TREND REPORT #1 & BILLERUDKORSNÄS CONSUMER PANEL™ TRENDS THAT SHAPE FUTURE BUSINESS PERSPECTIVES & WHAT DOES THE CONSUMER SAY?

Jon Haag

Director Consumer Insights

jon.haag@billerudkorsnas.com

BILLERUDKORSNÄS STRATEGY PLATFORM

BillerudKorsnäs Consumer Panel™ -2017 2

TREND REPORT #1 ONLY THE BEGINNING…

Trend report #1 Trend report #2

Megatrends

What is shaping the

world?

Future Business Perspectives

How does this impact

organizations?

Packaging Opportunities

Where can we find

opportunities?

MEGATRENDS IMPACT ALL ORGANISATIONS TRANSLATING INTO FUTURE BUSINESS PERSPECTIVES

Trend report #1 Trend report #2

Megatrends

What is shaping the

world?

Future Business Perspectives

How does this impact

organizations?

Packaging Opportunities

Where can we find

opportunities?

Urbanisation

Sustainability

in action

everywhere

Mobility

revolution

Digitalisation &

Connectivity

Transformation

of value chains

Beyond

demographics

Download at

www.billerudkorsnas.com

BillerudKorsnäs Consumer Panel™ -2017 5

#1 Problem-solving for mega cities

#2 Enable helpful brands to succeed

#3 Design for no humans

#4 Generate, share and profit from data

#5 Capture the real value

#6 Make it user-oriented for real

Future Business Perspectives

FIRST UNIQUE INSIGHTS ON PACKAGING SUSTAINABILITY IN MEGACITIES

BillerudKorsnäs Consumer Panel™ - Survey #1, 2017 Jon Haag, Director Consumer Insights

FIRST CONSUMER PANEL ON PACKAGING SUSTAINABILITY BILLERUDKORSNÄS CREATE NEW INDEX FOR PACKAGING SUSTAINABILITY

TO SHOW IF PACKAGING MAINLY IS PROBLEM-SOLVER OR PROBLEM-MAKER.

The Survey

Consumers were asked a range of questions

about their belief and aspiration in packaging as a

contributor to a sustainable development

Net Positive Attitude index (NPA) NPA = (% 2 most positive) – (% 2 most negative)

as percent of total responses

Example: NPA = (x1+x2)-(y1+y2)

Score above 30 considered good

8

Scores above 50 means packaging is mainly seen as

“a Hero”

x1 x2 y1 y2 Completely

agree

Completely

disagree

BillerudKorsnäs Consumer Panel™ -2017

THE BILLERUDKORSNÄS CONSUMER PANEL™ 16 MEGACITIES FROM WEST TO EAST. CONSUMERS THAT WELL REPRESENT EACH

CITY ACCORDING TO GENDER, AGE AND EDUCATION.

9 BillerudKorsnäs Consumer Panel™ -2017

Total Index = Personal Index + City Index

My personal

understanding,

view and

contribution

How I rank my

city’s

capabilities and

contribution

CONSUMERS VIEW AND ASPIRATION ON

PACKAGING SUSTAINABILITY

10

ASIA AND NORTH AMERICA SCORE HIGHEST

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Net Positive Attitude

Europe: “I am

satisfied, but a bit

too much packaging

to take care of

lowering personal

score”

America: “I am

satisfied, see most

benefits of

packaging”

Asia: “I would like

more packaging, it

brings me value and

environmental

benefits. My city

need to improve a

lot”

Africa: “I would like

more packaging, but

city has severe

issues”

BillerudKorsnäs Consumer Panel™ -2017

Total Index = 54,1 NPA

“Packaging is mainly

seen as a problem

solver, a Hero”

PERSONAL INDEX FAR HIGHER THAN CITY INDEX IN ASIA AND AFRICA,

WHILE NORTH AMERICA AND EUROPE SCORE CITIES HIGHER.

MOST CONSUMER SEE PACKAGING AS A HERO ASIA HAS THE REAL AMBASSADORS OF PACKAGING SUSTAINABILITY, EXCEPT FOR

TOKYO THAT DO NOT SEE PACKAGING AS THE PROBLEM-SOLVER.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Personal Index in order (NPA , Ø = 61,5)

High

Good

Most consumers are very positive to packaging – more of a Hero than a

Villain: Most cities score very high when it comes to personal view that packaging

brings more benefits than problems, and also has a valuable contribution to both

consumers and society. The role of packaging in society is understood and will likely

increase in the future. The only exception is Tokyo.

