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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

PACKAGING TRENDS<br />

Forces that will influence packaging through the end of the decade


About the <strong>Packaging</strong><br />

Intelligence Brief Series<br />

<strong>Packaging</strong> plays a critical role in our global economy<br />

and touches the lives of everyone. For 75 years, the<br />

<strong>PMMI</strong> has been the leading global resource for packaging<br />

manufacturers to learn about industry trends, obtain<br />

training and get involved in networking events.<br />

<strong>PMMI</strong> is proud to introduce the <strong>Packaging</strong> Intelligence<br />

Brief series which focuses on trends that are shaping<br />

the future of the industry. Over the next year, <strong>PMMI</strong> will<br />

regularly release <strong>Packaging</strong> Intelligence Briefs to<br />

address various topics that are significantly impacting<br />

packaging and outlining how suppliers and manufacturers<br />

are responding to market needs.


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

TABLE OF CONTENTS<br />

Executive Summary ....................................................................................................... 4<br />

Introduction ................................................................................................................... 4<br />

Automation..................................................................................................................... 6<br />

More Robots .................................................................................................... 7<br />

More Software and Integration .......................................................................... 8<br />

More RFID ....................................................................................................... 8<br />

Sustainability ............................................................................................................... 10<br />

Source Reduction ........................................................................................... 10<br />

Replacing Non-Renewable Resources .............................................................. 11<br />

Conserving Water and Energy ......................................................................... 12<br />

Waste Reduction ............................................................................................ 13<br />

Recycling and Recycled Content ..................................................................... 14<br />

Consumer Convenience ................................................................................................ 14<br />

Product Safety ............................................................................................................. 15<br />

Health and Wellness ..................................................................................................... 17<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

