Top Packaging Trends 2024: “Digitalized Circularity” to transform industry waste management

21 Feb 2024 --- Innova Market Insights has announced its Top Packaging Trends 2024, with “Digitalized Circularity” taking the top spot. Incoming regulations, notably the UN’s Global Plastics Treaty and the EU’s Packaging and Packaging Waste Directive (PPWD) revision, will intensify demand for responsible waste management. The packaging industry will increasingly turn to digital tech for scalable circular economy solutions. 

“Maximizing Minimization” is identified as the second trend, as producers pursue material reduction and lightweighting initiatives to improve environmental footprints, particularly within e-commerce. In the third spot, a “Fast-food Cleanup” is expected amid new regulations that will fuel the reusables versus single-use debate.

“Honest Packaging,” as trend four, will benefit from a more regulated landscape as lawmakers address widespread greenwashing concerns. The global market researcher rounds off this year’s trends with “Breakthrough Barriers,” as paper-based packaging manufacturers unlock growth potential in fresh food with plastic-free barrier innovations.

Trend one: Digitalized Circularity
As connected tech like QR codes, NFC and digital watermarking proliferates, industry players will embrace digitalization to improve their environmental impacts, automate supply chains and avoid greenwashing litigation. AI systems and machine learning are rapidly advancing enhanced sortation, ecological pollution detection and chemical recycling.

New laws like the PPWD revision mean stakeholders need optimal and verifiable data to support their claims and meet circularity objectives. The industry’s focus is now on utilizing cutting-edge technology to ensure material traceability and legislative compliance. SaaS platforms can obtain and verify this data.

Companies will also use new tech to encourage responsible consumer behavior. Chinese researchers found that incorporating “green nudges” into foodservice apps can dramatically reduce packaging consumption.

“Tech such as QR codes and NFC have evolved beyond brand-consumer engagement — now, they are also being used to drive positive consumer behavior to improve packaging circularity. Amid increased consumer scrutiny and upcoming regulatory changes, companies are embracing tech advancements in sorting and recycling,” Akhil Aiyar, projects leader at Innova, tells Packaging Insights.

According to Innova’s consumer survey, more than two-thirds (77%) of global consumers say they engage with connected packaging at least occasionally, while more than a quarter (27%) flag sustainability information like carbon footprint as a critical reason for their engagement.

Innova data shows 19% growth in global F&B launches with QR codes on the packaging from 2019–2023 (CAGR).Cost is the most common reason why global consumers avoid more sustainable packaging (Credit: Innova).

Trend two: Maximizing Minimization
Wherever producers want to improve their environmental footprints, material reduction is a tried-and-tested method. Innova data suggests a 41% average annual growth globally in F&B launches with packaging that has reduced packaging claims from 2019–2023 (CAGR).

Consumers are responding — according to Innova’s survey, almost a third (29%) of global consumers say reduced material use in packaging positively influences their product choices.

“Proponents of plastic packaging often emphasize the reduced, transportation-related emissions versus glass and metal. Several companies are innovating in lightweight solutions to achieve carbon reductions, while directives on tethered caps aim to minimize plastic waste accumulation in landfills,” says Aiyar.

As brands pursue carbon reductions, lightweighting initiatives will multiply this year across material types, including infinitely recyclable materials like glass and metal. For example, O-I Glass unveiled a 390 g wine bottle for the French market, which is 25% lighter.

Where plastic can be reduced or eliminated, companies are making some strides to do so. This trend is particularly true of e-commerce, where weight and associated carbon emissions are crucial.

“Within the e-commerce space, we’ve observed several initiatives that aim to reduce superfluous packaging through fit-for-purpose package design,” says Aiyar.

Amazon recently converted automated machinery at a US facility to create 100% paper-based packaging that eliminates plastic lining without compromising weight and durability.

Regulators are also taking notice, with the Chinese government cracking down on excessive e-commerce packaging in the world’s second-biggest economy.

In the European beverage market, caps must be tethered to the bottle under the EU Single Use Plastic Directive, starting July this year. Meanwhile, labelless designs, like Coca-Cola’s label-free Sprite bottles in the UK, also support material reduction efforts.Global shoppers are increasingly selecting packaging that be recycled (Credit: Innova).

Trend three: Fast-food Cleanup
Quick service restaurant (QSR) packaging is due to undergo substantial changes this year, especially in Europe. The sector faces unique challenges due to its reliance on single-use formats. The potential for reusables to reduce ecological impacts continues to spur industry dispute and dominate PPWD negotiations.

