Receptivity to Consumer Trends – Such As Aging Population, Busy Lifestyles, and Demographic Changes – Is Key to Capitalizing on the Opportunities in the German Packaging Market

Friday 30 August 2013, Amsterdam

The German packaging industry is set for moderate growth between 2012 and 2017 – according to this new report: Latest Trends and Key Issues in the German Retail Packaging Market – which forecasts the number of packs to increase at a CAGR of 1.05%. Central to the industry will be the continuing importance of cost to consumers, the emergence of new notable demographic groups, the ever-increasing consciousness of health and wellness to consumers, the growth of e-commerce, and shifting brand loyalties. These are expected to drive the demand for new packaging, in different sizes and materials, and proper understanding of these consumer drivers is key to capitalizing on opportunities in the German packaging market.

CONSUMER DRIVERS
Packaging manufacturers need to keep abreast of emerging consumer packaging goods trends, as they will often drive changes in packaging marketing and technical needs. Understanding consumer trends is more important than ever, as the speed and magnitude of changes in consumer behavior are amplified by rapid advances in communication technology, not to mention the current financial restraints of the European economy.

Aging Population
Germany is witnessing a demographic change that wills significantly change consumption patterns in the future. This change is primarily attributed to the aging population, which according to Destatis (the official German Federal Statistics Office) saw people aged 60 and over make up for more than 25% of the population in 2011. This has resulted primarily from lower birth rates and high life expectancy: as of 2011, life expectancy for new born males is 77.9 years, whilst for females it is 82.9.

The aging German population presents a unique opportunity for the packaging sector, with older consumers preferring convenience, ease in handling, and clear, visible labeling for ease of purchasing decisions. Consequently, packaging and product manufacturers must seek to adapt packaging to accommodate these needs, such as through the development of smaller, easy-to-open, easy-to-grip, easy-to-read packaging with a longer shelf life.

Changing Household Patterns
In 2011, 74.7% of German households were single and dual person households; this is a further consequence of the lower birth rates and aging population. Small households often go hand-in-hand with small houses, and so these households tend to prefer buying smaller packs as a result of space constraints. They are, however, expected to have a higher disposable income.

The development and appropriate marketing of packaging that will meet the needs of these smaller households – such as through value-for-money multipacks or re-sealable features – will be key to capitalizing on the German packaging market over the next five years.

Busy Lifestyles
As with other developed countries, the working population in Germany has a busy lifestyle, with an average working week of 40.6 hours – compared to the European average of 39.6. This has driven Germans to eating breakfast on-the-go, irregular meal timings, and more snacking. Consumers will increasingly need packaging and products that suit these needs, and the packaging industry must respond by offering smaller, handheld, and re-closable pack formats that facilitate on-the-go consumption.

Working Women
According to Eurostat – a tripartite European Union agency – working women constitute 67.7% of the total German female population – a relatively high figure compared to other European countries. Consequently, women will have less time for other household activities such as cooking, thereby driving a need for more ready-to-eat and ready-to-cook products; as such, packaging formats such as portion-control packaging and functional packaging formats such as microwavable flexible packaging are expected to see an increase in demand.  

Ethnic Composition
The Turkish population is a major immigrant group in Germany, which in 2011 numbered 2.95 million. People with a Turkish background tend to exhibit different buying behaviors, react differently to new trends, and are often drawn to the specialist Turkish retails that have been established in all of Germany’s bigger cities. An increasing share of the Turkish population will bring in new customer demands, such as the need for multi-lingual labeling.

The report is a result of an extensive research covering latest trends and key issues in the German Retail Packaging Market.

It offers:

•A comprehensive analysis of the emerging trends and opportunities in Germany’s packaging market.
•An overview of key manufacturing and innovation trends in Germany’s packaging industry. .
•Analysis of the findings survey of key Retail packaging industry experts, carried out in 2013, providing a forecast as to where the industry is heading.
•An overview of the competitive landscape of German packaging sector with an analysis of the key market leaders including a snap shot of major deals.


This will facilitate:

•Clear identification of promising areas for future growth, both in terms of innovative products and lucrative geographies.
•Proper understanding of shifting market dynamics to ensure maximum sales.
•An insight into the complex picture of consumption’s variation between product categories.
•Explicit understanding of the relationship between key drivers of consumer demand in the retail packaging market.