused goods. Packagers positioned with versatile solutions for marketing coconut oil and related goods are well-prepared to carry the trend for as long as demand prevails.

The post How Coconut Oil is Used in the Packaging Industry appeared first on Assemblies Unlimited.

Like other professional industries, contract packaging continually advances, evolving with new ideas and technology. Improvements utilize new materials and processes to better solve the issues facing modern producers, distributors, retailers, and most importantly, consumers.

Taking cues from all of these important stakeholders, the most adaptable packagers push the envelope on design and functionality, resulting in a steady flow of primary packaging innovation, such as the trends in compostable packaging.

Packaging innovation can be subtle, incorporating hidden features to make packages perform better. Or redesigns can depart dramatically from traditional versions, resulting in new enclosures unlike anything seen before. In either case, primary packaging innovation adds functionality, safety, appeal, and interest.

Breaking from Traditional Packaging

Traditional packaging methods stick around because they work. Despite limitations protecting their contents, for instance, bags are still the primary distribution vehicles for potato chips. Tradeoffs are made, holding down chip packaging costs, and consumers suffer a few broken chips.

The solution continues working because it is the best one available. But don’t become too attached to your chip bag! Like other once-grand packaging designs, a better alternative may one day replace basic bags. The first step toward packaging innovation is often a step away from tradition.

Creative design improvements represent only a few of the primary packaging advancements emerging from today’s forward-looking industry.

For example, vacuum meat packing solutions are nothing new, but an improved technology version received recognition as a 2017 DuPont packaging award winner for innovation. The annual competition acknowledged improvements in the trademarked Cryovac OptiDure’s sealing ability, contributing to lower leakage rates for meat packers. The innovation solves a problem for an industry typically experiencing three-percent leakage. It is thought a one-percent improvement would recover as much as $140 million dollars annually in food waste caused by leaks.

Another DuPont-recognized solution addressing shelf life and durability concerns is a bio-based, renewable, recyclable plastic material developed for foodstuffs. Plantic R is a trademarked multilayer barrier comprised of many thin layers of PET along with layers of renewable material. The PET furnishes a moisture and water barrier, while the renewable core protects against oxygen and gas. As the PET is recovered in conventional recycling streams, the other material washes away, biodegrading during the process.

Improving upon traditional coffee packaging methods called for a primary packaging innovation, incorporating a degassing system into the bags’ laminate layers. Traditional packaging methods required coffee packing facilities to add rigid degassing valves to bags during the packaging process, allowing carbon dioxide to escape. The newly conceived bags instead rely on a degassing system already in place when they arrive at packing locations. The Vento™ advanced coffee packaging system uses a one-way low-pressure vent to purge gas as pressure builds inside the bags, resealing once the carbon dioxide has escaped.

Adding Value in Packaging Solutions

Whether it is used to increase supply chain accountability or interact directly with consumers, modern packaging plays a more sophisticated role than yesterday’s simple designs did. In part, the changes mirror technological advances, such as bio-based solutions, but design improvements and added-value features also arise from consumer demand. In today’s markets, that translates to greater accountability, transparency, and integrity within the consumer supply chain. Buyers are no longer satisfied with generic market messages. They want more information, so the most successful primary packaging speaks directly to their concerns.

Shelf life indicators are among the new wave of tech-forward packaging solutions, furnishing direct, visual feedback about the freshness of the products they contain. In one example, the Insignia Freshtag is engineered to change color after a particular length of time held at a certain temperature. The color-changing process speeds up when the goods are held at a higher temperature. These shelf life indicators add value to consumer packaging, furnishing feedback based upon actual handling conditions.

Simple solutions stand out for innovation, including a design advance featured on a PepsiCo granola bar. The product’s laser score flow wrapper introduces an intuitive, easy-to-use alternative for consumers eating on the move. The horizontal flow wrapper responds to consumers’ call for more convenient ways to open bars without a mess. The innovation preserves protective barrier properties while still providing an accessible tear mechanism. The wrapper can be run on the industry’s fast production equipment, so the added value comes without giving up productivity.

Experiential packaging expands consumer engagement beyond traditional interactions. Comparing products on store shelves, which used to be a one-dimensional experience, has grown to include direct interaction between goods and consumers.

