The trend towards customisation and greater online connectivity will drive innovation in packaging over the next decade.
This is one of the findings of researcher Smithers Pira in a new technical report, Ten-year forecast in Disruptive Forces in Packaging to 2027.
Using a survey of industry opinion formers, Smithers identified and analysed the 10 most significant forces on the packaging industry in the next decade.
It concluded that trends such as online connectivity, premiumisation, designing packs for e-commerce, and sustainability would be key drivers in the packaging space.
Globally, the packaging market was valued at around $866 billion in 2016, with a compound annual growth rate (CAGR) of just over four per cent since 2010.
Developing regions such as the Middle East, North Africa and parts of South America, are growing more rapidly at five to seven per cent through to the end of the decade.
The market is set to reach over $1 trillion by 2021, Smithers Pira predicts.
“Ensuring future success will depend on capitalising on emergent technologies and responding to new brand and consumer demands within a rapidly evolving retail landscape,” report author Simon Ford said.
Another trend to watch is customisation, led by a new generation of digital print equipment. (You can find out more about this from HP UK Brand and Innovation manger, Paul Randall, who'll be talking at the Future Unpacked industry forum, presented on 22 August in Sydney by PKN + Food & Drink Business LIVE).
"Consumer responsiveness to one-off and seasonal product editions can be a strong factor in increasing sales, as has been well documented in the drinks industry," Ford said.
"The ‘Share a Coke’ campaign increased sales by just over two per cent in the first year and was the spark for millions of social media hits and texts and photos."
"The same has been done in the beer market, a trend that began in the US with NFL-themed beer cans.
"The idea is to provide consumers with a customised, personalised experience, or at least the perception of one."
The top 10 trends identified by Smithers Pira were:
- Greater connectivity with consumers – with packaging forming the physical bridge to online interaction.
- Packaging premiumisation.
- Meeting tighter brand corporate sustainability targets.
- Designing packs for e-commerce.
- Adjusting transit packaging to dimension (DIM) weighting.
- Integrating the latest generation of sustainable packaging materials.
- Customisation and co-creation of packaging.
- Designing packs for optimal in-store location.
- Adapting global brand packaging for transition market opportunities.
- Engaging consumers in anti-counterfeiting.
These trends will both complement and compete with each other across the study time period, according to Ford.
They will also all see phased introductions with the essential technologies for several already in place.
