According to the latest European Brand Owner Packaging Survey by L.E.K. Consulting, European brand manufacturers are expecting higher consumer demand for packaging and are currently investing in packaging innovations. The issue of packaging sustainability remains a key strategic priority, but this needs to be reconciled with sales growth and cost savings.
Regardless of the sector, the level of investment in research and development provides an insight into the trends and sentiment behind economic performance. The survey results show that the Strong increase in investments across the entire industry in some regions by more than five per cent. According to the survey, the majority of respondents are striving to achieve sustainability goals, closely followed by material or cost savings and efforts to improve performance.
The majority of respondents are confident that they will achieve their sustainability goals. However, they expect an increasing proportion of their expenditure to be channelled into sustainable packaging. The study shows that brand companies currently spend an average of 35 per cent of their packaging expenditure on sustainable packaging are to be spent. It is expected that this share increase to 43 per cent by 2027 becomes.
In stark contrast to the results of the L.E.K. survey from 2022, in which sustainability was seen as the most important driver for change, it appears that the material cost savings This year's economic downturn appears to be a direct reaction to the prevailing inflationary macroeconomic conditions.
82 per cent of respondents - especially those from larger companies - also mentioned ineffective and slow regulatory changes as the main obstacle to switching to sustainable packaging. For around 28 per cent, the slow implementation of legal regulations was the key obstacle to switching to more sustainable packaging.
Intelligent packaging on the rise
Smart packaging features are growing in popularity - a growth driven by the desire to differentiate at the point of sale and improve customer engagement, interaction and brand loyalty. Quality features such as temperature measurement top the list of smart packaging features in use, rising from 47 per cent in 2022 to 64 per cent in 2023 - one Growth of 17 per cent within a 12-month period. Closely followed by a Increase in the use of QR codes for consumer involvement to 61 per cent - a jump of 22 per cent compared to the previous year. The respondents stated that intelligent packaging is well received in all sectors and regions.
E-commerce goes down well with consumers
In e-commerce, brand manufacturers are looking for new ways to tailor their packaging to specific channels. The Growth in e-commerce extends across all end markets, In the last four years, online sales of beverages have risen by around 79 per cent, health and household goods by around 54 per cent and food by around 39 per cent. Much of this growth is due to the consequences of the Covid-19 pandemic. However, it is expected that this trend will slow down in the future becomes.
Sales increase, but price pressure remains challenging
One of the main conclusions of L.E.K. Consulting's latest European survey on packaging is that respondents with a Expect an increase in demand for packaging, which is influenced by both quantity and value. Around 90 per cent of the brand companies surveyed across Europe expect higher consumer demand for packaging and an increase in stock levels in 2024. The previous This puts an end to the trend towards downsizing. In addition to rising demand, the survey also points to an increase in purchasing power, which is further fuelled by price pressure.
Participants in the annual European Brand Owner Packaging Survey 600 Brand owners from a variety of end markets and submarkets. The participants represented various sectors, including food, beverages, health and wellness, pharmaceuticals, household, beauty and personal care, consumer electronics, pet food and cannabis products in six countries: France, Germany, Italy, Poland, Spain and the UK. The companies surveyed varied in size and generated brand sales of between one million euros and 20 billion euros.
Source: L.E.K. Consulting
