Navigating sustainability, consumer engagement, and innovation

Packaging has significantly transformed our culture and society, says Ainain Shahidi, a packaging expert who recently moderated a panel discussion on Challenges and opportunities in packaging with panellists representing brands – Amit Kale, associate vice president for sourcing and supply chain at Reliance Retail; Shivaji Chakraborty, head of packaging development at Fresenius Kabi Oncology; Bhupesh Mittal, packaging and design lead at Bayer; Ram Bhadouria, general manager of engineering and projects at Unilever; and Omar Abu-Hamaid, head of procurement at Pure Beverages Industry Company (PBIC),  during the PackMach Asia Expo 2024 in Mumbai.

Shahidi remembered the packaging styles from the 70s and 80s, which he says, were virtually non-existent. “We used to bring our own containers for essentials like milk and oil. Nowadays, almost everything is pre-packaged. It's astonishing to think about the most unexpected item you've purchased that was packaged. I recall buying a broom that came pre-packaged for cleaning the floor. It’s remarkable. Whenever I visit the market, I’m often amazed by the variety of items that can be packaged. If they can package a broom, they can package just about anything. The world has indeed moved in a new direction, and packaging is likely the second fastest growing sector globally.”

Packaging in brand identity and consumer connection

In a competitive market, companies must focus on product quality and how they communicate their values and identity through packaging. This is particularly true for brands prioritising environmental sustainability, as they strive to connect with consumers who increasingly scrutinise product integrity and health implications.

Bhadouria offered a deep dive into the company's recent performance, highlighting a noteworthy trend: “For the first time, we see rural growth kicking in.” Although modest across the sector, this growth reflects Unilever's significant contribution to the fast-moving consumer goods (FMCG) market.

Bhadouria noted that Unilever has approximately “30 power brands,” each generating around a billion euros in sales. He emphasises the power of certain brands, such as Dove, stating, “The moment you think of Dove, purity comes to mind.” He elaborates that when producing Dove soap, “even a small black speck, is a rejection.”

He contemplates the importance of packaging, remarking that it must resonate with Dove’s image of joyfulness and flight. He describes how the Dove logo represents a bird “beginning to fly” and insists that “the packaging has to amplify the brand itself.”

On inclusivity and empowerment, Bhadouria asserts that female empowerment is associated with this brand. “The packaging reflects Dove's identity, with products like Dove shampoo presented in translucent white bottles, avoiding colourful designs to maintain brand consistency.”

For other products, like the hand wash brand Lifebuoy, Bhadouria stresses the need for practical packaging. “You can’t have carton packaging for Lifebuoy; it won’t sell.”

Shahidi added that packaging and branding are fundamentally linked. He said, “Packaging is branding and branding is packaging,” underscoring the vital relationship between the two in market strategy.

Kale added to what Bhadouria said, emphasising the significance of packaging in brand building, "Packaging acts as a silent salesman." He said it enhances consumer perception but also contributes to sales and profitability. Kale pointed out that "if you present it well and inform the consumer," it can lead to significant increases in both sales numbers and profitability.

Kale illustrated this with examples like Dove, which opts for premium packaging to convey a higher perceived value. He remarked, "Awareness of the consumer is very important to create a brand," highlighting that the first step is to inform consumers about the product, followed by the attractive packaging that draws them in. Furthermore, he noted that "packaging protects the product until it is used by the consumer," underscoring its vital role in brand value creation.

Packaging in brand strategy

Chakraborty underscored the pivotal role that packaging plays in connecting brands with consumers. "Packaging is a crucial factor in selling a brand," he noted, emphasising its necessity in conveying the intended message to the target audience. "The packaging fails to establish that essential communication if it isn't appealing."

Chakraborty elaborated, stating that good packaging acts as a form of communication, reflecting the perceived value of a product. “This aligns with the growing consumer expectation that packaging should protect the product and resonate with their preferences and perceptions.”

Mittal emphasised the significance of packaging in the consumer market, noting, "I was so fascinated with packaging that I pursued a master's degree in it." He believes that packaging holds substantial power. He said, "Good packaging can protect your product, but great packaging can protect your brand."