Net Positive Attitude

Tokyo: “I do not

think packaging

makes the

difference…”

“Most consumers

see packaging as

a Hero”

CONSUMERS READY TO PAY FOR PACKAGING GIVING SUSTAINABLE BENEFITS, A LOT TO GAIN FOR BRANDS

72% OF ALL CONSUMERS WOULD PAY10-20% MORE FOR PRODUCT PACKED IN

PACKAGING GIVING SUSTAINABLE BENEFITS.

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72%

Ready to pay Not willing to pay

0%

20%

40%

60%

80%

100%

Los A

ng

ele

s

Me

xic

o C

ity

Ne

w Y

ork

Lon

don

Pari

s

Berl

in

Sto

ckh

olm

Lag

os

Cairo

Kara

ch

i

Mu

mb

ai

Delh

i

Ja

kart

a

Ma

nila

Sha

ngh

ai

Tokyo

Ø=75

Net Positive Attitude

Willingness to pay 10-20% more

for packaging sustainability?

Brand owners could gain from

differentiation by packaging

sustainability?

Share of global panel, percent

BillerudKorsnäs Consumer Panel™ - 2017

HOW ARE CITIES RANKED ON CAPABILITIES AND CONTRIBUTION FOR

PACKAGING SUSTAINABILITY

14

FIVE CITIES ARE RATED LOW BY CITIZENS NORTH AMERICA AND EUROPE HAVE SATISFIED CONSUMERS WHEN IT COMES TO

RECYCLING, INFORMATION AND FACILITATION TO DO RIGHT WITH PACKAGING.

0%

10%

20%

30%

40%

50%

60%

70%

City Index (Ø = 40,5)

High

Good

The most satisfied

citizens: People do not

see problem in handling

packaging in a good

manner. It works.

Satisfied citizens: People do not see

problems where they live, but partly there is a

hassle to recycle and do right.

Improvements needed

according to citizens: People

face issues where they live, there

are recycling systems that do not

work smooth or do not work at

all.

Net Positive Attitude, percent

HOW RECYCLING IS MANAGED IS THE MAIN ISSUE GLOBALLY, SEVEN CITIES NEED SIGNIFICANT IMPROVEMENTS

WELL MANAGED RECYCLING SCHEMES GIVE RESULTS. CITIES WITH HIGH SHARE

UNOFFICIAL SOLUTIONS, LIKE RAG-PICKERS, HAVE MORE ISSUES.

-20%

-10%

0%

10%

20%

30%

40%

50%

How is recycling of packaging materials managed in your city? (NPA)

High

Good

From West… …To East

THE FUTURE OF PACKAGING SUSTAINABILITY ACCORDING TO

BILLERUDKORSNÄS CONSUMER PANEL™

17

TOP CHALLENGES WHERE PACKAGING CAN ENABLE BETTER SOLUTIONS

18

1

2

3

Reduce Food Waste, in the whole value chain

and at consumer home

Increase Recycling Rates

Reduce plastic littering in oceans

Europe:

1. Littering in oceans

2. Recycling rates

3. Food Waste

Americas:

1. Recycling rates

2. Food Waste

3. Littering

Asia:

1. Food Waste

2. Recycling rates

3. Littering

Africa:

1. Food Waste

2. Recycling rates

3. Littering

… with a slight difference between continents;

BillerudKorsnäs Consumer Panel™ -2017

SPECIAL REMARKS REGARDING THE CHALLENGES TO SOLVE PACKAGING MIGHT BE A SIGNIFICANT SOLUTION TO TACKLE GLOBAL

CHALLENGES, BUT PRIORITY VARIES A LOT BETWEEN CITIES.

