Addressing Consumers’ Demand for Convenience

White Paper

Recent studies of consumer preferences regarding meals, food preparation and grocery shopping reveal a consumer audience almost universally seeking greater convenience. Research such as the 2013 Power of Meat Report shows that total meal preparation time is becoming much more important to U.S. grocery shoppers than ever before. Such data reflects the response to a widespread time crunch identified by studies including a recent USDA Economic Research Service report that shows full time working women spend no more than 40 minutes per day preparing food. Today’s on-the-go society, exacerbated by work, family and additional daily commitments has turned meals into an afterthought that must be squeezed into the few remaining moments.

Clear demand for more convenient food options means packaging that enhances consumer convenience can no longer be overlooked by processors and retailers. In fact, a number of features once considered value-adds now are considered price-of-entry expectations for today’s grocery shoppers. The 2013 Power of Meat Report indicates an increase in the percentage of consumers seeking specific convenience features incorporated into packaging for certain meat and poultry items. According to the Report, freezer-ready, pre-portioned and resealable packaging designs are among the most requested by today’s meat and poultry shoppers.

Information compiled by international research firm Datamonitor supports these conclusions. The organization’s recent report “Consumer and Innovation Trends in Meat, Fish and Poultry” provides global data indicating opportunities for food manufacturers and retailers to develop products that facilitate easy cooking of meat, fish and poultry. The report also includes research showing heightened consumer interest in purchasing smaller, single-serving and individually portioned packs that help retain product freshness, a demand resulting from the growth in single person households.

+11%Under 20 Min.

Dishes+10%

One Pot Meals

+9%Pasta

CasseroleDishes

+7%Meal

Solutions+7%

InternationalFoods

+6%Meal

Salads

+7%OutdoorGrilling

+10%Roasts

5-Year Trends in Consumer Meal Prep Methods

Compared to Use Use 5 Years Ago More Less

International 18% 11%

Under 20 min. 22% 11%

Meal solutions 22% 15%

One-pot meals 23% 13%

Outdoor grilling 13% 19%

Pasta/casseroles 25% 16%

Roasts 13% 23%

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Data Shows Convenience a Key Consumer Concern

2.06%

1.63%

1.19%1.54%

0.59%

2007 2008 2009 2010 2011

Single-serving Products Proportional To Product Launches

Meat, fish, and poultry brands are not tapped into the growing need for single-serve products. The graph shows single-serve products as a proportion of the total meat, fish, and poultry launches from 2007 to 2011.

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As consumer demand for more convenient food packaging has increased, packaging providers have developed innovations to help processors and retailers serve these customer needs. Many of these consumer-facing convenience packaging features fall into one or more of the following categories:

Time/Step Saving Packages that reduce time spent preparing, cooking and/or cleaning up or eliminate one or more steps during food preparation. For example, microwaveable or ovenable materials and containers that enable consumers and staff to marinate products in the package.

Simplified Use Easing one or more processes throughout preparation and clean-up. Examples include packaging with easy-opening features that remove the need to use knives or other sharp objects to open food products and reclosable packaging that enables easier portioning and reduces wasted ingredients.

Sealed Air’s Food Care Division, whose Cryovac® food packaging brand is a leader in the development and implementation of convenience packaging features, recently commissioned a series of studies designed to provide highly specific insights into consumers’ attitudes towards existing convenience packaging features. The results highlight opportunities for food processors and food retailers to capitalize on the deepening consumer preference for foods packaged with convenience in mind. This information can help processors and retailers make strategic decisions about what features influence consumer purchase.

Convenience Features to Reduce Time and Steps

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Consumers Expect Recloseability

Third party research shows ovenable packaging to be among the most popular formats with today’s consumer. After reading a brief description and seeing images of beef, chicken, fish and pork products placed in conventional home ovens, 80 percent of survey respondents were interested in using ovenable packaging materials in the home. These numbers include 43 percent of respondents expressing

“definite interest” and 37 percent indicating they are “somewhat interested” in using such materials for meal preparation. Among those respondents identifying themselves as primary shopper and primary cook in their household, interest is even higher, with 82 percent saying they are “interested” in utilizing ovenable packaging.

Consumers Ready for Oven-ready Packaging

43%Definitely Interested

11%Probably

Not

6%Definitely

Not

3%Not Sure

37%Probably Interested

80%Interested

Interest in Using Oven Ease®

Consumer interest in using Oven Ease® is very high, based on reading a brief description and seeing images of beef, chicken, fish, and pork products placed in conventional home ovens

38%

Totaling 84%Convenience Benefit

26%

18%

10%

9%

8%

6%

6%

5%

4%

4%

Easy prep/cooking

Convenient/saves work/time

Tasty, consistent results

Like trying new things

Less mess/easy cleanup

Enjoy baked foods like these

Sounds good (general)

Products are fully-prepared

Good to store/for meals at home

Would enjoy cooking it

Increases variety

Though expressed in differing ways, consumers clearly understood the inherent convenience in using Oven Ease packages. Beyond convenience alone, consumers are expecting good product taste and consistency.

