How smart packaging is bringing in big money for food businesses

With the online delivery market booming, food delivery is no longer just about satisfying hunger. Brands are stepping up to offer customers a complete home dining experience. With food aggregators like Swiggy and Zomato dominating the online delivery market, ordering food is no longer just about satisfying hunger. It’s a multi-step process that often starts with how tempting the dish looks in its image, followed by checking if the restaurant boasts a rating of over 4 stars. And crucially, the way food is packaged, when it arrives at your doorstep matters too. More and more people today are conscious of the environment and committed to living sustainably. For them, the packaging of delivered food is just as important as the meal itself. Plastic containers are being swapped out for eco-friendly paper boxes, and some brands are going even further, turning packaging into a lucrative selling point. In this respect, several food brands have created the buzz, not just for their food but for their innovative approaches to food delivery packaging. By integrating advanced, eco-friendly materials and innovative design principles, Pot Pot has set new standards for sustainable food packaging without compromising style, flavour, or functionality. When you order from Pot Pot, your food arrives in sturdy paper boxes, glass jars, potlis (cloth bags), and they even give you real cutlery! Varun Tuli, managing director of Yum Yum Tree Group (Pot Pot’s parent company), told India Today, “While India generates approximately 15,000 MT of plastic waste daily, with only a fraction being recycled, the need for sustainable alternatives is urgent. In response to these challenges and Government regulations, such as the 2022 phase-out of single-use plastics, brands are adopting more eco-friendly practices.” Other brands under the Yum Yum Tree Group, like Wheaty and Noshi, have also embraced sustainable and eco-conscious packaging practices. Another noteworthy player in this space is Aflatoon by Social, which has designed its packaging to be completely zero-waste. Divya Aggarwal, chief growth officer at Impresario Entertainment & Hospitality Pvt Ltd, explains, “The idea behind our packaging stemmed from the desire to enhance the home dining experience while minimising environmental impact. Aflatoon wanted the packaging to be more than just a container it had to be part of the overall experience. This led to the creation of reusable, aesthetically pleasing packaging that complements the brand’s fusion of classic and contemporary styles.”

The allure of smart packaging:

A big reason brands are rethinking packaging is because it’s increasingly seen as the first point of interaction with their product. Packaging plays a vital role in how the customer experiences the brand – it’s almost like having a conversation with them. Business owners are becoming more conscientious, realising that a good product isn’t just about the item itself anymore. It’s about everything around it, from using eco-friendly packaging to caring about provenance and culture. Today’s customers expect brands to share their values. The push for no-plastic packaging is a reflection of the fact that people don’t want plastic in their lifestyles anymore. In our experience, especially with new entrepreneurs, a genuine commitment to these principles. For those who love regional Indian food in Delhi, Baraat stands out not just for its flavours but also for its vibrant, reusable tin boxes, which can double as a keepsake. Vipul Kohli, CEO of Clove Hospitality Pvt Ltd, explains, “We’ve always viewed good packaging as an investment, not an expense. We knew from the start that plastic wasn’t an option. We wanted something reusable, something that would leave a lasting memory of Baraat in people’s homes. Customers have shown immense curiosity and interest across different platforms, Baraat has received fantastic feedback not just for the food, but for the packaging as well. It truly leaves a positive impact.” Even cloud kitchen brands, like Behrouz Biryani under Rebel Foods, understand its appeal. Their new nawabi handi dum biryani comes in a traditional metal handi, adding an extra touch of authenticity to the experience.

How smart packaging helps businesses:

At the end of the day, the customer is king. Earning their loyalty through an immersive home dining experience is the deal. “Smart packaging plays a crucial role in enhancing the consumer experience by offering convenience, engagement, and added value. Features like interactive elements create a more personalized and immersive experience. It also ensures better product protection, freshness, and traceability, which helps build trust and reliability among consumers,” says Mr. Tuli. Beyond maintaining customer loyalty, some brands have found that smart packaging can also justify premium pricing. Divya Aggarwal notes that packaging goes beyond mere visual appeal it elevates the home dining experience, making it more memorable and immersive. Pritha Thadani, co-founder of Please See, adds, “Smart packaging can significantly enhance the consumer experience whether by providing valuable, contextual information about the product or incorporating interactive features and personalized touches. It allows brands to tap into consumer behavior and create packaging that helps build an emotional connection with the brand.” Moreover, smart packaging helps reduce waste, allows real-time monitoring, and improves inventory management, ensuring that food remains fresh until it reaches the customer. It’s also aligned with eco-friendly practices, creating a premium experience, according to Vipul Kohli. “Food and delivering experience with our packaging – which we take pride in, has been a game changer for Baraat. We’ve seen a growth in returning customers and great reviews and word of mouth for our tin boxes. Smart packaging is undoubtedly directly proportional to sales, customer satisfaction and loyalty,” he adds. While packaging food for delivery plays an important role, it also has a few downside points:

• Financial and operational challenges: Opting for smart, eco-friendly, or ergonomic packaging isn’t always beneficial for the business from a financial or operational standpoint.
• Increased workload and expense: This type of packaging often requires additional work and incurs higher costs for the business.
• Vendor difficulties: Sourcing vendors for unconventional packaging can be challenging.
• Longer production time: Environmentally friendly or specialized packaging takes more time to produce than standard options.
• Higher costs: These packaging choices are typically more expensive than regular packaging alternatives.

What’s the future of smart packaging?

Smart packaging is revolutionizing the food industry by blending sustainability with cutting-edge technology and while many may not realize, disposing of these packages is also a part of it. One of the key innovations on the horizon is the implementation of customer recycling programs, where customers can return packaging for proper disposal and recycling. Mr. Tuli says that their brand is aiming to creatively engage customers by rewarding them for repurposing packaging, turning sustainability into an interactive and rewarding experience. Divya Aggarwal adds, “As more consumers look for greener choices, packaging that’s reusable or compostable is becoming the norm. But it doesn’t stop there – imagine packaging with QR codes or augmented reality features that offer personalized experiences, like exclusive content or product information. This trend not only meets rising expectations for sustainability but also creates a unique way for brands to connect with customers, boosting engagement and loyalty in a fun and interactive way.” Pritha Thadani talks about the emerging trends in packaging, such as seaweed-based materials, alternatives to bubble wrap, leak-proof and heat-sealed paper boxes, and entirely plastic-free solutions. Additional innovations include interlocking mechanism boxes and eco-friendly printed stickers. She highlights Go Do Good as a leading example in this field, demonstrating how brands can push the boundaries of sustainable packaging.

It does not just end with a click:

When you order food online, you might think the magic ends once you click “place order.” But behind the scenes, a lot more is at play than you might imagine. The packaging, just like the food itself, is undergoing a remarkable transformation. It’s not just about wrapping your meal anymore; it’s about enhancing your entire dining experience in ways that are as innovative as they are essential. Smart packaging is redefining what we can expect when our meals arrive at our doorstep.