The general public may not think about product packaging that often, but we certainly do. And right now, the industry’s eyes are on the next five years and what changes they’re likely to herald.
European packaging trends through 2020 indicate a changing playing field with room for growth, new rules, new competition and higher-than-ever demand for eco-conscious solutions. Here’s a look at what’s ahead.
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You need to know about these packaging trends for 2020
There's further room for growth
One trend from 2019 and earlier that we can expect to carry over into 2020 is steady growth in worldwide demand for packaged products. Long-term forecasting from Smithers Pira suggests, between 2018 and 2028, the global packaging industry will grow to $1.2 trillion at 3% per year.
More specifically, the room for expansion concerns emerging markets such as urban areas as well as developing economies such as China and India. Cities all over the world are becoming more densely populated by people and businesses, too, making for what some call a more widespread “western lifestyle.” For better or worse, that lifestyle is synonymous with packaged goods.
As we’ll see, the growth of these emerging markets — urban areas and maturing economies — isn’t the whole story. The heightened demand all over the world is helping fuel several other trends in the packaging industry, not least of which is greater competition among packaging providers seeking a global audience.
Packaging changes minds in crowded marketplaces
This is less a trend or a prediction and more a statement of the obvious — packaging will always matter. We asserted above that the average consumer doesn’t think about packaging that often, and we stand by it. However, that doesn’t mean excellent packaging can’t influence a buyer’s behaviour — but it does mean only the very best examples are likely to stand out in their minds.
According to some surveys, as many as seven in 10 shoppers admit packaging has swayed their decision to purchase an item or not. Now, more than ever, as packaging companies ready themselves for the future, they need to ask and answer the following questions:
- Are our cartons easy to ship and handle in transit?
- Is this packaging easy to open for a variety of consumers, and especially for those in our target markets?
- Does our product packaging have tactile appeal? Are the materials practical, but also pleasant to the touch?
- Can our packaging be repurposed easily (e.g. to store things around the house), or is it likely to be discarded? Can we make it easier to reuse or recycle our packaging?
Changing demographics demand different solutions
One of the many ways in which global demographics are shifting, and bringing about change in the packaging industry, has to do with old age. According to the U.S. National Institutes of Health, the world’s population of older citizens is growing “dramatically.” Some 17% of the world’s population will be 65 or older by 2050.
People don’t slow down their consumption as they age — but they require different products. That includes health care devices, prescription medications and specialty foods and supplements. Those products, in turn, need different packaging solutions to suit the audience.
Older people and those with health problems, need easy-open packaging as well as materials that are easy to break down, reuse or recycle when they’re done. Some are even calling elderly-focused packaging one of the “next untapped markets.
New requirements and questions from EU regulators
Regulations are as inevitable as they are necessary in a complex world such as ours. Regulatory developments in 2019 caught packaging companies all over the European Union (EU) wondering what the future holds for them.
In March 2019, the EU adopted the Single-Use Plastics Directive (“SUP Directive”). The Directive provides a framework consisting of bans on specific plastic products, incentives to reduce production and consumption of plastic products, manufacturer responsibility programs and plastic collection and reuse initiatives.
This is the right time to adopt such initiatives. With the quantity of plastic waste in our oceans and waterways, it’s likely overdue. But the size of the EU and the number of member states present challenges for packaging companies centered there.
Because member nations can choose to implement all or only some of the changes described in the SUP Directive, there’s some worry about consistency. Representatives from the packaging industry say they are broadly in favour of the Directive, its goals and similar measures to reduce marine and other types of plastic waste.
But they also say a more consistent rollout of rules across the EU may have been preferable. For right now, companies that wish to do business across the whole territory confidently will have to familiarise themselves with the most stringent limits on plastic packaging and use that as the framework for doing business elsewhere.
Sustainable products are the future
For a further dive into what sustainability looks like in the world’s packaging markets, consider bioplastics. These are the heir apparent to carbon-heavy plastics derived from petroleum.
Of course, even bioplastics come with environmental caveats of their own — some worry about shifting the burden from carbon emissions to water footprints. The scale is an issue here — it takes a lot of water and raw materials to raise the feedstocks required to make bioplastic.
The savvier members of the agricultural, plastics and packaging communities are looking even further ahead. Hemp is on track to become, once more, a lucrative cash crop in portions of the U.S., Europe and elsewhere. One company, Konopko Hemp Cooperative, was a 2019 finalist for the European Union’s Climate Launchpad competition.
Hemp products, including fibers and plastics, have enormous implications for packaging and many other industries. Hemp plastic is effortlessly biodegradable, it’s non-toxic and resistant to heat, and growing feedstock for it doesn’t compete directly with raising food crops. Industrial hemp is a legal and active industry in many EU member nations. But companies that fail to capitalise on its true potential — in packaging design and elsewhere — risk missing out on a huge opportunity.
Preparing for the future
You don’t need a reminder that packaging is a product that’s both like and unlike any other. In Europe and beyond, trends and expectations are changing what it takes to do business in this arena. With any luck, after a look at these five trends, you feel better prepared for what awaits.
Megan R. Nichols is a technical writer who covers industrial topics for sites like Delmia, Thomas and ReadWrite. Keep up with Megan by following her on Twitter and subscribing to her blog.