A glance forward at international packaging tendencies anticipated for 2020

Dairy and food industry changes will affect
packaging and how suppliers do business.

Fundamental shifts in the dairy
industry over the last decade have been driven by changing demographics, an
unstable economy and an increased importance on sustainability factors. These
factors, among others, will continue to spark food industry change and may directly
impact how packaging suppliers do business by 2020.

As populations across the
world continue to grow, the dairy industry can expect a sharp increase in
demand for products and demand will come not only in emerging markets, but in already
established regions throughout the world. For example, the worldwide
consumption of liquid dairy products (LDP) is expected to rise from 71.3
billion gallons (270 billion litres) in 2010 to about 92.4 billion gallons (350
billion litres) by 2020. This increase is being fuelled in large part by growth
of educated, upwardly mobile consumers looking for healthy foods and beverages
that fit their increasingly fast-paced urban lifestyles.

Other key drivers range from
an increasing demand
for environmentally friendly products to a diversification of consumer needs, changing
dynamics in the food manufacturing industry and a growing awareness of food
safety issues.

These factors present a number of opportunities which dairy
producers/processers must seize in order to maintain a competitive edge. Over
the next ten years, it will be important for the dairy industry to pay
attention to the following:

1. Strengthen the Consumer Connection: According to various research data from Roper Reports Worldwide, the
   majority of consumers around the world (both in developed and developing
   countries) agree that they like to buy products that can be tailored to their
   needs. This is perhaps the simplest and most practical expression of products
   relating to consumers’ individual circumstances, and as such, has the potential
   to affect a wide range of products and services.
2. Strengthen the Value
   Connection: According to various research
   data from Roper Reports Worldwide, consumers around the world consistently rate
   ‘value for money’ (cost
   in addition the maximum efficiency and effectiveness of the purchase) as a more important factor in deciding which brand to choose than simple
   ‘low cost.’ In the Food and
   Beverages category, the majority of those that Roper surveyed in the developed
   world, some 57 percent cite value for money, whereas only 18 percent cite inexpensive/low cost as a deciding purchasing factor.
3. Strengthen the Environmental Connection: Consumers increasingly believe that businesses should take
   responsibility in environmental issues and reduce their impact on the
   environment.
4. Strengthen the Food
   Safety Connection: Consumers want
   piece-of-mind and reassurance to allay their fears when it comes to food safety
   and they prefer to know where the products are coming from. Food safety remains
   a big concern and consumers tend to trust well- known brands, especially in developing
   countries.

Companies that understand how to capitalize
on the opportunities resulting from industry trends today will remain
competitive in delivering customer satisfaction tomorrow.

Suley
Muratoglu is Vice President, Marketing & Product Management for Tetra Pak,
Inc., leading food processing and packaging solutions company, where he is
responsible for the expansion of the company’s presence within core categories,
including dairy, beverage and food. Suley joined Tetra Pak in 1994 as a sales
manager and his career with the company has taken him to Asia, the UK and later
to the United States. For more information, please visit
www.tetrapak.com/us