In 2021 multinationals continue to focus on “premiumization” (of packaging)
“Interest for premium products remain significant and is also expected to increase short term in upcoming markets.”
Focus on the premium segment
Six years ago, Forbes Magazine already published companies like Unilever, L’Oréal, Procter & Gamble and Johnson & Johnson choose for the “premiumization” trend to strengthen their position in the premium segment. Also, major brands like the Beijenkorf and Heineken follow this premium strategy. Last month the “Dutch Financial Times” published an article on the subject and about consumers willing to pay a premium price for such products.
Premiumization?
Premiumization is making mass market products into premium products. Creating premium brands creates luxury. Worldwide the trend is that the middle-class wants to spend money on premium products, to perceive better health, quality and brand perception. Consumers see this as an act of selfishness and are prepared to pay a premium price. For that reason, companies are showing interest in premiumization. Over the past years the premium- and luxury segment has shown strong growth. Demand for premium products remains high and will short term likely also increase in upcoming markets.
Packaging, added focus in the marketing mix
Packaging takes an important role within premiumization. Packaging represents up to 50% of the brand perception and consumers identify packaging almost as important as the brand itself. Marketeers embrace the P of packaging as a key factor in the marketing mix. Premiumization starts with packaging. And the opportunities to lift existing packaging to a premium level are endless.
Premiumization and sustainability
Although packaging suppliers make endless efforts to use sustainability to put themselves in the spotlight, consumers have little knowledge on sustainability in packaging. Often for example non-printed pulp packaging is associated with being sustainable. It is important to educate the consumer and make them aware that desirable luxury packaging can be made sustainable.
Sustainable packaging is everywhere: thinner materials, smarter shapes, alternative constructions, but also via for example re-use…. Multiple opportunities for businesses.
A first and relatively easy step to create a more premium packaging is the use of sustainable printing effects. Not commonly known but today metal effects like gold, silver or pearlescent, but also glittering powders, microstructures and relief in paper and carton board are already available with sustainable materials. They are true showstoppers! Printing effects on packaging are eye-catching on the shelves.
Packadore collective and temptainability
Last year SGK Anthem, Generous Minds, Neurensics, Kurz, Merck, Haval and Vrijdag Premium Printing have joint forces in Packadore collective. Packadore’s aim is to design and manufacture both desirable and sustainable packaging solutions. The answer for brand owners that want to focus on premiumization and sustainability. We call this the temptainability factor of packaging!
Packadore believes the image of brands benefits from both desirable and sustainable packaging. And it offers brand owners to reduce their Global Footprint. It creates new commercial opportunities.
Are you interested to focus on premiumization for your company, product or packaging? Would you like to make use of the integral knowledge and expertise of the Packadore collective and Vrijdag Premium Printing? Have a look at www.vrijdag.nl or www.packadore.com.