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Alcohol adaptations: Legislative changes propel beverage sector toward connected tech and lightweigh

Food Ingredients First 2023-12-19
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13 Dec 2023 --- Packaging for alcoholic beverages has long been associated with two materials and one shape — glass and aluminum, in a round container — usually a bottle or can. However, with the push for ecological products and legislation motivating that switch, the sector has adopted new solutions. 

 

Innova Market Insights data suggests that global launches of alcoholic beverages witnessed a 3% CAGR between October 2018–September 2023, with nearly half of the launches being in Europe and one-third being beer. Glass was the leading alcohol packaging material between October 2022–September 2023. Meanwhile, bottle and can were the two main packaging types for alcoholic beverages.

Packaging Insights speaks to three industry players on the trends in alcoholic packaging, including legislation motivation, connected solutions and the importance of labels.

Jenny Stanley, managing director at Appetite Creative, tells us: “In alcohol packaging, we’re currently witnessing changes in legislation, which is impacting the type of packaging used, improvements in [environmental] sustainability credentials and adoption of connected experiences.”

Legislation driving trends
Santiago Navarro, CEO and founder at Packamama, says legislation is needed to keep companies accountable. 

“Left to their own devices, not all companies do the right thing over the profitable thing, and so legislation does tend to correct for this ensuring that whether its consumer safety or environmental protection, then these areas are well taken care of.”

“On the downside, legislation is not always fast enough in its implementation, and this may result in unnecessary delay for an emergency as severe and damaging as global warming.”

“Trends in the future are likely to focus increasingly on the emissions aspect of packaging. This will be driven by the worsening climate crisis and the related accelerated push toward net zero by consumers, governments, and companies. This will include the type of packaging but also wher the wine is packaged and the other supply chain aspects that are packaging-related or influenced by packaging,” says Navarro.

Stanley names one of the most significant changes brought about by the new regulations as the requirement for packaging companies to increase their use of recycled materials. She continues that it has led to a significant shift in the industry, with companies investing in new technologies and processes to support using recycled materials in packaging.

“The new regulations have also significantly impacted the packaging design process. Companies are now required to consider the recyclability of their packaging and to use easily recyclable materials. This has resulted in the development of new packaging designs that are more [environmentally] sustainable.”

Stanley argues that the increased focus on sustainability and environmental responsibility has led to higher costs for companies since they must invest in new technologies and processes to meet the new requirements. Additionally, the increased competition for recycled materials has driven up prices and created uncertainty in the market.

However, Stefano Pistoni, senior manager for Business Development, Wine & Spirits, and Beverage at UPM Raflatac, adds: “Today, consumers are more conscious of sustainable packaging than ever before, with most consumers willing to pay more for sustainable packaging across end-use areas.”

QR codes to match legislation
Companies are being held accountable for the end-of-life management of their packaging, including the collection, sorting and recycling of waste. Appetite Creative recommends that reusable packaging have QR codes or equivalent means to facilitate recovery and harmonized specific labels informing consumers about reusable packaging reusability and reuse system availability.

“New labeling requirements for wines sold within EU member states have strict penalties for non-compliance. QR codes can be an optimal solution for wineries to comply with the new labeling requirements as they allow for automatic translation, real-time label updates, and provide information based on the consumer’s location,” shares Stanley.

Appetite Creative is helping wineries with label design and implementing e-labels and QR codes. These labels and codes offer digital content like product details, nutritional values and consumer engagement insights.

Highlighting connected packagingPackamama bottles are flat-pack designs which allows  customers to get up to double the amount of product in the same space as compared to round bottles.
Connected packaging allows for sharing extra information that doesn’t fit on the label and educating customers about the product and the packaging’s environmental sustainability while giving users a personalized brand experience.

“Looking ahead, I anticipate a continued emphasis on [environmental] sustainability, with a growing focus and adoption of smart packaging technologies. Integrating technologies like QR codes, near field communication and radio frequency identification will enhance the customer experience, provide real-time information about the product, help with stock management, track and quality checks on temperature or liquid levels and ensure authenticity,” says Stanley. 

Smart labels also offer authentication and traceability, allowing customers to check the origination and authenticity of a product. This is particularly popular with luxury brands to discourage copies or imitations of expensive items such as whiskey. 

“As we move forward, I expect innovations in smart packaging for alcoholic beverage brands — and many non-alcoholic ones — to become more widespread, offering consumers a seamless blend of information, entertainment and brand interaction,” asserts Stanley.

Alcohol’s special needs
Stanley explains how alcoholic beverage packaging often needs to balance aesthetics, functionality and regulatory compliance. 

“Packaging for alcoholic beverages may have specific features to prevent tampering, ensure proper sealing and communicate information about alcohol content and potential health warnings more prominently than in non-alcoholic beverages.”

Wine is susceptible to oxygen, sensitive to UV light and has high acidity leading to many challenges for packagers. Additionally, alcoholic beverages have long-distance supply chains.

Navarro notes that Packamama is witnessing an increase in alcoholic beverage packaging offered and marketed for specific occasions. 

“In markets with a high level of outdoor activities like the Nordics and Australia, wher wines in Packamama bottles are sold, we see consumers buying these to enjoy during some of their outdoor activities, which is occasion specific.”

Pistoni adds that the focus on ecological solutions has led more companies removingsecondary packaging like carbon boxes and plastic wraps, which are more often used for alcoholic beverages rather than standard beverages.

“This shift often involves a reevaluation of the main packaging as its role is even more important to create impact.”

Increasing label function
Pistoni asserts that labels play a significant role in catching the consumer’s eye and, therefore, driving purchasing. 

“Sustainable label materials, when designed thoughtfully, can help to enhance the visual appeal. Companies are experimenting with unique textures, colors and shapes to create visually striking labels that stand out on the shelf and create a premium appeal without the need for secondary packaging,” he says.

“Even when the packaging material is highly recyclable, label choice affects its recyclability. The wrong label material can result in lower quality of recyclate and downcycling of valuable raw materials.”

“Wash-off and other label solutions compatible with recycling help brands resolve this issue. When labels detach easily and do not strain the recycling process, the packaging can be recycled with optimal results. Wash-off labels enable reuse with certain packaging, such as glass bottles,” emphasizes Pistoni.

UPM Raflatac recently released a study focusing on white wine labels, revealing that label material and finishes have a significant role in consumer purchasing behavior and post-purchase enjoyment.

The study’s results demonstrated that the label’s appearance and tactile sensation influence its attention-grabbing ability on the shelf and the product-tasting experience in terms of perceived quality and taste. 

“When it comes to purchasing behavior, the effectiveness of the wine label was shown to be strongly driven by its color, tactility, contrast and paper-finishing combination,” explains Pistoni.

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