Packaging in 2023: A Wrap-Up

The WHO officially announced the end of the COVID-19 Emergency in May of last year, and normalcy has been resuming across the world; including in the packaging industry. As we step into 2024, let's take a moment to examine the trends, news and emerging narratives that shaped the landscape of plastic packaging during the past year.?

From France banning single use plastics in restaurants to unprecedented business mergers, the industry had an eventful year. Amid growing environmental concerns and heightened awareness, there were innovative solutions, regulatory shifts, and a burgeoning emphasis on sustainability.

Plastic Circularisation?

Plastic has been the main packaging solution for decades, and although plastic reduction initiatives and alternatives have become quite popular over the years, its inherent qualities of being lightweight, versatile and hygienic, mean that production and consumption will only continue to increase. So, in 2023, companies all over the world popularised plastic circularisation as a means of still using plastic, but making it more sustainable. To make circularity work, companies must choose materials with a lighter environmental footprint, design reusable/recycled products, use materials that are at the end of their useful life, and use advanced recycling methods to suitably prep plastic for re-entry into the market.?

COP 28

COP 28 was held in November 2023 in the UAE, and marked the first official Global Stocktake of the Paris Agreement. A newly established Loss and Damage Fund was backed with pledges of more than USD 700 million that would go towards helping populations negatively affected by climate change. Other significant news included every country agreeing to double the rate of energy efficiency by 2030, additional funding being secured for the Green Climate Fund, and nations coming to a consensus on the need for a transition away from fossil fuels towards cleaner and greener energy.?

The Rise of AI

Artificial Intelligence was a disruptive technology whose popularity spiked at the start of 2023 owing to the activity of ChatGPT. The rippling effects of AI efficiency reaches the packaging sector, as well. The technology can be applied to many areas across the packaging field, from technological advancements to logistical and production benefits, sorting materials in waste streams, marketing campaigns, recycling and sustainability, robotics, connecting supply chains and boosting inspection performance. In 2023, the industry put more importance than ever on data/machine learning and transparency, both of which further utilise the power of AI.?

Fibre-based Packaging?

Another packaging trend that grew to popularity in 2023, was fibre-based packaging. As an environmentally sound, renewable and sustainable packaging method, this can be used for construction, food and beverage as well as in the packaging of chemicals. Fibre-packaging can be made from an array of materials such as recycled content, wood pulp, bamboo, bagasse (from sugar cane) and wheat straw, making it an easily producible packaging type. This alternative to plastic packaging is completely biodegradable, compostable, durable and is water and grease resistant in most cases. In 2024, and beyond, it is possible that we could see more companies enter the fibre-based packaging market both as producers and consumers.

Mergers & Acquisitions?

Packaging as an industry is more than just about the materials being used, the sustainability factor and technological advancements. It is also a part of the business world that experiences mergers and acquisitions (M&A), much like other industries, and this was a particularly common phenomenon. Last year, scaling and expanding was the most common rationale for M&A, followed by geographic expansion, growing product portfolios and restructuring of businesses. The most talked about merger of the year would be Ireland’s Smurfit Kappa striking a deal with their US rival Westrock to the tune of USD 11.2 bn, which, when it concludes in 2024, would create the world’s largest packaging company.

Packaging Designs?

Global design trends are in a constant state of flux, but there were some that stood out in 2023. These included retro designs, textured packaging, hand-drawn aesthetics, transparent packaging, minimalist designs, comics and cartoons on packaging, and design artworks that were inspired by nature. Overall, it certainly seemed as if 2023 was the year of appreciating the simpler things. The aesthetics that companies were drawn to were mostly inspired by the environment, people and art.?

2023 was an interesting year for the packaging industry, and we can only assume that 2024 will follow suit. We hope this year brings you success, prosperity and hope towards a greener future. Happy new year!