The use of scannable labels and other active packaging innovations is on the rise, providing in-depth product information for smartphone users, who now overwhelmingly turn to their devices while shopping. And there is no limit to the experience that can be provided, linking goods to proprietary apps capable of all kinds of consumer engagement.

Packaging Safety and Sustainability

Developing more effective materials without sacrificing sustainability is an ongoing balancing act for innovative packagers. New films are helping overcome plastic waste concerns, providing biodegradable solutions for wide-ranging primary packaging applications. With dramatically greater puncture resistance than early bio-based films, cutting-edge materials now contribute advanced mechanical and physical benefits. Developing sturdy bio-based stand-up pouches, for example, takes an already beneficial packaging innovation and adds another environmentally responsible aspect. And though they still cost more to produce, a new wave of bio-plastics provides additional

Film technology also enhances packaging protection, particularly in food applications where contents need multilayer barriers. Not only are the cutting-edge films capable of keeping out gases and moisture, but oxygen scavenging innovations are also incorporated, keeping food safe from spoilage. With each film advance, the new materials further extend the safe shelf life for once-vulnerable or hard-to-package foodstuffs.

Primary packaging serves as the first line of protection for consumer goods. Continual innovation keeps packaging capabilities on the cutting edge, utilizing technology to its fullest.

Recent developments include a push for more environmentally accountable packaging options and convenient solutions for consumers on the move. Experiential packaging and active, smart alternatives are also on the rise, creating an interactive dynamic with shoppers. Incorporating these advances into your own packaging strategy can create a competitive advantage.

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As CPGs advance toward store shelves, packaging providers work closely with brand managers to market and merchandise each consumer product effectively. From conception to delivery, packaging companies leave their mark at every stage of the supply chain.

Packagers take on crucial responsibilities in bringing food products to market, but the call for effective, cost-efficient packaging solutions is not limited to perishable goods. Contract packagers serve wide-ranging industries (clothing, health and beauty, electronics, and countless other examples), influencing marketing and supply chain practices in diverse consumer environments. Their specialized knowledge and experience are integral to successful production and distribution, particularly in today’s rapidly shifting consumer marketplace. And since efficient supply chain management lies at the heart of profitability, forward-looking producers partner with packaging providers familiar with the latest advances in supply chain technology.

Technology and Packaged Goods

The consumer supply chain represents a complex set of processes and interactions, bringing together stakeholders from diverse disciplines. Best practices change frequently, as technology and consumer preferences drive everything from packaging design to logistics solutions. The most effective packagers use supply chain technology to create competitive advantages, resulting in the following:

• Lower Costs
• Greater Efficiency
• Enhanced Safety and Security

Tracking Capabilities

Radiofrequency identification (RFID) and GPS technology make tracking products possible throughout their life cycles. Outfitting goods with traceable identifiers can help increase efficiency within the supply chain, furnishing real-time information relevant to suppliers and, ultimately, end-users.

The pharmaceutical industry, for example, is experiencing a shift toward direct business-to-patient relationships, calling for greater accountability within the supply chain. Packaging with RFID and GPS tracking not only enhances product security, but the technology also keeps patients better informed.

In another example illustrating the dual benefits of supply chain technology, a leading spirits manufacturer uses a smart label to create a personal experience for each buyer while incorporating tracking capabilities.

Consumer Data

Communications technology and other advances support access to volumes of information, which packagers and manufacturers can use to improve supply chain outcomes. By monitoring consumer data, in-store turnover statistics, online shopping trends, and other vital feedback, producers and packagers can streamline the supply chain, simultaneously delivering better consumer experiences.

In one example, shoppers increasingly take their business to online vendors – where price, more than packaging, sells units. Responding to the trend, innovative packagers are working with producers to cut distribution and packaging costs to compete online better.

Bundling items, simplifying packages, and distinguishing goods sold online from those available in stores represent three ways manufacturers, retailers, and their packaging partners use consumer data to increase sales and profitability.