Executive Summary<br />

Building on familiar demands, package design and packaging<br />

lines will evolve to address the need for automation, sustainability,<br />

consumer convenience, product safety and rising consumer<br />

interest in health and wellness.<br />

Reliance on automation will increase throughout the 2008-2010<br />

time period to increase efficiency and quality and cut costs.<br />

Packagers will automate more manual operations and update<br />

and upgrade older automated operations to boost productivity,<br />

while cutting costs and labor requirements.<br />

Environmental concerns, often discussed under the banner of<br />

sustainability or climate change, have not yet peaked. As a<br />

result, between now and 2010 we’ll see continued attention on<br />

source reduction, conservation of energy, water and nonrenewable<br />

resources, minimization of greenhouse gas emissions<br />

and waste and rising levels of recycling and recycled content.<br />

Recent product introductions show how strong the demand for<br />

convenience is with products like Healthy Choice Café<br />

Steamers entrees from ConAgra Foods, Omaha, NE, in steamgenerating,<br />

cook-in packaging; Lean Cuisine panini sandwiches<br />

from Nestle USA, Glendale, CA, in microwaveable susceptor<br />

trays; organic coffee beans from Celestial Seasonings, Boulder,<br />

CO, in resealable, zippered stand-up pouches; and Pringles<br />

Minis potato crisps from Procter & Gamble Co., Cincinnati, OH,<br />

in single-serving pouches. As cook-in packaging becomes<br />

even more functional, it should remain in favor, as will package<br />

designs that are easy to open and reclose. However, the greatest<br />

action is likely to be in single-serving packs because these<br />

designs couple convenience with healthy portion control.<br />

Recalls, problems with tainted foods and drugs and the prevalence<br />

of counterfeit products worldwide are spurring packagers<br />

to scrutinize their supply chains, process controls and quality<br />

assurance practices with new intensity.<br />

With obesity seen as a major health problem in much of the<br />

developed world, skyrocketing healthcare demand and costs<br />

and the aging baby boomer population, interest in products<br />

that can improve well-being continues to rise, driving demand<br />

for better-for-you formulations, portion-control packaging,<br />

more product information, greater emphasis on fresh products<br />

and reduction in the use of artificial additives and preservatives.<br />

There also is interest in products that simplify preparation<br />

of balanced meals and improve the nutritional profile of<br />

grab-and-go foods/beverages.<br />

Although packagers may want to increase automation, and<br />

deliver products that appeal to consumers’ desire for sustainability,<br />

convenience, healthfulness, economics ultimately<br />

will determine changes are made in packaging designs<br />

and equipment.<br />

Introduction<br />

Building on familiar demands, package design and packaging<br />

lines will evolve to address the need for automation, sustainability,<br />

consumer convenience,<br />

product safety<br />

and rising consumer interest<br />

in health and wellness.<br />

The importance of sustainability,<br />

convenience, and<br />

health and wellness to<br />

today’s consumer is clearly<br />

demonstrated by products<br />

listed in the top 20 Most<br />

4


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

Memorable New Product Launches of 2007. Sustainable products<br />

listed by consumers queried in a survey sponsored by<br />

Schneider Associates, Boston, MA; New Products magazine,<br />

Deerfield, IL; and Information Resources, Inc., Chicago, IL;<br />

include Tide 2X Ultra concentrated laundry detergent from<br />

Procter & Gamble Co., Cincinnati, OH, which contains less<br />

water and features a smaller bottle/closure than the non-concentrated<br />

formula.<br />

Food safety also is a top-of-mind concern. With high-profile<br />

U.S. recalls in 2007-2008 related to lead paint, melaminetainted<br />

petfood, C. botulinum-contaminated hot dog chili<br />

sauce, E. coli-contaminated beef and Salmonella-contaminated<br />

pot pies and peanut butter, consumers want to know<br />

what’s in a product and where it came from.<br />

Winners falling under the health and wellness and/or convenience<br />

banners include portion-controlled Hostess 100 Calorie<br />

Pack Cup Cakes from Interstate Bakeries Corp., Kansas City,<br />

MO; Alli weight loss capsules from GlaxoSmithKline, Research<br />

Triangle Park, NC; Diet Coke Plus and Coke Cherry Zero soft<br />

drinks from Coca-Cola Co., Atlanta, GA; DanActive Yogurt<br />

Drinks from Dannon Co., North Tarrytown, NY; Fresh Fit<br />

Meals from Subway Restaurants, Milford, CT; Diet Pepsi Max<br />

from PepsiCo North<br />

America, Purchase,<br />

NY; and microwaveable<br />

Oscar Meyer Deli<br />

Creations sandwiches<br />

from Kraft Foods,<br />

Northfield, IL.<br />

Product safety concerns are not limited to food or to the United<br />

States. Tainted products have been implicated in recent deaths<br />

and illnesses in China and Japan. In 2006, Cadbury<br />

Schweppes, London, UK, recalled more than 1 million chocolate<br />

bars from UK stores due to Salmonella contamination, and<br />

dozens died in Latin America after ingesting diethylene glycoltainted<br />

cough syrup.<br />

Packagers are scrutinizing their supply chains, process controls<br />

and quality assurance practices with new intensity.<br />

Although packagers may want to increase automation, and<br />

deliver products that are sustainable, convenient and healthy,<br />

economics ultimately will determine the level of investment in<br />

package design and packaging line equipment.<br />

According to Manufacturing Barometer: Business Outlook 4Q<br />

2007, a survey by PricewaterhouseCoopers, New York, NY,<br />

senior executives in U.S.-based companies are far more positive<br />

about the world economy than the U.S. economy with 64%<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

