Challenges to Change Avoidable Plastic in Food Packaging

According to a recent study by DS Smith and consumer research institute Retail Economics, almost half of the food packaging in German supermarkets consists of avoidable plastic. But changing the packaging is proving difficult: despite growing awareness, industry efforts to shift towards sustainable solutions are hindered by competitive concerns and consumer behaviour.

Key barriers include the cost of raw materials, which 40% of respondents cited as the primary hurdle. Consumer acceptance poses another challenge: 39% of industry experts are concerned that customers may resist changes to packaging.

The study reviewed 1,500 food and beverage packaging samples across major supermarkets in Germany, France, Italy, Poland, and Spain, finding that a substantial portion of packaging could be replaced or eliminated to significantly reduce plastic waste.

European plastic consumption remains considerable, with the UK topping the list at 

70% of food packaging comprising plastic, followed by Spain (67%), Germany and Italy (66%), Poland (62%), and France (59%).

The Growth of Private Labels in Europe Will Continue

A new PLMA study entitled "European Retailers & Manufacturers Talk About the Future: What will the private label landscape look like in the next five years?", reveals that nine in 10 private label manufacturers and retailers say that the success of private label will continue going forward. 

"Given that the share of private labels in Europe is already the highest at 39 percent of the entire food market, the reaction of experts in the industry is generating great optimism among all private label players," said PLMA President Peggy Davis.

With the optimism, there are also challenges, and day-to-day operational issues, not competitive ones, appear to be the biggest issue for both players, manufacturers and retailers. Geopolitical unrest and climate change are putting pressure on the supply chain and on the consistent quality and availability of raw materials and ingredients. Also, finding skilled personnel is a concern and could get in the way of the companies’ expected growth forecast.

The study was built on a survey, conducted between June and August, among 1,017 executives from 865 private label manufacturers and retailers in 37 European countries. For more information contact Judith Kolenburg at kolenburg@plma.nl.

Upcoming New EU Novel Food Rules

Starting in February 2025, updates will apply to all novel food applications submitted to the European Commission. The European Commission tasked the European Food Safety Authority (EFSA) with updating the guidance on how to prepare and submit applications to market novel foods in the EU. This update consists of two key documents:  

The first is scientific guidance, detailing the necessary scientific data that applicants must submit. The second, administrative guidance, outlines the step-by-step process for submitting applications, managed by EFSA’s front-desk support team.

These changes are crucial for businesses, including those in the emerging sector of cell culture-derived foods. Since the initial rollout of novel food regulations in 2018, substantial data has been gathered, enabling EFSA to refine its approach and specify clearer definitions and data requirements. This evolution aims to enhance the quality of applications and improve efficiency in the review process.

EFSA maintains a nine-month timeframe for completing risk assessments. By providing more comprehensive guidance at the outset, the hope is to reduce the need for further back-and-forth between applicants and EFSA, thereby expediting approvals.

Once EFSA grants approval, companies will need to consult with the European Commission and relevant national or local authorities to ensure compliance with marketing and labelling requirements.

Retail Buying Alliances on the Rise: Eurocash and EMD Expand

Wholesaler Eurocash Group in Poland has set up a purchasing alliance among its local retail chains associates. The alliance is called Równi w Biznesie (Equal in Business) and includes 15,5000 franchise and partner stores.

This move comes in response to the intensifying price competition within the country and the growing dominance of discount chains. By analysing disparities in product offerings between supermarkets, discounters, and local stores, Eurocash aims to empower its partners with stronger negotiating leverage for better trading terms.

On the international front, the European Marketing Distribution (EMD) group has expanded its reach by welcoming South Korean Lotte group as a new associate member. Lotte is one of the largest retailers in South Korea, with branches in China, Indonesia, Japan and Vietnam. It has a turnover of around €50 billion. The retailer is also involved in convenience chain 7-Eleven.

Lotte wants to further develop its own brand with the help of EMD. For European members of the association, the collaboration offers potential opportunities for the introduction of Asian concepts.

The EMD alliance consists of 14 members and partners, covering 250 grocery retail chains in 18 countries, representing 56,000 points of sales, cumulating a potential consumer turnover of €175 billion in Europe.

