Effective Packaging Management for Consumer Packaged Goods

Consumer Packaged Goods (CPG) are constantly growing, evolving, and shifting to consumer demands. Whether it’s advancements to the product itself, changes to the packaging to make it more sustainable, or simply just changes to the branding of the product to fit a certain target market or customer profile, CPGs are ever-changing. 

Consumer packaged goods, typically known as CPGs, are products that customers use frequently and tend to replenish or replace. A large sector for CPGs is the food and beverage industry, but others include cleaning goods, beauty products, and other household products .

What is CPG Packaging?

When it comes to CPGs, packaging is vital to the product. For example, in the food and beverage industry, the package not only is used to contain the product but also keeps it fresh for the consumer. In the beauty industry, the packaging is often part of the product itself. Some things to consider when engineering CPG packaging are how the package can be functional without too large of an environmental impact, FDA requirements or other regulations, how the product will live on the shelf long term, and the brand identity of the product. 

The CPG Packaging Design Process

While we understand that packaging design can be complex with many steps to keep track of. Here is a sample roadmap to be followed when tackling CPG packaging design for consumer products.

1. Research and Discovery
   1. Your ultimate goal when it comes to packaging is to make a consumer want to purchase your product, and then later repurchase it. In order to do this, it is crucial to ask questions such as: Who is your target audience? What specific packaging needs do you have, such as expirations, environmental controls, etc.? How will your product reach your customer, whether it be through online or brick and mortar sales? How are your competitors designing their packaging? How can your packaging be more sustainable and what products does it take to achieve this?
      
      Research and discovery is not a step to take lightly, as it is the foundation to your product.
      
      
2. Brainstorming and Ideation
   1. The brainstorming and ideation phase is where your big ideas can shine. However, it is important to be tactical as you consider how your user will be interacting with the colors, materials, imagery, and story that your packaging conveys. Collaborative brainstorming is key at this stage.

3. Idea Development
   1. Once you have a strong grasp of the direction your team will move forward with, it is time to iterate on the idea. This is where those big ideas can start becoming a reality. While there is still a considerable amount of ideation, sketching, and digital and structural design going on, the ultimate goal of this step is to get closer to having a functional yet unique package design.
      
      
4. Design Executions
   1. Now that you’ve honed in on an idea, it is time to execute. This stage is a mix of digital work and some simple mockups to get an idea of what the design will look like and how it will function. Iteration is key, as there will be countless reviews and ideas tossed out about how to improve the package before it can be prototyped. Your team may try out different flute sizes, test various types of recycled materials, and look into molds at this stage.
      
      
5. Prototyping: From Screen to Reality
   1. Prototyping is an exciting step of the packaging design process. Seeing your design come to life is a rewarding step that can give you an added sense of motivation when working on a large project.
      
      With a prototype, it is crucial to examine the functionality of the product such as the sealing mechanisms and ease of use, verify that the color, typography, and brand identity is clear and not misplaced, and make sure the package performs its basic functions properly.
      
      
6. Testing the Concept with Consumers
   1. User testing is a make it or break it stage. No matter how impressive the design, what the message conveys, or even how sustainable the packaging is, the product must do well when placed on a shelf and actually used by a customer. If a product shocks a customer or disrupts them enough to turn them away, the package ultimately was not successful. Packaging designs that prioritize ease of handling, storage, and use for consumers, typically enhance the overall user experience.
      
      By collecting data from users, such as their impressions of the product, the ease of use, visual appeal, and their brand association with it, you can have a clear direction of what to improve upon.
      
      
7. Finalization – Refinement and Preparations
   1. Once you’ve collected user testing data and have noted the changes that need to be made, you can tweak your product into its final state. Specright’s spec compare and version control features are great tools for this stage, as you can easily compare differences between iterations of your packaging specifications.
      
      
8.  Production and Printing
   1. After the package design is finalized and you feel confident about your design decisions, it is time to be in touch with your suppliers and manufacturers. You most likely would have already been working closely with these partners. However, if your company is looking to find a new supplier network, Specright Network has an expansive database of suppliers that brands can work with to make their masterpiece come to life.
      
