Packaging

The packaging industry has experienced an extensive level of change across the past half a decade, and the trends are though mostly positive, are likely to continue leading into 2030. These include cost of packaging and supply chain impact, brand packaging, sustainability, digitalisation and rising costs. The impact from supply is subject to a disruption in raw materials and consequently a disturbance in packaging solutions and an increase in basic packaging costs. The cost of packaging is by far the most important trend that is likely to continue across the next year. However, it is also a cost that is passed onto customers, while demand is growth and variation remains constantly highly. This cost is largely due to pressures from sustainability, innovation and general levels of increased global inflation associated with cost of primary packaging materials. It is also creating new emerging opportunities and  ample revenue potential for the industry.

            Wevents view sustainability in twofold, first is micro; that is at industry level where innovative solutions are presented to tackle a wide range of sustainable packaging challenges, and it varies segment to segment. For instance, in food and beverage the development of high barrier mono-material, recyclable polyethylene structures and a 100% biodegradable plastic has begun. Yet the basic cost of such packaging is much higher than petroleum-based plastic. The dilemma is to ensure sustainability and business costs do not interrupt business output. Another pressure point is the cost-of-living crisis. The packaging industry appears to be in a highly cost sensitive juncture. While the second sustainability impact is macro, that is being pressed on to the industry from the wider world; external forces. That include governmental regulations, the sheer numbers of pressure groups and an overall consumer awareness that seeks greener and environmentally friendly solutions. It is very important to note consumers are likely to spend more on companies with brand packaging regardless of packaging sustainability and associated green initiatives. Hence opportunities for streams of revenue across a wide range of segments from sports, accessories, food to cosmetics among others.

Digitalisation and innovation of the packaging industry will continue as part of data generation. This includes QR or NFC technologies that provide an interactive experience for consumers, while most engage this as a primary packaging option. It can also be deployed in protective packaging, such as hardware or sensitive goods shipment. An important aspect of innovation are the robotics and self-automated processes, while they have been successfully deployed for instance in warehousing and production. Packaging is yet to deploy full robotics practices to process orders owing to cost and lack of industry tailored solutions. But an incremental automation approach can help with simpler operations such as palletization.

There are immense opportunities across the sector, especially in brand-based packaging, biodegradables and digitalisation. Targeting industries such as pharma, food, cosmetics, technology or consumer goods among others. This is further supported through the overall changes in supply chain monitoring, localised production through smart factories as well as retail-shelf diversification trend. We see the potential truculence as immense opportunities for companies following and preparing for key industry trends.