competition in the grocery sector is increasing daybyday. as a result, it has become more crucial for manufacturers and retailers then before to ensure that their packaging is standing out on the shelves and addressing a vast array of key issues. this can range from the impact of functionality and design of packaging on shelves and cost. packaging firms explain that what is driving innovations in the sector and the challenges and trends that are emerging. charlotta lyon is tetra pak&39s director for global environment and customer relations. charlotta lyon said that the innovation trends, which they are seeing, are combining consumers&rsquo needs with convenience and consumer demands with the sustainability. from the innovation point of view, it is a need and challenge, as well. lyon gave an example of using alternative materials like omitting traditional plastic and using biobased plastic. according to lyon, it is also about functionality. packaging is about new and clever innovations, in which a manufacturer or retailer can facilitate and engage consumers. this innovation must maintain the functionality as well as drive the sustainability performance. lyon believes in driving the envelope on the sustainable packaging. lyon explained that innovation is an ongoing process that they will never be finished. according to lyon, they need to keep a focus on providing innovative packaging at competitive pricing. this is the reason that they are doing an ample of research to understand the important things for retailers and customers in order to fulfill their demands with innovative ideas. lyon explained that in order to maintain their top position, it is important for them to understand the changing needs of retailers and customers. this is also import for staying relevant for their customers in coming years. lyon mentions that, across the packaging industry, they are seeing renewability coming in as a truly big trend. for a long time, paperboards have been used. however, in 2011, they started to use pilot biobased plastic for their caps. they also see evolution there and in new sources of biobased materials. forestry stewardship council certification ensures that the company has achieved sourcing is another big trend. bob houghton is marketing manager at chesapeake. houghton mentioned that as far as food packaging innovation is concerned, generally, it is about becoming more price conscious than previous one. though this sector also looks for innovations, but it must not cost much, and at the same time, must add many advantages to the packaging. in this industry, there is a desire to use foil blocking on puddings and gu desserts. manufacturers are trying to premiumise their products as their price points are a bit high. so there has been a force to do that. they have had a couple of customers that have said that they loved the new packaging, but they don&39t want to be the first one to bring it to the market. according to houghton, this is an unusual approach because companies generally tend to be the first one to introduce new things in the market. however, in these cases, customers prefer to stay back and wait until someone else comes up with such kind of thing. houghton explained that generally, it&rsquos the manufacturers who are driving the innovation and not customers. this is because they want to make a point of differentiation on the shelf. situation is becoming more and more competitive. so, it is for making their product stand out from other products by appearing more different or tactile than others. some of the environmental considerations, such as overlarge easter egg packaging and use of plastics are pushed by customers. it was a clear push from customers, which resulted in a change. houghton mentioned that they could have done this progress a long time ago with one of their big customers. however, if their customer were the only one, who go to the market with a small sized easter egg packaging, obviously their pack size was not going to sell. as a result, they collectively said to chesapeake that their customers are demanding the change in packaging. most of them wanted to forbid the plastic casing. some of those manufacturers, which have a gbp10 price point, want to ensure their pack reflects that price point. packaging styles in the emerging markets are similar, and cadbury has now shifted a lot of their production to poland and chesapeake is supporting them there from their facility in poland. houghton mentioned that as per his knowledge, terry&39s is also now made in poland. it shows that a lot of products are produced overseas and brought back to the uk. like the mars inc celebrations box, some companies have strived to create new shapes. celebrations box shows the competitiveness of the food environment. according to houghton, customer is faced with a lot of products on the shelf. so, manufacturers need to make their product stand out. heros has formerly always been sold in a tin. chesapeake created a box, which would contain the chocolates. however, this packaging was not accepted by customers who preferred a tin over a box, despite the fact that a box was more eco friendly than a tin. a tin still has that perceived value. sometimes a customer can still overlook an environmental benefit. hence, cadbury roses are again being sold in a tin. nikki clark is marketing manager at benson group. clark mentioned that, in the last few years, the focus is more on protecting the product that is inside. benson group heard a lot of about food wastage through the news. so, they are searching different measures to protect the food. however, at the same time, customers don&rsquot want to compromise the aesthetics. thus, it is important to have enough packaging that can get a core branding. however, clark raises the question that how can it then be transform into something or be reused at the end of its life. within those areas, benson group is seeing a bit of a shift npdwise. benson group seeing a move from the more nostalgia work they have seen in the past and now they are going into a more modern sleek look that is quite exciting, especially in the premium work. m&s is a good case study within their bakery aisle and cakes. quite muted tones, and using the reverse side of the board to give a more textural homemade look. for the last two to three years, that has been a good trend and now they are moving more away from that. according to clark, textures is still important, but incorporating that with embossing, spot gloss, foil blocking, textural features, to add an aspect of bling without too much. source of information httpwww.justfood.commanagementbriefingpackagingthetrendsbehindinnovationid1…