A survey of 250 brand owners in the CPG industry found 75% expect to increase their spending on packaging during the next year, according to L.E.K. Consulting. That's up from the past two years, the company added, as 65% in 2018 and 40% in 2017 said they would be increasing spending. Almost one-third of them plan to hike their packaging budget by more than 10%.
The survey also found 90% believe packaging is crucial to their brand's success, L.E.K. Consulting said. As a result, 57% are developing packaging that's easier to open, 51% are working on more single-serve sizes and 49% are increasing placements in new distribution channels such as convenience stores.
"CPG brand owners recognize consumers want more convenience, and companies are looking to packaging to help provide it," Thilo Henkes, managing director and co-author of the study, said in a release. "This will entail some major changes to packaging, and CPGs are responding and investing."