Unveiling key trends in the evolving global packaging landscape
Unveiling key trends in the evolving global packaging landscape
The packaging market is poised for a significant expansion, with a projected sector value increase from $1.17 trillion to $1.42 trillion over the next five years on a global scale, according to Smithers’ new market report ‘The Future of Global Packaging to 2028’.
Leading the surge is the category of flexible plastics, anticipated to exhibit the highest CAGR at 5.1% from 2023 to 2028, followed by Paperboard set to grow at 4.2% CAGR.
Following the challenges imposed by the COVID-19 pandemic, the packaging industry is experiencing a noteworthy resurgence, with 2024 anticipated to be marked by significant developments in packaging design, regulatory measures, and environmental sustainability efforts.
Here are some key trends expected to shape the packaging landscape in the coming year, as highlighted by Tim Grant:
Reactions to regulations and compliance: The regulatory landscape for packaging is undergoing a transformative phase globally. Initiatives such as the PPWR in Europe, EPR schemes in Asia, and new regulations in Australia and New Zealand are compelling producers to reassess the materials they use. Focuses include minimizing litter potential, reducing environmental footprints, enhancing recyclability, and navigating the complexities of potential compostable materials. Amidst these challenges, the industry is also grappling with the overarching concerns of carbon footprint and the greenhouse gas challenge, prompting a comprehensive reevaluation of packaging design.
Scope 3 emissions reporting: There is a growing demand for companies to report Scope 3 emissions for both products and packaging. This shift moves away from scrutinizing individual packs and packaging designs to evaluating the overall organizational packing footprint. PIQET is at the forefront of this development, with the upcoming functionality to assess the organization's footprint, simultaneously evaluate multiple product units, and generate comprehensive reports on material changes, predicted end-of-life impacts, and Scope 3 emissions. These reports will play a crucial role in financial reporting and emission disclosure, and a whole range of areas in the regulatory and reporting landscape.
Reporting of more detailed LCA studies: A notable change in 2024 involves the requirement for peer-reviewed life cycle assessment (LCA) studies. As the industry moves towards making on-pack declarations about environmental performance, regulatory authorities are increasingly emphasizing accountability. To substantiate such claims, adherence to international standards, such as ISO14044 for LCAs or ISO14067 for carbon footprint studies is required. This push for more detailed and validated LCA studies is expected to raise the bar for environmental claims within the packaging and materials sector.
In summary, the year ahead presents both challenges and exciting opportunities for packaging professionals. The industry is confronted with increasing demands, but it also offers a chance to reassess the role of packaging in society and products, fostering positive changes aligned with sustainability goals. As a company and consultancy, we are enthusiastic about contributing to this transformative journey alongside our customers.