5 common themes in FMCG and consumer healthcare packaging

In the converging area where Pharma meets FMCG lies an exciting field brimming with innovation, staggering growth, and new sectors that blur the lines between these industries. Although regulations and limitations rule the manufacturing of many such products, it is worth asking, is packaging in consumer healthcare so different from FMCG, or could we draw parallels between some rules and trends?

With the rise of the wellness economy, informed, tech-savvy patients, a spiked interest in wellbeing, and people taking health into their own hands due to the COVID-19 crisis, the Consumer Healthcare industry is becoming more competitive than ever – and is eyed by both Pharmaceutical and FMCG companies.

Like GSK’s Brian McNamara recently stated in an interview with McKinsey, “As with many other retail businesses, we’ve seen a significant increase in OTC online purchases as a result of COVID-19. And I think that will stick. I don’t think it will go back to pre-COVID-19 levels. Consumers are getting used to OTC being part of their overall shopping basket.”

Additionally, in the recent years, there was a high level of market activity in the industry – M&As that fortify the significance of the FMCG-Healthcare bond such as P&G taking over Merck consumer healthcare business, Reckitt Benckiser taking over Mead Johnson Nutrition, and GSK acquiring the consumer healthcare divisions of Pfizer and Novartis.

Although stemming from different, complex backgrounds – they both bring top-notch expertise to the table. FMCG is king when it comes to marketing, focusing on local specificities and building truly global & iconic brands, and delivering innovations based on consumer insights. On the other hand, Pharma brings its scientific approach to innovation, competent adherence to industry regulations, and a dedication to developing products concerned with health and wellbeing. This dichotomy may sound like a wide gap. Still, in reality, the end products and their packaging are not so different – they submit to the same rules of consumer behavior and follow the same societal trends in both industries.

How to ensure pack redesigns are well accepted and bought off the shelf, how to quickly get feedback on NPDs, how to arrange category planograms to maximize sales, does the POS communication manage to get the promotional message across – the list is endless. All the most common topics and trends in the FMCG industry are shared by Consumer healthcare as well. Let’s take a deep dive into some examples!

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1. Engage emotionally and address needs clearly

By aligning packaging with the emotional and physical states of the consumer, brands develop a connection between the packaging and an acute condition. In the case of ZzzQuil or cold medicine such as Theraflu, we see various scenarios and desired effects represented by color. Calming, soothing moments under the blanket with a warm mug of tea are evoked for the nighttime version, with its FMCG-evocative cobranding with Lipton tea; and coffee pod-style medicine for the boosting, energizing morning version that brings about a fulfillment of need states.

In the realm of long-term health issues, colors, and design can offer a feeling of consolation, and destigmatize unpleasant, cumbersome, or chronic health conditions. Non-aggressive, gentle hues and shapes are perceived differently on a subconscious level and can help consumers feel better when using the product. Think about Concor COR’s heart-shaped pills or Claritin’s evolution from an impersonal drug to presenting a vision of an allergy-free future with clear skies and open meadows – and developing strong emotional connections along the way.

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2. Embrace the rise of environmental impact

The average consumer is more informed about the eco-impact of packaging on the planet and climate and is looking for more sustainable solutions. These packs have a difficult task – being sustainable & looking sustainable – i.e., sending the right message across to the shopper. Colgate’s Smile for good packaging managed to do just that – it is designed in a recyclable tube and carton, transparently demonstrates the ingredient list, and above all, stands out visibly in a busy store environment among a multitude of other pack solutions.

The same trend is seen across the FMCG industry – companies rely on behavioral research solutions to gauge how the redesigned, more eco-conscious packaging designs would compare to the old ones and how it would impact on shelf sales. Does it look more expensive? Does it encourage switching behavior? To keep up with the rising bar of sustainability both leading and challenger brands should start testing these their sustainable packs through in-context research.

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3. Focus on stripped-down, scientific packaging

A growing trend that is reflected in FMCG and consumer healthcare is a search for products disguised in medical-looking designs or communicating that they are grounded in science, and hence safe and better for the consumers. Budding new categories in FMCG – functional nutrition, nutraceuticals, and better-for-you foods see both Pharma and FMCG companies foray into science-founded foods and beverages. We see a similar passion for the approach in the beauty and cosmetics sector and their communities.

In a reverse process to the humanizing of medication in the case of Claritine, here we see an FMCG product looking very pharmaceutical – but it’s actually cosmetics like It’s Skin and The Ordinary. Compared to the regular easy-going, fun, and colorful cosmetics packaging, their pack solutions evoke a clean, minimalist look, perceived as expertly developed functional medicine, reassuring consumers that they will get the desired results. These attributes are best captured by behavioral methods, without requiring consumers to explain precisely what is it about a white package and linear drawings that invokes trust.

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4. Create more than just packaging: experiences, rituals, multiple uses

Aside from essential information that must find a place on the packaging – e.g., number of dosage units, list of the active components, and the benefits – there is so much more packaging can become. Lately, we’ve seen unique innovations that turn functional packaging into a sensory experience to be enjoyed. Two-component beauty products, people-centric beverage designs that fit into the lifestyle of the consumer, or entire rituals devised to make them dedicate time for themselves and their well-being. A great pack design can enable consumers to have a delightful experience both in the FMOT and at home.

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5. Communicate product naturalness

Another significant common interest for FMCG and consumer healthcare is how to communicate product naturalness effectively. Most innovative pharma companies realize that a natural, juicy, and realistic footage of fruits, for example, is very appealing to consumers, just like it is in the beverage category. Here, Tums, which is a quick-acting antacid, has come very close to FMCG, with an almost confectionery, fun design showcasing fruity images. In contrast, we have Nexium, which still has a very generic OTC look to it – it is understandable why this is the perfect example of an FMCG rule applied to a drug product to great success.

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FMCG and Consumer healthcare have a lot in common

The consumer healthcare industry is one of the fastest-growing and most exciting, albeit an incredibly complex research field. Although it has its specificities, the lines between these industries are getting more and more blurry by the consumerization of healthcare. People are getting more educated about their health choices, embracing technology and exploring ways they can make the right health decisions for themselves. It is safe to say that healthcare and FMCG products are perceived in an increasingly similar way. Finally, end-users are all human and driven by strong subconscious biases. Understanding them makes the difference on the shelf and between poor or outstanding sales.

Assessing a new or a redesigned package needs to be done in the proper, realistic context – on a busy supermarket or drugstore shelf. Any ideas that leave R&D laboratories must pass both explicit and implicit tests of being bought in a competitive environment.

Established pharmaceutical companies have much to gain by adopting FMCG’s attitude towards MRX – innovating and changing guided by insights and a deep understanding of consumer behavior. Their reliance on research for quick, iterative design processes, fast and agile virtual shopping tests, and making sure they think about their packaging in an omnichannel context is an excellent playbook that consumer healthcare can take cues from.

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