Food and Beverage Packaging Trends to Watch for in 2024.

In recent years, packaging trends in the food and beverage industry have undergone a profound transformation driven by an increasing awareness of sustainability and environmental impact among consumers.

As consumers now require greater accountability from brands and producers, a reassessment of packaging strategies has become critical, not only as an ethical imperative but as a key determinant for profitability in specific geographical markets. 

With new regulations specifically targeting plastic bottle usage by beverage manufacturers, sustainable and biodegradable packaging has emerged as a beacon of innovation for bottlers. This shift is a collective commitment to fostering greener and more eco-conscious solutions, as well as reducing the industry’s carbon footprint.

Why Eco-friendly Solutions Matter in Today’s Business Landscape?

It is widely understood that the concept of sustainability has increased among consumers in both their attitudes and actions; making sustainability and eco-friendly purchase decisions a key factor in today's food and beverage landscape. 

Companies that manufacture food or beverages can’t afford to overlook addressing environmental sustainability. By analyzing and reflecting on this growing consumer attitude, bottlers and producers are now investing in sustainability as an integral business focus.  Eco-friendly solutions are not just a choice for the conscientious; they are a fundamental driver of success in the modern business landscape, influencing everything from consumer choices to financial performance and long-term viability. 

Here's a closer look at why eco-friendly solutions have become pivotal:

1- Aligning with Consumer Values:

It's evident that consumers, especially the environmentally conscious millennials and Gen Z, are more than ever making purchasing decisions that align with their values. “People are waking up to the connection between our food system and the health of the environment,” says Amanda Starbuck, research director for Food & Water Watch. “And many are looking to support companies and products that align with their values.”

For food and beverage companies, this means embracing eco-friendly practices isn't just about compliance; it's about meeting the growing demand for sustainable choices in the market.

2- Building a Positive Reputation:

Sustainability is not just a buzzword; it's a reputation builder. Companies that operate with a sustainability mindset earn trust and loyalty from consumers. This positive reputation doesn’t just translate to today’s sales but secures future earnings through sustained brand loyalty and advocacy.

3- Financial Incentives:

Contrary to the misconception that sustainability might incur financial burdens, it is, in fact, a lucrative investment. Research indicates that consumers are willing to pay a premium for sustainable products. A strategic focus on sustainability can be a significant differentiator, attracting a customer base willing to pay up to 36% more. Beyond sales, embracing sustainability can result in efficiency gains, improved profits, and enhanced market value.

4- Meeting Regulatory Expectations:

As global awareness of environmental issues increases, regulatory expectations are evolving. Companies that proactively adopt eco-friendly manufacturing practices position themselves ahead of potential regulatory shifts. Being ahead of the curve not only mitigates risks but showcases commitment to responsible business practices.

5- Staying Competitive:

In a marketplace that's becoming increasingly complex and competitive, sustainability serves as a powerful market differentiator. It's not just a matter of ethical considerations; it's a strategic move to stay relevant, attract a discerning customer base, and thrive in a future where sustainability is a non-negotiable parameter for success.

The impact of environmental policies and legislations in the industry.

In response to growing environmental and health challenges, legislative bodies in various U.S. states are implementing new policies aimed at reshaping packaging practices. This includes extended producer responsibility (EPR) programs, minimum recycled content requirements, and truth-in-labeling legislation to improve recycling efficiency.

This means for the beverage industry companies, that innovation and change is imperative, and that we will continue to see an increase of new policies regarding which types of packaging are allowed, what they’re made of and how they’re managed.

Latest news / keeping up with legislature initiatives.

• Connecticut's Minimum Recycled Content Requirements: The state requires plastic bottles covered by the bottle bill to contain 25% post-consumer recycled content by 2027.
  
• California's EPR and Plastic Packaging Reduction Law: California's 2022 law mandates that, by 2032, all packaging in the state must be recyclable or compostable, with a specific goal to reduce plastic packaging by 25% and recycle 65% of single-use plastic packaging.
• New Jersey's Recycled Content Requirements: New Jersey has established increasing minimum recycled content levels starting in 2024 for various container categories.
• Massachusetts' Unprecedented Plastic Bottle Ban: Governor Maura Healey's executive order in Massachusetts is the first in the nation to ban single-use plastic bottles in state agencies. Effective immediately, this order aims to reduce the purchase and use of single-use plastic bottles, with agencies required to demonstrate compliance by the end of 2023. This initiative reflects Massachusetts' commitment to addressing plastic pollution and adopting more sustainable packaging practices.

How these measures directly affect the industry.

In the dynamic landscape of the food and beverage industry, legislative currents are reshaping the very foundations of packaging and distribution practices. Over the last five years, a wave of legislative initiatives has swept across 20 states, with a primary focus on encouraging advanced recycling. These changes in regulations directly influences the daily operations and functioning of businesses within the industry.

• Impact on Daily Operations:

These legislative interventions trickle down to the core of daily operations. From sourcing materials to packaging products, every facet of the supply chain is touched by the need to conform to new environmental standards. This impact is not confined to a distant future; it's a present reality that businesses must grapple with in their day-to-day functions.

• Financial Realities:

The financial health of businesses is intricately woven into their ability to adapt swiftly and effectively to these legislative shifts. Non-compliance or delayed adaptation could lead to financial ramifications. On the flip side, businesses that proactively embrace sustainable alternatives stand to gain not just in terms of compliance but also through potential cost savings and enhanced brand reputation.

