Be sure to visit our Labels & Packaging page!
As we stand on the threshold of 2024, it’s essential for thought leaders in the packaging and labels industry to reflect on the transformative insights that defined the past year. Here are some of the key takeaways from our own labels and packaging (L&P) experts.
Jean Lloyd, Principal Analyst of Labels & Packaging
Be Part of the Workforce Solution
As highlighted in our State of the Industry (SOI) reports, as well as at many industry events, the global packaging industry is grappling with a significant workforce recruitment challenge. The demand for packaging expertise consistently exceeds the availability of experienced workers, posing a two-dimensional talent gap. Traditional production talents are dwindling due to retirements or exits from the industry, while the skills needed for the industry’s tech-driven future must be continually nurtured. To tackle this issue, companies must create environments that attract professionals seeking dynamic career paths, and in doing so recognize the importance of diversity and inclusion in talent acquisition. Diverse teams enrich the talent pool, enhance problem-solving and understanding of the equally diverse customer base, and create a more forward-thinking industry.
Several companies and associations (such as The Girls Who Print group, with its vast membership), continuously support and up-skill women in the industry. Events hosted by Printing South Africa, like Women in Print (which I was fortunate enough to moderate many sessions in 2022 and 2023) had a global reach this year; through live-streaming we connected with an astonishing 85,000 viewers, with 15,000 individuals watching the event in real-time from 41 countries, fostering inspiration and empowerment.
Sustainable Packaging Takes Center Stage
In 2023, the clamor for sustainability reached a crescendo, with consumers and regulatory bodies alike demanding eco-friendly solutions from the L&P industry, which recognizes adopting sustainable practices as a moral obligation and a strategic advantage. The industry witnessed a surge in the development of recyclable, biodegradable, and compostable materials, challenging traditional notions of packaging; brands that align with this shift are gaining a competitive edge.
As we enter 2024, thought leaders must champion the cause of sustainability—urging companies to go beyond greenwashing and embrace holistic, transparent practices. Innovations in materials, recycling processes, and circular economy models will be crucial focal points to meet the escalating demand for sustainable packaging.
Supply Chain Resilience in the Face of Disruptions
From material shortages to transportation bottlenecks, the disruptions of 2023 (exacerbated by global events and unforeseen challenges) underscored the vulnerability of supply chains within L&P. Agility and resilience emerged as the keywords for success. Businesses that had diversified sourcing embraced technology for real-time visibility and forged strategic partnerships to weather the storms more effectively.
Looking forward to 2024, thought leaders must advocate for continued investments in supply chain resilience. Companies should explore emerging technologies like blockchain for enhanced traceability and transparency, enabling swift responses to disruptions and ensuring uninterrupted operations.
Jeff Wettersten, Vice President of Labels & Packaging
Consolidation
As industry consolidation continues across all packaging segments, what are the long-term implications for suppliers? After mergers or acquisitions amongst converters, change is inevitable. Suppliers are directly impacted by industry consolidation, as the new entity seeks to optimize their supplier base. Does the supplier base consolidate, or will it continue to fragment around mainline vs. specialty suppliers of equipment, chemistry, and substrates?
Sustainability
Our interviews with converters (conducted as part of our SOI reports) demonstrate a wide divide among converters relative to the importance or potential impact sustainability requirements will have on their business. Industry articles about sustainability deliver the message about its prevalence and importance, but converters deliver a different message. Why does the industry have this disconnect? Is it education, timing, the customer base, or a combination of all three?
External Factors
The packaging industry has consistently displayed tremendous resiliency in responding to external factors. Hiring and job retention, regulatory requirements, as well as economic and geo-political tensions all factor into packaging demand and the converters’ ability to respond. From this list, regulatory requirements may pose the greatest risk as they tend to become highly politicized decisions with no predictable outcome.
Kevin Karstedt, Vice President of Labels & Packaging
For the past six months, I have been focused on the folding carton market and its somewhat anemic acceptance of digital printing to-date. As part of our SOI report series, we spoke with many converters and technology developers to gain insight on where and how digital is progressing.
Innovators and early adopters have invested in trying to find the right niche for digital in their businesses, but have yet to find the breakout rational that has been found in the labels sector and is developing in corrugated. What we outline in our reports is that a combination of a B1 format, increased production speed, enhanced system uptime, and better overall economics is needed to allow digital to move to the next level of productivity.
This next level of market accessibility will bring another 5.1 billion m2 of carton production into play—a tenfold increase to what is addressable within the current offerings. There have been some promising developments and announcements coming out at the end of 2023, leading us to believe this next step could be just around the corner.
Keypoint Intelligence Opinion
Next year presents challenges and promising opportunities for companies in the packaging industry. We should focus on harnessing the lessons from 2023: addressing workforce challenges, championing sustainability, and fortifying supply chains. While navigating these changing factors and demands may be daunting, it also presents a great potential waiting to be realized. By doing so, we can steer the industry towards a future where innovation and responsibility go hand-in-hand, ensuring success in the face of uncertainty.
Browse through our Industry Reports Page (latest reports only). Log in to the InfoCenter to view more research, reports, and studies through our Labels & Packaging Advisory Service. If you’re not a subscriber, contact us for more info by clicking here.
Keep Reading
Looking at Keypoint Intelligence’s State of the Industry Report on Corrugated Packaging
