Transcript Trends Driving Today`s Packaging Industry
Trends Driving Today’s Packaging Industry
Keith Schafer, Nordson Corporation June 23, 2011
Who is PMMI?
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North American packaging supply chain association
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Member Profile
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500 general members
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69 processing, supplier & materials members
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PACK EXPO Trade Shows
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Discover innovation across the line
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Help attendees
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Strengthen brands
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Improve cost, production efficiencies
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Achieve sustainability goals
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Allied partners add value
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Industry Resource
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New Industry Alliance
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Alliance for Innovation and Operational Excellence
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Mission: Unite CPGs and suppliers to establish best practices for critical manufacturing issues
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GMA is charter partner
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Multiple solution groups
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Product Safety Solutions Group (PSSG)
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Sustainability Solutions Group (SSG)
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Operational Reliability Solutions Group (ORSG)
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Workforce Development Solutions Group (WDSG)
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Presentation Overview
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Vision 2015: End-users, OEMs expect gains
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Trends and advances in food packaging
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Beverage market forecast
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A preview of PACK EXPO Las Vegas 2011
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Vision 2015: Economic Outlook
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“Cautiously optimistic” outlook for economy
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Slow but positive growth in next 12-18 months
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Specific niche opportunities for new products and packaging to drive growth rates
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Increases in spending by CPG’s due to several factors
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Economic stability in developed countries Continued economic growth in developing countries Improvement in consumer spending Benefits from tax and other public policies that support increased business spending
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Vision 2015: Economic Impacts
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Project must produce high and short-term returns with minimal risk
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Capital funds increasingly being directed toward process and operational improvements
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Strong emphasis on lean strategies
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Using automation to reduce labor costs across operations
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Leveraging sustainability strategies to reduce costs Applying Six Sigma disciplines to measure and improve performance
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Emphasizing OEE metrics
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Decrease in incremental innovation that produces marginal results
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Vision 2015: The Upside
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End-users will continue to implement strategies to build customer loyalty and market share
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Consumers still seeking innovation due to desire for convenience, value and safety
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Consumers increasingly “thinking green”
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Compliance with new government policies will spur investment in packaging machinery and innovative materials
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Large retailers continuing to push for packaging innovation
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Market Spotlight: Food
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Market Spotlight: Food
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Three primary drivers shaping today’s food industry
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The Economy
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Consumers more thoughtful about spending and saving more
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The Consumer
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Convenience continues to drive demands
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Counting on food processors to reduce waste
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The Retailer
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Creating choice for consumers with premium store brands Initiating packaging material reduction Retail Ready Packaging (RPP) trend Source: PMMI’s Trends & Advances in Food Packaging 2010
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Market Spotlight: Food
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These drivers are, in turn, directly impacting today’s packaging trends
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Sustainability
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Labeling and food safety
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Sustainability
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Sustainability efforts spanning multiple packaging stages Primary Package
-Material reduction -Right-sizing the package -Reducing web width and cut off to minimize waste -Using new bio-film materials for better shelf life and barrier protection -Lightweighting glass/plastic -Using water based inks to aid recyclability
Secondary Package
-Increase use of recycled corrugate -Material reductions; gapped flats -Specialty glues to add corrugate strength -Moving away from bleached corrugate
Transport Package
-Better pallet configuration -Recycling pallets -Cube utilization -Source materials closer to production & distribution
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Sustainability
Source: PMMI’s Trends & Advances in Food Packaging 2010
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Sustainability
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Materials being tested or considered for food packaging
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PLA (polyactic acid) Regresa® oxo-biodegradable polyethylene films NatureFlex™ films
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Surlyn® IntegraGuard™ Eco-Wise Source: PMMI’s Trends & Advances in Food Packaging 2010
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Labeling & Food Safety
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Foodborne illness is a significant public health burden that is largely preventable
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48 million people (1 in 6 Americans) get sick each year 128,000 people are hospitalized each year 3,000 people die each year
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Food Safety Modernization Act (FSMA)
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Gives FDA new prevention-focused tools and clear regulatory framework
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Enhances FDA’s ability to oversee food imports Source: Centers for Disease Control and Prevention
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A Closer Look at FSMA
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The law can be divided into five key areas
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Preventative controls
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Mandatory preventative controls for food facilities Mandatory produce safety standards Authority to prevent intentional contamination
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Inspection and Compliance
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Mandated inspection frequency
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Records access Testing by accredited laboratories
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A Closer Look at FSMA
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Imported Food Safety
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Importer accountability Third-party certification Certification for high risk foods Voluntary qualified importer program Authority to deny entry
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Enhanced Partnerships
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State and local capacity building Foreign capacity building Reliance on inspections by other agencies
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A Closer Look at FSMA
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Response
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Mandatory recall Expanded administrative detention Suspension of registration Enhanced product tracing abilities Additional recordkeeping for high risk foods
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FSMA and Recalls www.fda.gov/Safety/Recalls
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Labeling & Food Safety
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FDA proposing nutrition labeling guidelines
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Nutrition Keys, a new voluntary front-of-pack nutrition labeling system
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Developed by the food and beverage industry in collaboration with GMA and FMI
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Helps busy consumers make informed decisions while they shop
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Clear, easy to read format displays calories, saturated fat, sodium and sugar per serving
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Labeling & Food Safety
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Types of new equipment needed as FDA mandated food traceability and food safety changes are implemented
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Date coding equipment
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Labeling equipment Metal detectors Barcode printers Testing equipment for salmonella and bacteria Barcode scanning equipment Scrubbers/cleaners RFID, if it’s required Source: PMMI’s Trends & Advances in Food Packaging 2010
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Labeling & Food Safety
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Wide range of industry resources for help and guidance
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New web resource: FDA Basics for Industry
( www.fda.gov/FDABasicsforIndustry ) •
Basic information about regulatory process, frequently requested information
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Produce Safety Alliance
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Funded by the FDA and USDA and housed at Cornell University
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Provides produce growers and packagers with essential, on-farm food safety knowledge
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Helps prepare for proposed rules from FDA in 2011 on safe production, harvesting and packing of produce
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Trends to Watch
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Name brand vs. store brand (Own Brand)
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Healthier lifestyles
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Foods of the future
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Continued testing of nanotechnology Source: PMMI’s Trends & Advances in Food Packaging 2010
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Trends to Watch
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Next Generation of Machinery
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Enhance operating efficiency Changeover with the push of a button Lower energy consumption Decreased waste Reduction in labor
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Increased integration of processing and packaging functions
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Streamlines operations Increases productivity Reduces waste Decreases costs Source: PMMI’s Trends & Advances in Food Packaging 2010
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Market Spotlight: Beverage
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Key Beverage Trends
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Eye-catching single-serve packaging
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Cost effective “green” packaging
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Flexible packaging machinery to support latest container technologies
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Minimization of secondary packaging to cut costs, reduce overall carbon footprint Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Source: PMMI’s Beverage Industry Market Research Study (2010)
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Your Resource for Packaging and Processing Innovation
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PACK EXPO Las Vegas 2011
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Largest North American packaging and processing event in 2011
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New in 2011
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The Pharmaceutical Pavilion The Processing Zone The Confectionery Pavilion Project 2020: The Consumer Experience
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PACK EXPO Las Vegas 2011
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New customer-centric approach
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Puts attendee at center of focus
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Launching initiative with three industries
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Pharmaceutical
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Confection Bakery/Snack
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Networking Lounges
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Rx Lounge
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Candy Bar Baking/Snack Break
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Partnerships: Education
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Added Value Partnerships
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THANK YOU!
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