Digital Solutions

Supply chain management benefits from cloud technology, enabling shippers, carriers, and contract packagers to oversee efficient operations. A cloud-based system can improve shipment productivity and lower costs. In fact, a majority of those adopting an intelligent shipment system reported cost savings (compounded for those with multiple locations). And despite simplifying supply chain processes, a well-executed cloud solution can also result in higher customer satisfaction.

Digital networking adds further efficiency and reliability to the supply chain, creating a community of stakeholders linked by coordinated information and access to proven providers. Among them, contract packagers bring unique insight to each level of production and distribution.

Augmented Reality (AR)

Augmented reality enhances production and shipping environments, making moving products through the consumer supply chain easier and more efficient. Already in use and expected to expand, AR technology essentially adds object recognition and computer vision to various processes within the supply chain, streamlining and speeding up production and delivery. Supplemental technology helps with everything from order accuracy to facility planning, trimming time and expense from the consumer supply chain.

Information Technology

Various packaging challenges benefit from IT solutions. For example, speed and flexibility are enhanced when IT tightens supply-chain processes and synchronizes the complex interaction between contributing organizations. Technology can boost efficiency and supply chain accountability by:

• standardizing controls and data sharing between stakeholders,
• creating greater visibility across the supply chain,
• enhancing procurement, shipment, and customer service.

Conclusion

Facing evolving consumer expectations, shifting regulatory concerns, and general economic uncertainty, forward-thinking packaging companies must embrace technology to overcome challenges – or risk losing their competitive edge. As more and more producers rethink distribution, the best packagers are well-positioned to adapt, furnishing custom solutions under a wide range of conditions.

Technology leads the way, resulting in better outcomes for supply chain stakeholders and end-users. Choosing a tech-forward packaging partner can help you increase efficiency, optimize operations, provide better customer service, and get noticed for all the right reasons.

The post Advances in Supply Chain Technology Shape an Evolving Packaging Industry appeared first on Assemblies Unlimited.

Contract packaging companies operate in a dynamic, evolving environment, continually responding to changes within the industry, as well as related fields. From consumer demands to logistical concerns, wide-ranging factors influence the best approach to each packaging project. And like providers in other areas, not every packaging company reflects the same standards.

Whether you are bringing a new product to market or reevaluating your marketing plans, it is essential to partner with a contract packaging company capable of carrying off your project without a hitch. So what is the “secret sauce” of contract packaging? Although the recipe for success is unique for each successful campaign, effective contract packaging companies share the following traits:

Diverse Experience

Just as the traditional adage dictates, there is no substitute for experience in the contract packaging industry. The past always informs the future, so the more successful prior campaigns a packaging company can point to, the greater credibility the contractor brings to your project. And since each assignment is a custom job, packagers with diverse experience are naturally prepared to repeat past success, adding the features needed to make your project successful. As you assess packaging alternatives, look for experience in the following areas, among others:

• Logistics
• Pouching
• Kitting and Hand Assembly
• Wrapping
• Bottle Filling
• Blending and Dry Filling
• Secondary Packaging

Adaptability

A flexible, adaptable approach is central to modern marketing. In order to stand-out among competitors, for example, producers use packaging to create timely, personal connections with consumers. Contract providers with the ability to adapt to these individualized marketing plans are best-equipped to respond to the needs of modern sellers, using shorter packaging runs, flexible freight options, regional fulfillment, and other agile strategies to sweeten the secret sauce of effective contract packaging.

Consumer buying trends shape the face of retail markets, calling-upon packagers to adapt on-the-fly. Major increases in online sales traffic, for instance, require packaging innovation. And with so many products shipping directly to buyers, the most effective packaging contractors seamlessly account for each brand’s various delivery alternatives. Partnering with an adaptable provider not only gives you flexibility today, but also leaves you poised for future shifts.

