Inflation reshapes dairy packaging with smaller packs & value formats – SIG reports

GLOBAL – Rising inflation and cost-of-living pressures are pushing consumers to prioritise price and value in dairy packaging, according to Julia Trebels, Global Category and Consumer Insights Manager at SIG. 

She noted that consumers are prioritizing price and value in dairy, driving growth in private label products, trading down to lower-priced brands, and increased demand for smaller pack sizes or value formats, while still expecting quality, innovation, and sustainability.

Alongside cost-friendly solutions, she highlights other trends shaping the dairy packaging landscape: flexibility, protection, and premiumization. 

Trebels explained that growing consumer sustainability concerns are prompting the use of “even more” sustainable packaging materials and transparent labeling in dairy packaging. 

Last year, SIG removed the aluminum layer from its aseptic cartons to reduce its environmental impact and create a regenerative food packaging system. SIG’s Terra Alu-free + Full barrier packaging material is made from more than 80% paper, excluding the closure.

Trebels explains that packaging also needs to adapt to new consumption habits. “This involves catering to on-the-go lifestyles with portion-controlled packaging, sustainable single-serve formats, and designs that target health-conscious consumers.”

Smaller, portable packaging, especially in liquid formats, is increasingly popular and influenced by health trends, such as GLP-1 weight loss medications.

Additionally, packaging needs to improve and secure food quality even further. This drives packaging solutions that perfectly preserve product quality and safety and extend shelf life. 

Recently, SIG partnered with Oobli to bring the US-based sweet protein drink company’s product to market, utilizing SIG’s advanced aseptic filling technology for long shelf life at ambient temperatures and its diverse packaging formats. 

Flexibility for longevity

Against the backdrop of sustainability, product protection, and consumer convenience, Trebels outlined that dairy packaging needs to be able to adapt to shifting consumer demands and an increasingly stringent regulatory environment. 

She argues that dairy packaging needs to be agile, especially as dairy recipes, such as high-protein or easily digestible products, can frequently change. 

“This boosts the introduction of packaging solutions that are adaptable to changing regulations and consumer demands and easily enable new volumes and formats for new channels or categories, as well as new recipes.” 

“One of the most important parameters future-proof dairy packaging systems have to provide is flexibility to enable dairy product diversification and sustainable packaging innovations. All combined with core characteristics of packaging: maintaining high product quality and safety.”

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