Packaging 2025: Navigating the Future of Innovating Solutions

The use of plastic has faced increasing scrutiny across industries as consumer awareness of environmental impacts grows. Nowhere is this more evident than in food and drink packaging, a sector under immense pressure to align with evolving consumer expectations and comply with new governmental standards. To stay competitive, innovation will be crucial in finding practical, sustainable alternatives to traditional plastic.

Eco-Conscious Consumers Shift Buying Behaviours
A report by Mintel highlights that 30% of consumers would be influenced by a rating scale indicating a product's environmental impact. This shift towards sustainability has tangible effects on purchasing habits; in Germany, 36% of shoppers prioritised minimally packaged products in 2024.

Key Packaging Trends Leading Up to 2025:

1. Reducing Plastic Usage
The most straightforward trend centres on cutting down plastic usage in packaging. While a complete ban on plastic is not feasible due to its essential protective and preservative properties, companies are actively redesigning packaging to minimise material use. This approach helps balance sustainability with practical needs, tapping into a growing consumer demand for eco-friendly solutions.

2. Challenges with Circularity and Refill Systems
Circular packaging and refill schemes are gaining traction, yet they come with their own set of challenges. These initiatives demand a significant change in consumer habits, but they present a way for businesses to meet eco-conscious expectations. Recyclable packaging can address plastic waste concerns and bolster brand image. Supermarkets are experimenting with such measures; for instance, Asda’s introduction of refill stations has proven popular, reinforced by a "refill price promise" that makes these products more economical than their pre-packaged counterparts.

3. Tackling Food Waste with Smarter Packaging
While plastic pollution garners significant attention, food waste is another environmental issue that cannot be ignored. Packaging must strike a balance between sustainability and functionality by ensuring products stay fresh for as long as possible. This aspect presents an opportunity for companies to highlight how their packaging contributes to reducing food waste and extending product shelf life. Brands with shelf-stable goods can benefit by better communicating these advantages to consumers.

Looking ahead, industry experts, including Benjamin Punchard, Global Packaging Insights Director at Mintel, will explore these developments in detail at PLMA’s upcoming Packaging Conference on 30 January 2025 in The Hague, offering valuable insights for retailers and manufacturers aiming to stay ahead in the evolving packaging landscape. For more information about the conference click here.

Supermarkets Harness the Power of TikTok for Growth

The rapid rise of TikTok as a marketing tool has transformed how retailers, particularly supermarkets, engage with customers. The platform provides an avenue to highlight unique products, showcase innovative recipes in an engaging format, and even attract tourists to stores abroad that have gained popularity through viral trends.

One prime example is a simple cucumber salad recipe that amassed over 15 million views, leading to a surge in demand and cucumber shortages in supermarkets. Marks & Spencer (M&S) has also seen significant traction on TikTok, notably with its Big Daddy chocolate bar. Individual M&S stores across the UK have delighted audiences by participating in popular TikTok challenges, including lip-syncing and dancing during working hours, offering a glimpse into store culture and boosting brand visibility.

Rossmann has created a special channel for its popular own brand Isana: @isana_rossmann. The new face of the TikTok presence, which will significantly shape the channel as a content creator, is now being sought. The search for the new Isana Face is closely accompanied via the social media platform. This form of recruiting as well as the created vacancy are unique in the industry to date.

Tesco has taken a strategic approach, incorporating TikTok trends into its in-store features, such as salad creation stations and “High in Protein” displays, mirroring the platform's healthy eating fads. “This trend is driven by younger consumers, particularly on social platforms like TikTok and Instagram, where influencers share protein-rich recipes and highlight their nutritional benefits,” a Tesco spokesperson noted.

TikTok has revolutionised product discovery for Gen Z shoppers, reinforcing its role as a powerful driver of marketing success. Retailers have an opportunity to engage this audience not just with food but with experiences, novelties, and recognising that young consumers want to feel seen. In addition, many have let their store staff to post authentic relatable content.

Retailer apps in Germany are widely used, save money

A study by the consulting firm Simon-Kucher reveals that 80% of customers in Germany already use retailer apps, with this figure reaching as high as 96% in the drugstore sector. The survey, which involved 1,000 consumers, explored how app usage influences shopping behaviour.

