Tetra Pak Index 2018
What opportunities does smart packaging offer food and beverage producers in online grocery?
Pack Summit, 31 October 2018
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• Growth of Online Groceries
• The changing landscape
• Opportunities opening up for F&B producers
• Q&A session
What we are going to discuss today…
The 11th annual Tetra Pak Index
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Introduction
AC/Monday 25 June
The Growth of Online Groceries and the impact on Retail
WE ARE SHIFITNG FROM PRODUCTS TO RELATIONSHIPS
Products
1970s
Products + Services
1990s
Customer Centric2000s
Relationship centricToday
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A Changing Landscape
Consumers are looking for a fast and easy shopping experience
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Creating new macro trends
5,85,85,85,8
4,44,44,44,4
4,54,54,54,5
6,46,46,46,4
Online Grocery shopping Frequency in 2018
6,86,86,86,8
Monthly Monthly Monthly Monthly
averageaverageaverageaverage
AC/Monday 25 June / 6
A catalyst for wider industry transformation
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Leading to a strong rise in online grocery
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While online is growing faster than other channels, the picture varies market by market
… are shaping the online grocery marketplace
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Four key trends
Convenience Sustainability Personalisation Technology 1 2 3 4
AC/Monday 25 June
Responding to the new trends within e-grocery
TAP 6/ December 2016 / 12
How to respond to position your business for future ?
4 Key Trends driving growth
E-retailer &
Consumer Feedback
Renewable packaging
Robust and non-leaking packaging for first moment of truth
Convenience Technology Sustainability Personalization
Desktop and Mobile friendly designs,
integrated offline and online experience
Logistically optimisedsolutions – optimal
weight and size
D2C opportunities for non-retail brands
Physical stores evolving digitally and capturing
data
Convenience Sustainability Personalisation Technology
Ease of replenishment, favourites and
personalised lists
Super fast same day delivery that can be
tracked
Seamless, frictionless consumer experience = Omni-channel
Track and Trace
Consumer engagement and data capture
Unique digital code identifier
Minimal secondary package Personal experiences,
packaging and products
As delivering in sustainable manner becomes licence to operate
The Key Elements of the Changing Landscape
Retailers
ConsumerRaw
material Production
Customer Manufacturing
Food Service
The battle for the consumer intensifies, as new cha nnels emerge
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Omni-Channel
Retailers
Consumer
Raw material
Production
Food Service
The battle for the consumer intensifies, as new cha nnels emerge
Customer Manufacturing
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Retailer rivalry
Power of Buyers
Threat of new
entrants
Power of suppliers
Threat of substitutes
New pure-play & hybrid digital competitors risingGoal: disrupt business model & overtake consumer interaction-E.g.
-Amazon-Ocado
Increased pressure on suppliers
Innovation & investment in food serviceDifferent models to cater to specific needs:
-Home delivery -Meal-box subscription
More choice and new digital players creating new co nsumer needs:E.g.- Online grocery
Intensified pressure in retail industry leads to an increased power shift
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Source: PlanetRetail RNG
Alibaba to become largest retail by 2023Changes rewriting the global ranking of retailers
Rank 2012 Sales (€ bn) Est. 2018 Sales ( € bn) Est. 2023 Sales ( € bn)
1 Walmart: €504 1 Walmart: €563 1 Alibaba: €998
2 Carrefour: €128 2 Alibaba: €414 2 Walmart: €583
3 Seven & i: €121 3 Amazon: €352 3 Amazon: €538
4 Tesco: €116 4 JD.com: €217 4 JD.com: €378
5 Costco: €103 5 Costco: €143 5 Pinduoduo: €227
Predominantly ecommerce-based retailerPredominantly store-based retailer
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But going omni-channel is difficult operationally
Consumer
Home Delivery
Brick & Mortar Store
Customer Manufacturing
Fulfillment Centre Home Delivery
COST
COST
E-COMM READY SUPPLY CHAIN
SUSTAINABILITY
SUSTAINABILITYCOST
LOYA
LTY
COST
The Opportunities Opening up
New business models give new channel opportunities cross-boundaryDigital disruption is changing the game
1
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Bricks & Mortar
CPG Online pureplay
Start-ups and small
brands
1
1
2
3
4
23
4
Retailer brands
Direct 2 Consumer
Food Service
Start-ups and small brands
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Understanding the new consumer journey
Last Mile
Receive
ExperienceResearch
Order
Zero moment of truth First moment of truth
Share
Unwrapping
experience
Sharing
Package shape and design impacted
logisticsReceive
Order
Zero moment of truth
First moment of truth
Second moment of truth
Share
Sharing
Delivery
Unwrapping
experience
Third moment of truth
Second moment of truth
Share
Unique code-based consumer engagement solutions
► Now smart packaging allows each carton to be tracked, monitored and interacted with throughout the supply chain, creating new opportunities for efficient stock management, distribution and automation. It creates new opportunities for consumer interaction too
► We are re-inventing the package by adding a layer of digital experiences for the consumer, for example first piloted unique code-based customer engagement solution with Binzagr CoRo’s SunTop orange juice in Saudi Arabia in January 2017 and is now being used by Puleva, in Spain, for a promotion for its flavoured milk drinks and many others.
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The key to technology is digital printing
AC/Monday 25 June
Packaging global volum
e driverD
igitalisationof things
10 BillionAPPLIANCES
100BillionAPPAREL
10TrillionCONSUMABLES
Our journey to an intelligent packaging platform
ConnectedPackage
IntelligentPackage
Codified Package
Fast-growing online grocery is a major disrupter of the entire industry
1. Offline and online are merging
2. Convenience is the main driver of online grocery
3. Mobile is the device of choice
4. Delivery is getting faster
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Summary
5. Personalisation is crucial
6. Direct-to-consumer models are increasing
7. Packaging specifically designed to survive in eCommerce is vital
8. Smart packaging can unlock opportunities
Initials/YYYY-MM-DD / 26
Thank You!
Questions
The Tetra Pak report can be downloaded here: http://www.tetrapak.com/tetra-pak-index
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