“Our surveys indicate that 40% of consumers increased their use of reusable packaging in 2023. The PPWD push for reusable solutions could inspire innovations in reusable glass bottles, similar to the Eco Tote bag,” says Aiyar.

“However, in QSR, detractors argue that the ambitious targets fail to factor in the increased energy and water usage that may outweigh any potential benefits and create bottlenecks in achieving recycling targets.”

Some companies are jumping the gun and trialing reusable formats. Last year, Visa and Uber helped foodservice businesses transition to less damaging packaging formats. Likewise, Starbucks and Hubbub launched reuse projects to incentivize firms to adopt reuse models.

However, a study commissioned by McDonald’s projected that 2030 mandatory reuse targets proposed by PPWD could increase QSR plastic packaging waste by “up to 300%” for dine-in consumption and “up to 1500%” for takeaway.

Innova data shows that F&B launches with reusable packaging are gaining ground, with 18% average annual growth from 2019–2023 (CAGR). Meanwhile, 38% of global consumers say they would pay more for reusable packaging than “regular packaging.”

Trend four: Honest Packaging
The clampdown on greenwashing is accelerating, and businesses need to get prepared. Major corporations like Coca-Cola, Danone and Nestlé are already facing legal action over misleading claims in the EU.

Consumers are increasingly skeptical of on-pack claims, with Innova revealing that almost half (46%) of global consumers believe that environmental information on packaging is misleading. Research by Client Earth found that claims of over “100% recyclable” were misleading in most cases.

With accusations flying, the threat of litigation is tightening. The European Parliament recently approved a new directive banning greenwashing and deceptive product information to protect consumers. Lawmakers said, “Companies can no longer trick people.”

Moreover, the UN Global Plastics Treaty is set for a final round of negotiations later this year to determine how the packaging industry uses and markets plastic products.

But Aiyar at Innova sees the more stringent regulatory landscape benefitting brands that make substantiated claims.

“Consumer trust in on-pack claims is waning, so greenwashing bans hold promise in regaining consumer trust. For packaging, I anticipate more certifications and audits by third-party organizations to validate the veracity of such claims,” he says.Global consumers are most likely to pay more for packaging that can be reused (Credit: Innova).

“Numi Tea is a brand that caught my eye — it aims to be as transparent as possible about the claims it makes on-pack and on its website regarding its carbon footprint estimations, for which it worked with the decarbonization platform Planet FWD.”

Recycling innovators like UK-based NextLoopp is working to create a fully circular economy for PP so that brands can live up to their 100% recycled claims.

However, with AI’s proliferation throughout the industry, experts warn that a new type of deception could spread this year: “AI washing.”

Trend five: Breakthrough Barriers
Barrier coatings are now a key focus in almost every part of the industry. Notably, the movement away from plastics and toward fiber-based solutions has led to the challenge of replicating grease and moisture protection and shelf life without using plastic.

“Inclusion of plastic films has been a standard practice to bolster the poor oxygen and water vapor barrier properties of materials such as paper and cardboard, despite the challenges presented in material recovery during waste management,” explains Aiyar.

“Innovations in functional oxygen barrier films with a comparable performance to traditional plastics bode well for the ongoing transition to paper-based solutions (where possible) and reducing the reliance on plastics while boosting recycling efficiency.”

Most companies still use some form of fossil-based plastic to coat paper-based packaging — industry giants like Mondi develop new packaging based on “paper where possible, plastic where useful.”

However, firms are investing in bio-based barrier coatings to eliminate (micro)plastics and unlock new applications. For example, Aquapak’s functional oxygen barrier film can replace ethylene vinyl alcohol (the most widely used plastic barrier) as part of a multilayer structure.

According to Innova’s survey, almost a third (27%) of global consumers say enhancing shelf life influences their purchasing decisions, second only to easy storage (34%).

Coatings are also an issue in the metal packaging market, as traditional barriers have been linked to health problems. Recently, AkzoNobel invested in bisphenol-free coatings for metal packaging.

By Louis Gore-Langton and Joshua Poole

Innova Market Insights’ consumer survey was conducted in Brazil, Canada, China, France, Germany, India, Indonesia, Spain, Mexico, the UK and the US.

This feature is provided by Food Ingredients First’s sister website, Packaging Insights.

To contact our editorial team please email us at editorial@cnsmedia.com