expressing optimism about the performance of the world economy<br />

during the next 12 months.<br />

Attitudes about the U.S. economy have slipped considerably<br />

with only 29% of those surveyed feeling optimistic about<br />

prospects for the next 12 months, a substantial decline from<br />

the 45% who felt optimistic in the third quarter of 2007 and<br />

less than half of the 64%, who were feeling positive in the<br />

fourth quarter of 2006. The top four barriers to growth cited<br />

by the executives include oil/energy prices (66%), lack of<br />

demand (61%), competition from foreign markets (44%) and<br />

monetary exchange rate (44%).<br />

Although the Federal Reserve cut interest rates to forestall<br />

or shorten a recession early in 2008, it appears likely the US<br />

economy will slow during 2008-2009, before accelerating in<br />

2009-2010. However, with the dollar low versus the Euro<br />

and other major currencies, U.S. businesses should see a<br />

rising amount of revenue derived from exports.<br />

At home, the Economic Stimulus Act of 2008, signed by<br />

President Bush in February 2008, should help offset a slowing<br />

economy through tax breaks for capital investments,<br />

especially for smaller companies planning to spend less<br />

than $800,000 in 2008.<br />

However, since the tax breaks relate primarily to equipment<br />

purchased and installed in 2008, it’s imperative to place<br />

orders early, especially for equipment with longer lead times.<br />

2007 by The Nielsen Co., New York, NY, consumers are trying<br />

to make their dollars go farther by shopping more on the<br />

internet, eating out less, staying home more, buying more<br />

store and budget brands, reducing shopping trips and shopping<br />

more at supercenters. “Manufacturers and retailers<br />

need to be alert to the fact that consumers are looking to<br />

save by altering where they shop, how they shop and what<br />

products and brands they buy,” says Todd Hale, senior vice<br />

president of Consumer Shopping & Insights at Nielsen,<br />

adding, “Value, convenience and competitive pricing will be<br />

more important than ever in the year ahead.”<br />

Higher oil prices are impacting consumers elsewhere in the<br />

world. In Europe, higher oil prices are boosting the cost of<br />

natural gas and electricity, as well as gasoline and raising<br />

fears of inflation. According to estimates from Luxembourgbased<br />

Eurostat, the annual inflation rate for the Euro area<br />

(15 member states) was 3.2% in January 2008, significantly<br />

higher than the 2% target set by the European<br />

Central Bank, Frankfurt am Main, Germany.<br />

At the global level, economic growth will slow from the<br />

4.9% registered in 2007 to 4.1% in 2008, according to<br />

projections from the International Monetary Fund,<br />

Washington, DC. Pressure on growth is coming from slowing<br />

economies in the United States, western Europe and<br />

Japan, fallout from the subprime mortgage problems in the<br />

United States and moderating growth in emerging and<br />

developing economies.<br />

For consumers, gasoline and other rising costs will put a<br />

squeeze on spending. With gas expected to hit $3.40 per<br />

gallon by mid-2008, consumers will be making increasingly<br />

tough choices between filling the tank and other purchases.<br />

According to a Nielsen Homescan Survey done in December<br />

Automation<br />

Reliance on automation will increase throughout the 2008-<br />

2010 time period to address needs to increase efficiency<br />

and quality and cut costs.<br />

6


On the packaging line, manual operations are being automated,<br />

and automated operations are looking for ways to boost<br />

productivity, while cutting costs and labor requirements. This<br />

wish list is translating into a strong interest in entry-level equipment<br />

to help packagers automate manual operations to reduce<br />

or control labor costs, improve working conditions and eliminate<br />

ergonomic hazards.<br />

PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

For operations that have already made the transition to automated<br />

equipment, the need to increase productivity and control<br />

costs is spurring demand for flexible machines that are<br />

easier to clean, change over, operate and maintain. It’s also<br />

prompting greater use of servos, networks (especially wireless),<br />

radio frequency identification (RFID) and robotics and<br />

spurring more interest in machine-to-machine and machineto-enterprise<br />

integration, use of software to collect and analyze<br />

production data, and e-machine features that permit remote<br />

access for operation, troubleshooting and/or repair.<br />

Although many packagers install new lines or upgrade existing<br />

lines to meet changing needs, there’s also a strong interest in<br />

outsourcing, especially in the food industry. According to a<br />

2007 Food <strong>Packaging</strong> <strong>Trends</strong> Study by Food Engineering magazine,<br />

32% of respondents rely on contract packagers to<br />

reduce time to market for new products, double the percentage<br />

using this strategy in 2003.<br />

More Robots<br />

Respondents to the survey classify robotics as the most noteworthy<br />

development in packaging technology, and a significant<br />

number would like to install more.<br />

Palletizing is the most common packaging application for<br />

robots, followed by case/carton packaging and pick-and-place<br />

activities. However, the units continue to add to their repertoire<br />

of packaging functions. According to a study by the <strong>PMMI</strong>,<br />

Arlington, VA, robot use has grown rapidly since 2004 with a<br />

28% jump in the number used for primary packaging and a<br />

17% increase in units performing secondary packaging tasks.<br />

Survey respondents predict palletizing will continue to dominate,<br />

but use of robots for primary packaging tasks will experience<br />

more rapid growth.<br />

With 77% of the packagers surveyed planning to use more<br />

robots, penetration on packaging lines should double from<br />

about one-fourth in 2007 to roughly one-half by 2012 with all<br />

segments participating – Food, Beverage, Chemical,<br />

Pharmaceutical/Medical, Durable Goods and Other. A growing<br />

number of these new units will be equipped with vision to<br />

reduce the need for fixturing, increase flexibility to accommodate<br />

different products and expedite changeover.<br />

The top three reasons packagers cite for adding robotics to<br />

packaging lines include reduced costs/higher efficiencies<br />

(35%), reduced labor (30%) and manufacturing flexibility<br />

(21%). Other influences include employee safety, ergonomics,<br />

speed, product quality and space constraints.<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