Referencing a Nielsen study, Mittal stated, "Approximately 64% of consumers buy new products based solely on attractive packaging." He highlights the impact of shelf appeal, mentioning that "70% of purchase decisions are made right at the shelf."

According to Mittal, the consumer decision-making process typically involves five steps — need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. However, with exceptional packaging, he said, "we can skip all four steps and go straight to purchase."

Mittal finds great excitement in being part of the packaging industry in India, given the diverse consumer habits across various income groups. He used Unilever as an example, explaining how they tailor products for different customer classes, such as their laundry detergents like Wheel and Surf Excel. "It’s crucial to understand consumer preferences if we want to develop packaging that can create magic in the market and attract buyers."

Bhadouria shared the company’s commitment to understanding consumer demands and building brand loyalty. He said that packaging is transforming in today's era. "The time has passed when you could simply place an item in a box and hand it over."

He explained, "Let's consider how you make a purchase. Whenever you visit a store, any advertisements you encounter, whether in print or any other medium, tend to spark impulse buying. Often, an influencer in your family, such as a spouse or children, might suggest, "'Look, we should get that product I saw." This leads to an impulsive purchase. You buy something after seeing it advertised through digital media or print. Once you try the product — foods like Knorr or a skincare item like Lakme — you assess your experience. If it’s positive, you’ll likely head to the store to purchase it again. This experience fosters brand loyalty, which is essential for any brand’s growth."

At Unilever, for instance, every manager acts as a brand manager, meaning that no matter their role, they must care for and understand brand value. Bhadouria shared a brief story to illustrate this. "About a decade ago in Pune, as part of my responsibilities, I would visit at least four households annually as a consumer. I went to a household on Sadhasiv Peth, a well-known busy street in Pune, where the housewife informed me of what soap she used. She mentioned she used Pears.”

He said, “Interestingly, her mother also used Pears, but a different variant based on glycerin. The daughter arrived while I was having tea and said she used Aqua Blue Pears. Can you believe that three generations of this family have maintained brand loyalty to Pears for around 40 years? I found it remarkable. This long-standing loyalty across generations highlights what many aspire to achieve in branding."

Shahidi remembers attending a lecture by branding expert Sohail Seth. Seth had spoken about a few cult brands and specifically mentioned Pears and Harley Davidson. He also referred to the Bullet as a cult brand. “Branding is, without a doubt, one of the most crucial tools for any marketer. In the competitive market landscape, branding is vital in promoting your business. Branding involves packaging.” During his PhD, Shahidi discovered that Nestlé has made significant strides in enhancing premium packaging. “The product quality may not vary much, but the packaging shows a stark contrast that creates a perceived value.”

Inclusive packaging: a call for thoughtful design

Every design aims to cater to the largest audience possible. However, Chakraborty shed light on a crucial aspect that is often overlooked – the needs of individuals with disabilities. Chakraborty raised an important concern about the way packaging designs frequently focus on "the masses," neglecting the specific challenges faced by those with disabilities.

Chakraborty said, "We must not only concentrate on the general public but also recognise and accommodate individuals with specific challenges, such as neuro-motor disabilities." His insights called for re-evaluating how products are designed and presented in the market.

To illustrate his point, Chakraborty highlighted a noteworthy example from Procter & Gamble. "The company has developed a product that features easy-to-open notches, demonstrating how thoughtful design can significantly assist disabled consumers.” This innovative approach showed that small adjustments in packaging can have a meaningful impact on access and usability.

Chakraborty further underscored the importance of elements like colour combinations and Braille printing for visually impaired individuals. "These features are crucial to ensure they have equal access to products," he emphasised. By integrating such considerations into design, brands can create an inclusive environment that benefits everyone.

Kale advocated for a shift in perspective when discussing these individuals: “When we talk about disabilities, we should actually be focusing on the abilities of individuals.” By referring to those with challenges as “differently abled,” he underscored the importance of recognising and harnessing their unique strengths. For instance, he noted, “If someone is visually impaired and cannot read, their ability lies in reading Braille.”

