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Sustainability, Transparency & Engagement: Connected Packaging in the Soft Drinks Industry hero image

Sustainability, Transparency & Engagement: Connected Packaging in the Soft Drinks Industry

The soft drinks industry is experiencing a digital transformation, driven by evolving consumer expectations, technological advancements, and stringent regulatory landscapes. Connected packaging - integrating digital technologies such as QR codes and NFC tags into product packaging - offers soft drink brands innovative avenues to enhance compliance, engage consumers, and protect brand integrity.

As the industry embraces digital engagement with its consumers, there is a growing opportunity for soft drinks companies to leverage connected packaging using QR codes to not only to share product details but also to engage consumers with enhanced experiences and protect brand integrity.

With increasing competition in the soft drinks category, including new trends such as the rise of functional beverages and more craft options, understanding who your customer is and connecting them with relevant experiences will ensure you protect and grow market share. Below we set out some key considerations if you work in the soft drinks industry.

EU Regulations: Navigating Compliance in Soft Drinks

Soft drink products within the European Union are subject to comprehensive regulations such as (EU) No 1169/2011 to ensure safety, transparency, and sustainability: 

  • Food Labelling: EU regulations require that all pre-packed food and beverages display essential information, including the product name, ingredient list (with allergens highlighted), net quantity, and date marking (best before/use by). This ensures consumers have access to full details about the content and composition of products, safeguarding their health and interests. 

  • Nutrition Labelling: In the EU, nutrition labelling is a legal requirement for soft drinks. This includes details on energy value, fat, saturated fat, carbohydrates, sugars, protein, and salt per 100ml or per serving, helping consumers make more informed choices. 

  • Packaging and Packaging Waste Regulation (PPWR): The EU’s new Packaging Regulation, effective from February 11, 2025, introduces stringent requirements on sustainability, recyclability, and the reduction of single-use plastics for products sold in the EU. This includes targets to increase the use of reusable beverage packaging and refill systems, with the goal of reducing packaging waste 

  • Tethered Caps Directive: Since 3rd July 2024, EU regulations mandate that drink bottles up to three litres must have attached caps to reduce plastic litter, as caps and lids account for a significant portion of marine waste. This regulation has brought about significant changes in industry practices and economics, including higher costs and the need to adapt production processes. 

With consumers demanding ever increasing levels of transparency around the sourcing and impact of the goods they buy, the need to provide clear and concise information at the point of need – when the product is in their hand – has never been greater. However, competing regulations that demand less packaging and at the same time more information for consumers, puts added pressure on label space and creates a trade-off between brand and compliance. Another change on the horizon may solve this issue.

GS1 is the global standards body for barcode technology. GS1 Sunrise is an initiative to move the global supply chain towards two-dimensional (2D) barcodes (QR codes) that can carry more information. By 2027 2D barcodes will be accepted at point-of-sale (POS), tracked through the supply chain and also scannable by consumers. The shift has already begun with the new technology being tested in 48 countries across the world, representing 88% of the world’s GDP.

The GS1 Digital Link standard enables QR codes to act as universal digital identities for products. Ensuring you use an ID management platform that is GS1 compliant is important as we move towards Sunrise so you can drive consistency across your portfolio, adhering to the highest standards when it comes to interoperability across the supply chain and for consumers.

By adopting GS1 Digital Link, CPG companies can:

✅ Ensure global consistency in product information.

✅ Support multi-use QR codes (for compliance, marketing, and authentication).

✅ Reduce label clutter while improving data access.

✅ Link to multiple experiences from a single QR code (e.g., regulatory info, product storytelling, loyalty programs). 

Read more about why GS1 Sunrise and GS1 Digital Link are important.

How Connected Packaging Enhances Consumer Engagement

As we move towards QR codes replacing barcodes, connected packaging will continue to transform traditional packaging into interactive platforms, providing consumers with enriched experiences and fostering stronger brand relationships: 

  • Interactive Product Information: By scanning a QR code, consumers can access detailed information about the product’s origin, ingredients, and sustainability practices, aligning with the growing demand for transparency. 

  • Personalised Experiences: Brands can offer tailored content, such as gifting, or interactive games, enhancing consumer engagement and building brand loyalty. 

  • Direct Communication: Connected packaging enables direct communication between brands and consumers, allowing for feedback collection, surveys, and personalised customer service 

  • First Party Data Collection: The direct and owned media channel that connected packaging creates enables brands to collect vital first party data from their consumers via incentivised experiences, from competitions to loyalty schemes. 

The key to successful consumer engagement is consideration to the value exchange between brand and consumer. Understanding what makes the consumer interact with your product gives you myriad options to engage with them and collect valuable data that can be used to optimise your overall marketing.

Case Study: Evian

To amplify the collaboration between Evian and Pharrell Williams’ wellbeing brand Humanrace, Evian created a connected experience that brought to life the key message: “health starts with water”. The concept of the ‘Fountain of Youth’ was brought to life in a contextualised journey for each user, with happiness and peace of mind tips along the way called 'Droplets of Youth' driven by location, time, and weather. See more here.

Roadmap for Adopting Connected Packaging in the Soft Drinks Industry 

  1. Assess Regulatory Requirements: Understand and align with EU regulations related to packaging, labelling, and product safety. 

  2. Prepare for Packaging Regulations: Begin collecting and organising product data to comply with upcoming packaging requirements, ensuring transparency and sustainability. 

  3. Select Appropriate Technologies: Choose digital technologies (e.g., QR codes, NFC tags) that align with your brand’s objectives and consumer preferences. 

  4. Target focus areas: Understand what role connected packaging plays in your marketing and retention strategy. Will it be focused on compliance, transparency and trust, first party data collection etc 

  5. Understand the value exchange: Make sure that you are giving your consumer the reason to engage, especially if you want to use connected packaging for first party data collection. 

  6. Develop Engaging Content: Create interactive and valuable content aligned to your value exchange and make it accessible through connected packaging to enhance consumer engagement. 

  7. Launch, Monitor and Iterate: Collect consumer feedback and analyse engagement metrics to refine connected packaging strategies continuously. 

Embracing connected packaging is a strategic imperative for soft drink brands aiming to comply with regulations, engage consumers, and protect brand integrity in an increasingly digital and transparent marketplace.

If you're a soft drinks/CPG brand looking for help with your regulatory compliance and consumer engagement - get in touch and we can talk you through our ID management platform io.tt or even start you on a free trial.

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