The urgency to implement and adopt new packaging materials and alternatives is palpable. Early adoption becomes a strategic advantage, ensuring a smoother transition and mitigating risks associated with delayed adjustments. Beyond compliance, businesses are presented with an opportunity for strategic alignment. Those who perceive these legislative shifts as more than regulatory hurdles and as catalysts for innovation can reposition themselves as industry leaders. 

 Top trends in packaging you should consider for 2024.

• Innovation in packaging and what we are already seeing.

In the beverage industry, sustainability remains a driving force as consumers and businesses increasingly prioritize reducing packaging waste and lessening environmental footprints. In 2024, we perceive a surge in biodegradable and recyclable materials, with a heightened reliance on recycled plastics such as PET, HDPE, and PP. Lighter plastic packaging not only trims shipping costs but also aligns with the broader sustainability goals of the industry.

Beyond helping the planet and protecting the environment for future generations, going green with your packaging can serve as a major selling point for your customers. According to a recent survey, two-thirds (66%) of US consumers said they’d be willing to pay more for sustainable products.

With the sustainable packaging market for F&B expected to exceed 100 billion USD in value over the next five years, startups are hungry to develop solutions in the space. These are some of the key beverage packaging trends already happening in 2024:

• • Glass Bottles and Plastic Alternatives

    Classic packaging for beverages like beer, wine, and soft drinks often includes glass, but consumers now prioritize sustainability. Although glass is recyclable and suitable for multiple uses, lightweight PET bottles and aluminum cans are gaining favor due to their durability, weight, and recycling potential.

• • Paper-Based Bottles

    The emergence of paper-based bottles, pioneered by brands like Carlsberg and Diageo, aims to reduce plastic waste. Current prototypes integrate polyethylene furanoate (PEF), an organic polymer with similar properties to PET that act as a barrier, preserving taste and carbonation while being compatible with PET recycling systems.

Pedro Goncalves, the vice president of marketing for Tetra Pak U.S. and Canada, notes that sustainability is a driving force in the food and beverage packaging industry. He emphasizes that the industry is rapidly changing to meet both legislative requirements and consumer demand. While recycling initiatives are already in place, companies are going beyond recycling by considering the carbon impact of raw materials and manufacturing processes.

• • Plant-Based Packaging

    Companies like Tetra Pak and Coca-Cola are driving the use of plant-based packaging. Tetra Pak, with its "Go nature. Go carton." campaign, is advancing sustainable packages made from plant-based, fully renewable, and recyclable materials. While the Coca-Cola Company in Canada Have been introducing 100% recycled plastic since early 2024.

    
    

• Sustainable Packaging in current development 

• • Bioplastics and Cellulose: PLA and PHA are bioplastics made from renewable resources. Cellulose, derived from plants, forms various water- and air-resistant packaging materials used for food, film, and netted bags.

  • Mushroom Mycelium and Sugarcane Bagasse: Mushroom mycelium, capable of mimicking synthetic foam plastics, is lightweight, easy to mold, and biodegradable. Sugarcane bagasse produces pulp suitable for foodservice packaging that is less energy-intensive and pollution-free compared to traditional materials.

  • Seaweed and Coconut Husk: Seaweed-based packaging and coconut husk alternatives offer biodegradability and zero-waste benefits. Seaweed materials like Ooho Water aim to replace conventional containers, contributing to a plastic-free environment.

  • Shrimp Shells and Recycled Plastic: Chitin from shrimp shells, combined with other natural materials, is explored for creating biodegradable plastics. Recycled PET and HDPE bottles form a closed-loop system, supporting the circular plastic economy.

How to choose the right trends for your business needs.

When deciding which trends to implement in your business, a comprehensive analysis is crucial. Consider these key points to identify and develop trends that align with your business needs, from operational feasibility to selecting the right packaging materials, taking into account the type of products you're packaging and the intricacies of transportation and distribution within your operations.

To make informed decisions, follow these steps to ensure you're on the right path:

• Understand Your Target Audience:
  • Analyze your target audience and understand their preferences. Consider demographics, cultural factors, and evolving consumer behaviors. The right trend should resonate with and cater to the needs and desires of your customer base.
• Operational Feasibility:
  • Assess the operational feasibility of adopting a particular trend. Consider the resources, technology, and infrastructure required. Ensure that your business is equipped to implement and sustain the chosen trend without causing disruptions to your operations.
• Scalability and Longevity:
  • Evaluate the scalability and longevity of the chosen trend. Trends that can be scaled with the growth of your business and have enduring appeal are more likely to contribute to long-term success. Avoid trends that may be short-lived or overly niche.
• Legal and Regulatory Compliance:
  • Be aware of any legal or regulatory considerations associated with the chosen trend. Ensure compliance with food safety regulations, labeling requirements, and any other standards that may impact your industry.
• Monitoring and Evaluation:
  • Establish mechanisms for monitoring the performance of the chosen trend. Set up key performance indicators (KPIs) and regularly evaluate the impact on sales, customer satisfaction, and overall business growth.
    

Remember, the key is not just to follow trends blindly but to strategically choose those that align with your business objectives, customer expectations, and long-term vision. Strategic decision-making based on these considerations will pave the way for sustainable growth and success in a dynamic business landscape.