By Dhananjay Salunkhe

Packaging has undergone a dramatic evolution through the ages, from prehistoric times to the industrial age, revolutions and wars, and into the present day. Innovation, much like in other consumer-facing industries, stands at the heart of making the packaging industry resilient, future-proof, and propitious. Interestingly, each disruptive trend in the packaging industry has been driven by the consumer’s need of the hour – be it cardboard boxes for longer shelf life, bubble wrap for delicate and fragile products, PET bottles to offer convenience and accessibility or reusable bags made from eco-friendly, natural materials like jute, cotton etc. As it enters the era of next normal, the packaging industry needs to harness several seminal megatrends to cater to consumers effectively.

Synergy of premiumisation and sustainability

Recent studies have shown that 90% of APAC consumers are willing to spend a premium on sustainability products, with sustainable packaging being among the key criteria for purchasing. Premium packaging and sustainability now go hand in hand because people’s preferences are changing. Brands are also beginning to realise that “premium” doesn’t mean using fancy materials. Rather, it has to do with embracing both sustainability and convenience. The rising demand for sustainable packaging presents opportunities for firms and retailers to collaborate, innovate and adapt to changing customer tastes and regulatory constraints to provide a variety of solutions that meet social and environmental objectives.  

Another trend that is on the uptick is flexible packaging. Today, brands demand flexible packaging, with features such as strong barriers and easy-to-open or unique designs. For instance, flexible packaging technologies like PE (polyethylene) and PP (polypropylene) Retort are monomaterial-based solutions which makes them sustainable alternatives to conventional multi-layer packaging, generally used. Monomaterial solutions are recyclable in nature, thus helping reduce waste and embedding circularity in daily business operations. 

There is also pressure from government regulations and the general public to reduce single-use packaging waste and apply extended producer responsibility (EPR) for items aimed at consumers. Several nations have already either enacted prohibitions on single-use plastics or other non-recyclable packaging materials or are in the process of doing so soon. This is in line with the roadmap drawn up by the United Nations’ Environment Programme that outlines solutions to cut global plastic pollution by 80% by 2040.

India has taken proactive steps with the aim of eliminating single-use plastics by notifying comprehensive guidelines on EPR for plastic packaging. Producers, importers and brands etc. have to provide details of their recycling certificates, along with proof that materials are being recycled. Many FMCG (fast-moving consumer goods) firms and retailers have set new goals for their packaging including full recyclability or a decrease in the overall use of plastics which is also strategically aligned with their ESG strategy 

Unleashing creativity through smart packaging

With consumers using technology to make more informed choices about products, smart packaging is coming into vogue with intelligent components such as sensors, indications, QR codes, RFID tags, or NFC chips to offer customers or organizations information, functionality, or interactivity. The global market for smart packaging is expected to reach $26.7 billion by 2024 and is becoming a popular tool to improve consumer experience, product quality, safety and traceability as consumers are increasingly relying on technology to make better decisions about their purchases.

Digitalization is becoming increasingly crucial in the packaging industry. It enhances operational efficiency and the development of packaging that is not just sustainable, but also smarter. It also opens up opportunities for collaboration with customers and suppliers. Brands could use printed tags and codes to give packaging a digital identity. These tags and codes could enable easy access to information about the packaging’s raw materials, making recycling simpler, engaging customers with product content, besides allowing traceability of the product. A good example of this is HolyGrail 2.0, led by the European Brands Association, a collaborative effort involving multiple industry players. Its mission is to accelerate the shift towards a circular economy for plastics, while enhancing the quantity and quality of recyclable materials by improving their identification. 

As a hotbed of innovation, smart packaging has been paving the way for many use cases. Right from the deployment of sensors to track food quality, QR codes that can be scanned for nutritional information, and the use of AR (augmented reality) to relay brand information through 3D content, many brands have turned to smart packaging as a means to better connect with their customers. 

There are many examples of smart packaging. Recently, a snack brand utilised gamification to engage with its consumers, by incorporating QR codes in their packaging. On scanning, it would activate the mobile game and for each new bag, consumers could move to the next level. The rising wave of smart packaging has spread to the F&B industry as well, with inventions such as interactive smart cups, that come with heat-sensitive labels and QR codes linking to digital content.

Smart packaging can help consumers make more informed and personalized choices about the products they buy and use, while also allowing brands to improve business efficiency and gain valuable insights into their consumers and markets. 

Vital role of flexible packaging in lowering emissions

The importance of packaging gains greater significance, as the world accelerates towards Net Zero emissions. For instance, food systems are responsible for 25% of global greenhouse gas emissions, with 1/3rd of all food produced being wasted. The lightweight nature of flexible packaging, along with its best-in-class protection and shelf-life curbs food waste and emissions across the value chain. 

The need to balance consumer demands with ecological and social responsibilities is driving the packaging industry’s transformative journey. The establishment of the Resource Efficiency Circular Economy Industry Coalition (RECEIC) by the government is a welcome step as it fosters brand collaboration, improved resource efficiency and an accelerated transition to a circular economy. As the late, great Mr. Steve Jobs had famously championed, “Packaging can be theatre, it can create a story”. With more innovations coming into the fray, the packaging landscape will be poised to craft unique, sustainable, and compelling stories for each stakeholder to resonate with.

(The author is Managing Director, Huhtamaki India. Views are the author’s own and not necessarily that of financialexpress.com)