Turnkey Services

Effective packaging providers coordinate and execute efficient turnkey campaigns, empowering producers and manufacturers to focus on their core businesses. From the early stages of front-end package design to delivery and placement on store shelves, full-turnkey providers address each phase of your project, ensuring continuity from start to finish. Working with a capable packaging company accounts for the following concerns:

• Design – Product presentation can have as much of an impact on sales as the usefulness of the product itself, raising the stakes for contract packagers. Proficient packaging providers bring design experience to each project, building on past success in growing sales and brand loyalty. According to your specs, design consultation addresses shipping concerns, regulatory requirements, merchandising needs and other factors influencing your packaging decisions.
• Materials Sourcing – Experienced packagers not only have access to raw materials but are also well-versed on the best packaging approaches for each job. For the most cost-efficient outcomes, well-connected packaging companies source materials locally, benefitting from cost savings at every stage of fulfillment and delivery.
• Supply Chain Management – A dedicated project manager ensures your packaging campaign is well-coordinated, bridging the functions of each supply chain partner. The resulting continuity keeps important details from falling through the cracks – and working with a well-established provider gives you a proven partner without a steep learning curve in supply chain economics.
• Optimized Logistics – From optimizing pallet loads to partnering with the most cost-efficient carriers, seasoned contract packaging companies have the industry connections and operational know-how to move goods affordability – without sacrificing on-time delivery. Optimizing shipments carries the additional benefit of reducing a producer’s environmental impact, aligning with sustainability values shared by supply chain partners and end users.

Reliability and Consistency

Success in competitive markets relies on precision, so reliability is an indispensable ingredient shared by effectual contract packaging companies. For timely delivery in a demand-driven economy, turnkey packaging providers with multiple facilities have a competitive advantage. Not only do well-positioned plants cut turnaround times, but a wide network also ensures competitive freight costs during distribution.

Success is fleeting if your provider is unable to furnish consistent outcomes – particularly when inventory management calls for fast turnaround and on-time fulfillment and delivery. Before making commitments, review customer testimonials and references, settling on a contract packaging company with multiple locations and a clear track record of success.

Tech-Forward Philosophy

Like so many other forward-leaning businesses, technological advances also drive best practices in the packaging and logistics industries. As a result, the most effective contractors use cutting-edge capabilities to overcome packaging challenges. Whether incorporating the proper protective barriers and film materials into a package design or completely reinventing traditional packaging approaches, making the most of technology provides distinctive solutions, often lowering costs and enhancing performance.

Packaging innovators and their diverse clients understand there is no “one size fits all” approach to modern marketing. But despite the particulars of each project, effective contract packaging companies apply the same secret sauce to success – starting with these essential ingredients.

Feel free to reach out to us directly using sales@assemblies.com with any additional questions.

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The post What’s the Secret Sauce of Effective Contract Packaging? appeared first on Assemblies Unlimited.

Packaging innovation is typically sparked by a combination of technological advances and evolving consumer preferences. In most cases, new packaging alternatives are developed to improve upon old designs, ultimately replacing them in the marketplace. And each new solution brings its own set of advantages.

Some emerging solutions are more affordable than traditional methods, while other packaging improvements do a better job protecting goods for transport and display. Still other upgrades enhance shelf life and security, using forward-looking technology to protect perishables and maintain the integrity of food and non-food products.

As their popularity continues to expand, flexible pouches share many of these advantages – particularly when compared to traditional alternatives. But until recently, flexible pouches were strictly throwaways, making them impractical for producers and consumers committed to sustainable packaging. Cutting-edge innovation is changing that, however, as materials advances make pouch packaging recycle ready.

Steady Shift to Flexible Packaging Materials

In a trend impacting many consumer industries, the food and beverage packaging industry has seen a marked shift away from paperboard and rigid containers. Lifestyle preferences are partially responsible for the trend, calling upon producers and contract packaging companies to meet the demand for convenient, portable food and drink containers.

In addition to consumer cues, technological advancements also fuel continued growth in the flexible packaging market. Modern materials technology now enables food and beverage packagers to incorporate various films and barriers into flexible package designs, protecting pouches from punctures and keeping contents aseptically sealed. And value-added features like spouts and stand-up designs further increase the appeal of flexible pouches, expanding their use in food and non-food applications. Flexible pouches furnish these and other advantages when compared to traditional rigid alternatives:

• Lower costs – Flexible packaging offers cost advantages on multiple fronts. Production and transportation costs, for example, can often be reduced by shifting from rigid plastic containers to lightweight pouches.
• Source reduction
• Better performance – From end-user performance advantages to better protection moving through the supply chain, flexible pouches outperform glass and other rigid structures on many fronts.
• Reduced weight
• Intuitive closures and dispensing features
• Space savings at each level of distribution

With so many positive contributions resulting from moves to flexible packaging, it is easy to see why pouches are poised for further gains in coming years. But until recently, the packaging medium also carried negative baggage, serving as single use containers difficult or impossible to recycle. That is all changing as efforts to produce recyclable multi-layer pouches are yielding results.

