savvy buyers who leverage data and connectivity for everything, from shopping and entertainment to managing daily tasks. One area that has been witnessing growth from consumers is online grocery shopping. The power of the Internet is transforming the grocery segment, just as it has revolutionized many other retail sectors. Online grocery has emerged as a highly distinctive channel, demonstrating consumer behavior that's often strikingly different both to physical retail and to other e-commerce categories. E-tailers are therefore looking to capture a share of the market by revisiting their digital marketing strategies to engage with buyers more effectively from the instant they make a purchase to the moment they receive their package and "Unbox it". Traditionally, good packaging was seen as a tool to protect and preserve a product. E-tailers sought to ensure speed of delivery and quality of products shipped to consumers and used space-efficient packaging to optimize logistics and save consumers space. This has changed quite dramatically. No longer is packaging expected to fulfill only these criteria. Consumers are looking for the experience of unboxing creative, engaging and stimulating packages. They are also seeking more convenience, and this means smaller, lighter and more easily disposable packaging. Alongside these emerging trends, E-tailers are faced with the prospect of marketing to millennials, a consumer segment that is increasingly swayed by digitally-driven marketing solutions. Digital marketing trends in the F&B packaging sector ‘Unboxing' has emerged as a powerful marketing tool as consumers are increasingly taking to social media to share the excitement of their latest purchase. For E-tailers, this serves two purposes – it builds engagement with customers and helps establish word-of-mouth with potential customers. In the food packaging sector too, the ‘unboxing' experience is driving the way consumers make purchases. According to the 2018 Tetra Pak Index which focuses on the rise of online grocery and the unique opportunities it presents for the food and drink industry, connected consumers are increasingly sharing opinions and experiences of food and beverage brands online. Consumers demand showing off the "unboxing" experience and receiving and unpacking e-commerce goods is an integral part of what is perceived to be the ‘moment of truth'. An annual unboxing survey in the UK found that there was considerable scope to enhance the consumer experience by improving the way the secondary package looks and performs. It found that 38 per cent had no brand on the box, inside or outside, and 30 per cent did not reflect the values of the brand. The Tetra Pak Index meanwhile found that e-commerce customers are not only sharing their experiences with online purchases online, they are including photos and commentary about packaging on social media, making packaging, both good and bad, more visible than ever before. It also found that 72 per cent of consumers globally post images and comments on food and beverages monthly, led by commenting on or reviewing a product (68 per cent) and showing something new (60 per cent). In a survey of US Consumer Packaged Goods (CPG) companies last year, 95 per cent agreed that "bad" packaging (defined as a package that's hard to open, unattractive, or results in damage including breaks or leaks) can have a negative impact on an online customer experience. Moreover, 71 per cent said it can ruin an otherwise positive online purchase experience. However, 97 per cent agreed that a "good" packaging experience can have a positive impact, with 70 per cent saying it can even create a memorable experience. Once high-tech supply chains and logistics make super-fast deliveries the norm, packaging will be a priority for marketers to enhance the customer experience. This includes smart packaging, with features that enable digital purchase and enhanced consumer experience. We see four key trends shaping online grocery in the future. Convenience, which is driving demand in all geographies; Sustainability, as environmental issues become ever more important; Technology & Performance, with both supply chains and the consumer experience being transformed; and Personal & Unique, as marketers look for new ways to attract consumers online and build lasting relationships. When it comes to convenience, space-efficient packaging is expected to be a basic requirement by 2025 and convenient "frustration-free" (easy-to-open) packaging will become key. Personalized packaging, including customization of products and personalization in the consumer journey and delivery are expected to be key differentiators going forward. And both result in a unique unboxing experience. Customers will also be increasingly swayed by eco-friendly packaging. Now, more than ever before, consumers want packages that are sustainable in nature, reduce the carbon footprint, and are recyclable. This is primarily due to growing public concern on plastic waste and other sustainability issues. Looking ahead, brands must understand that smart packaging creates new opportunities for consumer interactions. The package is the gateway to a customer engagement program, whether through a competition, a loyalty token or any other means of creating a one-to-one channel with individual consumers.
