According to a recent report[i], the packaging industry in the United States was valued at USD 184.65 billion in 2021 and may reach more than USD 218 billion by 2027. Here are a few trends in the packaging industry that will impact 2022 and beyond.
Expansion of E-Commerce
E-Commerce expanded exponentially during COVID. Extensive e-commerce will continue post-pandemic and increase demand for packaging. The e-commerce packaging market was valued at more than $27 billion in 2020 and is estimated to reach more than $61 billion by 2026. In addition, products sold via digital commerce get handled up to three times more than those sold through traditional retail, requiring packaging to be more innovative and brandable.
According to the National Retail Federation, retail sales reached USD 4.06 trillion in 2020 and are predicted to increase 10-12% in the coming years. The increasing sales contributed by e-commerce will positively impact the packaging market since many businesses continue optimizing packaging for e-commerce.
Supply Chain Issues and Freight Costs
Increased shipping costs and limited cargo space continue to plague business supply chains. Moreover, these higher-than-usual freight costs are getting passed on to consumers as the world’s dependence on shipping continues to grow.[ii]
Responsible and Sustainable Packaging
Demand for sustainable packaging made from recycled materials and plastic alternatives, such as bioplastics and paper that can be refilled, reused, and recycled will continue to grow as consumers demand more eco-friendly products.
A surveyv[iii] of 255 packaging decision makers revealed that 65% of manufacturers are investing in sustainable packaging to reduce their environmental footprint. Sixty-five percent of those surveyed identified Flexible paper/fiberboard and biodegradable packaging as the most widely used sustainable materials, replacing plastics. Another thirty-nine percent used paper, and thirty-eight percent used foils. About three-quarters of manufacturers believe quality control processes are “significantly difficult” to “somewhat more difficult” with sustainable packaging materials. Those surveyed said that investments required to implement sustainable packaging are: new equipment (66%), additional consulting services (49%), and new in-house expertise (42%). Sixty-one percent of survey responders thought the most significant impact on sustainable packaging innovations will come from research and development.
Innovative Technologically Advanced Packaging Solutions
Active packaging, used within the smart food packaging market, is designed to interact with the contents to extend their shelf life and quality.
Intelligent packaging involves sensors and indicators that monitor a product’s condition and can communicate information about its freshness, temperature, storage life, etc. Several devices in the IoT (Internet of Things) can communicate with intelligent packaging, including RFID chips, LED lights, Speakers, and Bluetooth.
Because they contain electronic components, safe disposal of active and intelligent packaging remains a barrier to widespread smart packaging usage because it is both challenging and costly.
The SPI of Chicago team of expert recruiters leverages an extensive industry network and body of experience to bring you top talent in the packaging and plastics industry. We focus on saving you time and money by securing candidates who can increase revenue efficiency with offers designed to attract the top performers in the industry. When you partner with SPI of Chicago, our skill for negotiating offers attracts and solidifies placements for a smooth and successful hiring process. Contact SPI of Chicago Today! 815-261-4403 x100