Leveraging packaging to satisfy today’s hungry consumers

Snack to the Future!

03 Today’slifestyleshaveredefinedmeals

04 Snackingisthenewmeal

05 Dailysnackingfrequency,byage(chart)

06 Seekingsnackswithmealpower

07 Foodforthought:Connectingtoyourconsumer

08 Deliveronthedemandforflavor

09 Theconvenienceofsnacking

10 Foodforthought:Greenexpectations

11 Grabbingtheperfectbite

12 Passthe...bacon(graphic)

13 Wheresnackingmeetsnutrition

14 Foodforthought:Balancingthebite

15 Thefutureisfresh

16 Munchongrowthwithsnackpackaging

Contents

©2019AmcorLimited08/19

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Today’s lifestyles have redefined mealsIt’seasytoseethatsnackinghasbecomemuchmorethantheoccasionalindulgence.Ithasbecomeawayoflifefortoday’sconsumer,anewnorm,blurringthethreesquaremealsweusedtoknow.

A whole lot of snacking going on

In2017,U.S.consumersspentanaverageof$187onsnackfoodandconsumed48.5pounds.1Andthere’sagoodchancethatyouareoneofthesesnackers.AccordingtoMintel,95percentofadultsintheU.S.snackatleastonceaday.Inaddition,70percentofthesesnackersenjoyabetween-mealtreattwoormoretimesaday.2

Lifestyle shifts reshape eating occasions

Expertsnotethatconsumersaresimplytootime-stretched—withwork,recreationandothercommitments—tositdownforthetraditionalbreakfast,lunchanddinnermealsliketheydid10or15yearsago.

Inthise-book,weexplorethecontinuedsnackingphenomenonanditsimpactonpackaging.Understandingwhypeoplesnackandhowtheychoosetheirsnackofchoicearekeyfactorsindesigningrelevant,consumer-friendlypackagingthatkeepsthemcomingbackformore.

1.StatistaConsumerMarketOutlook:FoodReport-SnackFood,2018;2.Mintel:SnackingMotivationsandAttitudes,2019EPICBarshownwithpermissionofGeneralMillsMarketingInc.(GMMI)

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Snacking is the new mealWithconsumersmoreactiveandmoremobilethananyothertimeinhistory,it’snosurprisethattraditionalsit-downfamilymealsareincreasinglyreplacedbyaquicksnackon-the-go.Whetherit’sgrabbinganenergybaronthewaytoyogaclassoreatingabagofchipsonthecommuterrail,consumerssimplydon’thavethetimetheyoncedidtositdownandenjoythreesquaremealseveryday.

Consumers move to more frequent, smaller meals

Today’srealityisthatsnacksarenotviewedasjustmealsupplements,butalsoasfull-fledgedmeals,eatingmorefrequentlythroughoutthedayinsmallerquantities.3Infact,two-thirdsofconsumersreplacemealswithsnacks.4

Or skip meals completely

What’smore,busylifestylesseemtobedrivingconsumerstoskiptraditionalmealsaltogether.Forexample,inaconsumerstudyconductedbyMintel,respondentswereaskedwhatpreventsthemfromeatingbreakfastmoreoften.Overwhelmingly,respondentspointedtotimebeingalimitingfactorinbreakfastoccasions.5

Thishasresultedinaneedforsnackproductsthatappealtodesiredbreakfastflavorsandfoodvarieties,anddeliverthenutritionmissedfromnothavingatraditionalsit-downbreakfast.Allinaconvenientpackagerequiringminimalpreparationandclean-up.

Anything can be considered a snack

Sources:FoodDive:Snacking’sappetitegrowstotakeabiggerbiteofUSfoodconsumption,2018;Mintel:SnackingMotivationsandAttitudes,2019

3.FoodDive:Snacking’sappetitegrowstotakeabiggerbiteofUSfoodconsumption,2018;4.Mintel:SnackingMotivationsandAttitudes,2019;5.Mintel:BreakfastFoods,2018

Yogurt Veggiechips

Chickennuggets Candy

Cookies Popcorn

Soup Pizza

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How many times per day do you eat foods or drinks specifically as a snack? Dailysnackingfrequency,byage