      
9. Launch and Monitor
   1. Once a product is launched, it is necessary to keep monitoring it. Regardless of the testing that was conducted, that data is from a small batch test. Products can often perform completely differently once they hit the shelves. Consumer’s true feelings towards the product start to come out, people’s opinions (both positive and negative) spread all over the internet, and marketing campaigns start kicking in to influence purchasing decisions.
      
      
10. Iteration and Evolution
    1. While it can be a double-edged sword, a CPG product’s journey is never finished. There will always be changing packaging trends, new regulations, and evolving consumer demands. A product can always be cost-optimized or reimagined in order to further satisfy both the consumer preference and the brand. 

Key Considerations for CPG Packaging Designs

Understanding the Retail Store Location

It is very important to understand the distance your product must travel and the setting that your product will live in. If your product falls within the food industry, shipping in a stable condition is an important factor. The packaging designer must think about how the environment the package is in will affect it. A product in a freezer will need different packaging than a wine bottle on a shelf. Fast and affordable shipping of packaged consumer goods to locations near and far is crucial to a product’s success. 

Once your product reaches its shelf, it must be appealing to the customer. An item that is sold at an accessible chain such as Target or Walmart would fit in differently there than at a specialty boutique grocery store. Grocery stores craft their brand image as well, so the packaging may play into this role.

Shelf Presence

Shelf placement is coveted when it comes to consumer packaged goods. Knowing ahead of time where your product will sit can dramatically affect the design of your product.

Top Shelf Placement

When a product sits on the top shelf, customers will need to tilt their necks to look up at your product. Though people’s eyes normally start scanning at their own eye level, a top shelf placement can be taken advantage of. If a dynamic or bright element to the packaging catches their eye, it’ll drag their attention upwards. Just be sure to place all crucial information towards the bottom of the product so they can scan it. Grabbing attention and then keeping it is vital.

Eye-Level Placement

Eye-level placement of shelf products has the most potential to be recognized. Most consumers are scanning the shelves for specific keywords, images, or brands. They want to get in and get out quickly. So, if your product is the first thing their eyes see and it meets their needs, you’re in good shape! At eye-level, a product’s packaging design has more opportunities to be fully viewed and consumed. 

Bottom of Shelf Placement

Bottom shelf placement requires more strategizing than other shelving spots. Many bottom of shelf products are there because that’s where they fit. Thus, the difference in size is dynamic enough to grab attention. If this is not the case, it is even more important to have a strong package design with clear messaging. Important information should be at the top of the product, allowing for this scannability. 

Compelling Product Messaging  

Regardless of where your product falls on shelves, compelling messaging is key. Communicating purchase drivers allow consumers to find brands that resonate with them in unique ways. That alone is more valuable than shelf placement, as it creates brand affinity and loyalty. Oftentimes the design, layout, color, and typography of a package is more compelling than the words alone.

The Consideration Phase

Once you’ve gotten past grabbing a consumer's attention, the reality is that there are multiple SKUs at any given moment for customers to choose from. Now, we enter the consideration phase. Customers start to interact with the product here, feeling the packaging material, visualizing it in their space, and evaluating how the product makes them feel.

Having clear, accessible, and unique selling points on the package can aid in this area. If a customer is drawn in by natural, sustainable imagery and they further see statistics about how that product gives back to the environment, they may be more likely to buy. On a simpler note, if a customer is comparing two items, such as two brands of pasta sauce, they may be looking at the nutritional facts. If one is clearer than the other, they will be more swayed towards that product.

Attracting Customer Attention

Whether your distribution channels are brick and mortar stores, ecommerce sites, or both, it is crucial to attract customer attention. Especially with new or more sustainable products, marketing is key to get your messaging across. This can be done through internal promotion, but also through careful use of social media. According to Dotcom Distribution, 40% of consumers are likely to share packaging images to their social media database if they are captivated by the design. This added attention does not come at any additional cost, and it gets your name out.

Not only do CPG companies want to attract attention, but they want a positive CPG brand perception. According to Nielsen, 64% of consumers are open to new products based on the packaging of the product. If consumers like what they see, they will be likely to buy. With an abundance of consumer products on the shelfs for consumers to look at, it is not enough to just be visually appealing, but products must captivate consumers with some positive emotion or association. 