Main Reasons for Interest in Using Oven Ease

Consumers surveyed demonstrated strong recognition of the convenience benefits associated with ovenable packaging.

82%

78%

78%

78%

76%

76%

74%

74%

53%

49%

46%

44%

44%

43%

43%

43%

29%

29%

32%

34%

32%

33%

31%

31%

Much More Interested

Somewhat More Interested

Package Eliminates Messy Prep & Cleanup

Saves Preparation Time

Package Will Not Break or Melt

Excellent, Consistent Cooking Results

Satisfaction Guaranteed

Nothing is Absorbed by Food

Packaging is Safe

Cooking Can be Unattended

Consumers express higher interest in using Oven Ease after hearing a variety of statements about its features and benefits

Change in Usage Interest for Oven Ease

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Further evidence of consumers’ lack of time or interest in cooking was provided when just seven percent of the total sample stated a preference for “cooking/seasoning myself.”

The most effective features and benefits for motivating interest in ovenable packaging is the elimination of messy preparation and clean-up. “Package eliminates messy prep & cleanup” was cited by 82 percent of respondents, underscoring that consumers are seeking convenience beyond meal preparation.

Consumers surveyed demonstrated strong recognition of the convenience benefits associated with ovenable packaging.

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Research also shows a strong demand for packaging that delivers convenient options for marinating meat and poultry products. In a nationally representative sample of 402 adults, 82 percent report the use of marinade in an average year.

Usage of Marinades in Average Year

49%

68% 70%

Pre-marinated

HomemadeMarinades

BottledMarinades

Overall, 82% of consumers report usage of any type of marinade in an average year, with homemade and bottled marinades used most often (68% and 70% respectively)

Pre-marinated protein usage is less common, with less than 50 percent of respondents saying they use such products in an average year. The most common concern regarding pre-marinated meats is the perception that products become over-marinated.

Research commissioned by Sealed Air’s Cryovac® food packaging brand and conducted by third-party research firm Core Insights indicates greater willingness to use products packaged with marinade and protein if contained in separate compartments of the same package. Consumers’ “definite interest” in using such a product within the next month is five percent greater than “definite interest” in using any other type of pre-marinated beef, chicken, turkey, pork, beef or lamb.

Interest in using any type of pre-marinated beef, chicken, turkey, pork or lamb product within the next month is fairly high

30%Definitely Interested

16%Probably

Not

11%Definitely

Not

.05%Not Sure

38%Probably Interested

68%Interested

Interest in Using Pre-marinated Entrées

35%Definitely Interested

15%Probably

Not

11%Definitely

Not

.02%Not Sure

38%Probably Interested

73%Interested

Interest in Using Marinade on Demand®

Within the total sample, positive usage interest in MOD is very high, expressed among 73% of the consumers overall – and 77% of consumers using marinades at home, in any form

Consumers Marinate on Pre-marinated Products

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Consumers’ Interest in Pre-marinated ProductsEase-of-use is the driving factor behind trial and usage of the marinade package and product, with 41 percent citing “Easy/simple” as the primary reason for interest. “Convenient/quick/saves work/time” was the second most popular factor, with 29 percent of those interested citing this reason. “Ease of clean-up and reduction of mess” was another critical factor; of note, “control of marinating time/flavor intensity” also was considered most important by 12 percent of respondents “interested” or “definitely interested” in using the unique marinade package and product. By meat type, chicken (73 percent), beef (69 percent) and pork (64 percent) show the strongest consumer interest related to this packaging format.

Going beyond preparation and clean-up, easy storing of product also tracked as a key benefit with consumers. A total of 74 percent of survey respondents were more interested in using the marinade package after learning the package also was freezer ready, with 48 percent “much more interested.” By far, the strongest message impacting consumer convenience for the unique marinade package was the level of control it gives consumers, with two-thirds (66 percent) indicating greater interest in the packaging format when they learned of the enhanced ability to control marinade time.

41%

29%

14%

12%

12%

9%

7%

7%

5%

Easy/simple

Convenient/quick/saves work/time

Tasty, expect good flavor

Less mess/easy clean-up

Control of marinating time/flavor intensity

Sounds good (general)

Like trying something new

Replaces bottled marinades/all-in-one package

Good to have on hand; for “go to” meals

The straightforward but meaningful benefits of ease and convenience are the main drivers of purchasing and usage interest in MOD – and “less mess/easy cleanup” also generates interest

Two additional, important benefits that can be touted in future packaging, merchandising, and promotions of MOD are the promise of good product flavor and control of marinating time

Main Reasons for Interest in Marinade on Demand®

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Simplify Your Way into Consumers’ CartsConsumers continue to demonstrate preference for products that offer simplified usage, storage and portioning while maintaining freshness. The intersection of today’s necessary features perhaps is most evident in the deli. Recent research into consumer attitudes toward deli and luncheon meat packaging shows features such as reclosability, easier access and handling, storability and pre-portioning among the consumer features most in demand. However, consumers want these conveniences incorporated without sacrificing freshness.

