The Beat | TricorBraun

A Message from our Chief Commercial Officer and SVP, Marketing, Design & Engineering

Your packaging represents your brand’s identity, and it must also deliver on the product, packaging features, and functionalities that consumers care about most. Achieving this begins with research—and understanding the consumer and market insights that help brands consider what inspires, motivates, and drives (different) people to make buying decisions.

Welcome to The TricorBraun Beat. In our first issue, we’ll examine one big trend that can help you develop—from concept to commercialization—your perfect package. This issue looks at the increasing importance of perceived value in the buying decision-making process and how consumers are evaluating and shifting their purchasing patterns to achieve more value. We will identify what value means for the consumer, the implications for your business, the demographic nuances that influence the importance of value, and the packaging implications you must consider to not only maintain but also increase market share. We appreciate and care about your business and growth—and we’re here to help.

Sincerely,

The Big Picture

Consumers across the globe are worried. From the war in Ukraine to economic instability at home, people are keeping a watchful eye on their finances. In the US, one recent study found that 74% of consumers have changed their buying behavior as a result. Many are “trading down”—from switching from name brands to private label products to adjusting their purchase frequency or quantity. As consumers buy less often and use every last drop, this has the added benefit of being better for the environment at the same time as wise for the wallet. That said, consumers will remain loyal to their favorite brands or even trade up—if they perceive the value is there for them.

Two Key Value Trends

"People prioritize a good value when making purchases and they want retailers with strong values."

- Vericast 2022 TrendWatch

Consumers are trading down—and looking for value. As people look to spend less, wholesale club and discount store sales are up. In addition, private label’s share of the consumer-packaged goods market now sits at over 20% sales growth year-over-year. In the current economic climate, customers are taking a fresh look at private label brands and how they have evolved over time. Many consumers are shifting to private label brands not just for the price point but also because the packaging design and on-pack messaging communicates product quality and efficacy. Consumers are also purchasing more economy-sized packages.
At the same time, consumers are staying loyal--or even trading up—for what they value. Consumers may be price conscious, but many will remain loyal if they perceive the value. Consumers will also trade up to buy from responsible brands (whether environmental or societal). They will also trade up for wellness, convenience, and/or an indulgent experience. Designing a refillable, recyclable, and/or reusable package will resonate with these consumers—as will on-pack messaging that communicates brand and product value.

Value, as a trend, isn’t going anywhere. How consumers define value, however, will vary depending on the economic environment. Right now, almost everyone is price sensitive. Whether name brand or private label, retaining loyal customers or even capturing market share means your packaging must resonate with your consumer base and differentiate your product from the competition.

The Demographics of Value

When it comes to value, demographics matter in understanding how different generations respond to economic uncertainty. Understanding the life stage and income status of your consumer base can help guide packaging decisions to make your product and brand resonate in today’s market.

What Value Means to Me

Gen Z are trading down, except when it comes to brand responsibility. Although only 42% of Gen Z say they are very concerned about inflation, McKinsey research has found that 87% of Gen Z are very price conscious—and, along with Millennials, they are a “subscribe and save” generation. At the same time, this cohort values sustainability and is willing to keep buying their favorite premium brand or trade up for sustainable products.
Millennials are the most brand-driven generation. They value brand responsibility and are willing to pay for it. High-income millennials are also the least price conscious generation in today’s marketplace. They’re building careers and have purchasing power. Many are also young parents, and they value convenience—in how they shop and what they choose to buy.
Gen X are sandwiched between aging parents and growing-up children. They value convenience and will trade up for it. They typically have higher incomes, but are more inclined to spend on essentials rather than discretionary goods. Indeed, they are the generation least likely to spend a lot on any single item.
Baby Boomers are very concerned about inflation. In fact, 75% of them are worried about rising prices. Paradoxically, however, they’re willing to spend money—and their buying behavior typically changes little. As a result, Baby Boomers exhibit strong brand loyalty. They are also a cohort that will pay a lot for an item when they perceive its value.

At TricorBraun, we help customers turn trends into packaging designs that resonate with consumers. From sourcing and operational support to design and engineering, our team of experts can turn insights into quality packaging that reflects your brand and showcases your product’s value proposition.

We partner with our customers to turn your product and brand requirements into packaging that drives consumer loyalty and brand growth.
We identify packaging alternatives that might be more effective. This could entail solutions ranging from finding a new vendor in a different geographic location to transitioning from one type of packaging to another type that is more cost effective.
We complement our rigid (plastic and glass) packaging with a wide selection of flexible, fiber, and metal offerings to identify alternatives as well as ways to support refillable and reusable packaging.
We leverage our Design & Engineering team to develop our award-winning custom solutions to deliver greater shelf impact and, potentially, cost savings.
We deploy our graphic design team to rethink the package billboard and “on-shelf” promotion to identify even small changes that can deliver a big impact.
Our global reach enables us to source quality, cost-effective materials and components. And our deep supplier network offers us multiple options for procuring your packaging, even in the face of challenging freight and supply chain environments.
We always ensure that our packaging solutions address your most important value goal: a sound, high-performing package that protects and preserves your product.

Learn More

Packaging for the value-driven consumer
All Nutrient—How updated custom packaging and graphic design can showcase brand value.

The TricorBraun Beat is the companion newsletter to The TricorBraun Pulse. Our newsletters are designed to keep our customers abreast of industry shifts and consumer trends—and the opportunities these shifts create for packaging—in order to help you navigate the challenges and seize on opportunities to grow your business. Gleaning insights and behaviors from these trends helps us identify and deliver packaging solutions that protect and preserve your product, resonate with consumers, and boost sales. From supply chain and operational challenges to economic and market opportunities, we are here to help you understand what’s happening and how we can work together to win.

For more, contact your TricorBraun packaging consultant or marketing@tricorbraun.com.

Sources:

How Generational Differences Affect Purchase Behavior (squareup.com)

How US consumer behavior is changing: Insights for CPG companies | McKinsey

Millennials vs. Baby Boomers: Flexible Promotions | Talon.One

Gen Z Consumer Behavior: What You Need to Know | Talon.One

Retail TrendWatch – Vericast

Guide to Generational Shopping | PriceSpider

Whitepaper: The great shopper shift and the source of Omnichannel truth - NielsenIQ