Packaging manufacturers have had to adapt fast, due to current trends and expectations.
Packaging is essential to the growth and maintenance of human civilisation. A simple plastic bag or cardboard box are the materials used to transport medicinal products, food and beverages – all of which are important to the suppliers and the general population.
However, the packaging industry is always under the influence of new trends and regulations that come into force. Environmental, economical and consumer-demand are some of the most significant impacts on the performance of the packaging industry.
In this blog, we will be talking about 5 megatrends that are currently changing how we produce packaging. These key trends will affect the growth and profitability of businesses that are now playing in the packaging sector.
#1. The ever-growing e-commerce channel
Direct-to-consumer shipping and service are one of the most noticeable changes happening to the packaging industry. E-commerce websites have made it much easier for customers to order products; however, they made it much for difficult for packaging leaders.
Due to the rapid evolution of e-commerce, packaging suppliers are working even harder to provide to the retail industry and their quantity of orders. Online sales have risen by over 17% over the last year, and this number is increasing day by day. It’s now up to the packaging industry to find ways to cope with the high demand and ensure that maintain effective productivity.
#2. Customer preferences
Personalisation and customisation of goods are becoming increasingly popular in today’s society. For instance, if you head to supermarket chains like Tescos or Sainsburys, you will find many packages that hold the same product, the only difference in the attention to detail. It’s a variety that is driving customers to closed sales, and packaging must learn to accommodate this.
Packaging is the first thing anyone sees on the shelf, and it’s the final factor that convinces the customer to buy. Companies like Amazon rely on packaging suppliers for the millions of orders it receives day in and day out, so the industry has to meet expectations. As e-commerce globally begins to grow, packaging industries are preparing for the digitalisation of their business clientele.
#3. Consumer-Packaged Goods
We are beginning to lose the battle for shelf space and margin growth with CPG’s, the repercussions of this is that packaging manufacturers have to decrease costs. This new introduction means that packaging designers need to be more agile and flexible with their approaches.
These changes are putting extraordinary pressure on margins, with shop sales decreasing; it’s proving a difficult challenge for the packaging industry in general. CPG’s will be fighting for cost-effectiveness while aiming to reflect the persona of a business effectively. In the next few years, consumer-packaged goods will need to find ways to win the fight for customer conversions.
#4. Sustainability pressures
Sustainability of products, particularly that of plastic packaging is becoming ever so important. In both business and society, sustainable packaging is the future, and the aim to maintain a good environment. Packaging manufacturers have started making commitments towards making a difference and consumers are beginning to have a perception on if packaging considers sustainability.
‘Plastic leakage’ has been a talked-about epidemic that is starting to affect the sea and wildlife drastically. Due to such scares, packaging industries are finding ways to tackle this issue by creating materials that are environmentally friendly or that people can use again and again.
#5. Packaging digitalisation
There are new, emerging technologies for packaging but they are still currently in development. Nobody knows if such technology will arrive within the next century or tomorrow, but packaging industries should expect the change. Packaging manufactures need to start getting innovative to prepare for digital influences.
Such businesses should be introducing more agile processes to meet future expectations. Customers are always on the lookout for new and exciting products, and packaging is an important consideration which can help close a purchase. If packaging industries want to adapt to the digital world, they need to start preparing for the unexpected.
Packaging manufacturers need to start adapting.
The future is dedicated to sustainability and easier accessibility. Packaging industries are in the middle of these changes and will need to research ideas that will help them stay above the competition.
These are only 5 of the megatrends that will be affecting the performance and delivery of packaging industries. However, there are still plenty more factors and regulations that will need to be met within the next few years.
Customers are evolving fast, and they will be searching for new, more comfortable means of packaging. It’s up to packaging industry leaders to prepare for the approaching events and help the business to develop in success both in retail and e-commerce.