Companies are rethinking their strategies to stay competitive, leveraging innovative designs and materials while addressing supply chain challenges.
The 2024 Packaging & Labels Insight Report underscores a key priority for industry leaders: ensuring product safety while meeting rising consumer expectations.
“Building functional design and safety features into packaging remains essential,” explains Lisa Pruett, President of RRD Packaging, Labels and Supply Chain Segment.
Companies are focusing on protective materials and functional designs to maintain product integrity.
Among respondents, 89% anticipate changes to packaging designs within two years, with 36% predicting major revisions. Functional design is the top area of focus, followed by materials innovation. Feedback from consumers, improvements in storage efficiency, and enhanced product protection are driving these shifts.
In labels operations, compliance with evolving regulations and cost efficiency are pivotal. John Marrow, President of RRD Supply Chain Solutions, notes:
“Flexibility and a diverse supplier network are just as important as the materials themselves. Companies that pivot quickly are better positioned to meet customer needs.”
Sustainability takes centre stage
Sustainability goals are reshaping packaging and labels strategies. According to the report, 73% of respondents noted consumer demand for eco-friendly packaging as a significant factor influencing sourcing decisions over the past year.
Material recyclability, reduction of waste, and lightweighting are top considerations as companies strive to reduce environmental impact.
Dennis Aler, Director of Environmental, Health, and Safety at RRD, emphasises: “Sustainability is about rethinking the whole supply chain. Companies adopting eco-friendly practices are gaining market edge and consumer loyalty.”
Sustainability efforts extend to labels, where 79% of respondents stated their initiatives are key to achieving corporate environmental goals. Over two-thirds highlighted the influence of environmental regulations and rising material costs on sourcing strategies.
E-commerce drives innovation
The surge in e-commerce is testing brands’ ability to innovate. Packaging designed specifically for online sales is becoming the norm, with 55% of respondents adapting packaging to meet growing demand.
AI is also making inroads, supporting design efficiency and enhancing production processes.
Brian Techter, President of RRD Packaging Solutions, highlights the role of e-commerce in branding: “Every box or label is a touchpoint that brings the brand experience into consumers’ homes. Effective e-commerce combines functionality with a memorable unboxing experience.”
Similarly, labels operations are evolving to meet rapid turnaround demands. Cost efficiency, production speed, and industry-specific expertise have become key factors in supplier selection.
The report notes that 77% of labels decision-makers plan significant design changes within the next two years to better serve e-commerce markets.
The takeaway
The packaging and labels landscape in 2024 is shaped by evolving consumer expectations, sustainability imperatives, and the demands of a thriving e-commerce sector.
By prioritising safety, functionality, and eco-friendly practices, companies are poised to navigate market pressures effectively.
As Lisa Pruett aptly summarises, success lies in balancing protection, convenience, and brand appeal to deliver a product experience that builds trust and loyalty.
Source from Packaging Gateway
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