When adopting a robot, there also are hurdles to overcome.<br />

The most frequently cited by robot users surveyed include the<br />

skill level needed to operate and maintain the units, downtime,<br />

cost and the need for human intervention. However, costs are<br />

expected to drop 10-20% by 2012. In addition mean time<br />

between failures is now measured in increments approaching<br />

100,000 hours, and improved software and controls simplify<br />

setup and operation. Finally, the majority of packaging machinery<br />

companies selling robotic equipment also offer maintenance<br />

services.<br />

More Software and Integration<br />

Increasingly, the enabler on packaging lines is software. Not<br />

only does it govern machine action, but it also controls<br />

setup and interaction -- with other machines, the network<br />

and beyond to other enterprise systems and even to systems<br />

run by supply chain partners. Software also is starting<br />

to be used to measure productivity and manage performance<br />

with the goal of reducing unplanned downtime, boosting<br />

output, improving work methods and increasing maintenance<br />

efficiency.<br />

Whatever its purpose, software makes it possible to collect, store<br />

and organize packaging machine and line data and convert it into<br />

useful, retrievable and actionable information. Increasingly, this<br />

information is available remotely via a web portal.<br />

At the machine or line level, for example, the Proficy Historian<br />

tool that resides in Proficy HMI/SCADA Cimplicity visualization<br />

software from GE Fanuc Automation, Charlottesville, VA,<br />

records all process data such as temperatures, filling levels,<br />

added ingredients and raw material codes and also provides<br />

access to this information via a web-based portal. Other tools<br />

can provide real-time alerts if preset parameters are exceeded.<br />

Performance management software from companies like<br />

Informance International, Northbrook, IL, and Parsec<br />

Automation Corp., Brea, CA, monitor packaging lines, calculate<br />

overall equipment effectiveness, pinpoint problems and help<br />

identify solutions. Production data and metrics also are the<br />

focus of an Efficiency Improvement Tool, EIT 5.0, from Sidel<br />

Group, Octeville, France.<br />

More RFID<br />

RFID, a technology that automates product identification and<br />

enables item-level serialization for supply chain, track and<br />

8


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

trace and other purposes, will continue its steady expansion<br />

due to an unwavering commitment to tagging of incoming<br />

goods by Wal-Mart Stores, Bentonville, AR, and other retailers.<br />

Other drivers include the ability to meet requirements of<br />

California’s e-pedigree law, which takes effect on 1 January<br />

2009, and its success in discouraging counterfeiting and<br />

diversion of drugs and other high-value goods.<br />

and bar codes probably will be used together, especially initially,<br />

so one can serve as a backup to the other.<br />

Some packagers have been quietly experimenting with the<br />

technology for several years. Others have been sitting on the<br />

fence. However, the heel dragging appears to be at an end<br />

since further delays in implementing the technology is going<br />

to cost suppliers to Wal-Mart and Metro AG, Düsseldorf,<br />

Germany. Both retailers plan to charge a penalty for each<br />

untagged pallet received.<br />

Meanwhile, vendors have been joining forces to provide onestop<br />

shopping for systems that include the hardware, software<br />

and systems integration needed to implement the technology<br />

to meet compliance requirements or in-house data collection<br />

needs. As is typical with virtually all electronics-based products,<br />

hardware prices are declining as functionality increases.<br />

For drug makers, 2008 will be spent preparing to meet<br />

California’s e-pedigree law. To prevent counterfeiting and diversion<br />

and simplify authentication, the California law requires<br />

marking each primary package with a unique code and reading<br />

and recording this item-level code at each step in the supply<br />

chain to create an electronic chain-of-custody record.<br />

Although the serialized code could be carried by a bar code or<br />

even manually entered, the industry seems to have narrowed<br />

its choices down to RFID or two-dimensional bar codes with<br />

RFID given an edge because a bar code has to be in the reader’s<br />

line of sight for data to be captured. However, RFID tags<br />

Drug makers relying on RFID to meet e-pedigree requirements<br />

may be able to eliminate a separate tagging operation by using<br />

source-tagged containers. At least one firm, Rexam plc,<br />

London, UK, embeds RFID tags during the injection molding<br />

process. Indicative of how close we are to large deployments of<br />

source-tagged containers is the development of a bottle<br />

inspection system to ensure the tag is viable. Positioned at the<br />

outfeed of an injection molding machine or unscrambler, the<br />

Lomax RFID system from CIVision, Aurora, IL, inspects,<br />

encodes and verifies at a rate of 240 containers per minute.<br />

Capturing item-level RFID information on the packaging line<br />

makes it possible for pharmaceutical companies to authenticate<br />

products at the filling stage. Information from sourcetagged<br />

bottles also can be used to initiate an action like labeling.<br />

At later stages in the distribution chain, RFID tags provide<br />

the opportunity to continuously gather data about a product’s<br />

travels, update its pedigree and confirm authenticity.<br />

Another indication of how far RFID technology has evolved is<br />

the availability of turnkey, plug-and-play systems that have<br />

eliminated the trial-and-error and read rate challenges that<br />

plagued early deployments of the technology. One system targeted<br />

for case and pallet coding, the self-contained, 32-tagper-minute<br />

system from Diagraph, St. Charles, MO, costs<br />

$9,500. It consists of a SATO Lt408 printer integrated with a<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

