As reported in several articles published by the Flexible Packaging Association, consumer packaged goods (CPG) brands have steadily increased over recent years and continue to grow. 65% of CPG brand owners anticipate increasing spending during 2022 and 2023 and also plan to increase spending on packaging. While just about every supply chain has been affected by world events, there are many reasons why changes in packaging are dramatically impacting the CPG industry.

Trends Impacting Increase in CPG Packaging

There are a few significant reasons that are leading the trend for companies to invest more into their packaging. Some of the most important reasons driving the increase in spending on packaging include an increase in e-commerce, a raised awareness to eco-friendly and sustainable packaging, and competition for market share.

Increase in E-Commerce and Lighter Weight Materials 

Online shopping increased considerably due to the global pandemic, and as people realized the convenience of consumer goods shipped right to their front door, an increase in e-commerce took off. With more companies selling their products direct to consumers online instead of in the store, an increase in packaging is inevitable.

This makes the type of packaging that much more important.  With increased shipping costs, companies are striving for lighter weight, high-performance materials to protect their goods during shipping as well as heavier corrugated or plastic containers. This drastically reduces shipping expenses and can help to offset an increase for better packaging materials.

Eco-Friendly Awareness and Corporate Sustainability Goals 

With an increased awareness on environmentally friendly products and processes, corporations are instituting sustainability goals to do their part to reduce their carbon footprint and attract eco-conscious consumers. As brands evolve their packaging for consumer packaged goods to reflect their concern for the environment, they may be willing to spend a little more on recyclable shipping materials that attract a large segment of consumers. As CPG brand owners shift to sustainable packaging, they are investigating various types of flexible packaging materials such as flexible poly bags which weigh less and take up less space during shipping.

Flexible packaging materials weigh  considerably less than boxes or plastic containers which significantly reduces shipping expenses as less weight means greater fuel efficiency, and more products can be stacked on a skid as opposed to stacking boxes. Therefore, more products can be shipped in one truckload with flexible packaging as opposed to rigid packaging options.

Packaging Helps Brands to Gain Market Share 

How many times have you made a purchasing decision based solely on the appearance of a product’s packaging? If something looks new, hip, modern, fresh and clean or appealing we are more likely to purchase that product over something that looks dull and boring. The old adage “you can’t judge a book by its cover” strictly has no place in consumer marketing. Consumers judge products by their cover automatically without even thinking about it.

CPG brand owners are doing everything they can to respond to competitive demands and seizing every opportunity to get the attention of their target audience. This includes continually redesigning packaging with the goal of converting that shopper to a buyer.

If your company is considering making shifts in your packaging to evolve with market trends, you should consult with an experienced contract packaging company for guidance in material options and supply chain solutions.

PPS Offers Contract Secondary Packaging and Flex Packaging Solutions 

Peoria Production Solutions is an experienced contract packaging company, assisting companies of all sizes with packaging solutions for more than 80 years. We continually invest in modern equipment and new technologies to meet the demands of upcoming innovative packaging trends. We provide all types of secondary packaging solutions including flexible packaging, variety pack packaging, gift set packaging, clamshell packaging, point-of-purchase displays and more.

PPS leads the industry in providing a wide range of secondary production solutions including all types of packaging, kitting, and assembly. We follow strict quality procedures as part of our ISO9001:2015 certification, ensuring quality product delivered on time. Contact us to learn more about improving your packaging to meet upcoming and innovative packaging trends.

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