alexsmith: Innovation in Packaging

Innovation in Packaging

Oct 17 2019 at 05:12

Everyone agrees that without innovation, no company can calmly consider its future (citing the example of the Kodak company that has not been able to take the digital turn). A major study of INSEE also recalls that between 2008 and 2010, in a context of crisis, about half of companies with 10 or more employees innovated to maintain or increase their market share, including by improving their products. . In fact, in a globalized and hyper-competitive economy, we are seeing more and more disruptive young shoots whose speed of execution is undermining the strategies of large packaging companies, long established on the market.. The paper and cardboard packaging sector is no exception, and that is why it is vital for manufacturers to take the lead and determine which sources of innovation can be exploited. Two examples were presented at the round table:

# 1 Trend Innovation: When Consumer And Brand Demand Influences Industrial Production
Everything starts with "mega tendencies", which we define as a perceptible evolution of a phenomenon over a long period of time (unlike simple "fashion effects";-). Simplicity, ease of use, premiumization, customer experience ... All these trends must be anticipated as far upstream as possible to allow the company time to reorient its strategy and offer a rehabilitated offer before its competitors.

4 factors play on packaging innovation:

The demands of consumers are paramount and their purchasing behavior is scrutinized by marketing analysis, particularly thanks to omnichannel and big data. It should be noted that needs can vary significantly from one region of the world to another, in terms of size or finish produced. App's global presence and status as the world's second largest paper producer allows it to adapt its product range to customers and to deploy tailor-made ranges that meet the needs of Asian, American and European customers. .  
The expectations of industrialists seeking to combine anticipation of customer needs and reduction of production costs;
Technological evolutions that upset the field of possibilities and improve the customer experience (robotization, data processing, new materials ...);
Finally, other external factors of a societal nature, such as sustainable development, will push brands to rethink their purchasing policies for raw materials and packaging materials
It is in this context, for example, that APP, driven by a duty of exemplarity demanded by citizen NGOs, has completely redesigned its strategic policy . Since 2013, the company has developed an ambitious "zero deforestation" program as part of its Forest Conservation Policy. And to date, no failure to meet the requirements has been noted. In addition, paper and cardboard packaging provide an effective and sustainable solution, as recalled by COFEPAC, with a great capacity to adapt to environmental standards.

# 2 Innovation Through Regulation
The packaging industry is marked by successive regulations and increasingly detailed legislative frameworks for its products. It is not only the technological contribution (which is often a brake because of its high cost, recalls the CEO of Smurfit Kappa France) that pushes companies to innovate, but also the legislative and legal aspects . For example, many health authorities at the international level (European Union, United States) are discussing stricter rules on food migration, to protect the health of consumers.

APP, anticipating this demand, has developed the Foopak range (distributed under the name Delipac in the UK), a safe food packaging product for direct contact with food, certified by the FDA in the United States and ISEGA.

The same goes for environmental protection requirements: many companies must now include in their specifications, a supply of bio-sourced materials


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