In qualitative research commissioned by Sealed Air, consumers cited concerns with packaging designs’ impact on freshness, such as children who can’t/don’t close deli packages correctly. They expressed the need for reclosable features that help maintain product freshness, are reliable and need no instructions for adequate resealing. Consumers also indicated interest in additional features beyond existing reclosability technology, including sound or sight cues that signal the product is sealed to maintain freshness. “ I prefer to purchase resealable packages so

that I don’t have to repackage myself.” – Diane, focus group participant

“ I like this sort of single package because it offers control, right? This is all you have to eat. You don’t have any more or any less and you can throw it in your lunch bag.”

- Amelia, focus group participant

“ I think it lasts longer if I’m not exposing all of the product to the air each time I remove a slice.”

– Vincent, focus group participant

“ Once you cut the vacuum pack you have to take it out and repackage it because it gets air in it.”

– Georgann and Bob, focus group participants

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On-the-go lives mean consumers seek products portioned and storable for the versatile situations they encounter on a daily basis. Busy individuals interviewed in qualitative research indicate the need for pre-portioned product that reassures them they are consuming the correct amount when they eat on-the-run. Consumers want products that can be stored in multiple places, while also being easy to locate in the fridge. Opportunities to buy in bulk and easily separate into smaller units, and to re-use packaging for a second purpose, also show strong consumer interest.

Consumers are demonstrating a greater awareness of food safety and proper food handling practices and incorporating this thinking into their convenience packaging preferences. There is recognition that minimized handling is advantageous from a safety standpoint, and as a result demand is increasing for packaging that minimizes handling once purchased and ready to use. Features that make product access easier for adults, children and the increasing population of senior consumers are of greater importance. A number of consumers have expressed interest in features that enable access only to the amount of product needed at the time of usage, limiting exposure for the remaining product to potential contaminants.

Sacrificing Freshness a Non-StarterWhile convenience continues to gain importance in terms of consumer behavior, freshness remains a key consideration – and is not viewed by today’s audience as at all expendable for increased convenience. Additionally, preference for packaging that removes air after each opening demonstrates increased consumer knowledge about the relationship between oxygen and product freshness.

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Convenience Now Necessary, Likely More So in the Future

Key Sources/Methodology

2013 Power of Meat ReportThe 2013 Power of Meat Report, conducted by 210 Analytics, was commissioned jointly by the American Meat Institute (AMI) and the Food Marketing Institute (FMI) with sponsorship by Sealed Air’s Cryovac® food packaging brand. The study included a sample size of 1,425 respondents selected to ensure representation mirrors the U.S. population. Respondents took an online, self-administered survey via web-assisted interview software in December 2012.

Datamonitor, Inc. report: “Consumer and Innovation Trends in Meat, Fish and Poultry”Analysis from research firm Datamonitor, applying the company’s proprietary Mega-Trend framework to the meat, fish and poultry category.

Oven Ease® Package Messaging and Consumer Acceptance SurveyMay 2013 report commissioned by Sealed Air’s Cryovac® food packaging brand to gauge consumer interest in ovenable packaging; survey of nationally representative sample of 405 adults age 18 and older conducted by research firm Core Insights.

Luncheon Meat Portfolio Research Project2012 qualitative research conducted by Sealed Air research team; consumer interviews with 16 consumers from a cross section of U.S. regions, identified as primary grocery shopper from household who purchases deli meat at least once per week.

Marinade on Demand® Packaging – Consumer Acceptance & Package MessagingA July 2013 report commissioned by Sealed Air’s Cryovac® food packaging brand to gauge consumer interest in packaging that promotes convenient marination for meat and poultry products; survey of nationally representative sample of 402 adults age 18 and older conducted by research firm Core Insights. Sample included 328 consumers who use marinades and 74 saying they do not.

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Consumer Convenience Transforms to Consumer NecessityConsumer lifestyles are busy, a fact likely to become more pronounced over time. Mindsets have become wired to expect convenience features as the norm, with technology making almost every facet of life available in the palm of the hand or the touch of a button. Food processors and retailers have been wise to incorporate convenience features into packaging for fresh meat and poultry products for several decades. In the current environment, however, features that once might have been considered differentiators worthy of price premiums are now considered necessary for consumer purchase consideration.

Next generation packaging must incorporate more – more freshness, more simplification and more added-value, while reducing time and steps necessary for meal preparation and clean-up. Consumers want easier access, simplified cooking and clean-up and easier and more secure re-closure, all while demanding improved product freshness and safety. This indicates a future where processors, retailers and packaging providers closely collaborate to create packaging that continues to provide value and remove guesswork from the consumer experience.

ALL OF THE FOLLOWING SOURCES ARE AVAILABLE UPON REQUEST.

Sealed Air’s Food Care Division helps sustain healthy communities by ensuring the safety and quality of what people eat and drink by creating sustainable innovative solutions. These solutions provide measurable business results to our business partners through increased shelf life, food safety, operational efficiency and help in building their brands. To learn more, visit www.sealedair.com/foodcare.

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