Super Snackers 4+TimesPerDay Typicallyeatsnacksas amealreplacement

Average Snackers2-3TimesPerDayTypicallysnack betweenmeals

Infrequent SnackersOneTimePerDay Snackstosatisfyacraving;Morecalorieconscious

Source:Mintel:SnackingMotivationsandAttitudes,2019

18-24

22%

13%

5%

25-34

20%

28%

13%

35-44

19% 19%

12%

45-54

19%14%

18%

55-64

10%

25%

15%

65+

7%

14%

27%

05

of consumers choose snacks that are fillingSource:Mintel:SnackingMotivationsandAttitudes,2019

Seeking snacks with meal power

Withsomanysnacking,akeyconcernrevolvesaroundthesnack’sabilitytosatisfyhunger.Foodcompaniesmustnowdeliversnacksthathelpconsumersstayfullandenergizedbetween—orinplaceof—meals.Increasingly,snackslikecheese,energybarsandjerkyfeaturehigh-proteinclaimssoconsumerscan“fuelup”whenever—andwherever—theyplease.

Focus on protein

Thefocusonhigh-proteinfoodhasmanyleadingpackagedgoodscompaniesseekingnewandcreativewaystodeliversnackproductsthathighlightthishighlysought-afternutritionalcomponent.Packagingthatpairsaproteinwithothersaltysnackfavoritesorfruitspreadscanrangefromrigidtrayswithflexibleliddingtomulti-sectionalunitsthatmakecombiningingredientseasierfortheconsumer.

of consumers choose snacks that are energizingSource:Mintel:SnackingMotivationsandAttitudes,2019

60%

49%

06

Food for thought: Connecting to your consumerPackaging professionals are taking a cue from today’s snack-hungry consumers when it comes to bringing new, fun and functional snacking formats to market. Experts say that consumers often cite the following snacking motivators:

1. Satisfy a craving or treat myself2. Because I’m hungry3. For a break during the day

Consumers not only snack for fun with an indulgent treat, but also snack for fuel when stomachs growl. This broad-ranging quest for fun and fuel bring with it a vast landscape of continued opportunity for brands to enter the snack space. Treats will continue to resonate with consumers, allowing indulgent snacks to answer when cravings call. But as busy lifestyles drive consumers to skip traditional meals, snacking becomes more vital. The right packaging can draw attention to these fun and functional product attributes.

Source: Mintel: Snacking Motivations and Attitudes, 2019

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Deliver on the demand for flavorAsaudiencetastesbecomemoresophisticated—particularlyamongtheMillennialgeneration—thedemandsonpackagingincrease.Insteadofasimplebagofchips,consumersaretodayseekingvariousflavorcombinationsinoneconvenienton-the-gopackage.

Non-traditional gains traction

Aboveallelse,snacksmusttastegoodandofferappealingflavorvarieties.Andit’sanexpectationinthemarketplace.

Non-traditional,nutritiousingredientsarefavoredbytoday’shealth-consciousconsumers.AccordingtoaconsumerstudyconductedbyNielsen,cauliflower,avocado,blackbeanandcoconutchipsrankedamongstthetop10inpreferredchipingredients.Thesenutritiousingredientsputatwistonthetraditionalpotatochip,whilerankinghighlyonbothuniquenessandconsumerneed.

Traditional with a twist gets a double-take

Chipswithtraditionalflavors,thatscoredwellinNielsen’sstudy,incorporatedunlikelytwists.ChickenjerkychipswithBBQseasoningandthe“sweetheat”combinationofbrownsugarandspicyBBQrankedinthetopfiveconsumerflavorpreferences.6Consumersareonthelookoutforunusualandunexpectedpairingswithtraditionalflavors.

Thegoodnewsistheseingredients,flavorsandpairingsaretrendinginothercategoriestoo.Thiscreatespossibilitiesforgrowthwhencombinedwithinterestingpackageformatsanddesigns.

What’s working for flavor combinations

6.Nielsen:HowFoodTrendsTranslateintheChipAisle,2017

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The convenience of snacking Watchtelevisionforafewminutesandyou’llquicklyseecommercialsthatappealtoconsumers’needsforsimple,convenientsnacks.Fromcerealbarsthatalleviatehungerpangstoproteinsnacksthatdeliverajoltofenergyanytimeandanywhere,snackingisnolongerconsidereda“treat”butisanexpectedpartofourdiets.

