This year the packaging industry has started to face some challenges that will shape the future of packaging. The three main challenges are: the demand of customized solutions, sustainable solutions and also the digitalisation of processes due to covid19. 

The demand of customised solutions

Did you know that 60% of customers prefer brands that customize their products? The consumer has radically changed its habits of consuming and has become much more demanding. Consumers now look for products that are healthy and customized. They desire products that can make their life easier and for a reasonable price. As a consequence, there are now more brands from the cosmetic industry that are starting to invest in solutions that offer customisation to their clients. 

An example is BASF BASF’s new concept is based upon diverse chassis formulations for Face and Hair Care that, when combined with high performance boosters, enable consumers to create their own tailor-made products in harmony with their personal needs. Just as no two faces are the same, lifestyles differ, our preferences and needs change, and each of us is subject to different external factors.

To meet this challenge, BASF has designed four chassis formulations for Face Care that target different consumer groups according to age, and their preferences in texture and naturalness.

Another way of creating a customized experience is through unboxing of a product. The brand can create a WOW effect with personalized messages when customers receive a command at home. New technologies such as augmented reality or RDIF will be key to transmit these messages. For example, through augmented reality, consumers will be able to know extra information about a product just scanning it at their supermarket with their phone. 

Sustainability is a must

As well as exploring new materials, in the majority of cases, the companies of the packaging sector will invest in optimizing their current materials (paper, plastic, glass and metal).

There will be three types of strategies that companies will have to choose: the reusable, the compostable or the recyclable. One of the improvements will be the clear classification of recyclable products through a smarter label system: the recyclable packages will be well classified so that brands and customers understand their key role in the recycling process. This is now one of the main issues that we are facing: the misinformation of the waste management process: consumers are not informed on how they have to recycle, which products are recyclable… and as a consequence, packages that are supposed to be recycled end up in landfills.  

We can see an example of this by https://how2recycle.info. The How2Recycle label was created to provide consistent and transparent on-package recycling information to consumers in North America. These labels inform the consumer about the additional steps he has to take before throwing a package (such as removing a closure), where the package is going to be treated (locally, not recycled, store drop-off…) and also says clearly which is the material of the packaging and the format. 

Moreover, technology and smart packaging will allow us to know more about the process through our devices (smartphone, smartwatches or even virtual glasses)

Compostable packaging will be possible to compost at home to create fertile land and nurture plants or other vegetal organisms. There are brands that already promote compostable at home processes such as wastebased or Compostame. 

For reusable packaging to happen, brands will have to change their shops and invest in refilling systems for their customers. This will mean creating brand experiences and engaging with customers through customised machines that will even be able to analyse customers preferences and habits when buying and selecting a product. Another challenge of these stations will be making sure that these stations fulfill  hygiene standards.  There are brands like Branch Basics, that provide house cleaning products,  that have even allowed the customer to create their own product at home. 

Another way to engage with customers and be sustainable, is giving a second life to packaging. The water brand Evian, created a water dispenser so that their customers could pour their water and also be reminded about how many times they had to drink in order to stay hydrated during the day. 

E-commerce and digitalisation

At e-commerce, reusable materials and clean aesthetic packages will be leading the market through existing business models such as Loop, which enables users to return their packages once they have used the product. 

The biggest challenge will be engaging with customers through packages that will be more standard.