When it comes to packaging innovation, one of the most common internal obstacles faced by companies is a lack of in-house expertise.
According to Steve Davis, Global Director of Product Management at Industrial Physics, “96% of decision-makers regard innovation as important,” yet many face challenges in finding the right talent to drive these initiatives.
Davis notes that “a consistent obstacle cited by packaging decision-makers has been a lack of in-house expertise,” particularly as experienced professionals in areas such as lightweighting and enhancing the appearance of packaging are leaving the industry.
Newer entrants, often without the same level of experience, find it difficult to fill this gap immediately, which can lead to ineffective approaches that waste time and resources.
To tackle this issue, Davis suggests, “one approach that packaging companies could consider is an attempt to capture the learnings from experiences that have been built over decades of work.”
By implementing “structured peer-to-peer learning,” companies can preserve critical knowledge and fill expertise gaps before valuable insights are lost.
Moreover, packaging companies can complement in-house knowledge with third-party expertise, such as suppliers or consultants.
These external sources can be crucial, especially when delving into niche areas like packaging testing, thus providing a strong foundation for innovative efforts.
The role of company size in innovation
The relationship between company size and the ability to innovate in packaging is not as straightforward as it may seem.
Industrial Physics’ 2024 research reveals that “almost half (47%) said their company has had to make layoffs,” a figure that varies across regions, with US-based respondents most affected. However, Davis points out that “layoffs are not a guaranteed indicator of poor economic performance or a lack of appetite for innovation.”
Interestingly, the research found that companies that had not made significant layoffs were just as likely to be pursuing innovative approaches as those that had downsized.
Davis explains that “one of our external experts observed operational and procurement teams being downsized to release funds” for innovation projects requiring higher investment.
This suggests that while layoffs can sometimes be a consequence of innovation, they are not necessarily a barrier to it. In fact, Davis argues that “company size, particularly in the wake of layoffs, cannot be used as a robust indicator for a company’s ability to innovate.”
The key factor is the strength of a company’s operations, particularly the internal knowledge base that can support agile and effective innovation.
Leveraging technology for innovation
Investment in new technologies plays a pivotal role in overcoming barriers to innovation, especially in the food and beverage packaging sector.
Davis highlights that the most promising technologies identified in recent research include “data acquisition, data analytics, and 3D printing.” These technologies, particularly data-driven ones, allow packaging companies to make real-time adjustments to production lines, improving efficiency and reducing waste.
“The technologies are so much more sophisticated now and provide feedback at such a rate that you can essentially make changes to production in real time,” Davis explains.
This agility not only strengthens production capabilities but also helps companies meet sustainability goals by reducing waste, ultimately saving money.
The use of advanced technologies in packaging processes can also assist with “capacity and resource planning,” making operations more cost-effective.
For packaging professionals looking to foster a culture of innovation, Davis advises them to “be regularly sharing examples around the team to foster engagement.”
By drawing inspiration from competitors and even from entirely different industries, packaging experts can spark new ideas. Establishing a network of external consultants and attending industry events to stay informed are also crucial steps to maintain a competitive edge.
To ensure innovation efforts are successful, Davis recommends that “the team should have a clear view of the end objective for innovation” before committing resources to any project.
This clarity helps to avoid unnecessary delays and ensures that innovative initiatives contribute to the broader goals of the organisation.
Ultimately, overcoming barriers to innovation in packaging requires a multifaceted approach that addresses expertise gaps, considers the role of company size, and leverages technology to enhance efficiency and reduce waste.
By fostering a culture of innovation and embracing new technologies, packaging companies can navigate these challenges and continue to drive progress in the industry.
