The global packaging industry has exhibited resilience in the coronavirus pandemic. According to TechNavio, the global packaging market is poised to grow by USD 170.61 billion from 2021 to 2025, progressing at a CAGR of 4% during the forecast period. In addition, 41% of the market’s growth will originate from APAC, where China and India are the key markets. However, trends and influences are at play as consumers’ purchasing habits and priorities. This will also continue to shape the consumer packaging mix in the years ahead.
PACKAGING IN A NUTSHELL
Product packaging involves various layers of materials, classified as primary packaging, secondary packaging, and tertiary packaging. Primary packaging contains, stores, and protects a product and is in direct contact with the item. Secondary packaging adds more protection and facilitates the marketing of the product on a large scale, while Tertiary packaging creates larger unit loads.
Source: Packaging types in logistics. Interlake Mecalux
Source: Beyond COVID-19: The next normal for packaging design, McKinsey & Company
THE YOUNGER
Consumers demand action from companies on health and environmental issues more than ever. They want the companies to reduce carbon emissions and packaging waste. According to the latest PwC consumer survey, the majority of the consumers are willing to pay more for ethically and sustainably produced items, and the industry is responding to this trend.
Source: 2021 Global Consumer Insights Pulse Survey, PwC
Among different generations, millennials have become eco-friendlier and more tilted toward eco-sensitive behaviors. According to the PwC survey, A significant slice of older millennials, aged 33-36, say they choose products with traceable and transparent origins. Almost as many core millennials, aged 27-32, indicate that they buy from eco-conscious companies.
Source: 2021 Global Consumer Insights Pulse Survey, PwC
THE EVITABLE TREND
Pressure to reduce packaging waste has increased dramatically in the face of global consumer sentiment, and regulators are responding to address this concern. Inevitably, most countries are moving toward setting up regulations on sustainable packaging even though at different paces and in various depths.
Source: 2021 Global Consumer Insights Pulse Survey, PwC
TOWARD SUSTAINABLE PACKAGING FUTURE
Packaging plays a critical role in protecting products, preserving food, and ultimately facilitating modern lifestyles. The global packaging market is expected to reach USD 170.61billion by 2025, driven by factors such as rapid urbanization, the rise of e-commerce, and expanding middle classes in developing nations. However, heightened government and consumer attention to environmental impact and sustainability has compelled the packaging industry to reconsider.
Source: Sustainability in packaging, Global regulatory development across 30 countries, PwC
As consumers and brands worldwide continue to turn their attention to sustainability and ecologically-friendly process, sustainability, for most businesses, has moved from a “nice-to-have” to a “must-have” to a ” must-have. “The packaging industry has evolved from a sustainable materials management (SMM) mindset, focusing on light-weighting and efficiency of packaging materials, to a more “circular economy” approach where recycling, reusability, sourcing, and material compositing are driving future design.
Source: Packaging in the circular economy
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor and MEGA Tech