Berlin

New York & Shanghai

Shanghai & Cairo

Lagos, Manila & Mexico City

Tokyo & Karachi

Score highest on ocean littering,

still no ocean nearby (media)

Want incentives for consumers to

act more sustainable

Wish more automation in society

aided by better packaging

Facilitation of storage and reuse of

packaging is hot topic

Highest score for reducing food

waste at consumer / home

19 BillerudKorsnäs Consumer Panel™ -2017

DREAM RESULTS FROM PACKAGING DEVELOPMENT BASED ON INPUT FROM THE BILLERUDKORSNÄS CONSUMER PANEL™

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1

2

Make it fun and easy to recycle

Prolong freshness of my products

(improve food safety and reduce food waste)

Europe:

3. No packaging to

handle post

consumption

4. Beneficial 2nd use

Americas:

3. Beneficial 2nd use

4. No packaging to

handle post

consumption

Asia:

3. Beneficial 2nd use

4. No packaging to

handle post

consumption

Africa:

3. Safe – no fake

4. Safe – not

tampered with

… as general global output, but more difference at place 3 and 4;

BillerudKorsnäs Consumer Panel™ -2017

• Help small enterprises

use scrap material from

other businesses

• Sustainability in action

Future Business Perspectives

PROBLEM-SOLVING FOR MEGA CITIES SOUTH AFRICA IS FULL OF ACTION #1

• Great example of making recycling

FUN AND REWARDING

LOADS OF POSITIVE FEEDBACK FROM OUR PANEL MORE THAN 20% CHOSE TO SEND US SPECIFIC FEEDBACK ON THE TOPIC OF

PACKAGING SUSTAINABILITY AND OUR SURVEY

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“This survey makes us more conscious of our environment that we have to look after and be conscious on how we can do our share to preserve our environment ...”

“Please Keep

it Up, what

you are

doing is so

important”

“I appreciate this survey and hope it makes an impact towards our necessary sustainable future.”

“I really appreciate whichever company gave this genuine thought behind packaging sustainability and I will definitely like to use their products since they are doing their bit to minimize waste and promote sustainable development.”

“You should do more of these surveys and publicity regarding the subject.”

BillerudKorsnäs Consumer Panel™ -2017

“I would like more

packaging, since

they bring me

value and

environmental

benefits. My city

though, need to

improve a lot”

75% Net Positive Attitude

3

“I would like more

packaging, since

they bring me

value and

environmental

benefits. My city

though, need to

improve a lot”

72%

Most global

consumers willing to

pay more for

packaging that brings

sustainable benefits

2

THE SHORT AND CRISP SUMMARY MAIN FINDINGS FROM THE FIRST CONSUMER PANEL ON PACKAGING

SUSTAINABILITY

1. Asia has the best ambassadors for Packaging Sustainability

(except Tokyo) • See more value in packaging than Europe and Americas

2. Consumers ready to pay more for products packed in

packaging that brings environmental benefits • Benefits to themselves and/or their city

• 72% as global average, highest in countries with low GDP/capita

3. Helpful Brands can gain a lot by differentiate in packaging

sustainability • The highest score among foreseen positive impact for more

sustainable cities (75% NPA score)

4. Recycling and Food Waste is the main topics for packaging

to solve • Make it fun and rewarding to recycle better (and hence minimize

littering)

• Food Waste reduction by better packaging is a key route to success

“I would like more

packaging, since

they bring me

value and

environmental

benefits. My city

though, need to

improve a lot”

1

“I would like more packaging, since they

bring me value and environmental

benefits. My city though, need to

improve a lot”

4

PACKAGING ENABLE BRANDS TO ACT ON FUTURE BUSINESS PERSPECTIVES EFFICIENTLY

BillerudKorsnäs Consumer Panel™ - 2017 24

#1 Problem-solving for mega cities

#2 Enable helpful brands to succeed

#6 Make it user-oriented for real

The role of packaging in society will increase

• Asia will have the most megacities in the future, with more problems to solve

• Recycling is one of the main issues in megacities today, facilitate better

recycling will bring fans among consumers and city Mayors

• Asian megacities the real ambassadors of Packaging Sustainability

Packaging brings the message fast and effective

• Packaging sustainability is a strong strategic tool to be helpful

• Brands and Mayors should collaborate more to find local best

practices faster

Start with packaging design

• Fun, easy and rewarding to recycle more

• Change consumer behavior by better packaging design

• Reduce food waste and littering

• Improve storage and re-use of packaging

BILLERUDKORSNÄS

CONSUMER PANEL™ We asked over 3300

consumers in 16 cities all

over the world about their

belief and their aspirations

on how packaging

contribute (or not) to a

sustainable future

THANKS! NOW WE KNOW MORE ABOUT

CONSUMERS’ VIEW ON

PACKAGING SUSTAINABILITY?

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Thank you all for this time!

A light lunch is served!

Please, fill in the evaluation

which valuable to us!