Introduction
The global packaging industry is estimated to be $424 billion, with anticipated growth that will reach $975.6 billion in 2018, making industry issues not only important to the alcoholic beverage industries, but with globalization on the rise, the issues will affect most industries. The indispensable necessity to have packaging is the reason why the packaging industry is looking at significant growth in the coming years.
It will not only become more important to get the right type of packaging for the right type of product to the consumer, but companies are finding the need to have package differentiation as consumer markets are becoming more diverse. This will mean more types of packaging for the same product and no longer will packaging be something that can be skimped on cost. Package differentiation also proves the need for creative new package designs leading to innovative production needs. A more important issue for any industry in this century is in helping to reduce global warming and climate change. With the packaging industry’s large output, comes a very high level of waste material.
Combined with the fact that most package materials are non-renewable resources, a push for change is making sustainable packaging one of the top issues affecting the packaging industry. This is also a growing concern for the whisky industry, as a lot of the secondary packaging used today is unsustainable and is starting to reflect negatively on the industry. Measures are being taken with the Sustainable Packaging Coalition being created in 2005. They have defined sustainable packaging with a broad spectrum consisting of the use of renewable energy, material and water, and creating a system that is optimized for the lower use of said resources and is technically and economically viable. This includes using more renewable resources such as paper and wood, minimizing the material used, and reducing energy consumption.
Current Trends in Whisky Packaging Box Manufacturing
One of the recent trends in whisky packaging box industry is the move from solid wood construction to fluted cartons. Where once upon a time the majority of whisky box production would have been made from sustainably sourced wood, industry experience has shown that the primary function of a whisky box is to display the whisky bottles on a shelf, therefore a cheaper and lighter alternative makes far more sense in today’s market. This logic has led to almost all new product development projects opting for the lighter weight fluted carton solution.
This method is also more eco-friendly as it makes use of recycled card and is completely biodegradable. Another reason many brand owners prefer to move to fluted packaging is the fact it takes up less volume than a rigid box, and this has obvious benefits in regards transportation and storage costs. From a primary packaging perspective, a move from glass to plastic bottles has also led to a reduction in price with correlation to packaging changes. A plastic bottle is highly durable and lightweight. Due to the long product life of whisky, plastic is a suitable alternative to glass. As the vast majority of glass bottle production was moved offshore many years ago, the incidence of being left with high MOQ custom bottle orders and long lead times is quite common. A simple move from glass to PET can often save a brand owner from ordering a large quantity of bottles that may take 2 years to use and over a year to procure.
An example of this would be the Bruichladdich whisky range, a brand that has moved nearly entirely to PET bottles and carton multipacks. Step inside most Scottish distilleries and you will see warehousing filled to the brim with maturing whisky and large stacks of palletized packaging. Due to the high profit margins in the whisky industry, it is common practice for brand owners to order large quantities in both packaging and whisky. This has left some companies in unfavorable positions in regards cash flow and old stock. In recent years there has been a move towards Just in Time (JIT) procurement, both for primary packaging and packaging embellishment. This method does require a far more accurate sales forecast, however the benefits are less money tied up in stock and subsequently less risk. With the advancement of modern digital printing and the repeatability of certain embellishment processes there is also an increasing trend of only ordering the quantity required for an upcoming bottling run.
Predictions for the Future of Whisky Packaging Box Manufacturing
Thirdly, due to the need for more eco-friendly methods in the boxing manufacturing industry, this is a current issue that is affecting all consumer industries from car manufacturing to food production, and whiskies will not be exempt. This will tie into the change of materials mentioned previously. Products and production methods that are currently used are considered harmful to the environment and too costly to actually change. But as cheaper materials and production methods are being looked at, eco-friendly choices will be more attainable and sought after by manufacturers to match today’s conceptions and legislations of environmental conservation. Again, this will only happen if there are global changes in the packaging industry and consumer ideologies.
