Mondi Meets Surging Demand For US Premium Flexible Plastic Packaging With Expanded Flat-Bottom Bag Production Capabilities

Food and pet food are among primary market sectors with rising demand for premium packaging, studies show

Mondi, a global leader in packaging and paper, is expanding its US capability to produce premium flat-bottom bags for food, pet food and home and personal care applications. The move comes in response to rising demand in the US for premium flexible packaging solutions from consumer goods manufacturers and brand owners.

In the food sector, for instance, premium packaging innovations are emerging worldwide as a major trend, according to the “Global Packaging Trends 2018” report from market research firm Mintel.* “Brands will look to contemporary packaging formats to reinvigorate the center-of-store aisles less visited by younger consumers,” Mintel states.

Mondi’s expanded capability, which includes more manufacturing capacity and new equipment in the US, will be fully operational by the third quarter of 2018. It will help Mondi meet the growing needs of the consumer goods industry in the US for premium bags with creative designs, riveting graphics and printing, as well as innovative features.

“Premium flexible packaging needs to communicate a brand’s message effectively and be as unique as the product inside,” notes Bill Kuecker, Vice President of Marketing, Mondi Jackson. “With the extreme competition on store shelves that brands currently face, packaging needs to grab the consumer’s attention and maintain satisfaction during a product’s use life to remain relevant.

“Our expanded premium bag-making capabilities will help our current and future customers bring their products to market in packaging that meets these challenging criteria. To cite just one example, our premium flat-bottom bags can be produced with a variety of reclosing options, such as top sliders, to help customize the consumer’s packaging experience.”

Innovative Features
Changing consumer behavior and demographics fuel the increasing popularity of premium packaging options. In the pet food sector this trend has been especially noted. According to market research firm Packaged Facts, “…super premium and natural pet food brands are expected to drive the market, outpacing the growth of regular pet food by at least double.” **

In response, pet food manufacturers and brands are turning to packaging suppliers for innovative solutions that differentiate their premium offerings from commodity brands. Sought-after features include clear windows that showcase package contents and enhanced printing that conveys product quality at a glance.

Lifestyle, demography and convenience are also impacting the broader food sector. According to the U.S. Census Bureau, the elderly population is on the rise, with U.S. seniors expected to outnumber children by the year 2035.*** At the same time, consumers of all ages are eating more meals alone or while on the go. These trends create more demand for premium bags and packaging with easy-opening features, built-in handles for portability and reclosing features to preserve food freshness.

“Mondi’s expanded premium bag-making abilities will help our packaging customers respond to evolving consumer needs and expectations,” notes Kuecker. “The improvements enhance our ability to supply ‘CustoMYzed’ solutions that meet specific packaging challenges.”

* Information is from Mintel “Global Packaging Trends 2018” report.

**Information from Packaged Facts: U.S. Pet Market Outlook 2018-2019.

*** U.S. Census Bureau press release, #CB18-41, March 13, 2018.

About Mondi in North America
Mondi in North America designs, develops and manufactures solutions for its Industrial Bags, Consumer Packaging, Coatings, and Sack Kraft Paper customers. Industrial Bags produces ultra-strong paper bags for high-speed filling, air-permeable bags featuring hermetic and vacuum sealing, sewn open mouth, valve, pinch bottom, block bottom, woven polypropylene and slider bags, as well as two-ply bag constructions made from high performance kraft paper. It serves the sugar, gardening, building and construction, pet food and animal feed industries. Mondi offers the hygiene certification scheme AIB for food and animal feed applications. Consumer Packaging solutions include stand-up bags, reclosable bags, microwaveable packaging and other products with optimal barrier properties, along with extruded films for labels. Major markets include food and beverage, pet care, hygiene and the personal and household care sectors. Coatings encompasses silicone-coated and specialty paper, as well as film release liners for a host of pressure-sensitive adhesive solutions, including hygiene and graphics applications. Primary markets include fiber composite sectors, building and construction, and tapes. Sack Kraft Paper products include multiwall consumer and refuse bags.

Mondi creates packaging and paper solutions that touch millions of lives every day.

About Mondi
Mondi is a global leader in packaging and paper, employing around 26,000 people in over 30 countries. We are fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything we do, with clearly defined commitments across 10 action areas. We delight our customers with our innovative and sustainable packaging and paper solutions. Our major operations are in central Europe, Russia, North America and South Africa. In 2017, Mondi had revenues of €7.1B and a return on capital employed of 19.7%.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker MNDI. We are a FTSE 100 constituent, and have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007.