The next normal of packaging |
As the impact of coronavirus has spread, world may see strict requirements in terms of hygiene and safety of food products that related to food processing and packaging. Let’s see the megatrends reshaping packaging industry after the pandemic from McKinsey and Company |
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Sustainability reemphasized and redefined |
with hygiene concerns addressed. Although sustainability has recently taken a back seat, it remains a key industry-shaping trend. Packaging-sustainability goals have not been abandoned by leading fast-moving consumer goods (FMCG) companies and retailers, which remain committed to achieving high recyclability across their packaging portfolio over the long term. However, given the strong emergence of the new hygiene megatrend - one likely to become a key element of the next normal in packaging - companies will have to rethink the materials and design requirements of sustainable packaging. |
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Rapidly changing consumer preferences |
The pandemic has brought about major channel and category shifts. In packaging’s next normal, we expect consumers to go on being price sensitive, to further accelerate their online shopping across all categories, and to focus even more on health and hygiene. These changing consumer preferences will make it necessary to rethink the product mix at FMCG and retail customers. Inevitably, there will be implications for packaging design. |
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E-commerce everywhere |
As a result of the stay-at-home orders in many countries, consumers have dramatically increased their digital engagement - in particular, for online grocery shopping. In the United States, online penetration in this segment has increased hugely. Some industry forecasts predict that penetration will reach 10 percent in 2020, compared with 2 to 3 percent before the crisis. This will have significant implications for packaging design. Understandably, most of today’s packaging has been optimized for traditional brick-and-mortar requirements, not online shipments. |
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Speedier digitalization of the value chain. |
Another expected outcome of the pandemic is increased digitalization of the value chain through automation and the more widespread use of AI—not only for cost efficiency and productivity, but also to make supply more resilient and transparent through real-time tracking. The result could be a greater need to integrate technology—radio-frequency identification (RFID) tags and near-field communications (NFC)— into packaging. Innovative packaging designs will play an important enabling role. Packaging companies will need to reassess their strategies in light of these evolving megatrends. |
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Quickly changing cost pressures and more regional supply needs. |
Before the COVID-19 crisis, FMCG companies and retailers facing significant margin compression passed these pressures up the line to converters. This issue has already affected packaging design in multiple ways: for example, the substitution of different packaging materials, “light-weighting,” redesigned formats to increase filling efficiency and volume density, smaller pack sizes, and shelf-ready packaging. Given the crisis, we expect such cost pressures to continue, and this could amplify the existing need to use packaging design to reduce costs. |
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A selection of PackTech suppliers |
Check out some highlight packaging technology from leading exhibitors that you can meet up at ProPak Asia Virtual Exhibition |
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