Study: Flexibles Add Value to Brands
How much does packaging drive brand owner and consumer purchase decisions? A new FPA Brand Value study says it has a significant impact on brand owners and that flexible packaging aligns well with today’s marketplace trends.
Here are three central factors that emerge from the study presented at FPA’s Fall Executive Conference:
- 80% of brand owners say that packaging has a positive impact on brand value.
- Consumers will pay significantly more for certain product attributes enhanced by flexible packaging.
- Flexible packaging delivers what tomorrow’s consumers expect, and 97% of brand owners who use flexible packaging today intend to use the same amount or more in coming years.
The study comes from Gibbs-rbb, a strategic communications consulting firm. They integrated data from consumers, brand owners and flexible packaging suppliers to point out places where flexibles offer an advantage. Jeff Altheide, principle with Gibbs-rbb, presented the results.
Findings showed how well consumer and brand owners match in their assessment of consumer packaging needs. (Figure 1. shows consumer data.) A Harris poll produced the consumer data, and a survey by Packaging World magazine produced the brand owner data.
Both groups agreed that being “resealable,” being “easy to open,” and “extending product life” are among the top five attributes that packaging should deliver. Consumers said that “easy-to-store” and “easy-to-carry” were also top considerations. Brand owners put “able to see product” and “attractive packaging” among their top-five attributes.
Willing to Pay More
The Harris survey also reported that consumers are willing to pay more for package attributes. Data shows that, on average, consumers are willing to pay 14% more for packaging that is “resealable,” while they would pay 9% more for “single-serve” packages.
Jeff Altheide cautioned that there are significant demographic differences in the “pay more” data. For example, 68% of millenials would pay more for “ability to recycle.” However, only 47% of consumers 65 and older would pay more for that attribute. Some 70% of parents would pay more for an “easy to store” package, yet only 53% of those with no children would pay a premium for that feature.
One the business side, the Packaging World survey of brand owners shows that 66% of the companies responding would be using more flexible packaging in the next five years than they are today; 31% say they would be using the same amount. Two percent would be using less.
For More Info
For a copy the presentation, FPA members can go to www.flexpack.org and click on: “Download Presentations from the FPA Fall Executive Conference.”