PA/4600 label applicator, RFID TampTenna, reject module,<br />

warning tower and stand. Unlike most systems that perform<br />

the encoding step in the print engine, Diagraph prints the label<br />

and feeds it to the patented TampTenna device, which encodes<br />

the tag, checks that the code is good, applies the label and<br />

checks the tag again as it retracts.<br />

Sustainability<br />

Environmental concerns, often discussed under the banner of<br />

sustainability or climate change, have not yet peaked. As a<br />

result, between now and 2010 we’ll see continued attention on<br />

source reduction, conservation of energy, water and nonrenewable<br />

resources, minimization of greenhouse gas emissions<br />

and waste, and rising levels of recycling and recycled content.<br />

There will be an especially high level of activity related to<br />

source reduction such as lightweighting containers and closures,<br />

eliminating secondary packaging, and replacing rigid<br />

packaging with flexible packaging. Source reduction makes an<br />

easy target because it not only consumes less material, but<br />

also helps cut energy costs throughout the supply chain by<br />

reducing shipping weight.<br />

The potential for energy savings also makes the use of<br />

materials with recycled content attractive since virgin materials<br />

require more energy to process. Thus, we’ll see slowly<br />

rising percentages of recycled content across all types of<br />

packaging materials -- glass, aluminum, steel, paper,<br />

paperboard, corrugated, plastic -- with the most significant<br />

gains in plastics like PET where efforts to increase collection<br />

rates seem likely to bear fruit.<br />

Interest in packaging materials derived from renewable<br />

resources will grow, particularly in the area of bioplastics where<br />

commercial-scale production facilities are coming online and<br />

functionality is improving.<br />

We also can expect growth in flexible packaging and aseptic<br />

products, which hold a high volume of product relative to the<br />

amount of packaging required. In addition, aseptic products<br />

offer the added benefit of reducing the need for energy-intensive<br />

refrigeration.<br />

Although packagers may be paying more attention to the environmental<br />

impact of their operations and products, the driving<br />

force behind these “green” efforts is not an altruistic “save the<br />

planet” mission, but a cost-reduction strategy. Sustainability<br />

initiatives that are not cost-effective are not sustainable and<br />

will falter and die. Finally, it should be noted that packagers<br />

need to publicize their sustainability efforts. Environmental<br />

activities that aren’t verifiably quantified and publicized don’t<br />

earn any sales from consumers or support from socially minded<br />

investors.<br />

Source Reduction<br />

One of the most frequently employed tactics to shrink a product’s<br />

environmental footprint is source reduction. Generally<br />

accomplished by lightweighting or downgauging, source<br />

reduction involves using less material in the first place. As a<br />

result, it almost always helps packagers cut costs or offset<br />

price increases.<br />

A host of source-reduced products are coming on the market<br />

including lightweighted PET containers, short-skirt closures,<br />

and dispensers from Nordson Corp., Duluth, GA, that<br />

foam adhesive or apply it in an intermittent rather than continuous<br />

bead.<br />

10


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

Nestlé Waters North America,<br />

Greenwich, CT, for example, relies<br />

on Sidel’s Flex technology to<br />

produce its lightweight Eco-<br />

Shape bottle. Weighing in at<br />

12.5 grams, about 30% less<br />

than the average half-litre<br />

(16.9-ounce) PET water bottle,<br />

the Eco-Shape container is<br />

commercial for the Arrowhead,<br />

Ozarka and Poland Springs<br />

brands and eventually will be<br />

used throughout the Nestle<br />

Waters North America system.<br />

Short-skirt closures typically reduce total container weight by<br />

a gram or two. Not only does the closure itself weigh less, but<br />

the designs reduce the amount of resin needed in the finish<br />

area of the container. A number of closure makers have<br />

added shirt-skirt options to their product lines including<br />

Rank Group’s Closure Systems International (formerly Alcoa<br />

CSI), Indianapolis, IN, with the Xtra-Lok mini for carbonated<br />

soft drinks and the MB-Lok mini for malt beverages;<br />

SuperShorty closures from Bericap GmbH and Co. KG,<br />

Budenheim, Germany; the PCO closure<br />

from Corvaglia, Eschlikon,<br />

Switzerland; and designs from the<br />

Obrist division of Global Closure<br />

Systems, Paris, France.<br />

When multiplied by millions of containers and closures, even<br />

small weight reductions add up to a significant amount of resin<br />

and can help control or even reduce packaging and distribution<br />

costs. In addition, if the lighter weight results in a denser<br />

cube, it also can generate savings in distribution packaging<br />

and shipping and handling costs due to more efficient transportation<br />

utilization and reduced handling.<br />

Replacing Non-Renewable Resources<br />

Most packaging is made from nonrenewable resources.<br />

Although some metal, glass and plastic packaging is recycled<br />

and more could be recycled, packaging derived from<br />

renewable resources like wood fiber or corn is viewed by<br />

many as more environmentally friendly. Bioplastics are seen<br />

as especially appealing because they offer a way to reduce<br />

reliance on oil.<br />

However, it should be noted that definitions of terms like bioplastic<br />

and biopolymer are not standardized and may describe<br />

materials that are not biodegradable, compostable or 100%<br />

derived from renewable resources. As a result, it’s necessary<br />

for a packager to carefully define its requirements and verify<br />

the renewable packaging being purchased meets or exceeds<br />

specifications. U.S standards like ASTM D6400 for compostable<br />

plastics and ASTM D6868 for compostable packaging,<br />

European standards like EN13432 for biodegradability/compostability<br />

and certification systems established by the<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

Biodegradable Products Institute, New York, NY, can help<br />

ensure the packaging purchased performs as expected.<br />

Although the concept of compostable and/or biodegradable<br />

films is appealing, it should be noted that at present very little<br />

of the material will actually be composted. A widespread<br />

composting infrastructure simply doesn’t exist in the United<br />

States. In Europe, the European Union’s Landfill Directive<br />

restricts landfilling of biodegradable waste. As a result, some<br />

countries have a well-established composting infrastructure,<br />

others do not. In Japan, a Food Recycling Law passed in<br />

2001 has had a positive effect on the availability of composting<br />

facilities and rates.<br />

There also are several certification systems for fiber used in<br />

paper, paperboard and corrugated. Programs like the<br />

Sustainable Forestry Initiative, Inc., Arlington, VA, or Forest<br />

Stewardship Council – U.S., Reston, VA, for example, confirm<br />

fiber comes from sustainably managed sources.<br />

Packagers have a growing number of bioplastic options to<br />

choose from for both rigid and flexible packaging. Functionality<br />

is rapidly evolving too. In addition, there’s a continuous effort to<br />

improve the environmental profile of bioplastics. Recent developments<br />

include the production of conventional polyethylene<br />

from ethanol derived from sugar cane. Work also is proceeding<br />

on producing bioplastics from food waste or waste agricultural<br />

material such as bagasse (residue from sugar cane processing)<br />

rather than using food crops like corn.<br />

As interest in packaging from renewable sources has grown,<br />

visual carded packaging, long the province of plastic<br />

clamshells, is seeing a shift toward designs with a higher level<br />

of fiber content, recycled content and/or bioplastics. Suppliers<br />

of what’s described as environmentally friendly visual carded<br />

packaging like Colbert <strong>Packaging</strong> Corp., Lake Forest, IL; Dot<br />

<strong>Packaging</strong> Group, Inc., Batavia, IL; or CardPak, Inc., Solon, OH;<br />

also control or eliminate emissions of volatile organic compounds<br />

from coatings and ink and work with customers to finetune<br />

designs for optimum cube.<br />

Conserving Water and Energy<br />

With energy costs rising, water increasingly viewed as a finite<br />

resource and socially aware investors asking hard questions<br />

about impact on the environment, packagers are paying more<br />

attention to energy and water conservation measures.<br />

Many companies are working to reduce water consumption.<br />

Since 2002, breweries operated by Anheuser-Busch<br />

Companies, Inc. (A-B), St. Louis, MO, have reduced water consumption<br />

5%, a savings of about 875 million gallons.<br />

12


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

Food and beverage companies also are converting to non-traditional<br />

power generation options. Kraft Foods, Northfield, IL,<br />

for example, provides some power for one of its plants via<br />

methane generated by adding bacteria to whey, a byproduct of<br />

cream cheese production.<br />

A-B ranks as the world’s largest user of Bio-Energy Recovery<br />

Systems. Installed at nine out of 12 of the company’s U.S.<br />

breweries and at its facility in Wuhan, China, the system captures<br />

biogas from brewery wastewater and burns it to supply<br />

up to 15% of a location’s energy needs. In 2007, biogasderived<br />

energy supplied A-B with heat equal to that needed for<br />

25,000 homes and reduced greenhouse gas emissions by 258<br />

million pounds.<br />

In England, Scottish & Newcastle plc, Edinburgh, Scotland,<br />

plans to install two biomass-fueled heat/power plants built<br />

by Wärtsilä, Helsinki, Finland, at breweries in Manchester.<br />

<strong>Report</strong>edly the first units in the world to produce both electricity<br />

