Building a CPG Brand That Stands Out: The New Rules of Packaging & Positioning

Want your CPG brand to grab attention and win customers? Here's what you need to know: Packaging isn't just about looks - it’s your first chance to connect with buyers. With 72% of consumers influenced by packaging design and 81% trying new products based on packaging alone, getting it right is critical.

Key Takeaways:

• Trends to Watch: Eco-friendly materials, easy-to-open designs, and digital features like QR codes and AR.
• Design Essentials: Use color, typography, and materials to reflect your brand story and values.
• Testing Matters: Eye-tracking tests and consumer surveys ensure your packaging performs on shelves.
• Stand Out: Highlight clear product benefits, use unique shapes, and add interactive elements.

Packaging isn't just a wrapper - it's how your brand speaks to the world. Let's dive into how you can make it work for your business.

6 Point Packaging Design Checklist for Getting Into The US ...

Current CPG Packaging Trends

CPG packaging now serves multiple purposes: protecting products, engaging consumers, and showcasing brand values like sustainability.

Consumer Behavior Changes

Consumers continue to prioritize taste and affordability. According to research, 81% of grocery shoppers value taste, while only 14% focus on sustainability. This shows that sustainability is no longer a standout feature - it’s simply expected.

"Consumers see sustainable buying as beneficial for both themselves and the planet." – Rebecca Casey, Senior Vice President, Sales, Strategy, and Marketing, TC Transcontinental Packaging

Shoppers are looking for packaging that is:

• Easy to open
• Designed for single doses
• Travel-friendly in size
• Resealable for convenience

Inclusive designs are also gaining importance, incorporating tactile elements and Braille to improve accessibility. Additionally, packaging that clearly communicates product benefits, such as health-related information, is especially valued by older consumers.

At the same time, advancements in sustainable materials are transforming packaging approaches.

Eco-Friendly Materials and Methods

Sustainable packaging has become a top priority for many shoppers, ranking second in importance after taste, even surpassing concerns like animal welfare and organic certification. Here are some key material trends:

These approaches not only reduce environmental impact but also align with consumer expectations for greener products.

Digital Features in Packaging

Technology is adding a new layer to packaging, enhancing how consumers interact with products. For example, in January 2024, Croatian wine brand Enosophia introduced interactive labels that play music when scanned.

Some of the key digital features include:

• QR codes for accessing exclusive content and discounts
• NFC tags for verifying product authenticity
• AR features that deliver virtual experiences
• Data-enabled packaging to track engagement metrics

These innovations help brands:

• Share detailed information about product origins and ingredients
• Provide clear recycling instructions
• Enable direct purchasing options
• Protect against counterfeit products
• Offer engaging, interactive storytelling

Packaging Design and Brand Message

Modern packaging design connects practical materials with the story your brand wants to tell. It's not just about wrapping a product - it's about creating an experience that resonates with customers.

Design Elements That Reflect Your Brand

Your packaging should reflect your brand's identity and stand out on the shelf. Every design choice, from colors to materials, should align with your values.

Take color selection, for example. B.T.R. Bar uses a smart color-coding system for its product line. Each product has a unique color and pattern to highlight specific benefits, while maintaining a clean, modern, and unified brand image.

Packaging as a Storytelling Tool

Packaging isn’t just about looking good - it’s a way to tell your brand’s story. As Foodbevy explains, "It's a crucial part of your brand's story and a direct communicator to your consumers".

Here’s how packaging can tell your story:

• Highlight what makes your product unique
• Be transparent about ingredient sourcing
• Design with a flow that guides customers through your brand’s message

"Good packaging is essential for any business. It's the entry point for your customers... they give you EXCEPTIONAL packaging that represents you and your business perfectly!" - Ashley Marie, Founder & Chief Snack Officer, B.T.R. Bar

Maintaining Consistency in Design

Consistency is key to building a recognizable brand. SmashBrand emphasizes, "Consistency across product lines transforms individual products into a seamless, cohesive brand experience".

To keep your design consistent:

• Develop a clear brand style guide
• Use the same design elements across all products
• Align packaging with your online presence
• Balance new ideas with familiar branding

When launching new products, stick to your core design elements while adapting for specific categories or audiences. This approach strengthens brand recognition while meeting the unique needs of each product.

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Standing Out in the CPG Market

In today’s packed retail landscape, securing shelf space requires smart planning and bold moves.

Market Gap Analysis

"A market gap represents an unmet need or underserved demand in the market - a golden opportunity for businesses ready to innovate"

How do you identify these gaps?

• Research Your Category

  "Understanding your category will help you find white space and opportunities. Knowing your customers at a deeper level will help you craft your message and discover the best time and place to connect with them"

• Calculate Share Gaps
  Use tools like NIQ to measure the difference between your current and target market shares.

