United States manufacturers accounted for over $2.3 billion dollars’ worth of goods in 2018, most of which were transported in some form of industrial packaging. It’s a crucial and necessary part of the manufacturing process. Packaging, when done right, improves supply chain efficiency and helps to streamline the logistics process. At its best, it creates value.
In this market report, “The Future of Industrial Packaging to 2024,” materials innovation firm, Smithers, predicts steady growth for the industry – estimating market value at $66 billion by 2024. Accordingly, consumer spending has been steadily rising since 2014, driving increased demand for industrial packaging. Increased demand often sparks innovation…bringing with it changes that are beneficial for the consumer and the industry.
Here are the top three most anticipated packaging trends in more detail.
1. E-commerce
Packaging producer McKinsey reports that e-commerce will be the number one driver of packaging industry growth since online shopping has been dominating traditional brick-and-mortar retail outlets. The promise of a speedy delivery makes fast packaging a priority, requiring brands to re-evaluate their processes with an emphasis on automation. And, as a wider variety of products becomes available to ship, there will be an accompanying need for solutions that secure products which do not fit into existing size standards. Additional measures will be put into place to ensure packages arrive safely, securely and damage-free.
2. Digital Technology
Advancements in digital technology move the world forward and the same goes for this new segment of “smart packaging.” Smart packages do more than just contain the product – they offer an array of sophisticated benefits like extended shelf-life, temperature and moisture control, freshness monitors and high-tech tracking. Certain types of smart packaging will be able to record time and temperature, while others might be able to trace the origin of a product and record any occurrence of contamination. The industry segments that stand to gain the most from smart packaging are food and beverage and pharmaceuticals/healthcare – where tracking is a top priority.
3. Sustainability
Growing consumer concern over the resulting waste from excess packaging will be a big driver of sustainable packaging trends. As e-commerce increases the demand for goods, largely Millennial and Gen Z consumers will in turn advocate for greater efficiency and sustainability in packaging – prompting businesses to explore earth-friendly and reusable materials. Plastic has become a particularly sticky problem and new materials will be developed with this in mind, including bio-based plastics and other plant-based packaging and supplies. In addition to consideration for the type of material used, packaging will need to be reduced overall. There are many benefits to be derived from sustainability for those who are able to adapt to the changes. Reducing the overall amount of material used can also reduce production cost and a product’s weight, making it more cost-effective to ship.
Staying ahead of packaging trends could give your business a jump in productivity and efficiency. Take advantage of the opportunities Gorgo Group can offer your business today and contact us to learn more about our packaging and shipping solutions.