Good morning and happy Friday,
No, your eyes do not deceive you, it is indeed a new message from me, your favorite printing and packaging crusader. I hope this message finds you safe and well as we close out this first month of 2021.
2020 was a challenging year on many professional and personal fronts. While the printing and packaging industry saw headwinds in major applications like commercial printing, there were also some bright spots- especially e-commerce- where COVID-19 helped to further accelerate the evolution of retail. The below article from Supermarket News outlines this trend particularly in grocery delivery which saw a step-change in adoption, growing from 3.4% of grocery sales in 2019 to 10.2% of grocery sales in 2020. With the rise in COVID lockdowns and quarantines, the convenience and safety of grocery delivery through services like Instacart and Amazon Fresh has been more widely adopted. As our society becomes more familiar and accepting of online grocery, its prevalence is expected to grow even further, becoming more than 20% of the >$1 trillion (with a T!) market over the next few years. This will require innovation in packaging inks, coatings, and adhesives in order to ensure that food remains fresh and safe on its journey from store to kitchen, below are some themes that will become ever-more important as we move forward:
Inks/coatings for resistance vs. aesthetics
As I’ve said before, the rise in e-commerce impacts the role of packaging and the performance requirements we place on inks and coatings. While a vibrant, glossy package can help a consumer choose one brand or product over another on the store shelf, the consumer is now looking at a digital screen to make their choice and the first impression of the product now takes place when it arrives. This is not to say that packaging appearance is not important- brand and perceived product value are reinforced by the look and feel of its packaging- however, it is now also important to make sure that the package and product arrive intact after having weathered the process of pick-up, transport, and delivery.
Shelf life and package/print integrity
As products move between retailer and customer, there can often be a time gap between locations or when grocery items may be left out in less-than-ideal conditions (like at a customer’s front door). Brand owners and packaging providers want to ensure that products remain safe and effective, leading to increased demand for effective barriers to oxygen and moisture vapor. Without these rigorously-tested, high-performing solutions, shelf life for products like food, cosmetics, or toiletries would be reduced; leading to negative impact on performance and safety. For refrigerated or frozen items, condensation on the exterior of the package could weaken the packaging substrate or cause ink to smear, combating this with an effective liquid barrier helps to ensure customers get what they order without mess or spills.
Versatile adhesives for all seasons
There’s no way for a packaging converter or brand owner to know where their product may end up, whether shipping to Dallas, Texas or Dallas, Wisconsin. In order to ensure proper packaging and labeling of their products, all-temperature adhesives with a broad effective range enable greater piece of mind to ensure that everything arrives where and as it should, regardless of the destination.
Luckily, there are effective BASF printing and packaging solutions in the JONCRYL and ACRONAL portfolios designed to help customers meet these application challenges and embrace this evolving landscape.
Until next time,
-Simon
Online grocery to more than double market share by 2025
Post-pandemic, e-grocery sales expected to climb from nearly $35 billion to more than $250 billion, says new study
Online grocery will swell to 21.5% of total U.S. grocery sales by 2025, more than doubling its current share of the overall grocery market, a new study by grocery e-commerce specialist Mercatus and research firm Incisiv projects.
For 2020, online grocery’s percentage of the $1.04 trillion grocery market is pegged at 10.2%, or about $106 billion, up from 3.4%, or $34.54 billion, of the $1.02 billion market in 2019, according to the study, titled “eGrocery’s New Reality: The Pandemic’s Lasting Impact on U.S. Grocery Shopping Behavior”. By 2025, online grocery’s dollar share stands to climb to $250.26 billion of the estimated $1.16 trillion overall grocery market.
Read the full article