Secondly, the cardboard that is currently being used will see substitutions to more cost-effective and practical materials. This may be in the form of a different type of cardboard, a thinner wood to reduce costs, or if there are major movements in the industry, there will be a complete change of materials. The reason behind this is that the current materials used for whisky packaging boxes are meant to give off an expensive and high-quality aura to the consumer to match the whisky being sold. However, in a market that is ever-changing and a world economy that is hurting, there will be great pressure in the industry to cut costs, and the materials currently used are not a necessity for the whiskies being packaged. A more extreme movement to different packaging materials would only occur, however, if there was a change in the current mindset and tradition of whisky consumption and its packaging.
First off, there is likely going to be an increase in web offset printing once production of boxes becomes great enough. This is a higher quality and more cost-effective alternative to the current method, which is Litho-Lamination. Litho Lamination produces high-quality print, but the process on the whole is slower and has higher production costs (it can cost up to £2,000 for a printing plate), so web offset printing is the next logical step for the industry to take.
The rise in global whisky consumption has led to a subsequent spike in whisky packaging boxes and cases. With the continuous increase of whisky consumption, it is only right to assume that the industry will undergo a lot of change and innovation to keep up with the demands for the spirit and its storage/transportation. Below, we list a few predictions which will likely manifest themselves within the industry in our crystal ball-gazing innovative predictions for the future of whisky boxing.
Innovations in Whisky Packaging Box Design and Materials
While plastic formed packaging has become more popular for premium spirits of late, malt whisky has traditionally been packaged in a high-quality cardboard or paper over board box due to the premium image of the product. In an effort to provide an environmentally friendly option for customers looking for premium plastic packaging, Close to Home Packaging has also developed a thin gauge thermoformed plastic tray which fits securely in a standard cardboard whisky box. This allows customers to package their product using minimal plastic while still giving the high-quality image and protection offered by plastic formed packaging and has garnered significant interest from customers of major whisky brands.
Experts at Close to Home Packaging have noticed a growing trend in the importance of gifting in Eastern markets, and with this, a call for packaging innovation which is of high quality and also environmentally friendly. This has prompted the development of a gift tin which, while mimicking the look and feel of traditional pewter, is actually made entirely of environmentally friendly tin plate. This product was a finalist in the UK Cans of the Year awards and is now available for a variety of applications; it is an excellent compromise between luxury tin and standard cardboard gift packs.
Once a company’s branding and label have enticed consumers to pick up a bottle of whisky, the next step is to lead them to purchase. While box packaging offers an additional expense to bottling whisky alone, it is often a key factor in convincing consumers that the product is premium. This is especially true in markets such as China and Japan, where the practice of presenting gifts in social and business scenarios make premium packaging quite important. In many cases, leading malt whisky companies have catered to this by providing unique packaging options to accompany their various expressions.
Conclusion
The long term vision which Federal and State legislators are striving towards is one of harmonisation of packaging laws throughout Australia. This involves the standardisation of packaging recovery, recycling and reuse systems, and will culminate in the development of more sustainable packaging options across the board. This too bodes well for the whisky packaging industry, as it will drive continued product innovation in the pursuit of more sustainable packaging format options.
At the end of the day, reducing the impacts of packaging on the environment is a challenge which is neither industry nor consumer specific, but one which will require team effort from both parties involved. This in turn will help to influence consumer purchasing choices, who may seek to purchase products with high environmental performance as a result of legislative options for extended product stewardship. Essentially, such changes to the legislative environment will move the industry towards a new sustainable packaging paradigm, whereby environmentally friendly approach to packaging will no longer be niche market, but the norm. With such increased demand for sustainable packaging formats, it is expected alternative format options in the whisky industry such as flexible and rigid plastic will push towards sustainable plastic formats, such as bio-plastics.
Never in the history of whisky packaging box manufacturing has there been a time of such radical change in packaging format. Forces from within the industry and beyond are leading to a future where both tech-savvy consumers and manufacturers will benefit. In the short term, initiatives by industry leaders will help drive environmental policy throughout the globe. Legislative measures, coupled with proactive steps on behalf of the industry, will help to provide the consumer with economical and easily retrievable options for disposal of packaging waste. The short term reality of glass bottle weight reduction and increased use of PCR materials for primary packaging will gradually transition to an environment where consumers expect greater sustainable options for all packaging.