and heat using spent grain, a brewing byproduct, as<br />

fuel, the plants will burn a mixture of spent grain and wood<br />

chips from local sources, and will begin producing steam<br />

and electricity for the breweries in 2009. Excess electricity<br />

will be exported to the local grid. “The Wärtsilä BioPower<br />

plants will enable Scottish & Newcastle to make more efficient<br />

use of residue from its beer production, cut down on<br />

waste handling and energy costs, as well as reducing carbon<br />

dioxide emissions,” reports Tauno Kuitunen, regional sales<br />

director for Wärtsilä Biopower.<br />

Welch’s, Concord, MA, is experimenting with a hydrogen-fromwaste<br />

extraction technology developed by NanoLogix, Inc.,<br />

Hubbard, OH, to generate electricity from juice waste. The plant<br />

near Erie, PA, takes water used to clean juice storage tanks and<br />

adds microbes to consume the sugar from the juice. Hydrogen<br />

generated by the microbes is captured in tanks for use as an<br />

energy source. With the concept proven on a pilot-plant scale,<br />

Welch’s plans to build a large-scale bioreactor in Erie this<br />

spring, according to a report by Lisa Ann Pinkerton on Allegheny<br />

Front, an environmental radio station based in Pittsburgh, PA. If<br />

successful, the full-scale system could mean a substantial<br />

reduction in the $1 million the plant spends each year on electricity<br />

and wastewater treatment (about $500,000 each).<br />

Some packagers have turned to solar energy or wind power<br />

or purchase offsets to improve their carbon footprint. In<br />

Portland, OR, Lucky Labrador Brewing Co. has installed a<br />

solar hot water system to heat the water needed for the first<br />

stage of the process for brewing its Sun Beer. Other craft<br />

breweries like Anderson Valley Brewing Co., Boonville, CA,<br />

power their plants with arrays of photovoltaic panels that<br />

convert sunlight to electricity.<br />

In many cases, tax credits are available for installing this type<br />

of “green” improvement.<br />

Improving distribution efficiency to reduce the number of<br />

trucks and miles driven is another popular tactic. A growing<br />

number of software programs are available to plan the most<br />

efficient routes.<br />

Waste Reduction<br />

Despite a couple decades of effort to reduce packaging<br />

waste, particularly in Europe, it remains an issue and appears<br />

to be a growing concern. In global Environmental Concerns<br />

surveys done by Nielsen in May 2007 and November 2007,<br />

the number of consumers who said they were “very” concerned<br />

about packaging waste increased from 31% to 40%.<br />

In addition, in the November 2007 survey, the concern about<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

packaging waste increased more than any other, outpacing<br />

worries about climate change, water shortage, water and air<br />

pollution and use of pesticides.<br />

With more than one-third of the population very concerned<br />

about packaging waste, it’s time to be proactive about reducing,<br />

reusing and recycling.<br />

Recycling and Recycled Content<br />

Recycled content is commonly found in all types of packaging.<br />

Replacing virgin content with recycled saves energy, reduces<br />

waste and cuts greenhouse gas emissions. In most cases, higher<br />

percentages of recycled content could be used, but demand<br />

for recycled materials exceeds supply.<br />

That’s why Coca-Cola and other companies are working to<br />

boost collection and recycling rates. In fact Coca-Cola recently<br />

committed to recycling 100% of the aluminum bevcans and<br />

PET containers it uses. The company also supports recycling<br />

programs and has invested in a PET recycling plant operated<br />

by United Resource Recovery Corp., Spartanburg, SC, to provide<br />

food-grade recycled PET (RPET) for its containers.<br />

Although Coca-Cola probably won’t use 100% RPET bottles<br />

before the end of the decade, it is technically feasible to do<br />

so, a feat once thought to be impossible. At least two companies<br />

have commercial products on the market in 100%<br />

RPET containers. Innocent Ltd., London, UK, uses a 250-millilitre<br />

(ml) 100% RPET bottle for its ready-to-drink, refrigerated<br />

smoothies, and GlaxoSmithKline, Brentford, UK, specifies<br />

a 500ml RPET bottle for its Ribena fruit drinks.<br />

On the packaging line, switching from a virgin PET to an RPET<br />

container should require few, if any, adjustments. However,<br />

injection molding or sheet/film extrusion may necessitate<br />

additives to improve processability and properties as well as<br />

special drying and filtration equipment. Even then, the RPET<br />

packaging may exhibit slightly diminished physical properties<br />

like intrinsic viscosity, tensile strength, light transmission,<br />

haze and clarity. It also should be noted that widespread use<br />

of 100% RPET packaging will require substantially a higher<br />

collection and recycling rate for PET containers than the<br />

23.5% achieved in the United States in 2006 (the most recent<br />

year statistics are available).<br />

Consumer Convenience<br />

Although the Nielsen Global Food <strong>Packaging</strong> Survey indicates<br />

