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Packaging industry plays a vital role, adding value to several manufacturing industries including FMCG and transportation. Increase in the new product launches and rising private label brand participation is one of the key market trends driving brand-mix shifts in consumer packaging. Apart from this, increased SKU proliferation has led to rising in the number of product updates.
Micro-segmentation of Consumer Products: Since 1998, consumer products groups have introduced about 22 thousand new products in the market to target specific consumer groups. Moreover, SKU extensions in the market continue to witness increase which has resulted in the expansion of packaging formats. Consumer product groups have expanded the range of sub-brands, products, and SKU which called for a new packaging format for each product. The explosion of new products and brands has not only impacted printing on packaging, but it has also led to the proliferation of new packaging formats.
Figure 1: SKU Proliferation
Rising Promotional Activities: Since the past few years, the brand owners of consumer products group (CPG) have expanded their limited-run products to aware and attract more consumers. Apart from this, CPG is also being frequently involved in event-driven promotions to distinguish their products. Moreover, companies reported that promotional activities were responsible for a significant increase in the sales of their product. It is anticipated that promotional activities will continue to grow in the years ahead.
Increasing Demand for Masstige Products: Development of the masstige market has increased the demand for premium packaging. Premium brands present in the market wants to show a premium look of their products. For example, Hershey has banked on a premium look in order to convey a look of premium chocolate sets. According to KD Market Insights packaging survey, the launch of “premium and value” products has been a major initiative in the past five years.
E-commerce: With double-digit growth for the years ahead, the booming e-commerce industry is set to made contributions to packaging industry. As e-commerce industry is acquiring more customers, packaging continues to play a crucial role in enhancing the experience of consumer e-commerce shopping. Further, this explosive growth of e-commerce means packaging box and materials must be of various range of product sizes and shapes which must be able to cope with transportation and shipping handling damages.
Connected Packaging: Rise in adoption of connected devices has positively impacted connected packaging demand. Furthermore, with rising interest of manufacturers and consumers in Internet of Things (IoT), connected packaging industry is likely to showcase exponential growth in the years ahead. Moreover, with advent of connectivity technologies including QR codes, NFC, RFID and others, connected packaging is bolstering the consumer engagement and brand loyalty.
Recycling: With increasing concerns on climate change and marine pollution, consumer awareness regarding recycling of packaging has skyrocketed in the past years. Consumers are demanding and preferring packaged products which can be recycled.
Innovating the Packaging Box: With the explosion of e-commerce, the demand for efficient designed and branded e-commerce packaging is going ballistic. To standout against competitors, consumer good companies are trying to invent new packaging designs. According to our analysis, around 70% consumers make their purchase decision at the point of purchase. When the consumer is undecided, packaging plays an important role in their purchase decision as it communicates to the consumer during decision making time.
No to Plastic: Owing to environment concerns and government strict regulations, developed nations such as U.S., U.K. and others has witnessed increase in number of plastic free retailers. There is a growing unanimity among consumers regarding plastic reduction and sustainable packaging requirements.
