AICC Spring Meeting: Key Takeaways for 2024 [Digital Print for Packaging Newsletter - Edition 5]

*Welcome to the "Digital Print for Packaging" newsletter. This series aims to help you grow your custom packaging sales with digital print for corrugated packaging.*

After attending the AICC, The Independent Packaging Association Spring Meeting this past April in beautiful Palm Desert, I am excited to report that the future looks bright for corrugated packaging. My perspective was broadened this year with the variety of educational sessions offered, and today I’m going to share some of my key takeaways from the 2024 meeting with you.

Box Industry Recovery Looks Optimistic for 2024-2025

The box business recovery looks optimistic for the next year, and we may see signs of improvement in the next 6-8 months. Derek Mahlburg , Director of Paper & Packaging at RISI, shared that the industry-wide dip in demand we experienced in ’22-’23 has left ample room for recovery in ‘24 and beyond.

While inflation remains an uncertainty, destocking cycles appear to have finally abated, along with the lengthy manufacturing downcycle that affected most industries at the close of the pandemic.

Brands are Digging Deeper on Sustainability

Sr. Director of Industry Outreach for the Paper and Packaging Board , Sarah Meiburg , reported that the top five most frequently asked questions by packaging customers all involve sustainability.

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Notably, these topics go well beyond surface-level conversations regarding earth-friendly packaging. From forest management to ESG, greenhouse gas emissions and scope 1-3 goals, brands now understand sustainability at a deeper level and they demand that we as their packaging suppliers help them meet not only consumer expectations but incoming legislative requirements when it comes to contributing to a more sustainable future for all.

Luckily, The BoxMaker is well positioned to support you and your clients with eco-friendly packaging options and manufacturing methods. If you were not able to join us for our April BoxMaker University class, “Digital Print and Finishing: Where Eco-Friendly Meets Efficiency,” I encourage you to check out the on-demand recording here. Digital print eliminates much of the raw material consumption, waste, and hidden costs associated with conventional print and finishing, making it a great “green option” when it comes to packaging.

Rising Labor Costs Will Continue to Drive Corrugated Demand

In both retail and distribution environments, labor costs are on the rise. Grocery chains, club stores, and big box retailers are pushing to maximize efficiency when it comes to stocking and restocking the sales floor or moving product from pallet to pack-out.

Ronald D. Sasine , Principal at Hudson Windsor, reported that this push for efficiency is moving upstream to product packaging, and it could signal an increase in corrugated demand from brands. This is because the retailers are now favoring corrugate break packs over traditional case packs, which make it easier for their employees to maximize their restocking trips and get more product to the shelf faster.

On the e-commerce side of things, Sasine projects that ships-in-own-container initiatives by Amazon and other major e-tailers will actually drive up demand for corrugated use as well, as products that were previously combined within an order and shipped in a stock box will now each ship in their own corrugated secondary packaging.

My thoughts are that this shift will also introduce more opportunity to the brands for eye-catching print now that they will own the customer-facing secondary packaging. Digital is a great fit for this, as it easily allows brands to add color and messaging to this newfound corrugated real estate without investing in print plates or committing to high-volume orders.

In conclusion, the corrugated industry is at the beginning of an upswing. I believe the next few years will be an exciting time and hold many opportunities for all of us as custom corrugated packaging providers.

If The BoxMaker Trade Services program can be of assistance to you in any way, please reach out. We are here to help you expand your product offerings with digital print and finishing so that you may meet the opportunities of tomorrow head-on, without delay.

Here’s to the future,

Brett

P.S: If you're a box manufacturer, packaging distributor, print broker, or creative agency, feel free to use this free resource of discovery questions to help you uncover digital print opportunities within your network. Our Trade Partner Program specializes in digital production technology for packaging, and we're just one call away to support all your business needs.

P.P.S: Sharing an exciting announcement to my fellow members of the Trade—The return of The BoxMaker University Summer Camp. Join me virtually on July 22 for a one-day, on-demand event filled with brand new classes and resources specifically designed to help you grow your digital print packaging sales. Sign up here .