From safety and sustainability to e-commerce growth and supply chain resilience, companies are redefining priorities to meet evolving consumer and operational demands.
In a landscape increasingly defined by rising market pressures, business leaders responsible for packaging and labeling are adapting their strategies to meet evolving demands.
A recent survey conducted in September 2024 highlights how U.S.-based decision-makers are prioritizing safety, sustainability, and e-commerce innovation to navigate these challenges effectively.
The study, which involved 300 leaders with oversight of packaging and labeling operations, sheds light on how companies are responding to trends such as supply chain complexities, consumer expectations, and environmental goals.
Nearly half of respondents identified as decision-makers for both packaging and labeling, providing a comprehensive perspective on these interconnected priorities.
According to the report, ensuring product safety and enhancing functionality remain critical objectives. Companies are investing in protective materials and functional designs to maintain product integrity and meet consumer expectations. For instance, 89% of packaging leaders anticipate making changes to their designs within the next two years, with 36% planning significant updates.
Functional design and materials innovation are the most common areas of focus, driven by factors such as end-user appeal, efficiency in storage and distribution, and enhanced product protection.
Moreover, sustainability has emerged as a key driver of innovation in packaging and labeling. As noted in the report, 73% of respondents indicated that consumer demand for eco-friendly and minimalist packaging has influenced sourcing decisions over the past year.
Efforts to reduce material waste, increase recyclability, and incorporate recycled materials are reshaping operations, with 81% of packaging leaders reporting progress toward corporate sustainability goals. Notably, 78% of labeling decision-makers identified environmental regulations and sustainability as critical factors shaping their strategies.
The growth of e-commerce has added another layer of complexity, testing companies’ ability to adapt quickly. Among packaging leaders surveyed, 84% reported having an e-commerce operation, with 78% experiencing growth in the past year.
To accommodate this trend, companies have increased inventory, hired additional staff, and optimized packaging designs for online sales. Similarly, labels operations are evolving to balance cost efficiency, speed, and sustainability in the fast-paced e-commerce environment, with 77% of respondents planning design updates in the coming years.
Supply chain disruptions and material price volatility have further complicated decision-making processes. The report reveals that 93% of packaging leaders experienced operational impacts due to supply chain issues over the past year, with missed deadlines and rising material costs prompting strategic adjustments.
Diversifying supplier relationships and exploring alternative materials have become essential strategies for maintaining resilience. For labeling leaders, 54% have diversified suppliers, and a similar percentage have consolidated sourcing to manage inflation and environmental compliance challenges.
Expert insights provided in the report emphasize the need for a balanced approach. Lisa Pruett, President of RRD Packaging, Labels, and Supply Chain Segment, highlighted the importance of integrating safety and functional design to ensure product integrity and enhance user experiences.
She noted, “Meeting this increasing demand will require a balance between three competing priorities: protection, convenience, and brand appeal.”
Similarly, sustainability expert Dennis Aler, Director of Environmental, Health, and Safety at RRD, underscored the broader implications of eco-friendly practices, stating:
“Sustainability in packaging and labels is more than just the materials we use; it’s about rethinking the whole supply chain to cut waste, improve recyclability, and support a circular economy.”
As the report concludes, adaptability will be key to navigating the complex intersection of safety, sustainability, e-commerce, and supply chain dynamics. Companies that embrace innovation and foster strategic supplier relationships are poised to meet market demands while positioning themselves for long-term success.
