In this Expert’s Corner, JoAnn Hines, aka The Packaging Diva, lays out how the still-weak economy and fickle consumers are forcing businesses to rethink their packaging decisions.

It goes without saying that packaging plays a critical role in marketing a product or brand. However, it takes more than just a pretty package to sell a product that resonates with consumers.

IMT recently picked the brain of JoAnn Hines, a packaging consultant, speaker, educator and overall one of the busiest people in the packaging industry. Known in the industry as The Packaging Diva, Hines weighs in on some of the key forces within product packaging today.

IMT: Recessions tend to expose an organization’s true commitment to innovation. From your observations over the past three years, how has the economic downturn affected the packaging industry’s long-term innovation goals?

JH: Packaging innovation seems to have slowed down. True packaging innovation — that is, packaging that changes the way we shop or what we buy — is rare.

For the majority of companies, packaging innovation consumes vast amounts of dollars to implement throughout the entire network. With a slowdown in the economy, that budget is being cut. Where I am seeing innovation is from smaller companies that have new ideas and ways of doing that step outside the traditional mold. A good example, though not new, is Terracyle, which has solved a problem and created a whole new category of re-purposed packaging products.

Other innovations are solving problems particularly in the environmental area. They are getting more traction and interest than previously because of environmental awareness. In addition, much of today’s innovation in packaging is coming from outside the U.S., despite being under the same economic pressures. For other countries, it is a method to penetrate one of the largest packaging markets in the world.

IMT: Interactive packaging — which allows people to obtain additional product information by scanning a code on a package — has been garnering more attention recently. Do you consider it a fad or a feature that’s here to stay?

JH: There are two schools of thought regarding interactive packaging.

The first, most obvious, is utilizing all the new tools and gadgets that are available for scanning, downloading, etc. Consumer packaged goods (CPGs) are experimenting with various iterations of QR codes and scannable tags. A lot of it is faddy and directed to a very limited audience, although some of it is quite clever and appealing. I’ve even seen a few packaging apps available, but after the initial introduction, interest seems to have waned.

The other side of the coin is that people are so busy adding another device, task or assignment to garner more information before making a purchasing decision — making the process more cumbersome. People are in a hurry, and if you make it too complicated to purchase your product, they will lose interest and move on to another brand. If you do develop these devices for your packaging, it is important to target them to the right audience.

IMT: Much has been made of reducing excess secondary packaging either for customer convenience or to lower materials costs. Are there any forms of secondary packaging that you find unnecessary or even detrimental to the customer experience?

JH: Secondary packaging that consumers have to dispose of is a red flag. They read about packaging going into the waste stream and how much packaging each household uses, and then they get angry, thinking less packaging is the solution. This is in direct opposition to the demand for more convenience and accessibility of products.

Consumers’ minds think one thing, but the reality is something else. Packaging that has dual applications, going from freezer to microwave, or that can be reused, re-purposed or refilled, is capturing consumers’ interest. What puts them into a frenzy is large amounts of packaging that simply gets thrown away and into the waste stream.

IMT: As increasingly more consumers challenge businesses on sustainability and demand more socially conscious packaging, designers have quite a few concerns about going “green.” How are firms going about reducing their carbon footprint?

JH: The best way to become greener with packaging is to rethink the entire packaging paradigm.

It’s not just about the packaging itself. It’s about the entire process from the beginning. Each step should be analyzed for a better method of utilizing raw materials, energy and resources. For example, do you really need an outer carton? Can the product stand alone without one? Can it be reconfigured to a different shape to be more efficient throughout manufacturing, shipping, distribution and retail? Can it be made from lighter-weight material and easily integrated back into the waste stream? How local is the supplier and how far will the product have to be shipped? It is this type of thinking that will help the industry reduce its footprint.

The challenge is how to translate that information into something the consumers will understand. They seem focused on certain buzzwords and phrases that they really don’t know the meaning of. It is up to the packaging community to translate their actions into meaningful ones that consumers will embrace.

IMT: What are the top packaging challenges and/or opportunities for 2011?

JH: One of the top challenges for 2011 is marrying consumers’ expectations with the right packaging. We’ve seen numerous packaging introductions that have failed because the consumer is anticipating one thing and the packaging reality turns out to be something else. Packaging that helps a consumer solve a problem or makes their lives easier is an opportunity. So much packaging is just another “me too” or a “new and improved.” That isn’t impressing anyone.

Another critical issue is the rising cost of raw materials. At one time, it was easy to downsize a package slightly and the consumer would never notice. Those days have passed. Not only are consumers scrutinizing everything about the package — they are talking about it, too. The rise of social media has had a dramatic impact on packaging. Nothing is sacred and if the packaging community makes a mistake, everyone will know it. Keeping costs constrained without changing or reducing the packaging is going to continue to be a huge issue.

Lastly, consumers are looking for value, whether it’s from a CPG or a private label — no brand is immune. Consumers are seeking out the best packaging options and the best packaging prices. Building consumer loyalty and trust are both a challenge and an opportunity, especially as the competitive landscape becomes increasingly complex.

JoAnn Hines has been recognized as one of the 50 most influential packaging leaders worldwide. Her work is featured in Package Design magazine, Shelf Impact, Webpackaging and many other packaging publications, including the Chicago Tribune and Entrepreneur magazine. You can visit any one of her informative online resources for free advice, articles or just plain help: PackagingDiva.com, PackagingUniversity.com, PackagingCoach.com, PackagingBootcamp.com, DoItYourselfPackaging.com or PackagingYourInvention.com.