The global packaging industry turnover is around $500 billion, with packaging container sales accounting for the major part and packaging machinery sales estimated around $25 billion. Packaging has become an essential everyday item, with its usage broadly growing in line with the global economy. The emerging trends in packaging by the use of innovations and technology have made this industry one of the emerging industries.
Packaging which is used in a wide range of industries across food and drink, health-care, cosmetics and other consumer goods as well as a range of industrial sectors has become an essential everyday item. The growth of packaging is typically higher than GDP in emerging markets due to the emerging trends in packaging. In mature markets, packaging growth is typically in line with (or sometimes even below) GDP, as increase in standard of living is often used to consume services with limited physical packaging.
Packaging has accompanied mankind throughout history from the early days when primitive humans lived as nomadic hunters/ gatherers. These early humans would have been subject to geographical migration of animals and seasonal availability of plants. This nomadic lifestyle would typically not encourage property accumulation beyond what could be carried on one's back. Nonetheless, these people also needed containment and carrying devices. Early packages in those days were typically wraps of leaves, animal skins, shells of nuts or hollow wood pieces. Packaging trends has emerged and developed tremendously since those days.
The Evolution
Human society development via domestication of plants and animals to farming followed by industrialisation and later information and knowledge society - throughout these stages different style packaging has always been around to support contemporary lifestyles, the need for packaging has been long lasting and sustainable, but the designs, materials, styles and functions have evolved and developed tremendously over the years. Also new growth segments, such as active and smart packaging, often have long roots in history.
Today market demands are getting stronger for packaging development supporting a sustainable society. Talking to F&B News about the emerging trends in packaging, Sunil Jain, president, Rajoo Engineers Ltd, Delhi, said, “We are coming up with new formats of packaging for improving the shelf life of the packaged foods. We are also following the regulatory trends set by the government. More or less we are also looking at every action happening in the retail sector. Foods and groceries need to be packed using the flexible packaging style.”
He said, “Most of the Indian food contains lots of spices, which is not acceptable overseas. We should come up with some innovative technologies and new development in packaging so that these problems will be sorted out forever. A good package should be cost-efficient and provide value to generate revenue.”
Key Drivers and Trends
While the economy plays a central role in influencing the size and growth of the market, there are number of other factors which can be seen as having a direct or at least indirect influence on packaging demand or, at any rate, the nature of this demand, irrespective of the performance of the economy. These include
• The ageing of the world population
• The trend towards smaller households
• The increasing requirement for convenience among consumers
• Rising health awareness among consumers
• The trend towards 'on-the-go' lifestyles among increasingly time-poor consumers
• Growing requirements for brand enhancement/ differentiation in an increasingly competitive environment
• New packaging material development
• The move towards smaller pack sizes as the incidence of families eating together at the dinner table become less common
• Increasing awareness of environmental issues, and the adoption of new regulatory requirements on packaging recycle.
Economic Trends
The economy is the single most important influence on packaging consumption. The level of economic activity has a fairly direct influence on demand for bulk/transport packaging in particular, and indirectly provides the right or wrong climate for investment into packaging material research and development.
In recent years, the progression of the world economy has been uneven, with rising oil prices, political uncertainty and other factors leading to a situation whereby the recovery has been in fits and starts. At the turn of 2004-05, the US economy was moving ahead strongly, but there was something of a slowdown in the fast-growing economies of eastern Asia and growth remained quite weak on the continent of Europe. Business confidence fell back at the turn of the year in developed economies, despite a relatively stable political climate and strong year of world trade. This was principally a result of hikes in oil prices, which had a real impact upon incomes and consumer confidence.
Lifestyle Issues
It is difficult to ignore lifestyle trends that are today impacting upon consumer purchasing decisions. According to an official from Umax Art of Packaging, “For the packaging industry, these trends are positive, encouraging innovation and expansion of chilled cabinet selections in supermarkets. Consumers are becoming increasingly demanding and short of time, seeking out convenience food solutions that represent an advance on more traditional processed foods. The expectations of food quality are rising and growing awareness of health and other issues present new challenges to retailers, packers and packaging suppliers alike.”
Smaller Households, Pack Sizes
Social change is indirectly leading to modifications in packaging design. The average size of households is declining in line with the rising number of single-parent households and single-person households and as a result there have been moves towards smaller pack sizes. This trend is being reinforced by the decline in the family meal, as more and more women enter into the workplace. As working hours become less standard, opportunities for the family to eat together are becoming fewer.
Convenience
Rising sales of convenience foods and developments in convenience food packaging have been a major feature of packaging markets in recent times. Packaging technology has developed to the extent that the ready-meal offer has improved significantly, attracting a broader and also wealthier customer base than was previously possible as consumers are prepared to pay a premium for quality prepared meal.
New Material Development
“High performance packaging has been developed with strong barrier characteristics, and also in certain instances active and intelligent components too, respectively, adapt to changes in pack contents and environment and extend shelf life, or provide information on the pack and its content to promote supply chain efficiencies,” informed D K Jha, Production Manager from Manjushree Technopack.
