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FLEXO® Magazine : Articles Online


Retort Packaging
Consumer Changes Create Growth

By Ken McQuillen

If there is one constant in life, it is that consumer behavior constantly changes. Two income households, an aging population, and a desire for convenience are just a few of the factors that are driving changes in consumer behavior today.

These changes create opportunities for improved packaging innovation-packaging with improved graphics for enhanced shelf appeal, packaging that is easy to open, and packaging that is re-closable. No wonder more and more products are opting for retortable pouches.

A retortable pouch is a multi-layered lamination structure designed to withstand extreme conditions, including cooking, freezing, dropping, and flexing. It can also be heated and sterilized, thereby providing for long term storage. To properly retort a pouch, temperatures can reach up to 275° F for up to 90 minutes. Many new pouches feature a clear, see-through lamination structure and, to provide added convenience, some new retort pouches feature re-closable zippers or spouts. Retorted pouches are often designed to remain stable for up to 60 months.

For many food products, retortable pouches have already replaced a metal can. Two prominent examples include tuna fish and moist pet food. These products are readily found today on store shelves in pouch form. Also found on store shelves in retortable packages are: seafood, precooked meats, rice, sauces, soups, stews, and many others.

Why Retortable Packaging?
There are a variety of reasons why a consumer, a consumer packaged goods company, or a converter would consider retort pouches as a packaging solution. The benefits to each are varied and differ from individual to individual.

The Consumer. For consumers, retort pouches hold several key benefits. First, consumers often report that food products packaged in a retortable pouch simply taste better than a similar food product packaged in a can.

Pouches can be stored on a pantry shelf (as opposed to the need to refrigerate), hold a longer shelf life, and require reduced storage space. Perhaps the most important benefit associated with retort pouches is convenience. Today's shoppers place great emphasis on meals that are quick to prepare and packaging that is easy to open and use.

The Brand Owner. For brand owners, or the consumer packaged goods company, to benefit from retorted pouches, it must either increase sales, lower costs, or satisfy a social need. All three of these benefits can be reached with retorted pouches.

Increased sales result from both the improved taste of retorted products and the more appealing packaging graphics. As a relatively new form of packaging, retort packaging may also help the brand owner build an image as an innovator in the industry.

Similarly, retort packaging can help a brand owner lower its costs. No refrigeration, a long shelf life, reduced shipping weight, less storage space, and reduced lead times can all lead to lower costs. Sustainability has become an important issue in today's world. Brand owners are looking for ways to develop and market products that are environmentally friendly. Retort packaging helps address this important need. Retort packaging has a lower shipping weight than metal cans and allows for more units to be shipped; therefore, potentially helping the environment by reducing the fuel consumed during transportation.

The Converter. Retort packaging offers benefits to converters from a totally different perspective. Retort packaging provides converters with the ability to expand revenue opportunities by adding this new packaging line. Pouches can also provide higher margins given the more complex nature of a retort package, and allow converters to enhance their position in the market over their competitors. A converter that offers retort pouches as a packaging option has an extra arrow in its quiver.

Foreign Competition. Some retort packaging solutions are imported into North America. While offshore firms may enjoy a competitive advantage in terms of labor costs, North American converters can counteract with shorter lead times, reduced shipping costs and the ability to print short runs at competitive price points. These advantages can offset the labor differential between the two regions.

Consider new product introductions, changes to existing products, and product promotions needed by a brand owner. Turnaround time can be critical in terms of these product changes and the opportunities within the market. To respond to these windows of opportunity, brand owners need to rely on a service-oriented North American supplier, not a foreign operation, that can provide quick turnaround times.

Strong Market Growth. There is positive news relative to market projections. Global projections from Allied Development Corp. show the number of retort pouches consumed globally grew from 5.7 billion in 2002 to 10.1 billion in 2006. The number of pouches projected by 2011 is 18.8 billion.

But what about growth in North America? The number of pouches consumed in North America is projected to grow from just under 1 billion in 2002 to nearly 5 billion in 2011.




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