As the packaging and labels industry faces mounting pressures, companies are increasingly focusing on innovation, sustainability, and resilience. The latest Packaging & Labels Insight Report for Q4 2024 reveals key priorities and strategies shaping the market.
The findings highlight how decision-makers are adapting to meet consumer demands, navigate supply chain disruptions, and balance operational costs.
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Prioritising product safety and functionality
Product safety remains a fundamental concern for packaging decision-makers. According to the report, 62% of respondents prioritise safety when selecting materials for packaging, reflecting the increasing need for protective solutions.
As Lisa Pruett, President of RRD Packaging, Labels and Supply Chain Segment, explains, “Building functional design and safety features into packaging remains essential to ensuring product integrity and a great user experience.”
The survey shows that 89% of respondents anticipate changes to their designs within the next two years. These changes will focus on functionality and adapting materials to meet evolving consumer expectations.
A significant 64% of companies are using specialised packaging materials to enhance protection, while 58% are incorporating user feedback to improve design choices.
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By GlobalDataThe growing demand for safe, functional packaging is a clear response to consumer expectations for quality and reliability, especially in sectors like e-commerce, where packaging is key to delivering a positive customer experience.
Sustainability in packaging and labels
Sustainability continues to be a driving force in the packaging sector. The report highlights that 73% of respondents have adjusted their sourcing strategies in response to rising consumer demand for eco-friendly, minimalist packaging.
This is part of a broader effort to meet sustainability goals by reducing waste, using recyclable materials, and adopting more efficient design processes.
Dennis Aler, Director of Environmental, Health, Safety, and Sustainability at RRD, notes, “Sustainability in packaging and labels is more than just the materials we use; it’s about rethinking the whole supply chain to cut waste, improve recyclability, and support a circular economy.”
The report indicates that 81% of packaging operations are contributing to their company’s broader environmental objectives, with key tactics including material recyclability (68%) and waste reduction (69%).
As the pressure to meet environmental standards increases, companies are finding that sustainability is not just a regulatory necessity but also a competitive advantage.
Forward-thinking businesses are already making changes to stay in line with long-term environmental goals and the growing expectations of consumers.
Adapting to e-commerce growth
The explosive growth of e-commerce has tested brands’ ability to adapt their packaging and labels to meet new demands. The report reveals that 84% of respondents are involved in e-commerce operations, with 78% noting a significant increase in online sales over the past year.
To cater to this growth, 55% of packaging decision-makers have specifically designed packaging to optimise for e-commerce, while 77% of label executives expect major changes to their designs in the coming two years.
Brian Techter, President of RRD Packaging Solutions, emphasises the need for brands to elevate their packaging strategies, stating, “Every box or label is a touchpoint that brings the brand experience right into consumers’ homes. The brands that combine functionality with a strong presentation will be the ones that stand out.”
Packaging and labels are now integral to e-commerce strategies, not only ensuring products reach consumers intact but also creating a memorable unboxing experience.
As companies continue to streamline their operations, the role of AI in enhancing efficiency and innovation is expected to grow, with 51% of labels decision-makers anticipating its impact on design and production in the next two years.