Designing Consumer Goods Packaging for Sustainability 

Nowadays, consumers are more sustainability focused than ever before. According to Specright’s 2024 Sustainability Report, 71% of consumers are planning to make more sustainable purchasing decisions this year. This number is staggering. If your CPG company is not making sustainable packaging decisions, this is a huge untapped market. 

The Coca-Cola Company, one of the largest beverage companies in the world, has taken charge of this concept with their aim to reduce single use plastics in the environment. In 2018, they launched the “World Without Waste” program which aims to make 100% of their packaging recyclable globally by 2025 as well as use at least 50% recycled material in their packaging by 2030, collect and recycle a bottle or can for each unit sold by 2030​, and bring people together to support a​ healthy, debris-free environment.​ With their goals and progress easily accessible to the public, Coca-Cola is a great example of the power of sustainable packaging on the environment, as well as boosting customer morale towards the brand. 

Repeat Purchases

The ultimate goal of consumer packaged goods, other than landing the initial purchase, are repeat customers and purchases. This goes further than the aesthetics of the packaging. If the packaging functioned as expected and kept the product fresh, the customer is more likely to return. People are creatures of habit; they want to return to what is familiar. Pleasing packaging can solidify this bond and create brand loyalty.

Tips and Strategies for Effective CPG Packaging Designs

Telling Stories on the Packaging

As mentioned before, consumers who create an emotional connection towards a product tend to have a more distinguished perception of a brand and are more likely to repeatedly choose a product. One way to achieve this is through storytelling. Storytelling is achieved through a mix of visual and written elements that convey a brand’s message. 

Oatly, a popular oat milk brand, is a great example of this. While their packaging is disruptive  in their segment due to their playful fonts and illustrations, they also print information about their company such as their mission, vision, and ingredients on the side of the packaging. This form of storytelling provides customers with more information on the brand itself which makes them stand out amongst anonymous competitors.

Personalization

Another compelling tactic to create effective packaging is through personalization. When consumer products are tailored individually to a person, they are creating a relationship with that brand. Personalization helps customers feel as if they have some stake in the company. They value a product more because it is specifically for them, making them feel unique and listened to. 

A company that does a great job of this is Prose, a skincare and beauty company. Prose is uniquely tailored to each customer they serve. After customers take their quiz, they receive a formula specifically for their needs. The label attached to the bottle the customer receives includes fields such as the customer’s name, the main purpose of the product (i.e. brighten or cleanse), as well as the product number so each customer can repurchase the product. This method instills complete confidence in the product, as consumers believe this product will benefit them.

Limited Edition and Seasonal Packaging

Limited edition and seasonal packaging is effective in two main ways. First, the product creates an urgency to buy it, as the very nature of limited edition and seasonal means that the product will eventually be unavailable. Second, the packaging and branding are usually unique. It often references the original product but comes in an interesting shape, package, or flavor if it is a food product.

Reese’s Peanut Butter Cups are successful in this area, as they feature multiple product lines, such as Reese’s thins and Reese’s Pieces, and seasonal shapes, such as pumpkins for Halloween, trees for Christmas, and eggs for Easter. Recently, in support of Team USA in the 2024 Summer Olympic games, Reese’s launched an exclusive summer, medal-shaped peanut butter cup. Many consumers look forward to these unique treats and will stock up on certain shapes, driving business to the company. 

Minimalist and Sustainable Packaging

Many times, customers are more attracted to simple, minimalistic packaging that feels luxurious. Typically, these packages are easier to comprehend and understand the messaging. It is even better if this minimal approach is also sustainable. The less synthetic, non-recyclable materials, the better.

Apple is a leader in the minimalist packaging space, as their packaging is simple, white, and usually only features one image of the product and the product’s name. People know what they are getting out of the package, enjoy the user experience, and feel like they are receiving a piece of luxury.

