Electronic labels and smart packaging will lead the transformation and upgrading of the food industry

Colin Elkins, global industry director of the IFS process manufacturing industry, predicts that electronic tags, smart packaging, and global partnerships provide a whole new way for companies to create more loyal customers and improve profitability in an all-round way. Taking the food industry as an example, with the increasing demand for transparency from customers, the following three factors will play a crucial role.

1, the transparency and interactivity of the label

Imagine: You selected a soup pot at your local supermarket and found that there are two ingredients on the label - E948 and E242. What is the difference?

E948 is oxygen (this is no problem), but have you noticed that E242 is dimethyl carbonate, a dangerous chemical that can irritate the skin, eyes and respiratory tract! This example reminds us of the necessity and importance of the label.

Recent Kerry Group research shows that 74% of consumers believe that cleaning labels is the most important factor when purchasing food. 90% of 53% of consumers read the labels and they are more willing to buy those labels with clean labels. product.

In 2018, we will see two major trends in the food processing industry – clean labels and electronic labels.

Demand for the transparency and traceability of food labels is increasing day by day. Clean labels have emerged and have swept the major commercial streets. Now they have become a trend for consumers to buy products, and they are in mainstream consumer groups. Get a place quickly.

Under such a trend, food manufacturers of international brands are also aware of the value brought by cleaning labels and respond quickly to launch more natural foods. Aldi promised that it would not use 200 additives and preservatives common in food processing in its products; Walmart also realized that cleaner, more transparent labels would lead to higher sales and Loyalty, introduced as early as 2012, requires products that must meet a range of freshness and nutritional standards to be labeled; artificial additives, flavours, fragrances, artificial colors, etc. used by Kraft Heinz Group in its macaroni and cheese products Banned, in addition, the use of artificial colors such as yellow 5 and yellow 6 is prohibited in natural spices such as chili powder, carmine and turmeric; Nestlé in Edys, Hagen-Dazs, Outshine, Skinny Cow, Nestlé Ice Cream, and Nestlé Drumstick is no longer adding ingredients such as glucosamine, which does not meet the clean label specifications.

In 2017, the Consumer Products Forum (CGF), a network of 400 consumer products companies from 70 countries, announced plans to simplify food labeling by 2020.

E-tags: Not just labels, but new sales channels?

More and more consumers and groups want more transparency and more useful information through simpler labels. Electronic labels are an ideal solution and a potential new sales channel.

Consumers can scan a web site by scanning the QR code on the food package, where they can not only see the regulatory information they need, but also see the product's allergen content, environmental stories, genetic status, sources of production, and ethics. Credentials, green benefits, and the brand's corporate social responsibility (CSR) results.

For consumers, electronic tags have greater convenience, traceability, and transparency, which enhances product recognition and trust. For manufacturers, this means more sales opportunities and smarter, mobile and eco-conscious consumers of the younger generation's expectations and participation in the point of sale.

More than that, electronic tagging technology meets the need for more personalized and interactive labels, providing considerable development prospects.

For example, there is a label that allows DIY shoppers to model the contents of the room on the screen by entering the room size information when considering which paint or blind to purchase. With next-generation Near Field Communication (NFC) technology, shoppers can access these immersive tags with rich data without even swiping, waiting, or downloading, and they will immediately receive a push notification just near those products.

Unmanned supermarkets are even more popular. The unsupervised supermarket is based on the retail store basic business, through the application of RFID tag technology and other high-tech technologies to achieve retail store 24 hours of operation without people, relying on technology to bring new changes to the retail industry.

2, the effectiveness and functionality of the label

For producers, the entire planet, and humans, the waste has never been so urgent that about 4 billion tons of food is wasted worldwide each year. Therefore, in 2015, EU regulations on packaging have been adjusted to allow a series of elements to be included in the package as long as the taste of the product does not change. Nowadays, the “best enjoyment period” and “shelf life period” on food packaging are inaccurate. If the package itself can accurately tell you how long the product can be stored or the precise time it takes to reach the hour, then it can be consumed in time. Treatment can greatly reduce waste. This means that the time, food, and cost savings will be a powerful and advantageous competitive advantage. After all, waste is an urgent task that needs to be solved whether it is business, society or the environment.

It is believed that by the end of 2018, driven by initiatives taken by companies and the law to address waste, we will see smart packaging spread to traditional retailers.

Smart packaging has become a reality

Take fruit-packaging company gripeSense as an example. The smart sensor on the fruit package label can sense the fruit aroma released when the fruit matures, thus telling consumers the maturity of the fruit through the change of color. It is divided into crisp (red) and mature (orange ) And juicy (yellow). ripeSense's smart packaging allows consumers to pick and buy their favorite fresh fruit, while greatly reducing waste.

The Japanese design studio TO-GENKYO designed the smart tag as a funnel design. The tag contains the basic information of the food and the product bar code. When the freshness of the food product gradually changes, the hourglass pattern will gradually change from white to dark blue. When buying at the store, or even after returning home, you can see if the ingredients are fresh just by looking at the color of the label.

The Global Intelligent Packaging Association, the Association of Active and Intelligent Packaging Industry (AIPIA), points out that the current market's annual active and smart packaging value is as high as 1.35 billion euros, and it doubles every five years. The increased use of smart packaging for enhanced and waste reduction can make this number grow exponentially.

With the promotion of more affordable and mature technologies such as optics, radio frequency identification (RFID), biosensors, chemical sensors and gas sensors, the shelf life of all fresh products can be extended by several days, thereby greatly increasing the time and planning for process manufacturers. And income.

3. Resource competition and cooperation

“To be close to friends, we need to be closer to our competitors.” It seems that in 2018, “friends and friends” and “turning the enemy into friendship” have become the year that really drives globalization. The recent online sales collaboration between Kellogg, Pillsbury, and Nabisco is a good example of how cooperation with competitors can bring huge benefits in this era of scarce resources.

In recent years, mergers and acquisitions have become the most common means for companies to obtain materials and supplies on a global scale, but with them come enormous costs and challenges. For example, acquiring a supplier in Brazil may acquire a specific resource, but this will create new complexities in the process. As joint innovation and cooperation with competitors, access to the maximum value from the supply chain and access to raw materials, agile joint ventures and relaxed cooperation will likely become the new 2018 normal.

More innovations have created more diversified product lines, thus pushing more SMEs into the industry. For example, a "know your friend" cooperative strategy can enhance the manufacturer's scope review: find someone who can help you deal with things you can't handle, and expand your supply to retailers without investing a lot of capital. Range, and vice versa.

Driven by all these trends, having the right network and cloud service capabilities ensures that companies can use all available resources to compete and collaborate regardless of where they are.