Balancing sustainability and cost

Abu-Hamaid emphasised the significant role of packaging and its impact on overall product costs. He noted, “When analysing the materials for a bottle of water, we have a cup, a bottle, labelling, and packaging. Interestingly, the water itself accounts for less than 5% of the total direct costs.” This startling observation underscores how over 95% of the expenses are directly linked to packaging materials, including caps, labels, stretch wraps, and cartons. This statistic highlights the financial implications and its pivotal role in the ongoing discussions about sustainability.

Central to the conversation is Abu-Hamaid’s three Ps — people, planet, and profit. He said, “People pertain to social aspects, the planet reflects environmental concerns, and profit addresses economic factors.” The challenge lies in achieving a harmonious balance among these three elements, particularly in industries like bottled water, where sustainability demands may conflict with economic pressures.

One of the major hurdles that Abu-Hamaid pointed out is “the availability of materials.” While advancements have been made in producing recycled PET, he cautioned that “its availability is inconsistent globally.” This inconsistency leads many companies to favour virgin resin, which is often more affordable than its recycled counterpart. Thus, companies navigate a difficult terrain where sustainable choices may not always align with cost efficiency.

Moreover, Omar highlighted the contradictory expectations consumers place on brands. “Consumers tend to seek premium products at low prices, and achieving this balance is inherently challenging.” This illustrated the dual pressure companies face in their efforts to maintain sustainability while keeping costs manageable—a tightrope walk that can significantly affect market competitiveness.

Collaboration is emerging as a key strategy in addressing these challenges. Abu-Hamaid stressed that “the collaboration between packaging users and providers has become increasingly important.” Such partnerships can facilitate innovative solutions that prioritise both sustainability and economic viability.

Kale emphasised that in the evolving business landscape, the principles of sustainability are paramount. “First and foremost, the equation we just mentioned is about offering the best product at the lowest price. This is the essence of business.” However, the road to sustainability is often paved with challenges and opportunities, especially in a diverse country like India.

According to Kale, sustainability in business does not merely involve implementing eco-friendly practices; it begins with ensuring that the business itself is viable. “If the business is not sustainable, nothing else will work,” he stated. He points out that utilising recycled materials may increase costs by about 20%, which is a factor that businesses must consider to maintain profitability. “Without profit, there is no business,” he added.

Kale also addressed the role of government in fostering a culture of sustainability. He argued that “the momentum for sustainability will only pick up when regulations are put in place,” compelling both businesses and consumers to prioritise sustainable practices. He believes that if companies grasp the potential environmental consequences of their actions, they may be more driven to change—a process that may take generations to fully materialise.

He argued that the immediate challenge lies in enforcing sustainability laws. “Merely running advertising campaigns or relying on authority figures may not be effective,” he warned. Education is crucial. Kale stresses the need for awareness about proper disposal and recycling: “If collection, segregation, and cleaning are done properly at the source, the cost of recycled materials could be equal to or even lower than the current cost.”

Plastic waste management

As global concerns about plastic waste escalate, companies are stepping up to address the environmental challenges associated with their products.

Bhadouria sheds light on the intricate issues surrounding packaging and plastic waste management in India.

During a trip to Munich, Germany, Bhadouria says he was impressed by an advanced waste segregation system in an eight-story building, which featured five bins for different types of waste. “They have bins for glass, paper, organic waste, plastic, and even hazardous materials,” he observed. This experience made him reflect on the significant hurdles India faces in comparison.

Bhadouria noted, “At Unilever, we produce around 1,20,000 tons of plastic each year,” raising a critical question: “What are we doing with all this plastic?” In response, Unilever has initiated a plan to collect the same amount from the market to achieve plastic neutrality. “We recognise our responsibility,” he stated, emphasising the company's commitment to sustainability through partnerships with NGOs and community organisations.

Addressing the challenges posed by the nature of packaging, Bhadouria remarked, “The majority of the plastic we use comes in sachets or flexible packaging, which often contains very little product.” This poses significant cost implications. He explained, “If I price a bottle at Rs 6 or Rs 7, the volume will decrease. People may turn to unsanitary alternatives with less purified water consumption, leading to health risks.” Bhadouria's vision is clear: “Our national mission should be to provide every individual with a fundamental right to clean, drinkable water.”