Seeking more insights on the packaging industry, download our premium packaging market research reports from the link below:
Food service Packaging Market - By Material (Plastic, Metal, Others), , By Packaging type (Paper & Paperboard Packaging, Flexible Packaging, Rigid Packaging, Others),By Application (Alcoholic beverages, Non-alcoholic beverages, Fruits and vegetables, Dairy products, Bakery & Confectionery, Meat & Poultry, Others) & Global Region Market Size, Trends, Share & Forecast 2018-2024
Electronic Packaging Market - By Packaging Type (Metal Packages, Plastic Packages, Ceramic Packages, Others), By Application (Semiconductor & IC, PCB, Others) & Global Region - Market Size, Share, Trends and Forecast 2018-2024
Cold Chain Packaging Market - By Material Type ( Expanded Polystyrene (EPS), Fabricated EPS, Vacuum Insulated Panel, Polyurethane, Others), By Product Type (PCMs, Insulated Shipping Containers, Parcel Containers, Pallet Containers, Temperature Loggers, Others), By Application (Pharmaceutical Packaging, Food & Beverages, Medical Device Packaging, Others) , Global Region - Market Size, Trends, Share & Forecast 2018-2024
Sustainable Packaging Market - By Material (Paper & Paperboard, Plastic, Metal, Glass, Others), By Type (Recycled, Reusable, Degradable), By Application (Food & Beverage, Healthcare, Personal Care, Apparels Others) & Global Region - Market Size, Trends, Share & Forecast 2018-2024
Smart Packaging Market - By Product (Active Packaging, Modified Atmosphere Packaging, Intelligent Packaging), By Application (Food & Beverage, Healthcare, Personal Care, Automotive, Logistics, Others) & Global Region - Market Size, Share, Trends and Forecast 2018-2024
Bio-degradable Packaging Market - By Packaging Type (Plastic, Paper), By Application (Food & Beverage Packaging, Pharmaceuticals Packaging, Personal & Home Care Packaging, Others) & Global Region - Market Size, Share, Trends and Forecast 2018-2024
Metal Packaging Market - By Material (Steel, Aluminium, Iron, Others), By Type (Barrels & Drums, Cans, Aerosol, Caps & Closures, Others), By Application (Food & Beverage, Healthcare, Personal Care, Others) & Global Region Market Size, Share, Trends and Forecast 2018-2024
Pharmaceutical Packaging Market - By Product Type (Glass, Paper & Paperboard, Plastics, Others), By Application (Blister Packaging, Parenteral Containers, Plastic Bottles, Pouches, Others) & Global Region - Market Size, Trends, Outlook & Forecast 2018-2024
Packaging Machinery Market - By Machine Type (Filling Machines, Cartooning Machines, Labelling Machines, Wrapping Machines, Cleaning & Sterilizing Machines, Others), By End-user Industry (Food & Beverage, Homecare & Personal Care, Pharmaceuticals, Chemicals, Industrial, Others) & Global Region - Market Size, Share, Trends and Forecast 2018-2024
Bulk Container Packaging Market - By Product Analysis (Flexi tanks, Flexible intermediate bulk containers (FIBC), Bulk container liners), By Application Type (Food & beverages, Chemicals) and Global Region Market Size, Share & Forecast 2019-2024
Industrial Electronics Packaging Market - By Materials Type (Plastic, Paper and Paperboard, Others), By Packaging Type (Rigid packaging, Flexible packaging), By Application (Electronic components, Automation, Energy, Information and Communication Technology, Healthcare, Light, Entertainment) & Global Region - Market Size, Trends, Opportunity and Forecast 2018-2024
Paper Packaging Market - By Materials Type (Corrugated Papers, Specialty Papers, Boxboard / Carton board, Kraft Papers, Molded Pulp), By Packaging Type (Corrugated Boxes, Wrapping paper, Inserts & Dividers, Bottles & Cup Carriers, Trays, Plates, Clamshells, Display Packaging, Bags & Sacks, Tapes & Labels), By Label of Packaging, By End-user Industry & Global Region - Market Size, Trends, Opportunity and Forecast 2018-2024
Egg Packaging Market - By Materials Type (Molded Fibre Pulp and Plastic), By Packaging Type (Cartons and Trays), By Capacity (Less than 6 Eggs, 6-12 Eggs, 12-30 Eggs, More than 30 Eggs) & Global Region - Market Size, Trends, Opportunity and Forecast 2018-2024
Airless Packaging Market by Packaging Type (Bags & Pouches, Bottles & Jars, Tubes, and Others), by Material Type (Plastic, Glass, and Others) and by End User (Personal Care, Healthcare, Home Care, and Food & Beverages) and Geography - Global Opportunity Analysis and Industry Forecast, 2017-2023