The product packaging market is driven by the extensive demand for convenience food and the increasing awareness of packaged foods.
Today, the demand for fresh produce is out-pacing the production rate with the role of packaging in the protection and marketing of consumer products gaining prominence among the suppliers. The growth of the product packaging market can be attributed to factors such as the increasing nutritional awareness and the growing preference for ready to eat products. In addition, consumers’ demand for food products in small-sized and convenient packages is compelling manufacturers to shift towards active and smart packaging techniques, which will subsequently help increase the shelf life of the food products. Moreover, the radical shift toward lightweight, comparatively low cost, and decent protective performance will promote the growth of the product packaging market.
Although the population boom and the availability of ready-to-eat products may influence the growth of the industry, several factors may hinder the performance of the industry. They include:
- Keeping up with the technological changes: The rising competition is paving the way for competitors who are trying to meet the changing consumers’ demands. Companies are facing the need to redefine their packaging techniques to improve the size, shape, and functionality of the packaging material. To keep pace with the changing needs, manufacturers in the product packaging space have to invest in new machinery and infrastructure.
- Increasing cost of raw materials: The raw materials involved in packaging include plastics, resins, paper, paperboard, and adhesives, which are the victim of fluctuating raw material prices. Also, polypropylene has witnessed a considerable hit due to the reduction in the supply of the material.
- Sustainability challenges: The wastage associated with the packaging industry is becoming a major concern among the consumers and the regulatory bodies. Most of the ingredients used in product packaging are difficult to recycle; and this becomes a concern for manufacturers to reduce wastage and improve packaging
[spacer height=”20px”]While product packaging finds a prominent position among the health-conscious consumers and consumers looking for ready-to-eat products, reaching out to these target audiences will be the matter of concern for most packaging companies. Therefore, organizations should take effective measures to ensure that they identify the segments who are looking for fresh produce and allocate their marketing resources to meet their requirements. To attain their goals, companies should come forward and leverage market intelligence solutions.
The Business Challenge
- The client- A product packaging client with numerous service offerings
To assess the competition in the market, a renowned product packaging client wanted to gain an understanding of the latest packaging trends and take effective decisions through the synthesis of market information. The product packaging client wanted to create a broad picture of the existing market, customers, problems, and the competition while keeping abreast of the latest technologies. With the help of an effective market intelligence engagement, the product packaging client needed to identify the growth opportunities and develop a comprehensive strategy focusing on the latest packaging trends and their strengths and weaknesses.
Want to learn more about how our market intelligence solution helped the client identify the packaging trends?
To identify potential challenges and gain a better understanding of the packaging trends, the market intelligence experts at Infiniti carried out extensive research comprising interviews and discussions with prominent stakeholders in the product packaging space. The client also gained adequate information across published sources such as paid industry databases, trade shows, and company presentations.
The Solution Benefits and the Business Impact
Many businesses leverage the use of market intelligence to understand the current packaging trends and keep up to date with the developments in the product packaging space. The market intelligence solution offered by Infiniti offered relative insights into questions such as the current potential customers and competitors. The product packaging client was able to increase their competitive advantage and make better-informed business decisions.
With the growing social and environmental concerns, packaging companies will witness the use of smart and sustainable packaging techniques to drive change. The packaging industry will include smart packaging techniques such as RFID technology for electronic tagging, tracking of stock, and better recycling methods such as biodegradable packaging.