Bhadouria reflects on the complexities of addressing plastic waste in India, suggesting that effective waste segregation at the source is essential but will take time. “It won’t be easy. I believe it will take at least 10 to 15 years.” He was optimistic, however, adding, “We need to explore recyclable packaging or materials that do not pollute.”

He cites the sugarcane industry as an example of successful innovation: "The sugarcane industry has successfully created alternatives to plastic utensils.” While acknowledging that “plastic itself isn’t inherently bad,” he emphasised the need for better alternatives, even if they come at a higher cost.

One innovative idea Bhadouria proposes is installing vending machines in urban areas like Mumbai, allowing customers to bring their own containers to refill products. “We could reduce packaging costs by up to 20%,” he suggested. However, he admitted that the initial rollout faced challenges, as “We ordered around 150 vending machines, but half are just sitting in storage because consumers weren’t interested.”

He emphasised the crucial role of collaboration between consumers and industries. “If consumers accept the idea of vending machines, then I can invest in thousands of them.” Bhadouria remained hopeful about future changes in consumer behaviours, predicting, “In perhaps 10 years, consumers may fully embrace these changes.”

Bhadouria also highlights the technological challenges in the packaging industry, stating, "When transitioning from a monolayer to a bi-layer, one might suddenly notice that everything gets rejected." He pointed out that “coating is simply not happening,” which creates a hurdle in adapting to new materials. “The industry needs to develop solutions that demonstrate it's possible to automate packaging with certain products,” he insisted, sharing his thoughts on packaging machinery. "If I switch to an alternative packaging material, can I still pack it?” Yet, he is optimistic. “Challenges bring forth opportunities.”

Chakraborty opined that clarity is key to effective engagement in every situation, particularly when discussing sustainability within our industry. “It allows us to confront significant issues such as the alarming amount of packaging waste we produce,” he said.

Chakraborty highlighted the undeniable reality: “Every effort counts; whether we recycle or manage this waste, we must acknowledge that some will inevitably end up in our oceans.” This accumulation of waste negatively impacts marine life and disrupts the entire ecosystem, prompting a need for urgent action.

Rising sea levels also play a role in addressing these global concerns. It is essential to communicate to consumers that packaging waste and other pollutants are indeed harming our planet. As Chakraborty noted, “Awareness leads to action; we need to encourage people to segregate waste for proper collection.” Educating consumers on the importance of mindful usage and purchasing decisions is vital in fostering a more sustainable future.

Digitalisation presents innovative solutions to enhance our communication strategies. Chakraborty said that his company, Fresenius Kabi Oncology, has taken steps to improve pharmaceutical packaging by incorporating informational literature directly within it. By transitioning to cartons with a QR code, we empower users to access data conveniently on their devices. Chakraborty emphasised: “Innovation is not just about technology; it’s about improving lives.”

In the quest for sustainability, innovation plays a crucial role. Mittal highlighted this principle, stating, “Innovation drives sustainability.” A recent example of this is the Godrej Magic hand wash, which offers a solid concentrate packaged in a pouch. “This unique product allows users to add water when needed, minimising unnecessary waste and exemplifying how simple innovations can lead to more eco-friendly solutions,” informed Mittal.

Alongside hand hygiene innovations, toothpaste tablets are gaining traction in various regions worldwide. Mittal says these small yet significant changes are pushing better alternatives that align with sustainable practices. “Every effort counts,” he emphasises the importance of incremental changes in our daily lives.

Packaging is another area where innovation can make a substantial impact. During my time at one of my previous stints, we developed temperature-resistant films that slashed the need for air conditioning by 30% to 40%. “Maximising resources is key,” he says, particularly in manufacturing settings. “The efficiency of machines is also pivotal in this realm. Mittal noted that the machine capacity remains the same whether a company produces ten packs or 100. By focusing on increasing machine utilisation, we can significantly conserve energy and optimise available resources.”