Interactive Packaging and Gamification

For example, while many kids enjoy cereal for the taste, many cereals that are marketed towards kids come with some sort of engaging game or feature on the box. One memorable example is Kellogg’s use of Tony the Tiger on their Frosted Flakes packaging. This mascot makes the customer excited to pull out the box of cereal and see what games, actions, or limited edition designs Tony is sporting on the box that day.

Functional and Convenient Packaging

Above all else, packaging for consumer products must be functional and usable to the consumer. If your packaging is creating barriers for the consumer, this diminishes your brand reputation and decreases your brand’s chances of consumers repurchasing the items. People remember how they felt from an experience. A bad experience can damage a brand perception, even if the product is perfect. 

Packaging Management for Consumer Packaged Goods

Importance of Specification Management in Packaging

With all this in mind, it is crucial for brands to have a solid grasp on all of their CPG packaging data. There are too many components that go into packaging design to be working in siloed, ununified systems.

This is where the importance of specification management comes in. Having access and visibility to all of your packaging specifications is the best way to ensure a seamless workflow and production process. With specification management, every step of the process is accounted for, from new product development, to material selection, supplier data, task completion, artwork creation and labeling, and more. Specification management provides a crucial base that ensures success when starting a project. 

Using Specright for High-Touch Shipping and Manufacturing

A high-touch shipping and production model ensures the utmost quality throughout the entire manufacturing process. Specright fosters this model through risk assessment, supplier and brand collaboration, integrations with partners such as TOPS and 1World Sync that enhance global data consistency and optimize supply chain operations, and more.

Sustainable Packaging with Specright

With Specright’s initial roots being in packaging, Specright’s Specification Data Management platform not only manages CPG specifications, but also enhances packaging efficiency and sustainability. Customers can enforce sustainability requirements, get recommendations on material substitutions, and quickly report on raw material usage across products and packaging. Also, with partnerships like TOPS and ISTA PackSight that aid in supply chain visibility, palletization, and packaging tests, customers can ensure the safety of their products, leading to less waste and more security.

Managing Product Lifecycle – From Start to Finish

Part of Specright’s robust offerings is the fact that customers can manage their product from conception to finished goods. With the New Product Development module, the opportunities to streamline project management, create new records, compare versions of a product, build out BOMs, and predict costs to name a few. Specright can support every step of the way.

Ensuring Compliance with FDA Guidelines through Specright

A large concern that will only continue to grow is regulatory compliance. With several resources available through Specright, one key offering is Specright’s FDA Integration. Specright provides the ability to directly import compliance actions from the FDA database through our FDA Integration, encompassing warning letters, injunctions, and seizure actions. Paired with Specright’s reporting and analysis tools, users can gather valuable insights from their data along with being compliant.

How Specright Transforms Packaging Management

Centralized Specification Data

With Specright, all your CPG data is in one, accessible place. No more digging around spreadsheets or reaching out to one specific person for specification data that they “own”. This workstream model is transformative, revolutionizing the way your company does business. Digitize and standardize specifications, from raw materials, formulas, ingredients, packaging, products, and finished goods all in our one cloud-based platform.

Improved Collaboration Across Teams

Collaborating has never been easier than with Specright. From countless project management tools such as assigning collaborators to projects and tasks through the Chatter and User Matrix features, to simplified, easy communication with suppliers, your network of communication is more manageable. 

Enhanced Traceability and Compliance

We want to set you up for success at Specright. Thus, by providing features like version history that allow for tracking progress on a project and resources to track EPR and other regulatory compliance laws, your business can have peace of mind navigating the regulatory world. 

Reducing Time-to-Market

With all of these great features, workflows, templates, and integrations, one of the biggest value drivers of Specright is the reduced time-to-market. In today’s CPG industry, products are always being pushed out and trends come and go in a blink of an eye. To stay competitive, you not only need to be innovative, but you need to be fast. Specright can help you do both.

Conclusion

Packaging is not a straightforward, one-size-fits-all model. It takes immense consideration to create packaging solutions for a consumer packaged good. The design process, brand messaging, shelf placement, and sustainability are all factors that go into creating a well-rounded package.

Though trends in CPG packaging come and go, Specright can equip your brand to succeed in any space. If you’re interested in learning more about how you can utilize Specright, request a demo today.