Sustainability strong driver

Global external trends affect the packaging industry and contribute to our strategy going forward. The overall development shows that our mission to challengeconventional packaging for a sustainable future is more relevant than ever.

Demand for packaging is rising as a consequence of urbanisation and digitalisation. At the same time, sustainability is a strong driver, which means future packaging will need to be designed so that it does not impact our climate.

Five key factors globally

 

1. Demand for sustainable packaging is growing

Today, over half the planet’s population lives in cities, and that figure is rising. With a growing proportion of the planet’s population living far removed from raw materials and local food supplies, more goods need to be packaged and distributed. Packaging must be safe and effective, so that it protects its contents but at the same time sustainable from an environmental and climate perspective.

The future will be all about packaging that are renewable, can be recycled or reused, in order to meet cities’ need for renewable solutions and circular material flows.

2. Sustainability requirements are becoming stricter

The UN’s Sustainable Development Goals (SDGs) to combat climate change, the global climate agreement and growing awareness that we must not exceed the limit of what our planet can tolerate, are driving society in a carbon neutral direction. Companies are expected to take responsibility not only for their products, but for how they are packaged.

Brand owners are raising their sustainability ambitions and more packaging solutions need to be renewable and circular, also driven by increased regulatory and legal frameworks.

3. Digitalisation is opening up opportunities

Digitalisation is opening up opportunities to automate processes along the whole of the packaging industry’s value chain, for example within responsible and effective management of the forest, automated warehouses, driverless vehicles and robots. Furthermore, digitalisation creates opportunities for new, built-in functionality in packaging. Safety of goods such as food and medicines can be improved via integral sensors. Another area of digitalisation is communication-enabled packaging, where scannable codes allow brand owners to communicate with consumers. 

4. New ground rules as the value chain changes

The new ground rules of the industry, with its high degree of digitalisation and access to data in real time, create opportunities for new business, logistics and distribution models. One example is Managed Packaging, which works with a network of production partners instead of having its own production units. Other areas include transport, recycling or sales. Yet another example is e-commerce, which places new demands on the distribution chain. Durable packaging that protects the goods in transit, can be optimised in terms of capacity, and at same time offers a positive unboxing and returns experience for the recipient, requires high standards of material, function and design.

5. Growing interest in the forest as a source of raw material

Forest has increased in value and is being integrated into value chains to an ever greater extent. Wood raw material is the most important resource in renewable material production. Technical advances now mean that the wood raw material can also be used in more operations than before. In summary, this is increasing competition for wood material. Done properly, every part of the tree is put to optimum use in the most appropriate area.

See also

Huge opportunity for Helpful Brands to gain market shares

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Trends that shape Future Business Perspectives

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