Innova Market Insights Announces Its Top Packaging Trends for 2024

Innova Market Insights has announced its top packaging trends for 2024, with “Digital Circularity” taking the top spot. Upcoming regulations, particularly the UN Global Plastics Treaty and the revised EU Packaging and Packaging Waste Directive (PPWD), will intensify the need for responsible waste management. The packaging industry will increasingly turn to digital technology to deliver scalable circular economy solutions.

“Maximising the Minimum” is seen as the second trend, as producers pursue material reduction and lightweighting initiatives to improve their environmental footprint, particularly in e-commerce. Third, new regulations are expected to bring about a “fast food clean-up”, which will intensify the debate between reusable and single-use packaging.

As legislators tackle widespread greenwashing, the fourth trend, “Honest Packaging”, will benefit from a stricter regulatory environment. The global market researchers sum up this year's trends with “Breaking the Barrier”, as paper packaging manufacturers unlock the growth potential of fresh food through plastic-free barrier innovation.

Trend One: Digital Circularity

With the surge in connected technologies such as QR codes, NFC and digital watermarks, industry players will adopt digitalisation to improve environmental impact, automate supply chains and avoid greenwashing lawsuits. Artificial intelligence systems and machine learning

New laws such as the revised PPWD mean stakeholders need the best possible, verifiable data to support their claims and achieve circularity goals. The industry's focus is now on using cutting-edge technology to ensure material traceability and legal compliance. SaaS platforms can capture and verify this data.

Companies will also use new technologies to encourage responsible consumer behaviour. Chinese researchers found that incorporating “green nudges” into food service apps can greatly reduce packaging consumption.

The development of technologies such as QR codes and NFC has moved beyond brand-to-consumer interaction — they are now also used to drive positive consumer behaviour and improve packaging circularity. As consumer scrutiny intensifies and upcoming regulatory changes loom, companies are embracing technological advances in sorting and recycling.

According to consumer surveys, more than two-thirds (77%) of global consumers say they engage with connected packaging at least occasionally, while more than a quarter (27%) see sustainability information such as carbon footprint as a key reason for their engagement.

Data shows that between 2019 and 2023, the number of food service products worldwide with QR codes on their packaging grew by 19% (compound annual growth rate).

Trend Two: Maximising the Minimum

Whether producers want to improve their environmental footprint or simply reduce materials, this is a time-tested approach. Data shows that between 2019 and 2023, global packaged food and beverage products posted an average annual growth rate of 41% (compound annual growth rate) in reduced packaging claims.

Consumers are responding — according to the survey, nearly one-third (29%) of global consumers say that reducing the use of packaging materials would have a positive influence on their product choices.

Supporters of plastic packaging often emphasise that, compared with glass and metal, plastic packaging can reduce transport-related emissions. Some companies are innovating in lightweight solutions to achieve carbon reduction, while the directive on tethered caps aims to minimise the accumulation of plastic waste in landfill.

As brands pursue carbon reduction, lightweighting initiatives across various material types will multiply this year, including infinitely recyclable materials such as glass and metal. For example, OI Glass launched a 390-gram wine bottle for the French market, cutting its weight by 25%.

The trend of reducing or eliminating plastic is especially important in e-commerce, which affects weight and related carbon emissions. Amazon recently modified the automated machinery at a US plant to produce 100% paper packaging, eliminating the plastic liner while not compromising weight or durability.

The Chinese government is also cracking down on excessive e-commerce packaging. In the European beverage market, under the EU Single-Use Plastics Directive, caps must be tethered to bottles from July this year. Meanwhile, label-free designs, such as Coca-Cola's label-free Sprite bottles in the UK, also support material reduction efforts.

Trend Three: Fast Food Clean-Up

Packaging at quick service restaurants (QSRs) will undergo significant changes this year, especially in Europe, where the sector faces unique challenges because of its reliance on single-use formats; the potential of reusable materials to reduce ecological impact continues to spark industry controversy, and surveys indicate that in 2023, 40% of consumers increased their use of reusable packaging.

The PPWD's push for reusable solutions may inspire innovation in reusable glass bottles, similar to eco tote bags.

However, some critics argue that ambitious targets fail to take account of increased energy and water use, which may outweigh any potential benefits. They may also create bottlenecks in achieving recycling targets. Some companies are racing ahead to trial reusable formats.

Last year, Visa and Uber helped food service businesses shift to less disruptive packaging formats. Starbucks and Hubbub launched reuse projects to incentivise businesses to adopt this model.

A study commissioned by McDonald's predicts that a mandatory reuse target for 2030 could increase plastic packaging waste from dine-in consumption by 300% and from takeaway consumption by 1,500%.

Even so, food service products using reusable packaging are still making progress, with an average annual growth rate (CAGR) of 18% between 2019 and 2023, and 38% of global consumers say that, compared with “conventional packaging”, they are willing to pay more for reusable packaging.

Trend Four: Honest Packaging

Green action is accelerating, and companies all need to get ready. Major companies such as Coca-Cola, Danone and Nestlé have already faced legal proceedings in the EU over misleading claims.

Consumers are increasingly sceptical about claims made on packaging. Nearly half (46%) of consumers worldwide consider environmental information on packaging to be misleading, and “100% recyclable” claims are misleading in most cases.

As allegations mount, the threat of litigation grows. The European Parliament recently approved a new directive prohibiting greenwashing and deceptive product information in order to protect consumers.

Lawmakers said, “Companies can no longer deceive people.” In addition, the UN Global Plastics Treaty will hold its final round of negotiations later this year to determine how the packaging industry uses and markets plastic products.

However, as artificial intelligence spreads throughout the industry, experts warn that a new type of deception, “AI washing”, could spread this year.

Trend Five: Breaking the Barrier

Barrier coatings have now become a focus in almost every field. Notably, the shift from plastic to fibre-based solutions brings the challenge of replicating grease and moisture protection and shelf life without using plastic.

However, adding plastic film has become standard practice for enhancing the poor oxygen and water vapour barrier properties of materials such as paper and paperboard.

Innovations in functional oxygen-barrier films are on a par with the performance of conventional plastics, which points to a continued transition towards paper-based solutions and reduced reliance on plastic, while improving recycling efficiency. Most companies still use some form of fossil plastic to coat paper packaging.

However, companies are investing in bio-based barrier layers to eliminate plastic and unlock new applications. For example, Aquapak's functional oxygen barrier film can replace ethylene vinyl alcohol (the most widely used plastic barrier layer) as part of a multilayer structure.

Nearly one-third (27%) of global consumers say that extended shelf life influences their purchasing decisions, second only to ease of storage (34%). Coatings are also an issue in the metal packaging market, because conventional barriers are associated with health concerns.

— This article is reprinted from the China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-379639.html