Recycle Ready Innovation Reaches Flexible Pouches

Dow Chemical Co. is at the forefront of sustainability advances in the flexible pouch industry, making recent breakthroughs in multilayer pouch recycling. The company launched a recyclable multi-layer pouch in late 2015, adding the specialized package to its existing RecycleReady line (the company previously devised a 100% polyethylene pouch). Initially used to market dishwasher detergent pods, the pouches bear information for consumers, instructing them how to recycle the packages.

Moving beyond Dow’s early recyclable pouch designs, the company has now also introduced a fully recyclable stand-up pouch, made with proprietary polymer modifiers. The new pouches resemble the ones used for dishwasher pods, but also possess enhanced barrier characteristics. In essence, the new design offers the best of both worlds, acting like a recyclable, pure polyethylene pouch, while maintaining barrier properties needed to package diverse goods. Dow promotes its pouch as the first of its kind – a multilayer pouch that can be recycled in a polyethylene recycling stream.

Traditionally, popular barrier combinations containing both polyethylene (PE) and ethylene vinyl alcohol (EVOH) were not suitable for recycling. The presence of EVOH commonly caused holes to develop in the recycled film, making pouches incompatible with polyethylene recycling practices. By adding a compatibilizer (Retain) at the beginning of the manufacturing process, Dow sidesteps the limitation, producing flexible stand-up pouches well-suited for film recycling. Like other members of the company’s RecycleReady initiative, the recyclable pouches incorporate label information sharing the How2Recycle logo and outlining the Store Drop-Off program for recyclable films. More than 18,000 locations accept items into existing polyethylene recycling streams.

The company original developed Retain to help post-industrial recyclers reuse film. In a new twist on the proven technology, Dow is now able to incorporate Retain at the beginning of the pouch manufacturing process, resulting in a fully recyclable film that exhibits beneficial EVOH barrier properties. The ready-made resin combination can be accepted at standard film recycling locations, such as those positioned in grocery stores.

Future of Recyclable Pouch Technology

Recyclable packaging offers benefits for producers, consumers and brand owners aligned with environmentally sound manufacturing and distribution practices. With the help of future recycling advances, packaging innovation will continue to divert more and more packaging waste from landfills and incinerators.

According to Dow representatives, the future is bright for sustainable pouch packaging. Not only does the company plan to expand applications for its existing line of recyclable pouch solutions, but Dow also anticipates developing new compatibilizers. It is hoped these new alternatives will continue to enhance flexible pouch functionality without compromising recyclability – ultimately processing pouch materials like polypropylene, which traditionally interfered with recycling practices. Bolstered by cooperation across the entire supply chain, coordinated efforts to improve recyclable packaging practices are drawing support from industry giants like PepsiCo, Nestle and Proctor and Gamble. Materials Recovery for the Future, for example, represents a collaborative effort to improve flexible recycling outcomes.

Flexible, multi-layer pouches are gaining ground in food and non-food applications. As the adaptable package format continues responding to consumer calls for convenience and flexibility, recycle ready alternatives are coming to market. Led by technological advances from Dow Chemical Company, recyclable multi-layer pouches are now integrated into existing polyethylene recycling streams. And as further breakthroughs emerge, the company hopes to bring-about similar solutions for other pouch packaging materials.

The post Pouch Packaging Made Recycle Ready for Consumer Demand appeared first on Assemblies Unlimited.

One important facet of packaging, however, is limited only by the creativity and inventiveness of packaging industry professionals. Because they are unique to each package, design elements allow brands to make an impression and stand out among competitors.

Well-executed package design accomplishes several important functions. For starters, graphics and artwork play-up brand identity, using colors and proprietary imagery to support brand awareness. Depending upon what’s inside, a package may also convey important information about its contents. And since performance is just as important as appearance, the best designs enable enhanced functionality, like pour spouts, carry handles, and other helpful features.