nearly half of the respondents are willing to give up<br />

convenience packaging to benefit the environment, one<br />

wonders if these good intentions are actually carried at the<br />

cash register in the mad dash to put a meal on the table<br />

before Susie’s 7 p.m. soccer game.<br />

14


PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

Food processors queried by Food Engineering magazine,<br />

Bensenville, IL, in its 2007 Food <strong>Packaging</strong> <strong>Trends</strong> Survey,<br />

believe convenience rules, ranking third behind product<br />

shelf life and food safety as the force with the greatest<br />

impact on their business.<br />

Certainly, recent product introductions address consumer<br />

demand for convenience with newcomers like Healthy Choice<br />

Café Steamers entrees from ConAgra Foods, Omaha, NE, in<br />

steam-generating, cook-in packaging; Lean Cuisine panini<br />

sandwiches from Nestle USA, Glendale, CA, in microwaveable<br />

susceptor trays; organic coffee beans from Celestial<br />

Seasonings, Boulder, CO, in resealable, zippered stand-up<br />

pouches; and Pringles Minis potato crisps from Procter &<br />

Gamble Co., Cincinnati, OH, in single-serving pouches. In fact,<br />

many of these popular products have the same features, the<br />

respondents in the Nielsen survey said they were willing to give<br />

up -- packaging designed for easy stacking/storing at home<br />

(49%), packaging that can be used for cooking or doubles as a<br />

resealable container (48%) and packaging designed for easy<br />

transport (47%).<br />

Largely ignored when package designers think of convenience<br />

is senior-friendliness. Although few design changes are likely to<br />

occur before the end of the decade, aging baby boomers and<br />

a rapidly growing over-80 population guarantee more attention<br />

post-2010 to senior-friendly features like larger type for critical<br />

information like best-by dates, and easier-to-manipulate opening/reclosure<br />

mechanisms.<br />

With Braille required on<br />

European drug packaging,<br />

it seems likely its<br />

use will become universal<br />

on drug packaging<br />

and spread to other<br />

product segments.<br />

Product Safety<br />

A seemingly endless succession of food recalls, a significant<br />

level of counterfeiting worldwide, pedigree rules looming for<br />

pharmaceuticals and the possibility of terrorist attack by<br />

tainted consumer product have left consumers uneasy and<br />

consumer packaged goods companies trying to identify and<br />

mitigate risks.<br />

In fact, food safety tops the list of concerns cited by food<br />

processors when asked what factors influence new package<br />

development in a survey done in 2007 by Food<br />

Engineering magazine.<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

As a result, packagers will institute more stringent requirements<br />

for suppliers of packaging equipment, materials, containers and<br />

other components. Suppliers will be expected to certify they are<br />

shipping the highest quality product and demonstrate that they<br />

have effective measures in place to ensure their incoming<br />

goods are clean and contaminant-free and that their process<br />

prevents introduction of any contaminants.<br />

Heightened concern about product safety will prompt<br />

increased use of track-and-trace technologies like serialized<br />

bar coding and RFID. It also will encourage adoption of anticounterfeiting<br />

tools like holographic labels, micro-printing and<br />

taggant-equipped packaging.<br />

On the packaging line, greater attention will be paid to<br />

washdown compatibility and hygienic design, which eliminates<br />

areas that could collect dirt or product residue, as<br />

well as features like automated clean-in-place and easy<br />

assemble/disassemble product contact change parts.<br />

Cleanliness-enhancing design/components not only help<br />

protect product quality, but also minimize man hours needed<br />

for line changeover and cleanup.<br />

Control systems will be upgraded to enable proactive identification<br />

and prevention of operational glitches that could<br />

result in problems like under-processing.<br />

16


Packagers will install more quality-control equipment like X-<br />

ray inspectors, metal detectors, near-infrared inspection<br />

systems and vision systems to help minimize the chance of<br />

faulty product slipping through and entering the supply<br />

chain. There also will be increased use of rapid detection<br />

systems for contaminants like Listeria and E. coli.<br />

PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

Fortunately, the latest quality control equipment brings<br />

increased functionality at a lower price. One example of the<br />

expanded capabilities available today is the IQ3+ variable<br />

frequency metal detector from Loma Systems, Inc., Carol<br />

Stream, IL. It can be set at any frequency between 30 and<br />

900 kilohertz to match the frequency of the product, overcoming<br />

the limitations experienced with standard metal<br />

detectors that operate on no more than three frequencies<br />

and therefore may miss smaller pieces of metal or be<br />

unable to inspect products in metallized packaging.<br />

Similarly, the patent-pending ScanTrac DUO x-ray inspection<br />

system from InspX LLC, Fremont, CA, uses two x-ray<br />

beams instead of one to improve its ability to detect foreign<br />

material contaminants, underfills and packaging imperfections<br />

in glass bottles and jars. Dual views and advanced<br />

image processing software increase accuracy, identify<br />

smaller contaminants and reduce false-reject rates to less<br />

than 1 in 10,000 at conveyor speeds of 700 feet or 1,400<br />

containers/minute.<br />

Concerns about food safety and the increased emphasis on<br />

fresh food will prompt greater use of labels and tags that<br />

provide a visual indicator of freshness and purity. Time-temperature<br />

indicator labels, which have been available for<br />

approximately two decades, change color as time passes<br />

and when storage temperature parameters are exceeded.<br />

Newer options include RFID tags capable of monitoring temperatures,<br />

and labels that detect the presence of spoilage<br />

organisms or pathogens. “Consumers are willing to pay<br />

more for packaging which guarantees freshness,” notes a<br />

survey about packaging trends by Datamonitor, London, UK.<br />

Health and Wellness<br />

With obesity seen as a major health problem in much of the<br />

developed world, skyrocketing healthcare demand and costs<br />

and the aging baby boomer population, interest in products<br />

that can improve well-being continues to rise.<br />

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P A C K A G I N G I N T E L L I G E N C E B R I E F<br />

