According to a recent survey of 250 brand owners across the consumer packaged goods spectrum by L.E.K. Consulting, 90% of brand owners say packaging is critical to their brand’s success — a way to adapt to industry pressures, including fast-changing consumer tastes and preferences.
Consumers are becoming less loyal and more open to local brands,1 and millennial consumers are especially likely to seek out the new, different and authentic. Disposable income is decreasing for the majority of the population in advanced economies, according to the paper. Cost-conscious shoppers are fueling market share growth of private-label products. To cope with increased price pressure, FMCG (fast-moving consumer goods) manufacturers typically target packaging as a focus for cost savings. In the long run that can be a losing proposition.