Convenienceistypicallydefinedinthreeways:preparation,portabilityandportioncontrol.Packagingplaysacriticalroleindeliveringallthree.

Preparation

Preparationistheconsumer’sabilitytoeasilyservethesnack.Thisincludesspreadingordippingoneingredientintoanother(e.g.,veggiesanddip),orsimplysharingwithotherswithoutmakingamessorcausingunduewaste.

Portability

Portabilityisthesnack’sabilitytosafelyandsecurelygoanywheretheconsumergoes.Today,thatcouldmeanprovidingaquickmealonahikingtrailorabitebetweenmeetingsinabusyworkenvironment.

Portion control

Portioncontroliscriticalforconsumerswhodonotwanttooverindulgeorwhoseektokeepthefooditemfreshtoenjoyagainandagain—suchastrailmixorcheesesnacks. Donotsnack 1-3 4+

79%

15%

6% 5%

78%

17%

2015 2018

Increasing consumer engagementWithsomanyalreadysnacking,brandsmayfinditchallengingtoon-boardnewsnackers.Increasingsnackfrequencycreatestheopportunityforincreasedengagement.

Amoveisalreadyunderwaywith17%ofU.S.adultssnacking4+timesperday,upfrom15%in2015.Additionally,21%ofsnackersreportedsnackingmorein2018than2017. Source:Mintel:SnackingMotivationsandAttitudes,2019

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Food for thought: Green expectationsThe increasing pressure on brands to reduce environmental impact is real. In fact, 59% of consumers say they expect companies to be environmentally friendly.7

In addition to consumer demands, brands also face pressure from the Extended Producer Responsibility (EPR) legislation that requires CPGs to take responsibility for the environmental impact of their products.

How do brands begin to meet these aggressive challenges while delivering on convenient snack requirements like portability and portion control?

Both consumers and retailers are heavily focused on end-of-life solutions as an indicator of a brand’s sustainability profile. By moving to recyclable packaging, brands have an opportunity to differentiate on shelf and build loyalty among consumers.

7. Mintel: Cause Marketing – US, August 2018

* Encore™ ultra-clear recyclable film is designed to be recycled through existing How2Recycle® store drop-offs. How2Recycle® is a registered trademark of GreenBlue Institute.

Amcor Ultra-Clear Recyclable* Film

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Whenitcomestosnackselection,consumersareseekingspecificsnackqualitiesatshelf.

Forward-thinkingbrandsareexploringinnovativeproductandpackagingformatsthatcomplementconsumers’lifestyles.Goodtaste,value,convenienceandnutritionalbenefitsareall keyfactors.8

Creating a value perception

AccordingtoMintel,thewinningcombinationoftasteandvaluehavethehighestpurchaseintentinthesnackmarketplace.9Whiletasteisanimportantfactorinproductchoice,valuecansignificantlyalteraconsumer’spurchase.Designswithmultiplecompartmentscandelivernewflavorpairingsthatoffermoretasteappealinoneconvenientpackage.

Convenient yet nutritious

Intheworldof“now”,conveniencehasbecomeanexpectation.Withtechnology,consumershavetheworldattheirfingertips,drivingtheneedforconvenienceinallaspectsoftheirlives.Thisshifthasredefinedconvenienceforfoodbrandsandretailersalike.Consumersarelookingforwaystosavetimewithoutsacrificingnutritionandquality.Packagingcanplayavitalroleinshowcasingsnackfreshness,whiledeliveringconvenienceinanon-the-goformatthatconsumersdemand.

Grabbing the perfect bite

8,9.Mintel:SnackingMotivationsandAttitudes,2019

of snackers prefer ready-to-eat snacks (e.g. chips, fruit) over those requiring preparationSource:Mintel:SnackingMotivationsandAttitudes,2019

78%

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Pass the... bacon?Consumers are moving beyond the traditional salty snacks with 69% of snackers saying anything can be considered a snack.