The primary motivation for using these apps is saving money. Over three-quarters of respondents (83.2%) said the apps make them more aware of discounts, while 73.1% reported that they are able to make cheaper purchases through the apps. About half of the participants indicated that they shop more frequently and in greater quantities using retailer apps. Additionally, most respondents noted that the apps improved the efficiency of their shopping experience and overall satisfaction.

These apps also encourage users to explore new products. Features like product recommendations (55.7%) and discounts (64.4%) prompt users to try new items, although discounted products tend to be added to carts more often than those simply suggested by the app.

In terms of in-app purchase incentives, personalized discount coupons on specific items, volume discounts, free products, and bonus points were the most favoured. In contrast, digital flyers and competitions were significantly less appealing to users.

2025 food and drink trends revealed

Mintel has published its global food and drink trends report for 2025. The researchers explored what it is that influences consumer behaviours and attitudes toward food and drink. The experts predict that four topics will prevail for consumers:

Fundamentally nutritious. The emergence of weight-loss medications like Ozempic will redefine consumer perceptions of ‘food as medicine’ from added functional ingredients to meeting daily essential nutrient needs.

Rule rebellion. Embrace consumers as ‘perfectly imperfect’ beings who are hungry for brands that help them ‘break the rules’ in food and drink.

Chain reaction. As disruptions to the food supply become more frequent, the industry will need to encourage consumers to accept and trust the new origins, ingredients and flavours that will emerge locally and globally.

Hybrid harvests. Food and drink companies will need to demonstrate how technology and agriculture work together to benefit consumers, farmers and the environment.

Danish non-food chain accelerates expansion

Søstrene Grene had its strongest financial result in the company’s history in the latest financial year, according to its CEO, Mikkel Grene. The Danish company increased sales by 22% and profit went up 15%.

Its stores offer a wide assortment of home interiors, kitchen items, hobby articles, beauty, travel items, party supplies, gift wrapping, stationery, toys as well as seasonal items. Every week, new products land in stores. Prices are low, most products are sold under 10 euros.

The concept is different from other non-food discounters in that the atmosphere in the stores is special, focused on aesthetics and ambience, appealing to the customers’ senses. Goods are on wooden shelves and wicker baskets, with warm light and delicate colours. The layout draws the consumer into the depths of the store, while the sense of time is quickly lost. Almost all the items in the store are own brands.

After the strong results of the past 52 weeks, the company now wants to take the opportunity of the momentum and expand its network of over 300 stores to a targeted 500 stores within the next three years. The company operates stores and web shops in 16 European countries.

Countries, big brands strike out at popular Nutri-Score

Despite its widespread appeal, Nutri-Score has faced pushback in several countries, including Italy, Romania, Greece, Cyprus, the Czech Republic, and Hungary. Authorities in these nations argue that the system unfairly penalizes traditional products, such as those commonly found in the Mediterranean diet. Critics contend that Nutri-Score oversimplifies food evaluations by focusing on select nutritional factors, which can distort consumer understanding of a product’s overall health value.

In addition to governmental objections, major brands like Danone, Heineken, Unilever, and Arla Foods have expressed reluctance to adopt Nutri-Score on their product packaging. These companies argue that the algorithm used to calculate the scores doesn’t align with their national dietary guidelines, or that recent changes to the system have downgraded their products to lower categories, resulting in what they believe to be unfairly low scores.

Nutri-Score, a front-of-pack label (FOPL) system, uses a color-coded, traffic-light-like design to rate the nutritional quality of packaged foods based on their fat, sugar, salt, and calorie content per 100 grams or millilitres. A “Green A” signals the healthiest option, while a “Red E” represents the least nutritious.

Recent revisions to the Nutri-Score system have reclassified dairy and plant-based beverages. For example, solid yogurt, considered a meal food, is classified differently from drinkable yogurt, which is viewed as a beverage often consumed between meals, moving it from the general food category to the beverage category. This shift had a significant impact on product ratings, as the algorithm applies different nutritional criteria depending on the product category. As a result, certain dairy products that previously held high ratings of “A” or “B” dropped to lower ratings of “D” or “E,” largely due to their sugar content or the use of alternative sweeteners.

In the beverage category, only water maintains the top rating of a “Green A.”