Packaging must navigate new and more challenging routes to market, according to a new report from Mintel. It reveals that pressures from the environmental perspective, the conflict in Ukraine, global inflation, social issues, legal challenges, extended producer responsibility, and other forces are shaping the packaging market.
Economic factors
“Economic uncertainty and the associated rising cost of goods have forced consumers to rethink budgets and discretionary spending, says David Luttenberger, CPPL, Global Packaging Director at Mintel.
“Offering packaging that represents financial value propositions, while not compromising quality, convenience, freshness, safety, and environmental responsibility, will be a differentiator in 2023 and beyond.”
Social factors
“From food shortages and ethical sourcing to responsible water and land use, consumers want to know more about the products they buy and the brands that produce them.
In addition to achievements, brands and package manufacturers must be transparent about their weaknesses, says Mr Luttenberger.
“Consumers are pursuing transparency through clearer labelling and what those claims mean for the greater good,” he says.
“In the future, packaging will paint a picture of a brand’s equity, which increasingly includes social and environmental capital.”
Legal factors
New rules around the use of plastics and pollution-causing materials, as well as protecting human and planetary health, will greatly affect consumers. To get ahead and stay competitive, companies must get a firm grip on current and future legislation around plastics, PFAS, and EPR.
“Consumers will rally behind legislation that benefits the environment. Their support will spur additional bans which will put significant cost pressures on manufacturers in their quest to meet mandates and find suitable, though more costly, alternatives,” says Mr Luttenberger.
Category-specific trends
Mintel’s 2023 Global Packaging Trends also discusses the packaging industry implications of the 2023 Global Food and Drink, Beauty and Personal Care, and Household Care Trends, including the future of packaging within these industries.
Although costs of living are rising globally, consumers will not be motivated solely by low prices in 2023, says, says Mr Luttenberger: “They will find value in affordable food and drink that promises clarity, nutrition, and versatility. Package manufacturers must enable clear communication of added-value nutritional content and provide efficient portioning and product preparation.”
Clean packaging designs that highlight natural ingredients and health benefits will stand out to shoppers. In the future, brands seeking to be trusted partners in the kitchen need to take energy consumption into account and deliver packaging that enables energy-efficient cooking.