Shape, materials, text, combinations, and custom merchandising features add further to the possibilities, giving designers the tools they need to continually reinvent modern packaging strategies. Regardless of what you sell, underestimating packaging potential leaves money on the table. To make the most of packaging design, share your vision with the right packager, and watch design dreams come true.

Creative Solutions Bring Packages to Life

Packaging designs are as diverse as the array of consumer packaged goods, so there is no “right” way to get the job done. On the contrary, there is always room for a fresh approach, giving progressive packaging companies an open canvas for creating custom designs. The multi-faceted industry blends art, performance, marketing, conservation, and innovation, solving packaging challenges for food companies and other producers. These forward-thinking approaches use modern materials and progressive thinking to keep consumer products in the spotlight:

Hand Drawn and Homespun

Modern consumers are tuned-in to organics, sustainability, and craft production. As a reflection of these values, producers are having success portraying goods as “homestyle,” using simple hand-lettered designs and basic fonts.  Drawings are also popular among food producers, rather than photo imagery, reinforcing the small-batch quality customers like.

Social media, mobile communications, and other advertising channels expose shoppers to continuous static from marketers. As a result, cutting through the noise to make personal connections has become an important part of modern promotions. Taking impersonal campaigns offline, for instance, and reinforcing brand accessibility with hand-drawn labels is one-way producers are forming friendly images. The approachable strategy humanizes consumer goods following a long period during which anonymous mass production dominated the airwaves.

Clear Advantages

To support the public’s increased call for transparency, many producers are taking a literal approach. See-through packaging affords interaction that other types of containers do not, enabling consumers to inspect products closely before making purchases. Food freshness, in particular, is on display for shoppers when clear plastic containers are used.

Added Functional Value

The status quo often presents the easiest path forward, so adequate packaging solutions are slow to change. Until a better, more efficient, less expensive, or more functional solution comes along, consumers grow accustomed to particular types of containers. Technology creates new possibilities, however, so new materials and production capabilities often yield improved packages. The 21^st century promises exciting tech advances, so evolving packaging will continue to speak to the needs of modern users.

In addition to protecting, housing, and facilitating product transportation, forward-thinking packages account for longer functional lives. Reusable, resalable, and repurposed packages are the future of design, so the latest innovations continue to push the envelope. A wine crate doubling as a rack or food packaging serving as plates and bowls are examples of the new thinking emerging in the packaging industry.

Subtlety Sells

Competitive consumer markets once pushed packaging design in an “in your face” direction, relying on powerful, attention-grabbing features to close sales. In a reversal, modern packaging design has taken on an understated tone, using genuine, subtle tactics to make an impression rather than knocking over shoppers with bold schemes. Although there is still an emphasis on quality and conveying the value of luxury products, soft color palettes, and reserved presentations are filling in for unapproachable exclusive branding strategies once favored.

Abstract Art and Geometric Patterns

While some luxury goods exude sophisticated minimalism, other brands find success using abstract patterns and geometric designs. In the crowded wine and beer verticals, for example, bottlers use stark geometric labels to stand out on store shelves.

Historical References

Style continually revolves, so historical imagery and retro scenes are once again finding their way to the forefront of the consumer packaging industry. Young shoppers and nostalgic buyers alike embrace old-fashioned photos, drawings, and slogans. Producers sometimes revive graphics and artwork from earlier days, incorporating vintage advertising art into modern packaging designs.

Black and White

Simplicity speaks to modern consumers, so stark black-and-white designs are appealing. White packaging with black text, for instance, is a classic approach that provides a familiar, traditional look. Black backgrounds with white cut-out letters, on the other hand, convey modern design ideals.

These are only a few of the design trends influencing consumer packaged goods. Producers seeking to maximize the impact of packaging design should consult with a well-established, turnkey contract packaging company. Their experience solving diverse packaging dilemmas helps dial-in workable solutions for your product line. With the help of seasoned packagers, your distinctive designs will make the right impression on discerning consumers.

The post Creative Packaging Designs and Features Attract Consumer Attention appeared first on Assemblies Unlimited.