Future Market Insights: Packaging can be the 'growth engine' for nutraceutical sales
Globally, the supplements and nutrition packaging market is worth around €2.49bn and set to grow at a CAGR of 4.5% in the next ten years, according to a recent Future Market Insights report. This will primarily be driven by a boom in canisters, bottles and stick packs, followed by pouches and blister packs, and buoyed by a 7% rise in demand for supplements and nutrients globally.
Europe represents around €843m of this major packaging market and is forecast to see “considerable growth” of 5.1% CAGR until 2028.
Ismail Sutaria, associate consultant for packaging at Future Market Insights, said for nutraceutical manufacturers, it is important to realise how vital packaging is to product success.
“Manufacturers can't expect their supplement or nutrition product to perform well if it never makes its way off the shelf. Eye-catching packaging and labelling can make a huge difference in nutrition and supplement sales and positively impact bottom line,” Sutaria told NutraIngredients.
“For instance, a UK based sports nutrition company increased its profit by 300% after redesigning its packaging for pre-workout supplements targeted to both men and women. This indicates that packaging is a growth engine for the nutrition and supplements industry,” he said.
A stand-out brand image
This, he said, is particularly true given the increasingly competitive nature of the market and plethora of purchase platforms.
“It doesn't matter where consumers purchase nutraceutical products, through e-commerce sites or from a retail store, in any way they are flooded with options. Product quality and brand credibility make a difference to consumers' purchase decisions and it is necessary for supplements and nutrition companies to invest in proper and attention-grabbing packaging to establish a significant brand image.”
Irrespective of the product or whether the company uses high-quality ingredients and has fair manufacturing practices, Sutaria said in the long-run every manufacturer shares a common objective – to craft a quality product that stands out among the rest.
“One of the essential factors manufacturers need to keep in mind before pushing a product in the market, is packaging,” he said.
Some manufacturers are starting to work with high-level printers and designers to create “exceptional packaging”, he said, and this must continue in line with rising demand for nutraceuticals.
Smart information, small packs
Future Market Insights said in its report that information about ingredients and nutrients within nutraceutical products is “of prime importance to consumers” and therefore gives packaging its “vital role” in communicating this.
Sutaria said product information will be“the key driver” behind growth in supplements and nutrients.
He said, in particular, better readability is important – enabling consumers to identify unique aspects of a product formulation – and also clear on-pack efficacy claims.
“Nutrition and health-related claims are a crucial part of packaging. Claims made by companies have high influence on customers' purchasing decisions (…) They are probably the best examples of how regulations and language are coupled together to deliver a product in the market.”
Smart labelling will become one way manufacturers can communicate information better with consumers, Sutaria said, enabling consumers to scan the product and find out extra information about ingredients, for example.
Use of this smart labelling technology, he said, is forecast to gain traction in the coming ten years.
He said there will also be increased demand for small volume packaging formats, providing major brands opportunities to tap into on-the-go packs like stick packs, blisters, cans and pouches, which in turn will create “lucrative opportunities” for blister pack and pouch manufacturers.