By identifying these gaps, you can better position your product and communicate its benefits effectively.

Clear Product Benefits

Once you’ve identified market opportunities, it’s crucial to clearly communicate what makes your product stand out. Research shows that 94% of consumers are more likely to stay loyal to brands with clear and transparent labeling.

• Front Panel Focus: Make your strongest selling point the centerpiece of your packaging.
• Visual Proof: Use images to show, not just tell, why your product is better.

Shelf Presence Techniques

After defining your product’s benefits, focus on making it unmissable on the shelf. A strong shelf presence can make or break consumer decisions. Here’s how to stand out:

• Shape and Silhouette
  Breaking away from typical packaging shapes can grab attention. For instance, Boxed Water Is Better uses sleek, minimalist cartons to stand out from plastic bottles.
• Interactive Elements
  Adding interactive features can engage buyers. Enosophia wine’s 2024 labels, for example, include scannable patterns that play music designed to enhance the wine’s taste.
• Visual Impact
  Striking designs can turn packaging into art. PepsiCo LIFEWTR uses rotating artist designs to transform bottles into collectible pieces while staying true to their brand.

With 72% of American consumers basing purchase decisions on packaging design, getting your shelf presence right isn’t just important - it’s essential to being noticed in a crowded market.

Testing Package Performance

After refining your design and messaging, the next step is to test whether your packaging connects with consumers. Testing is crucial - 79% of consumers expect brands to show they care before making a purchase.

Package Success Metrics

Effective packaging hinges on three main performance areas:

To measure success, track both quantitative data (like sales and market share) and qualitative feedback (such as consumer opinions and brand perception).

Design Testing Methods

Before launching, test your packaging to ensure it performs well in real-world settings.

• Physical Store Testing

  "Undoubtedly, the most productive packaging tests are performed in a product's natural usage environment." – Michael Keplinger, SmashBrand

  Simulate retail environments to observe genuine consumer behavior. Eye-tracking tools can create heatmaps to show where shoppers focus their attention.
• Virtual Testing Solutions Digital storefronts allow you to compare products side by side. This method provides quick feedback, helping you fine-tune designs efficiently.

Both approaches offer early insights, which can be further analyzed through detailed consumer feedback.

Customer Feedback Analysis

Gathering consumer insights is essential for refining your packaging. Brands use a mix of approaches to collect actionable feedback:

1. Quantitative Screening

   "Designalytics' Versus and 360 methodologies let us get a large set of respondents within a matter of days and clear indicators on how to evolve the design work. We love data we can actually use diagnostically while we're in an exploratory mode. Data too late is just not helpful. I'm a huge believer in Designalytics methodologies and in-market correlation." – Amy Brusselback, Founder & Principal, Design B&B

2. Qualitative Assessment

   "The feedback we got using Designalytics' tools was instrumental to us in making decisions that were rooted in consumer responses. It took the 'guessing game' out of our process." – Joe Arnold, Creative Director, Purity Products

3. Iterative Refinement

   "Our work is at its best when it speaks to consumers, and Versus has given us an unparalleled platform to understand what real consumers think early in the design process. It gives us reliable data points to further our creativity and create work clients have confidence in." – Fred Hart, Partner, Interact Brands

Use tools like Designalytics' 360 design testing to evaluate how well your packaging grabs attention, conveys your message, and drives purchases. Collect insights that directly inform design improvements, eliminating guesswork and ensuring consumer alignment.

Conclusion

Creating standout CPG packaging requires a mix of smart design, understanding consumer behavior, and using data to guide decisions. Packaging is often the first interaction a customer has with your brand, making it a critical moment to leave a strong impression.

Modern packaging goes beyond just looking good. It needs to connect with consumers on a deeper level. Tools powered by AI have changed the game, helping brands better understand and respond to what their customers want. A great example is Amazon's PackOpt tool, which has managed to save around 60,000 tons of cardboard every year through smarter choices.

Here are three key principles for effective CPG packaging:

1. Design with Purpose: Packaging should tell your brand's story while staying consistent across products. A survey found that 55% of consumers are willing to pay more for a product if it guarantees a good experience. This highlights the importance of design that communicates value.
2. Use Technology: Digital tools like QR codes can add depth to your brand's story. For instance, The Co-op's collaboration with Polytag shows how tech-driven labeling can improve transparency and build trust with customers.
3. Measure and Improve: Use AI tools and consumer feedback to refine your packaging strategy. As Jen Gaeto from Equator US puts it, "Let AI handle the heavy lifting on large datasets while humans act on its insights".

Consistency across all touchpoints builds trust and recognition. Research shows that a cohesive brand experience makes customers feel more comfortable with your products, encouraging long-term loyalty. By combining thoughtful design, smart technology, and data-driven improvements, your packaging can do more than just stand out - it can create lasting connections with your audience.

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