How a Packaging Company Survived Confining Shelf Spaces for Packaged Food with FMI’s Research-based Solutions


The Challenge

A leading packaging company had a strong position in the packaged food industry. The company also adopted new strategies to introduce innovative packaging for food to improve the shelf life of its food products and maintain the safety of its product during transit. However, though the demand for packaged food products was increasing steadily, health-conscious consumers that preferred fresh products over their packaged variants started impacting the dynamics of the packaged food industry. The client wanted to understand the changing trends in this industry and consumer preferences that may influence the business strategies of supermarkets/hypermarkets and grocery stores. The client also needed to adopt new strategies to deal with the declining shelf space for packaged food products in grocery stores, and maintain its position in the packaging industry as well as in the packaged food industry.


The food industry has been undergoing some fundamental changes, as consumers are becoming health-conscious and making food purchasing decisions in favour of their health. Despite the growing need for convenience at cooking, packaged or frozen food products may witness a slight decline in demand, as health-conscious consumers are preferring fresh food items over packaged products. This is also influencing the business strategies that are associated with the sales channels in the food industry, such as supermarkets and grocery stores. However, the increasing growth of e-Commerce and the growing popularity of online grocery shops may drive the growth of the packaged food industry in the coming years.


Taking into consideration the dynamic shift in consumer demand for fresh and healthy food products, FMI suggested that the client must focus on the changing trends and strategies of grocery stores. In addition, FMI also conducted a thorough research about the dynamics of online grocery stores, and predicted that a mounting number of supermarkets and grocery store chains will acquire Internet-based business models. FMI helped the client in identifying and prioritizing opportunities in the rapidly-growing online businesses of supermarkets/hypermarkets and grocery stores. On conducting a series of thorough interviews with industry experts and potential buyers of packaged food products, FMI devised a new strategy for the packaging company to survive the ever-growing demand for fresh food products. FMI also carried out an in-depth study on effective packaging for the transportation of food products and technical feasibility analysis to plan new business strategies for the client. This could help the client in surviving the paradigm shift towards fresh food products, and capitalize on the increasing growth of e-Commerce platforms as a leading distribution channel in the packaged food industry.

The Result

Based on FMI’s surveys and predictions about the growth of the packaged food industry, the company adopted innovative strategies to attract online distribution channels. The company also streamlined its supply chain processes to improve efficiency and improve the shelf life of food products with the help of state-of-the-art packaging solutions. The client decided to move aggressively in the market to capitalize on the ongoing trend of popular grocery chains shifting to online platform. The acquisition strategy suggested by FMI also pushed the client to expand its presence in the packaged food market and emerge as a market leader.