The Top Shifts in Consumer Demand in 2019
Published December 27, 2019
With 2020 right around the corner, the coming of a new year—and a new decade—provides an excellent opportunity to reflect on the past year. Here at INSITE, 2019 was filled with growth, innovation, and continued efforts to equip our customers with exceptional standardized packaging equipment and unmatched customer service. We also hosted a booth, highlighting our case erectors and case sealers at the PACK EXPO for the second year in a row.
2019 wasn’t just a good year for the INSITE team, though. Evolving consumer demands and new technologies resulted in positive growth for many brands in the consumer packaged goods (CPG) industry. Let’s take a peek at some industry shifts that sparked changes this past year.
2019 Growth Statistics
Although results for the 4th quarter have yet to be released, 2019 has already been a big year for CPG brands. With the increasing demand for corrugated material, the heavy-duty corrugated packaging market, already estimated to be valued at over $17 billion, is projected to expand by 5 percent in the next decade.
This prediction is based on exciting growth in many facets of the CPG industry and is spearheaded by leading brands like the Mondi Group, Smurfit Kappa Group, and DS Smith. Other key market players include VPK Packaging Group, International Paper Company, WestRock Company, Georgia Pacific, LLC, Pratt Industries, Inc., Oji Holdings Corporation, Smurfit Kappa Group Plc., and more.
What Parts of the CPG Industry Saw the Greatest Increase in 2019?
Prompted by rising e-commerce sales, increases in subscription box services, the expansion of curbside pickup and delivery offerings, and other developments in the packaging and delivery sphere, the CPG industry is perfectly positioned for further growth. In 2019 alone, grocery e-commerce in the United States grew an estimated 18.2 percent, and retail e-commerce by 14.5 percent. While online retail played a significant role in industry growth, three other major consumer shifts also continue to drive the CPG world into the new year.
New developments in production and packaging equipment continue to drive the corrugated market. Streamlined, automated packaging equipment, fit-to-product (FtP) platforms, and smart packaging options work together to meet the desires for growing e-commerce brands and expecting consumers.
Age-old manufacturing methods and legacy equipment are no longer enough to remain competitive in the swiftly evolving CPG industry. As more brands realize this, we’re seeing a significant shift towards investments in high-quality packaging machinery with increased functionality. Advanced machinery offers many brands the opportunity to expand their product offerings and services, enabling them to capitalize on emerging packaging trends and increase their return on investment.
The Increased Value of Customer Service
In today’s technological world, where nearly every commercial industry has been affected by automation, quality customer service from real people is more appreciated than ever before. And with social media and constant connection conditioning consumers to expect fast results, real-time customer service is a necessity.
At INSITE, we work directly with our customers 24 hours a day to help solve their problems, because we believe good business begins with honoring the time of our customers. This approach helps our brand—and others like it—to remain relevant and evolve with the consumers we serve.
Greenhouse gas emissions, garbage, toxicity, and waste are far more than panic-evoking buzzwords. Big brands like Nestle and Unilever have made reducing these global concerns their public mission. Eco-friendly packaging options, like sustainable, reusable, and recyclable packaging, continue to emerge and become more prevalent in light of environmental struggles.
Consumers continue to show big brands that conservation and sustainability are key qualities that will affect where they spend their money. This shift in consumer support is proving that to be successful, a business must do more than provide a quality product or service. Today, brands must also champion a cause worth joining to receive support.
A Brief Look at Next Year’s Anticipated Trends
2019’s trends revealed a unique pattern that has many brands in the CPG and SPA space excited. Most of the biggest trends revolved around changing consumer insights like simplified, streamlined production processes, conscientious consumerism, and giving back to one’s community. We expect to see these trends continue into the new year—and be joined by some new ones like transparent or opaque packaging, increased sustainability efforts, and interactive content.
Greet 2020 With Confidence
2019 will quickly be over and done, but the new decade presents limitless opportunities for growth and expansion. At INSITE, we’re eager to keep growing our brand and connecting with our customers and supporters. Offering case erectors and sealers for any production line, we’re equipped to help your brand find success in 2020 and beyond. Contact us today to learn more about how the right automated secondary packaging system can streamline your production processes.