As a result, the marketplace is seeing more products with<br />

lower salt, fat and sugar levels, more single-serving, portion-controlled<br />

packs, demand for more product information,<br />

greater emphasis on fresh products and reduction in<br />

the use of artificial additives and preservatives.<br />

In addition to limiting salt, fat, sugar, calories, preservatives<br />

and/or artificial ingredients, food and beverage makers are<br />

introducing more functional products like pre- and probiotics<br />

and developing offerings that simplify preparation of balanced<br />

meals and improve the nutritional profile of graband-go<br />

foods/beverages.<br />

Reduction in ingredients with preservative qualities may<br />

necessitate conversion to packaging with higher barrier<br />

properties such as barrier laminations and coextrusions,<br />

metallized or foil-based structures and “smart” packages<br />

with an active component like an oxygen scavenger. On fillseal<br />

and form-fill-seal machines, changes in flexible packaging<br />

materials may require adjustments in dwell time and<br />

sealing, as well as a shift to more sophisticated quality<br />

control equipment like metal detectors and leak testers.<br />

According to data from IRI, sales of 100-calorie snacks<br />

grew 56% between November 2006 and November 2007.<br />

Since many single-serving products rely on pouch packaging,<br />

food processors will need to increase capacity by<br />

adding vertical form-fill-seal machines and flow wrappers.<br />

Food processors also are likely to install more thermoformfill-seal<br />

units to package products like single-serving<br />

applesauce, stick pack machines for dry mixes and liquid<br />

fillers capable of handling small bottles.<br />

Many products also are prominently listing calorie counts<br />

on labels. Campbell Soup Co., Camden, NJ, for example,<br />

which has offered Soup at Hand in single-serving<br />

microwaveable cups for several years, now flags calorie<br />

content on Soup at Hand varieties with 100 calories or less.<br />

It also has added calorie count violators to labels on cans of<br />

its lower calorie Campbell’s Select and red label soups.<br />

Today’s consumer wants more nutritional information.<br />

“Health and wellness are major forces in today’s marketplace<br />

and are having a significant impact on consumer purchase<br />

behavior in most food and beverage categories…,”<br />

reports Tatjana Meerman of Packaged Facts, Rockville, MD,<br />

publisher of studies like Market Trend: Low, Reduced or No<br />

Sodium or Salt Foods and Beverages in the U.S.<br />

As a result, there has been a proliferation of single-portion<br />

snacks and side dishes in small pouches or rigid containers.<br />

Portion control is definitely something consumers want.<br />

The demand for more nutritional information has prompted<br />

several companies to emphasize certain details on their<br />

packaging. For example, Kellogg Co., Battle Creek, has<br />

added Nutrition at a Glance banners to the front panels of<br />

18


cartons of its ready-to-eat cereal. The banners feature<br />

information about calorie, fat, sugar and sodium content<br />

and also state whether the cereal inside contains more than<br />

10% of an adult’s recommended daily allowance of fiber,<br />

magnesium, calcium, potassium and vitamins A, C or E.<br />

PACKAGING TRENDS<br />

Forces will influence packaging through the end of the decade<br />

ConAgra Foods, Inc., Omaha, NE,<br />

has added a nutrition guide on<br />

packaging for products in its<br />

Healthy Choice, Chef Boyardee and<br />

Orville Redenbacher’s lines. Based<br />

on MyPyramid recommendations from the U.S. Department<br />

of Agriculture (USDA), Washington, DC, the label shows the<br />

amount of each key food group contained in each package,<br />

making it easier for consumers to build more healthful<br />

diets. For example, a Healthy Choice Fiesta Chicken meal<br />

that contains chicken, rice, fruit and vegetables includes a<br />

graphic indicating the product provides 15% of the grains,<br />

30% of the vegetables, 15% of the fruit and 40% of the<br />

meat and beans that a consumer should eat per day based<br />

on a 2,000-calorie diet. The new labeling complements<br />

ConAgra’s Start Making Choices program, which provides<br />

consumers with advice on living a balanced life. Information<br />

from the product packaging can be used in program tools<br />

like the Balanced Life Index to help consumers make choices<br />

that help achieve their health goals.<br />

With so many different formats, this deluge of nutritional<br />

information could become more confusing than useful to<br />

consumers, sparking calls for standardization and raising<br />

the specter of regulatory action.<br />

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About <strong>PMMI</strong><br />

<strong>PMMI</strong> is a trade association with more than 540 member companies that manufacture packaging and packaging-related<br />

converting machinery, commercially-available packaging machinery components, containers and<br />

materials in the United States and Canada. <strong>PMMI</strong>'s vision is to be the leading global resource for packaging,<br />

and its mission is to improve and promote members' abilities to meet the needs of their customers. Learn<br />

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