Over the past few years, companies and families alike have felt the dramatic impact of the country’s economic downturn. So much so, that business strategies and consumer habits have completely changed. Among one of the more significant differences in today’s market is the ever increasing popularity of private labels. Thanks to more budget conscious consumers and a weakening loyalty to national brands, private labels have grown at a rate of 6 percent per year. In fact, according to Nielsen Co, private label food products now represent $90 billion of business. But how can private labels maintain their power now that the economy is on a positive upswing? By adapting to the new American lifestyle model.
Today’s families are smaller and busier. Single-person households are on the rise, 85.8% of men and 66.5% of women are working more than 40 hours a week, and more than 50% of consumers are regularly taking their snacks on the go. Convenience packaging speaks to the need for portability and handiness that today’s typical American needs.
The Stick Pack, one of the fastest growing forms of convenience packaging, has already become a popular design in Europe and Japan and is picking up traction in the US. It requires 40% less material to create than packaging, is largely scalable, and can be created in mass quantity quickly. Stick packaging machines can produce upwards of 180 stick packs per minute, translating to more than 33,000 stick packs per hour.
Whether private labels can maintain their power, and if convenience packaging trends will continue to grow among manufacturers, only time will tell! For more information on food packaging trends and strategies, visit the GSC Packaging Blog.