Dive Brief:
- Making products in a variety of categories more premium has garnered attention in the food and beverage industry, but premium packaging is another way manufacturers are serving up affordable luxury to consumers, according to a recent feature in Food Manufacturing.
- Two primary principles drive premium packaging. Changes to packaging are "inevitable, constant and must be anticipated to ensure success." This type of packaging also offers consumers a promise that product presentation with a luxury element can exceed consumers' expectations and encourage brand loyalty, wrote Maria Ferrante, senior director of marketing and communications at PMMI.
- The definition of "premium" packaging continues to evolve, and can mean anything from heavy-duty materials and attractive labels to sustainability and convenience.
Dive Insight:
Premium packaging enables manufacturers to lend the air of luxury to non-premium products, which entices consumers visually while enabling them to stick within their grocery budgets. Despite grocery prices continuing to decline, Americans still spend less of a percentage of their income on groceries than any other country. Manufacturers have to balance the allure of premium products with a price tag that won't scare off budget-conscious consumers.
Manufacturers also work to maintain a balance on their end in terms of offering premium packaging for lower-priced products while keeping costs down. Combining a more expensive premium product with high-quality packaging is one thing. But finding ways to maintain margins while "luxuriating" a non-premium product can be a challenge.
The concept of premium packaging has also evolved over the years to adapt to consumer trends. While materials were once the primary focus, convenience now factors into how appealing packaging is to a consumer, leading to the rise of pouches and other innovations. Sustainability is also key, such as when manufacturers design packaging to lead to less waste or use materials that can be recycled or that come from bio-based plastics.