Packaging Gateway

Daily Newsletter

10 August 2023

Daily Newsletter

Signal: brands, consumers in step on digitalisation, not personalisation

References to individualism and expression within packaging industry filings have not grown like those to e-commerce and digitalisation.

E-commerce and digitalisation continue to be increasingly important issues to packaging companies, GlobalData research shows, but growing consumer interest in personalisation is not necessarily being reflected from within the industry.

Mentions of “e-commerce” and “digitalisation” in filings from companies within the packaging industry grew steadily from 2016 to 2022, with a spike across 2020 and 2021 as the coronavirus pandemic necessitated increased focus in these areas.

In addition to the increased mentions reflecting the growing maturity of the e-commerce sector, an upcoming report will highlight the growing importance of packaging from a communications perspective.

Logistics and final mile trade title DeliveryX has said its Packaging 2023 report will highlight “that packaging for e-commerce purchases has in many ways become the new store-front for brands, a critical part of their overall image and a key touch point in the customer experience journey.”

This too will drive mentions of “e-commerce” and “digitalisation” within filings among those companies that recognize the shift toward this as a customer touchpoint.

The report will also note a shift toward personalisation and that “more than ever, [consumers] are looking for an enhanced customer experience. This includes any marketing material, real-time delivery notifications and also packaging.”

In this respect, GlobalData’s figures suggest there has been less response from packaging companies, with references to individualism and expression trending largely flat since 2016.

DeliveryX notes the significance of this, quoting a study that found 52% of online shoppers who receive orders in bespoke packaging are more likely to return to that same company in the future.

Our signals coverage is powered by GlobalData’s Disruptor data, which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors. These signals help us to uncover key innovation areas in the sector and the themes that drive them. They tell us about the topics on the minds of business leaders and investors and indicate where leading companies are focusing their investment, deal-making and R&D efforts.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.