Packaging / Advertising & Office

When a newly released study by Nally found that the most pressing challenges in the market are forcing packaging decision makers to shift their priorities and start rethinking their operations, 90% of them have changed the way they source packaging. Based on a survey of professionals with an in-depth understanding of the packaging decision-making process, the research report examines the impact of disruptive issues such as supply chain volatility, inflation, labor shortages and increasing sustainability pressures on the industry, revealing sustainability, supply and A transformative reality in chain and online shopping.

When Nally's study surveyed 300 packaging decision makers in the U.S., rising material prices and supply shortages were the biggest hurdles facing the industry over the past year, with more than half of respondents saying they were severely impacted. Among other things, these challenges are forcing organizations to re-prioritize packaging materials (68%), budgets (52%), packaging design and aesthetics (49%), and sustainability goals (45%). Despite the many challenges posed by the pandemic and downstream issues, the report found that overall, the packaging industry has proven resilient and continues to move towards a more sustainable and innovative future.

"There is no doubt that rising costs, supply chain pitfalls and talent shortages have created significant challenges for the packaging industry, but that does not mean This reality is fraught with doom and pessimism. These challenges are actually transforming the industry into a more innovative, agile and environmentally conscious one. Since there is no one-size-fits-all approach to mitigating disruption, organizations have adopted a variety of strategies to deal with it.”

As the world's leading provider of marketing, packaging, printing and supply chain solutions, Donnelly conducted a comprehensive survey to gain insight into this complex environment, offering decision makers enormous opportunities and challenges. Key findings from the study underscore the packaging industry's willingness to face challenges without ignoring the SDGs:

Key finding 1: Supply chain challenges lead to innovation

In response to market challenges, companies and organizations have been exploring various solutions to solve their supply chain problems. Specifically, 62% of diversified suppliers, 42% of outsourced manufacturing and logistics, 39% of integrated suppliers, 30% of alternative specifications and 26% moved their manufacturing to the United States. There is a general willingness to switch to different packaging materials given supply chain sourcing challenges, with more than a third (36%) saying they would be very willing to use alternative materials. As for guidance and information, 78% of respondents sought help from suppliers, suppliers or direct manufacturers.

Material supply disruptions, labor shortages, and transportation challenges will impact the ongoing supply chain for the foreseeable future. Greater focus on forecasting, contingency planning, placing orders in advance, and accepting longer lead times can all help ensure availability and prevent those Later interruptions. Plus, it's not impossible to increase productivity in today's volatile market. Structural engineering can uncover a variety of opportunities, including reducing designs that help take up space. Using less material, or alternative, more readily available products, also helps save on new shipping and storage space.

Key Finding 2: E-commerce ignites packaging demand

Packaging demand has skyrocketed in recent years, partly due to the acceleration of online shopping during the COVID-19 pandemic, which has created pressure and opportunities for the packaging industry. The majority of respondents (57%) have experienced an increase in e-commerce orders in the past 1-2 years, and for almost all respondents (92%) this has led to an increase in packaging demand. Packaging professionals responded to the growth in e-commerce orders by increasing inventory (55%), expanding warehousing (53%), changing materials (52%) and increasing staff (51%).

Key finding 3: Surprising progress in sustainability despite cost pressures

The survey results contradict the idea that sustainability initiatives are on the back burner for now as companies grapple with other pressing priorities, but in reality, almost all respondents (94%) agree that sustainability is a key component of packaging and Key considerations for labeling decisions. Additionally, two-thirds of packaging professionals are switching to more sustainable packaging than they were previously using. When considering sustainability, budget is the most important influencing factor, which is more important than external regulations or consumer preference, which also fully shows that there is a high demand for cost-effective and environmentally friendly materials.

Notably, the majority of packaging decision makers (55%) believe recent supply chain disruptions have brought their companies closer to their carbon emissions targets, suggesting that sustainability initiatives may prove to be multi-faceted and resilient. Brands continue to use less material and turn to recycled materials, both of which help them move to more sustainable packaging. With the limited supply of virgin fibers, now is an excellent time to undertake a structural design engineering review. We often see this due diligence translate into material usage savings through the use of lighter weight cardboard materials, and a smaller packaging footprint.