Smart Packaging offers big Opportunities in Online Grocery: Tetra Pak Index report
The 11th edition of Tetra Pak Index 2018 report, launched recently, emphasises that smart packaging technologies based on unique digital codes will take both online and off-line grocery in exciting new directions during the next few years. Smart packaging technologies based on unique digital codes allow each and every product package to be given a unique identifier. These codes can be read by either data scanning devices or an ordinary smartphone, linking to vast amount of information and opening up all kinds of possibilities.
The report stated that online grocery shopping is growing at a double-digit rate, while traditional stores are being reinvented, merging together into an omnichannel where consumers expect to be able to buy whenever, wherever and however they choose, with the smartphone as their compass. Packaging will play an important role in response to the trends that are shaping the growth of on-line grocery, says the company.
The report noted four trends shaping the growth of online grocery :
1)Convenience: The main driver for on-line consumer take-up, as time-crunched consumers look for new ways to make their life easier. Key opportunities include easy product replenishment, voice, and convenient packaging
2)Sustainability: Pressure on plastic and awareness of the circular economy will continue to grow, and recycling will become ever more important. Consumers want to know whether brands are ‘doing the right thing’
3)Personalisation & uniqueness: Customisation of products and personalisation in the consumer journey will be important differentiators going forward. This is accelerating the direct-to-consumer trend and as many as 80% of consumer-packaged goods companies are predicted to migrate to this model by 2025
4)Technology & performance: Super-fast delivery in as little as 10 minutes is expected by 2025, changing consumer behaviour to buy more frequently and in smaller amounts, adding more complexity to the logistics. Supply chains will continue to be transformed by a raft of technologies, notably radio-frequency identification (RFID) and robotics, boosting efficiency and transparency
e-Retailers are also seeking unique identifiers compatible with the robotic technology used in their warehouse and distribution, as this is widely seen as the key to success in e-commerce. Data and full traceability helps them navigate complex logistics and improve efficiency, moving closer to real-time order fulfilment.
Tetra Pak Index 2018 is based on consumer research conducted in US, UK, China, Saudi Arabia and Korea, a global market segmentation study, as well as interviews with e-retailers in the US, Europe and China.