Why Are Brands Spending More on Packaging?

According to new data from Smithers, the global packaging industry will reach $1 trillion in sales by the end of this year. This information also shows flexible packaging as one of the fastest-growing packaging segments, with food and beverage industries trending as two of the top three markets in global sales.

Of course, many reasons contribute to the industry reaching this huge milestone, including the significant number of brand owners spending more on packaging than ever in the past two years. Since the pandemic, the importance of packaging has only grown, and brand owners have been elevating their packaging to achieve the following:

Big Impact

For brands to succeed in the e-commerce space, they must consider the following questions:

1) Where do I rank in visual impact compared to my competitors?

Your packaging needs to stand out on the screen against the competition, especially when you’re likely to be facing more competitors than you would on a store shelf.

2) Will my packaging protect my product until it reaches the customer? 

Your packaging needs to protect your product during its transit to your customer. This could refer to security features like tamper-evident seals to ensure your product remains untouched, barrier properties to keep your product fresh, or physical properties like the durability of shrink sleeves to shield your product from damage.

3) Are my website and social media platforms up-to-date and cohesive with my packaging?

Although this may not seem relevant, consumers research brands they buy from when purchasing online. For first-time customers especially, it’s imperative to make a good impression with your website and your social media and make sure your branding is cohesive throughout.

Of course, these questions don’t cover absolutely everything you need for e-commerce, but they do cover the essential components of a digital strategy.

Increased Hygiene

The pandemic brought on an increased focus on hygiene. Where pre-pandemic brands were shifting to less or no packaging for markets such as produce, consumers are now reliant on that layer of plastic to provide added protection and a barrier to protect from contamination. As a result, many brands have had to re-introduce single-serve packaging and similar packaging styles to reassure consumers that their product is safe.

Sustainable Solutions

The most significant change in the packaging industry in the last few years is the increase in sustainable packaging alternatives. As sustainability becomes a mandatory component of a brand strategy, many brands have been either overhauling their packaging to make it recyclable or integrating sustainable components into their packaging, such as post-consumer waste. For more information on ALP’s sustainable packaging options, reach out to our team of experts here.

Elevating your packaging can do so much for your brand, and we’re only anticipating more brands investing more in their packaging in the years to come. For more information on packaging solutions, reach out to our team here or request a quote online.