According to research by Smithers in The Future of Packaging: Long-Term Strategic Forecast to 2028, between 2018 and 2028 the global packaging market is set to expand by almost 3% per annum, reaching over $1.2 trillion.

1. Economic Growth

Short-term challenges resulting from COVID and US-China tariff tensions may have things looking bleak, but there is reason to look up.

Growth in emerging consumer economies is actually set to strengthen the economy overall in the coming years, projecting a bright future for the packaging industry. Smithers also notes that rising life expectancy will lead to an aging population – which will in turn increase demand for healthcare and pharmaceutical products along with a need for easy opening solutions and packaging adapted to the needs of elders.

The rise in single-person households will also push demand for goods packaged in smaller portion sizes; as well as more convenient packaging that is also sustainable/eco-friendly.

2. Trends Across Consumer Markets

Consumers are increasingly buying more goods online, especially with the rise of mobile app shopping and delivery services. This trend will only continue to grow in the coming years, and there will be a need for innovative packaging that protects goods throughout the shipping process but also appeals to the consumer’s sensibilities.

More people are also consuming products on the go now, increasing the need for portable and conveniently packaged products that fit this lifestyle.

Consumers are also taking a greater interest in personal health, creating a boost in emerging health-related markets like organic foods, gluten-free packaged foods, supplements, and more. This trend is only projected to keep spiraling upward.

3. Sustainability

It’s no secret that concern over the environmental impact of products continues to be an issue. Since 2017, there has been an obvious push to create more sustainable packaging in most markets. As sustainability has become a key motivator for consumers, brands are increasingly looking for packaging materials and designs that demonstrably show their commitment to the environment.

Smithers also notes that minimizing food losses also supports the wider use of intelligent packaging to cut waste within distribution chains and reassure consumers and retailers on the safety of packaged foods.

4. Brand Owner Considerations

E-commerce and international trade are stimulating demand among brand owners for more advanced consolidated packaging systems, like RFID labels and smart tags, to protect against counterfeit goods and enable better monitoring of their distribution. Mergers and acquisitions are becoming more commonplace, and as more brands come under the control of one owner, their packaging strategies are likely to become consolidated.

In addition, the current average consumer is less brand loyal than ever. This is creating an interest in customized packaging solutions that can create an impact on consumers. Packaging that is integrated with marketing and branding is becoming the norm, with packaging providing a gateway to link into social media.