9 Costly Packaging Mistakes Killing FMCG Brands

The Fast-Moving Consumer Goods (FMCG) industry is crowded and has a wide consumer base. This makes it challenging for FMCG brands to make a good and lasting first impression. One of the ways brands can create an everlasting good first impression is with their packaging design since it’s typically the first point of contact consumers have with a brand. However, there are a few packaging mistakes that FMCG brands usually make.

 

Source: Rachel Brandeis on Pinterest

 

So, what happens when your packaging design blends in with your competitors and lacks a strong brand identity? Sales drop, and your brand fades into the background. In this article, we’ll uncover 9 packaging mistakes that could silently kill your sales and how to fix them to stand out.

 

9 Packaging Mistakes in the FMCG Industry

1. Confusing Design Similar to Competitors

Having product packaging that looks similar to your competitors’ can create a brand association or perception of similar quality but it can also be the downfall of your brand.

• Problem

• • • Packaging designs that look very similar to your competitors lack uniqueness and can cause consumer confusion.

• Impact

• • Consumer confusion could lead to mistaken purchases (whether consumers meant to buy from you or your competitor) and cause brand invisibility on crowded shelves.

 

Source: r/mildlyinteresting via Reddit

 

2. Inadequate Product Protection

Thin packaging, poor sealing or insufficient cushioning for fragile items are considered inadequate product protection and poor packaging.

• Problem

• • • Poor or fragile packaging stands a higher chance of malfunctioning during transit or storage.

• Impact

• • This leads to damaged products, resulting in returns, customer dissatisfaction, and increased costs to address these issues.

 

3. Overlooking Sustainability

Sustainability is a huge trend in packaging design nowadays. 

• Problem

• • • Excessive or non-eco-friendly materials tend to alienate eco-conscious consumers.

• Impact

• • This damages a brand’s reputation and misses opportunities with consumers who hold those values. 

 

4. Unclear or Non-Compliant Labeling

Regardless of whether you are in the FMCG industry or not, consumers value honest labelling which includes allergen warnings, sourcing, compliant claims, expiry dates and more.

• Problem

• • • Missing or misleading details violate regulatory labelling practices.

• Impact

• • There will consequently be fines, recalls, and worst of all, loss of customer trust, especially in a time when consumers value honest labelling.

 

5. Overcomplicated Packaging

Hard-to-open packaging or overpackaging, although it may sometimes look nice, can be a problem for brands and their consumers.

• Problem

• • • Difficult-to-open or overall complicated packaging can frustrate consumers.

• Impact

• • This reduces repeat purchases and damages brand loyalty.

 

 

6. Neglecting Visual Brand Consistency

Visual brand consistency, through having a solid brand visual identity, means ensuring that whatever product you put out is tied in some way or format while making sure it’s recognizable. 

• Problem

• • • Mismatched designs weaken your brand identity.

• Impact

• • Affects consumer recognition negatively while hurting brand reliability.

 

7. Overuse of Excessive Branding

Some brands try to incorporate too many elements, often due to a mix of ideas or the belief that combining various appealing features will enhance the design.

• Problem

• • However, too many elements or cluttered designs can cause the packaging to lose its appeal.
• Impact
  • Cluttered designs will most probably dilute key messages and overwhelm buyers.

 

Source: DesignerPeople

 

8. Failing to Adapt to Consumer Preferences

This occurs when brands do not adjust their offerings, messaging, or strategies in response to shifts in consumer needs, behaviours, or trends.

• Problem

• • • Ignoring trends like portability or refill options. In other cases, ignoring what feedback consumers have given.

• Impact

• • Brands that do this miss opportunities to make changes and grow with the times to meet ever-evolving consumer needs.

 

9. Poor Quality Testing

This happens when products are not thoroughly tested for quality, safety, or performance.

• Problem

• • • Inadequate testing or regular quality checks lead to overlooked flaws and malfunctions.

• Impact

• • This will result in defects and frequent complaints, further damaging your brand perception.

For other articles about the FMCG industry, check out how User-Generated Content (UGC) Is Shaping the FMCG Industry! 

 

How to Stand Out on the Shelf and Boost Brand Loyalty with Effective Packaging Design

As mentioned earlier, your product’s packaging is often the first thing consumers notice. Strategic packaging design not only grabs attention but also plays an important role in building brand loyalty. Therefore, here’s how you can make your product stand out and boost brand loyalty with your audience.

 

1. Leverage Colour Psychology

Utilizing colour psychology is always beneficial especially since it’s what attracts a person’s vision in the first place. For packaging design,  you can utilize colours that resonate with your target audience while conveying your brand identity. It also boosts recognition if certain colours are already associated with your brand.

Examples of colour psychology that are famously known include; green to suggest eco-friendliness, red exudes energy and excitement or blue to represent reliability and freshness. Aligning your colour palette with product attributes can draw attention and evoke trust​.

 

2. Utilize Shape Psychology

Aside from colour psychology, brands can also utilize shape psychology. Unconventional shapes can spark curiosity and increase product handling. It’s important to also note that the shape should complement the product or be functional, making it eye-catching and user-friendly too!

Shape psychology also gives meaning to certain shapes. For example, round shapes convey softness and comfort while triangles can convey dynamic movement or energy. Use shapes that are suitable for the product to attract the right audience.

 

3. Focus on Sustainable Packaging

Just as we mentioned earlier, consumers value sustainable packaging. Not only does it boost your brand’s reputation but 92% of shoppers consider sustainability important when choosing a brand to support. 

Options like recyclable, biodegradable, or reusable packaging appeal to eco-conscious buyers who, in fact, make up a huge percentage of FMCG consumers.

 

4. Create Clear, Simple Messaging

Consumers scan shelves very briefly, therefore, packaging shouldn’t be a novel that people have to read. Avoid clutter by using minimal yet impactful text. Brief and straight to the point, especially highlighting key points such as your product’s unique selling points (USPs) or allergen warnings and so on. 

 

Source: Freepik

 

5. Add Sensory Elements

A fun way to create FMCG packaging that stands out is by incorporating packaging textures like matte finishes or embossed designs. These can create a tactile experience that enhances perceived quality and fosters an emotional connection.

 

6. Use Transparent Windows

Dedicating an area on your packaging that is transparent shows the product inside which builds trust with consumers, allowing them to feel confident with their purchase. It also signals authenticity and aligns with modern trends in transparent packaging.

 

Stand Out with Strategic Packaging Design

Packaging is more than just a container—it’s a critical tool for attracting attention, building trust, and fostering customer loyalty. By addressing common mistakes and implementing thoughtful design strategies, you can elevate your brand’s shelf presence and drive lasting connections with consumers.

If your FMCG packaging is blending in rather than standing out, now is the time to act. At CR8 Consultancy, we specialize in crafting packaging that captivates, engages, and converts. Contact us today for a free consultation and let us help you transform your packaging into a competitive advantage.