KBS - Packaging - Market Insight

KEY TRENDS

+ SUSTAINABILITY M&A is driven by sustainability pressures from consumers, companies and governments. Investments are made into firms focusing on environmentally friendly manufacturing materials and technology. Alternative options to plastic are continuously emerging, with paper-based solutions being widely used and ocean-based feedstock technologies entering the market, e.g. Indico Capital Partners led a £2million seed round to invest in FlexSea, a seaweed-based biomaterial start-up. Moreover, many firms are turning to paper-based alternatives. This trend, referred to as paperisation, includes firms substituting plastic with fibre (paper/cardboard) solutions to meet environmental goals. For example, Sealed Air Corporation has announced the introduction of a paper Autobag segment. + E-COMMERCE The surge in online retail over the past five years has had a profound impact on packaging, with recent introductions such as TikTok Shop and Instagram Shop. E-commerce growth is driving demand for shipping packaging and prompting new solutions to improve efficiency. Brands are looking to gain an edge with packaging that enhances the ‘unboxing’ experience for consumers whilst minimising waste. Technology enables more versatile and marketing-friendly packaging without the high costs of traditional printing for small batches. + INNOVATIVE PACKAGING Another emerging trend is the rise of ‘active and intelligent’ packaging which incorporates technology for functionality. This includes QR codes and digital watermarks for consumer engagement, and embedded freshness sensors or RFID tags in packaging for supply chain tracking. Exemplifying how packaging is evolving beyond mere containers, it is now seen as a value-add through tech, design and sustainability features. Sustainability has evolved to become a central industry trend, with companies investing heavily in circular packaging innovations and reporting their progress on recyclability and carbon footprint reduction.

The UK packaging market is expected to reach $68.18bn by 2030.