Receptivity to Consumer Trends – Such As Aging Population, Busy Lifestyles, and Demographic Changes – Is Key to Capitalizing on the Opportunities in the US Packaging Market

Friday 30 August 2013, Amsterdam

Both the macroeconomic and demographic structure of the US are undergoing noticeable change, creating important new consumer groups and altering consumer behavior. The demands and aspirations of customers have created both opportunities and challenges for FMCG companies, redefining how products are created, marketed, packaged, and sold.

Rise of New Consumer Groups

The US’ aging population, with its significant purchasing power, is transforming into an increasingly important consumer segment with very specific needs. Demand for healthier food products and convenience in packaging with clear labeling are some of the key parameters that the older generation see importance in when making purchase decisions. The aspiraqtion of living an active post-retirement life has increased the demand for fortified foods, dietary supplements, and anti-aging cosmetics.

The average household size in the US has been in decline, and the number of single-person households continues to increase, thereby creating a huge demand for consumer products that are packaged in smaller packs. The average consumption of those in single-person households is comparatively higher than those in large households, leading to higher overall domestic consumption. These single-person households will drive demand for food products that are easy to prepare or ready-to-eat.

The rising immigrant population has been a great influence on the way new products are introduced and marketed in the US, as they seek out ethnic products. Growth in immigrant populations has impacted food consumption patterns in particular, with the sales of some ethnic food products surpassing or replacing traditional substitutes. Foreign food culture has percolated into the overall American lifestyle, and companies have responded by changing their marketing and labeling strategies to attract these rising consumer groups.

The Financial Crisis and the Middle-class Squeeze

The financial crisis has severely impacted the buying behavior of American consumers; economic uncertainty has made them conscious of their expenditure. Analysis of recent spending patterns reveals that Americans have reduced their credit card purchasing, indicating a more cautious approach to spending. The middle income group has been burdened with recent tax hikes and rising prices, forcing them to rationalize their spending. There is greater demand for value-for-money packs and shopping in discount stores, whilst e-commerce has been boosted as customers search for offers and discounts.

Multi-channel shopping, such as researching online channels before buying, mobile purchases, and e-retailing is on the rise, as the younger generation – whose spending power is comparatively limited – search for bargains and convenience.

Flexible and Rigid Packaging Rise in Popularity

Cost effectiveness, reduced weight, and ease of molding has made Flexible Packaging and Rigid Plastics the preferred packaging material for Fast Moving Consumer Goods products. However, Rigid Metal continues to sustain its market share, as there has been no viable alternative for aerosols or food and drink cans. Glass packaging faces stiff competition from lighter plastics, as the drawbacks of Glass still outweigh the benefits – although it is worth noting that there is a gradual shift in perception whereby Glass packaged products are seen as more exclusive, premium products.

Cost Reduction & Sustainability

A shift from heavier packaging materials to lighter materials, the introduction of technology to reduce the use of packaging material, and optimization of the manufacturing process for the efficient utilization of resources are the three primarily strategies packaging companies have adopted in order to reduce costs and become more environmentally friendly.

Variation with Material
The bargaining power of US packaging companies has been altered as the demand for raw materials has grown in new markets such as India and China: the strategy of packaging companies expanding into emerging markets has become a necessity rather than an option.

Competition and industry structure differs widely depending on which packaging material forms the predominant focus of a company. Whilst the Glass packaging industry is consolidated, others – such as Metal, Plastics and Paper – are either controlled by a small group of firms, or fragmented in nature. Analysis of mergers and acquisitions reveals that packaging companies tend to integrate backwards, to expand their product portfolios or acquire niche technologies.  

The report is a result of an extensive research covering latest trends and key issues in the US Retail Packaging Market.

It offers:

•A comprehensive analysis of the emerging trends and opportunities in US’s packaging market.
•An overview of key manufacturing and innovation trends in US’s packaging industry. .
•Analysis of the findings from Canadean’s survey of key Retail packaging industry experts, carried out in 2013, providing a forecast as to where the industry is heading.
• An overview of the competitive landscape of US packaging sector with an analysis of the key market leaders including a snap shot of major deals.


This will facilitate:

•Clear identification of promising areas for future growth, both in terms of innovative products and lucrative geographies.
•Proper understanding of shifting market dynamics to ensure maximum sales.
•An insight into the complex picture of consumption’s variation between product categories.
•Explicit understanding of the relationship between key drivers of consumer demand in the retail packaging market.