Mintel:SnackingMotivationsandAttitudes,2019Totino’sPizzaRollsshownwithpermissionofGeneralMillsMarketingInc.(GMMI)

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GRABBING A BITE VIRTUALLY ANYWHEREConsumersarelookingforeasierwaystoaddresstheirnutritionalneeds.Infact,three-quartersofU.S.adultsareactivelytryingtoimprovetheirhealth,andanother17%aretakingmeasurestomaintaintheircurrentlevelofhealth.10

Healthy aging

ThepopulationofolderconsumersintheU.S.willcontinuetogrowasMillennialsageandbirthratesdecline.Normallywithage,snackingfrequency declinesbutMillennialshavegrownupwiththenormofsnackingandtheywilllikelycarrytheirsnackhabitswiththemastheygetolder.

However,whatMillennialssnackonwillchangeasolderconsumersseemtobemorehealth-consciouswhenitcomestosnackchoices.Snackpackagingcanofferdifferentiationbytellingconsumersexactlywhat

theyarebuyingandthebenefitsthatcomewithit.Useoftransparentpackaging,see-throughwindows,andasimplifiedappearancewillcommunicateastraightforwardmessageandmaintainbrandloyaltyover the years.

Affordability always a factor

Asconsumerscontinuetobecomemorewellness-focused,theywillcontinuetoremainprice-conscious.Thoseundertheageof35comprisethemostengagedsnackers,buttheirincomeistypicallylessthanoldergenerations.11Eventhoughpriceisknowinglyimportant,responsiblehealthchoicesarenotcompletelydisregarded.Consumersperceivethathealthiersnackingishigherinnutritionandfresher.Thisisakeyareawherepackagingcanplayalargerrole.

Where snacking meets nutrition

1310,11.Mintel:SnackingMotivationsandAttitudes,2019

of snackers wish there were more healthy snack optionsMintel:SnackingMotivationsandAttitudes,2019

66%

30%

of consumers want snacks that contain vitamins and minerals FoodDive:Snacking’sappetitegrowstotakeabiggerbiteofUSfood consumption,2018

58%

of snackers say the majority of the snacks they eat are healthy Mintel:SnackingMotivationsandAttitudes,2019

Only

of shoppers want snacks that are guaranteed freshFoodDive:Snacking’sappetitegrowstotakeabiggerbiteofUSfood consumption,2018

75%

Food for thought: Balancing the biteConsumers are torn between what they should snack on and what they want to snack on. While the majority of snackers wish there were more healthy snack choices, more than half of consumers say taste trumps health.

What does this mean for snack foods? A mix of health and indulgence, not necessarily at the same time, will win at shelf.

Source: Mintel: Snacking Motivations and Attitudes, 2019

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What’s working for fresh snacks » Multi-compartment packages allowforfreshcombinations

» Single-portioned rigid cups and flexible packagesprovideportioncontrolandon-the-goconvenience

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The future is fresh

New packaging technologies are key for freshness

Today’sconsumers,retailersanddistributionchannelsaredemandingshelf-stableproductsstayfreshlongerthaneverbefore.Forpackagingengineers,thisdemanddrivesgrowthinnewbarrierfilmandaseptictechnologies.

Keeping refrigerated snacks fresher, longer

Freshnessbarriersandnewtypesofsealsandlinersarechangingtheexpectationsforsnackfreshness,particularlyintherefrigerator.Andas

meats,fruits,vegetablesandcheesescontinuetoflourishasgo-tosnackingoptions,keepingtheseperishablessafeoveralongerperiodoftimewillbecomeakeypriorityforsnackmanufacturers.Snackpackagingwithincreasedvisibility,suchastransparentfilmstoallowconsumerstovisuallyconfirmfreshness,willalsoplayaroleinhowaudiencesperceivevalue.

Munch on growth with snack packagingAreyoureadytogainmoremarketshareintheexpandingsnackingmarket?Amcoroffers morethanflexibleandrigidpackaging.Wehavethemarketinsightsandcreativeideas thatcanhelpyoucapitalizeonthevastopportunitiesinsnacking.Takethenextstepstoday:

1. Find a better way to satisfy consumer demand.TalktoanAmcorpackagingexperttoconnect insightsandon-the-pulseconsumertrendstosparksolutionsthatworkforyou.

2. Accelerate your speed to market. Connectwithourinnovationteamstohelpyoubringtherightproductandpackagetomarketforyourbusiness.

Amcor is here to help—contact us today

AmcorFlexiblesNorthAmerica 800.544.4672NorthAmericaFlexibles@amcor.comamcor.com

©2019AmcorLimited08/19

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