How Can Spouted Pouches
Increase My Sales?
Pouch Convenience Drives Consumption
When a relatively unknown European company introduced applesauce in a spouted pouch in the United States in 2008, on paper it looked like a failed food product business case: A new manufacturer introduces a higher-priced product in a “commodity category” like applesauce which has been around for over a hundred years and is dominated by the “big players.”
Not only did the product survive, over the next several years it dominated the market growing at over 50% per year. The product is currently on track to be a $500 million business within a few years. How did this happen? The company’s success was achieved by capitalizing on a massive shift in consumer behavior and preferences. Spouted pouches are the ideal format for on-the-go consumers who are looking for convenient, portion-sized health food. Because the company made a common health food more convenient and easier to consume, the market responded by increasing its consumption of applesauce.
Pouch Convenience Drives Premium Price and Higher Margins
The success seen in the applesauce category was repeated again in the baby food market. Small niche companies disrupted established industry titans utilizing the spouted pouch flexible package to tap into consumers’ demand for greater convenience.
Large companies like Gerber adapted and found that they could charge a premium price for spouted pouch flexible packaging. Consumers consider flexible packaging to be a “premium” format over traditional rigid packaging due to its greater utility value (increased convenience, ease-of-use, and better/fresher taste).
New Consumption Scenarios
Flexible packaging enables you to access new “consumption scenarios” or new opportunities for consumers to consume your product because the packaging size, format, and delivery mechanism facilitates consumption. For example, if you are currently in an 8 oz rigid glass or plastic bottle, a single-serve 4-ounce spouted pouch enables an on-the-go, health-conscious consumer who is looking for a snack or meal replacement to put the pouch in a backpack, purse, gym bag, or computer bag for more convenient consumption.