The No. 1 development on packaging manufacturers’ minds is going “green.” Here we look at sustainability’s impact on the packaging world, along with other notable trends.

The two big trends affecting packagers today that are expected to continue in the future are sustainability and private labels. Here we look closely at the two developments, as well as other influences on packaging.

Sustainability
These days, the word on every package manufacturer’s lips is sustainability, be it using post-consumer recycled material or shrinking one’s carbon footprint through energy reduction. With about 200,000 barrels of oil going towards plastic packaging materials daily, and with paper and cardboard packaging housing 25 percent of all shipped goods, it is no surprise that there has been so much focus on packaging and its relation to the environment, Machine Design says.

Packaging manufacturers are responding to the cry for more environmentally conscious products by reexamining their practices. According to Packaging Digest‘s recent survey of 1,163 packaging professionals, more than 63 percent of respondents said they have sustainability policies in place or are in the process of formulating such policies.

Customer requirements, the cost of raw materials and high energy prices have been the driving factors for implementing sustainable practices, with 53 percent of respondents saying that more than half of their customers seek eco-friendly packaging. Almost 80 percent of the packagers surveyed will focus on waste reduction, and 62 percent will concentrate on energy conservation. Along with helping the planet, these packagers also expect a bit of cash back, with more than 50 percent expecting a return on their sustainability investment within one to two years.

Such investments include using polylactic acid (PLA), a plastic alternative derived from corn, and other bioplastic materials in place of petroleum-based materials, Medical Device & Diagnostic Industry reports. Another approach to sustainability is the use of post-consumer recycled materials such as PET bottles or postindustrial recycled material, which is the material scrap that comes off packaging lines that is recycled back into the material stream.

Beyond their own products, package manufacturers are also scrutinizing their secondary packaging — what they use to package their products — as part of their sustainability efforts. In a recent Packaging Machinery Manufacturers Institute (PMMI) study of 67 consumer product goods firms, 70 percent noted improving secondary packaging as a sustainability goal.

“Every study participant is looking at substrates, weight, cube size and how to fit more in a cubic foot,” said Charles D. Yuska, PMMI president and CEO. Nearly 50 percent of respondents predict a decrease in corrugated usage, with specially designed cartons taking their place. Says the report: “[Regular slotted containers] usage is moving to a tray with over wrap or a bliss box. Companies already using trays are moving to pads with over wrap, with sustainability goals of moving to shrink wrap only.”

According to yet another new study, by environmental think-tank World Resources Institute (via Food Production Daily), packaging companies who don’t implement sustainability efforts could risk income falls of more than 30 percent by 2013 and nearly 50 percent by 2018. The report names climate change policy, water scarcity, deforestation and biofuels as the drivers for higher costs for packaging companies.

To avoid incurring eco-costs, AT Kearney‘s Daniel Mahler advises packaging companies to look for green innovation, concentrate on local supply rather than global networks and ensure energy efficiency through better techniques and new technology.

Private Labels
The other big buzz in the packaging world is the growth of private-label goods. In an economic climate where consumers are counting every penny, private labels are becoming a formidable force in the packaged goods industry.

Costing about 30 percent less than name-brand counterparts on average, financially strapped consumers across all income levels, including those earning $100,000 or more annually, are turning to private label as a money-saving strategy, according to the latest research from Information Resources, Inc. (via Packaging Digest), adding:

Private label is performing well across channels, but drug retailers are leading the way in growth. …a notable 33 percent of shoppers are considered heavy buyers of private label goods. While significant opportunity remains, this is a substantial increase versus last year when 28 percent of shoppers were considered heavy buyers.

With private label shifting away from generic-looking packages and towards building a store brand identity through distinctive package design, private labels are now rivaling name brands, Packaging World reports. “As stores become more powerful marketing tools, the role of package design has become essential to success. …Retailers’ increasingly sophisticated packaging strategies include more robust use of color and photography to appeal to the senses. These tactics are encouraging consumers to take a closer look at private-label brands,” Packaging World concludes.

Additional Trends
STEP Inside Design Magazine recently listed 10 trends in packaging to watch for, with “green” topping the list. Among the other developments:

Storytelling — As a way to establish a relationship with a brand, companies have been adding company or product stories on the backs of packaging.

Bold expression — Using bright colors, packagers create an almost Pop Art-like package.

Show, don’t tell — Through images, packagers convey the product’s message rather than using text on the package.

A final, as-yet mentioned emerging trend, is e-packaging. According to electronics consultancy IDTechEx (via Dairy Reporter), electronic labels and associated e-packaging will become a new growth market as consumers demand clearer labeling information and more engaging packages. The reel-to-reel production of electronics makes it possible to create labels with scrolling text and electronic page turning.

Says IDTechEx Chairman Peter Harrop, the innovation will go beyond clearer instructions and will be able to emit aromas, coffee for example, to entice the consumer the buy the product. These futuristic labels will only succeed if economy of scale is achieved, Harrop adds.

Have these packaging trends affected your business? If so, how? Share your experiences in the comments section and add trends you’ve noticed as well.

Resources

Packaging Goes Back to Nature
Machine Design, Oct. 20, 2008

Survey Says Sustainability is Gaining Importance
Packaging Digest, Nov. 24, 2008

How to Make the Most of Packaging Trends
by Jason Crosby
Medical Device & Diagnostic Industry, October 2008

Secondary Packaging in the Spotlight as Packagers Strive to Reduce, Reuse & Recycle
Packaging Machinery Manufacturers Institute, Oct. 31, 2008

Packagers Should Go Green to Keep Profits in the Black
by Mike Stones
Food Production Daily, Dec. 3, 2008

Consumers Turning Increasingly to Private Label Brands
Packaging Digest, Nov. 19, 2008

How to Succeed in the New ‘Store-as-Brand’ World
by Rick Barrack
Packaging World, November 2008

10 Global Packaging Trends
by Steven Dupuis
STEP Inside Design Magazine, November/December 2007

More Responsive E-packaging on the Horizon
by Jane Byrne
Dairy Reporter, Oct. 24, 2008