Globally, the packaging is a diversified USD 850 billion industry with healthy growth prospects of some three percent per annum. Geographically, most of this growth will be fueled by emerging markets, which can expect to see packaging consumption increase by USD 107 billion from 2017 to 2022 while markets in Western Europe and North America are projected to grow at approximately one percent per annum but from a large base, with packaging consumption in developed markets set to increase by USD 22 billion by 2022.
Geographically, most of the global growth will be fueled by emerging markets
Source: No ordinary disruption: Winning with new models in packaging 2030, McKinsey
As packaging companies emerge from the COVID-19 crisis, they need to readjust their focus and raise their game while negotiating ongoing shifts in the industry. Packaging companies will need to rethink their focus and market approach. McKinsey expects the impact of the pandemic to alter important megatrends that were already reshaping the packaging industry before the crisis and raising the bar for performance.
Packaging megatrends are expected to evolve in response to the COVID-19 crisis
Source: Shaping the next normal of packaging beyond COVID-19, McKinsey
Ahead of the COVID-19 crisis, sustainability was top of mind across the whole packaging value chain. Consumers were becoming acutely aware of the packaging sector’s environmental footprint, and, in turn, rising public awareness sparked responses from legislators around the world.
COVID-19 has increased awareness of the hygiene and food safety of packaging especially in those countries hardest hit.
Source: Sustainability in packaging: Inside the minds of global consumers, McKinsey
With sustainability increasingly part of their value proposition, fast-to-moving-consumer goods (FMCG) and retail companies promised swift action and made bold commitments to improving the recycling potential of their packaging. This consumer sentiment is evolutionary.
Consumer-packaged-goods (CPG) lighthouses use digital to become more productive-and more agile, customer focused, and sustainable.
Source: The digital future of manufacturing consumer packaged goods, McKinsey
It is often wondered what packaging substrate is seen as the most sustainable by consumers. In response, a recent McKinsey survey indicates that consumers around the world disagree about what they view as the most sustainable packaging materials, but their perception is quite aligned on what they regard as the most unsustainable materials.
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech