2024 Development Guide for Packaging and Printing Industry!

Innova Market Insights has released the top packaging trends for 2024, with 'digital recycling' ranking first. The upcoming regulations, especially the revised versions of the United Nations Global Plastic Treaty and the European Union Packaging and Packaging Waste Directive (PPWD), will strengthen the demand for responsible waste management. The packaging industry will increasingly turn to digital technology to achieve scalable circular economy solutions.

Maximizing and minimizing "is considered the second trend, as manufacturers pursue material reduction and lightweighting measures to improve their environmental footprint, especially in the field of e-commerce. Thirdly, the new regulations are expected to carry out a 'fast food clean-up', which will intensify the debate between reusability and single use. As lawmakers address the widespread issue of green cleaning, the fourth trend of "integrity packaging" will benefit from a more regulated environment. Global market researchers have summarized this year's trend as a breakthrough in barrier technology, as paper packaging manufacturers have unleashed the growth potential of fresh food through innovation in plastic free barrier technology.

Trend 1: Digital Cycle

With the proliferation of interconnected technologies such as QR codes, NFC, and digital watermarking, industry participants will adopt digitization to improve environmental impact, achieve supply chain automation, and avoid greenwashing lawsuits. Artificial intelligence systems and machine learning are rapidly advancing in enhancing classification, ecological pollution detection, and chemical recycling.

The revised version of PPWD and other new laws mean that stakeholders need the best and verifiable data to support their claims and achieve circular goals. The current focus of the industry is on utilizing cutting-edge technology to ensure material traceability and legal compliance. SaaS platforms can obtain and validate this data. The company will also use new technologies to encourage responsible consumer behavior. Chinese researchers have found that incorporating "green promotion" into catering service applications can greatly reduce packaging consumption.

The development of technologies such as QR codes and NFC has surpassed the interaction between brands and consumers - now they are also being used to drive positive consumer behavior to improve the circularity of packaging. With strengthened consumer scrutiny and upcoming regulatory changes, companies are embracing technological advancements in classification and recycling, "said Akil Aiyar, Innova project leader.

According to Innova's consumer survey, over two-thirds (77%) of global consumers indicate that they occasionally come into contact with connected packaging, while over a quarter (27%) of consumers consider sustainability information such as carbon footprint as a key reason for their participation. Innova data shows that from 2019 to 2023, the number of food and beverage products with QR codes on their packaging worldwide increased by 19% (compound annual growth rate).

Trend 2: Maximizing and Minimizing

Reducing materials is a proven method for manufacturers to improve their environmental footprint. Innova data shows that from 2019 to 2023, the average annual growth rate of packaged food and beverage products worldwide is 41% (compound annual growth rate). Consumers are responding - according to Innova's survey, nearly one-third (29%) of global consumers indicate that reducing the use of packaging materials will have a positive impact on their product choices.

Supporters of plastic packaging often emphasize that compared to glass and metal, plastic packaging can reduce transportation related emissions. Multiple companies are innovating lightweight solutions to achieve carbon reduction, and the directive on tether covers aims to minimize the accumulation of plastic waste in landfills, "Aiyar said.

As brands pursue carbon emissions reduction, lightweight measures for various types of materials will increase exponentially this year, including infinitely recyclable materials such as glass and metal. For example, O-I Glass has launched a 390 gram bottle for the French market, reducing its weight by 25%. The company is making some progress in areas where plastic can be reduced or eliminated. This trend is particularly true in e-commerce, where weight and related carbon emissions are crucial.

In the field of e-commerce, we have observed several measures aimed at reducing excess packaging through appropriate packaging design, "said Aiyar. Amazon recently renovated the automated machinery at a factory in the United States to produce 100% paper packaging, eliminating plastic lining while maintaining weight and durability.

Regulatory agencies have also taken note of this, as the Chinese government is cracking down on excessive e-commerce packaging in the world's second-largest economy. In the European beverage market, according to the EU single use plastic directive, starting from July this year, bottle caps must be tied to the bottles. At the same time, label free designs, such as Coca Cola's label free Sprite bottles in the UK, also support efforts to reduce materials. Global consumers hope that packaging can be recycled.

Trend 3: Fast Food Cleanup

The packaging of fast food restaurants (QSR) will undergo significant changes this year, especially in Europe. Due to its reliance on one-time forms, the industry faces unique challenges. The potential of reusable materials in reducing ecological impact continues to spark industry controversy and dominate PPW negotiations.

Our survey shows that by 2023, 40% of consumers will increase their use of reusable packaging. PPWD's push for reusable solutions may inspire innovation in reusable glass bottles, similar to eco-friendly tote bags, "Aiyar said." However, in QSR, critics argue that ambitious targets fail to take into account the increase in energy and water usage, which could outweigh any potential benefits and create bottlenecks in achieving recycling goals

Some companies are taking the lead in trying reusable formats. Last year, Visa and Uber helped food service companies shift towards less disruptive packaging forms. Similarly, Starbucks and Hubbub have launched reuse projects to incentivize businesses to adopt reuse models. However, a study commissioned by McDonald's predicts that the mandatory reuse target proposed by PPWD by 2030 may increase QSR plastic packaging waste for dine in consumption by "up to 300%" and takeaway consumption by "up to 1500%".

Innova data shows that food and beverage products using reusable packaging are making progress, with an average annual growth rate (CAGR) of 18% from 2019 to 2023. Meanwhile, 38% of global consumers indicate that they are willing to pay more for reusable packaging compared to 'regular packaging'.

Trend 4: Integrity Packaging

The crackdown on "greenwashing" is accelerating, and companies need to be prepared. Major companies such as Coca Cola, Danone, and Nestle have faced legal action due to misleading statements from the European Union. Consumers are becoming increasingly skeptical about the statements on packaging. Innova revealed that nearly half (46%) of consumers worldwide believe that environmental information on packaging is misleading. Research by Client Earth has found that claims of over 100% recyclability are misleading in most cases.

With the increasing number of accusations, the threat of litigation is also growing. The European Parliament recently approved a new directive prohibiting greenwashing and deceptive product information to protect consumers. In addition, the United Nations Global Plastic Treaty is scheduled to hold its final round of negotiations later this year to determine how the packaging industry uses and sells plastic products. But Innova's Aiyar believes that a stricter regulatory environment is beneficial for brands that make concrete claims. Consumer trust in packaging claims is weakening, so the 'greenwashing' ban is expected to regain consumer trust. For packaging, I expect third-party organizations to conduct more certifications and audits to verify the authenticity of such claims

Many consumers are willing to pay more for reusable packaging. Numi Tea's goal is to make its carbon footprint estimates as transparent as possible on packaging and website statements, for which it collaborates with decarbonization platform Planet FWD. Recycling innovators like NextLoop in the UK are working hard to create a fully circular economy for PP, so that brands can fulfill their 100% recycling claims. However, as artificial intelligence spreads throughout the industry, experts warn that a new type of deception - the AI shuffle - may spread this year.

Trend 5: Breakthrough in Barrier Technology

Barrier coatings have now become a key focus in almost every field of the industry. It is worth noting that the shift from plastic to fiber based solutions has brought challenges in replicating grease and moisture protection, as well as shelf life, without using plastic.

Although material recycling faces challenges in waste management, adding plastic film has become a standard practice for enhancing the poor oxygen and water vapor barrier properties of materials such as paper and cardboard, "Aiyar explained." The innovation of functional oxygen barrier film is comparable to the performance of traditional plastics, which heralds a continued transition to paper-based solutions (if possible) and reduces dependence on plastics while improving recycling efficiency

Most companies still use some form of fossil plastic to cover paper packaging - industry giants such as Mondi are developing new packaging based on the principle of "using as much paper as possible, using useful plastic". However, companies are investing in biobased barrier coatings to eliminate (micro) plastics and unlock new applications. For example, Aquapak's functional oxygen barrier membrane can replace ethylene vinyl alcohol (the most widely used plastic barrier layer) as part of a multi-layer structure.

According to Innova's survey, nearly one-third (27%) of global consumers indicate that extending shelf life will affect their purchasing decisions, second only to ease of storage (34%). Coating is also a problem in the metal packaging market, as traditional barrier layers are associated with health issues. Recently, AkzoNobel invested in non phenolic coatings for metal packaging.