The future of packaging has never been so multifaceted, because consumers with environmental awareness are constantly stimulating creative changes in the traditional packaging industry. But before we consider what will happen next, we should first recognize that COVID-19 has made tremendous changes and lasting impact on our industry.
Several global blockades forced changes in consumer behavior and shopping habits, resulting in a 46 per cent increase in e-commerce. The prosperity of online shopping during COVID-19 brings more packaging delivery than ever before, all of which are in urgent need of market demand. The strength of the package is more concerned than ever as it is hurriedly thrown from the warehouse to the truck and then to the door. Because the demand for strong cartons is growing, and can safely store your goods under any delivery conditions.
But COVID-19 is not the only catalyst. With the decline of physical retail industry, e-commerce has been growing explosively, followed by consumers’ more awareness of packaging delivery. Therefore, sustainability and the use of more recycled materials become equally important. Most cartons today are made of about 50% recycled corrugated material, and each ton of recycled corrugated material can help prevent up to 17 trees from being cut down.
The disadvantage of recycled fibers is that they become shorter after each reuse, which may continuously weaken the properties of recycled fibers. Usually, after 5-7 cycles, the fiber can no longer be used. From a practical point of view, this means that the structural integrity of recycled corrugated boxes depends on the quality of raw materials. There are many ways to overcome this problem, but ultimately it is necessary to strike a balance between intensity and sustainability, let alone cost, which is a difficult problem to deal with.
Since the strength can only be measured after the paper is made, the opportunity for process optimization to achieve the correct proportion of raw materials, raw materials and recycled materials to meet the specifications is limited. Therefore, it is not surprising that the demand for virtual strength measurement released by ABB last year has surged. It creates an online computing that enables paper and packaging manufacturers to better manage strength characteristics within their target limits, thereby producing more compliant paper at a lower cost while reducing raw material use. ABB has also expanded the use of on-line fiber measurement to better optimize fiber combinations.
What other factors are driving this change?
COVID-19 will continue to have a long-term impact on the future of e-commerce and packaging. According to McKinsey & company, the global demand for packaging is growing, and the sales will exceed US $1 trillion in 2021.
In the past 18 months, we have seen a surge in demand for corrugated boxes with each blockade, which has brought light to the paper packaging industry with a core value of US $350 billion in e-commerce economy. According to the data of Smithers, a consulting firm, the amount of paperboard used to transport goods from retailers to families surged by nearly 40% last year. By the end of 2020, Fischer international confirmed that the consumption of paperboard in the United States had reached the highest level in 40 years. Driven by the growth of corrugated packaging, the operating capacity of the paper industry increased at a rate not seen in more than 10 years.
Sustainability is one of the biggest contributors to positive changes in our industry, as we see a significant shift in packaging towards less material and more natural packaging. Companies now have the responsibility and vested interests to serve the needs of emerging consumers interested in a green future. The exceptionally high level of e-commerce, coupled with the desire of the younger generation to support companies in line with their beliefs, has led people to reassess the problem of waste and gradually move away from over packaged or unsustainable retailers.
The evolution of packaging will also be largely driven by demographic changes and consumption trends, such as the growth of urbanization rate and its related phenomena, namely takeout culture and the demand for convenience. We have seen everything from portable food containers to paper straws. Although it is not as durable as plastic, restaurants and consumers choose it more often. This proves that the desire to reduce waste has changed. Enterprises need to find ways to optimize the use of packaging materials and improve cost-effectiveness as much as possible.
This change in sentiment is largely encouraged and strengthened by changes in government regulation, most notably the European Commission Directive on disposable plastics (SUP), which came into force in 2019 and is now expanding into the paper sector. This has led to a gradual ban on plastic shopping bags, forcing us to buy reusable or paper alternatives.
E-commerce companies’ skills in coping with the changing packaging world
Manufacturers need to strike a balance between sustainability and consumer preferences, while ensuring that packaging can play its desired role. The packaging strength needs to be consistent with the product type to provide strong and high-quality products. The key is to know the source of the pulp / material mixture for manufacturing cartons.
The biggest challenge will be for the company to remain relevant in a rapidly changing and evolving market. New entrepreneurs, new lifestyles, new places and new industries have brought cutting-edge changes. The rise of e-commerce highlights trends and topics such as improving product safety, “unpacking” experience, anti-counterfeiting measures and last mile delivery optimization.
In short, manufacturers must innovate to remain competitive and bravely do more than simply improve their packaging methods. We need to prepare for the circular economy and change our way of thinking so that packaging can play an important role in building a positive future.
Post time: Nov-02-2021