What are the key challenges in packaging today?

Balancing Sustainability with Quality & Performance

One of the key challenges companies face is transitioning to more sustainable packaging while maintaining product quality. Businesses are under pressure to reduce their environmental footprint, with both tightening regulations, notably Extended Producer Responsibility (EPR), and increasing customer expectations.

Navigating these complex challenges is complicated when maintaining product quality and shelf-life. This is especially relevant for food brands, which must ensure their packaging meets food safety standards.

Brands are navigating a tricky balance between trying to transition to eco-conscious packaging without compromising on product integrity.

EPR and regulations

Extended Producer Responsibility (EPR), which holds producers responsible for the full life-cycle impacts of their packaging, is impacting businesses in many aspects of their production, from sourcing right through to disposal. This has both financial and operational impacts for businesses.

Under the UK’s Recyclability Assessment Methodology (RAM), packaging that is harder to recycle has higher fees. The design-driven pricing structure, which is now in full force, offers less flexibility and clear financial impacts on packaging design choices.

Redesigning packaging to meet these regulations has caused complications for a lot of smaller companies, who may not have the resources to change their packaging or to keep up with providing data as easily, this is especially relevant as packaging which is unassessed automatically defaults to a high rating.

While EPR is encouraging more sustainable packaging choices, it is currently causing challenges in the market.

Rising costs and impact to supply chains

As mentioned, the shift towards more sustainable materials due to regulations has caused financial challenges for many companies.  Investment in redesign and administrative costs to gather the required data both have an impact. Additionally, supply chain disruptions have caused delays and often higher prices. Rising fuel costs and logistics challenges have meant transportation costs are also higher.

Keeping up with digitalisation & smart packaging

The role of technology in the industry can’t be ignored. Digitalisation is reshaping packaging design. With smart technology, such as QR codes, brands are expanding their offering. However, keeping up with these fast-paced changes can be difficult for businesses. Integrating smart features into packaging can present financial challenges and complex barriers, which can cause smaller businesses to have to swerve them entirely.

Adapting to circular models

The circular economy is significant in environmental efforts to reduce waste. Refillable and reusable packaging is prominent in the current packaging landscape.

Whilst these methods are moving in the right direction, towards environmental initiatives, not every business can adopt these models.

Refill can present safety and hygiene risks for some industries, particularly in food or healthcare. Changing product packaging to be suitable for refilling presents logistical challenges, and if companies want to move towards this, it may involve a major redesign. Navigating these challenges involves rethinking packaging design to fit into circular models.

Overall, the current key challenges facing the packaging industry fit into three, often connected categories: sustainability, costs and functional performance.

With strict environmental regulations and increased scrutiny on greenwashing, businesses must rethink their packaging, whilst still delivering on product quality, which often has major financial impacts. Companies that can navigate these challenges will be best placed to evolve with the industry as it changes.

Read more about the current trends in the packaging industry.