by Jennifer Mapes-Christ
September 19, 2024
In an era where many customers are looking for low prices over just about anything else, the Tupperware brand isn’t the differentiator that it once was.
I’m old enough to remember when Tupperware was synonymous with Food Storage. The company long benefited from the power of a brand name that spoke to quality and style… and had as much ubiquity as Xerox and Kleenex in their respective areas.
Tupperware started out with a direct sales plan, when the idea of home shopping and home delivery was unheard of. Through Tupperware parties with friends and neighbors, customers – traditionally stay-at-home moms – could see new products and order them to their home. Now you can shop for almost anything at any hour and have it delivered to your home.
This is a particular challenge for Tupperware as major competitors like Rubbermaid and Sterilite are readily available at places like Target, Walmart, Amazon. These outlets have each built reputations as places to get whatever you need, at a low price, and often delivered straight to your door.
Additionally, on Amazon, you can find similar containers from a wide variety of private labels and brands no one knows – or cares about – coming from suppliers in China. Furthermore, Target, Amazon and others have developed kitchenware lines in their own in-house brands. Competition also came from celebrity branded lines, which often start out in cookware and decorative tableware and sometimes also moves into the functional storage space as well.
In an era where many customers are looking for low prices over just about anything else, the Tupperware brand isn’t the differentiator that it once was. When good enough is good enough, customers necessarily aren’t looking for a piece that will hold up so long that your kids will be able to use in their own homes when they move away (no joke – I have a Tupperware pitcher from the late 70s in my cabinet right now).
Younger consumers who are looking for higher end, long-lasting products – the spot where Tupperware traditionally competed – are increasingly looking for more sustainable materials or are looking to reduce the amount of plastics in their home or that come into contact with their food. Glass, stainless steel, and silicone containers are preferred for durability, sustainability, and inertness.
Although Tupperware did ultimately make some offerings in silicone containers, others had already established themselves there as premium offerings and then low-priced competitors entered as well. Tupperware also began selling via conventional retail channels, including Amazon. But the transition was hard to make, given the competition that awaited the company there.
In the report Tableware & Kitchenware: United States, The Freedonia Group reports that demand for plasticware demand in the US was $5.7 billion in 2023. Plasticware demand is forecast to rise 5.4% through 2028 as the industry shakes off some of the volatility of more recent consumer spending cycles. While Tupperware benefited from the COVID-era boom of cooking at home and shopping from home, it was unable to sustain those gains beyond the pandemic peak. On September 17, 2024 Tupperware filed for Chapter 11 bankruptcy protection after being unable to reverse the declining sales or find a suitable buyer for the business.
So, is it the end of an era? Perhaps. Companies need to evolve with the times, but they can’t wait too long to do so.
For more information on consumer products and retail sales channels, see Freedonia’s Consumer Goods research area.
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