Packaging for consumer products will become stronger and sustainable in the future, driven by the e-commerce boom and sustainability concerns, according to a new report from McKinsey and Company.
The rise of e-commerce is creating more demands on the package as traditional packaging has not been designed to be shipped directly to consumers, according to the report from the global management consulting and advisory firm.
“E-commerce has hit a tipping point, especially in some parts of the world,” said David Feber, a McKinsey partner working primarily in the CPG and industrial sectors.
In the United States, there has been strong e-commerce acceleration in particular for packaged grocery goods, going from three percent of all sales to almost 17 percent and expected to reach up to 20 percent within the next five years, he said.
Ron Delia, chief executive officer and managing director of global packaging company Amcor, told McKinsey that the package needs to be stronger to protect against the demands of the e-commerce channel.
This supports the transition or migration from glass to plastic in many categories, as shipping a glass container through the e-commerce channel is riskier than shipping a plastic container, Delia added.
Feber and Delia said while plastic packaging is now frowned upon, it actually has a big role to play in the future of packaging and the quest for sustainability.
Feber said no single package is good at addressing sustainability concerns – exhaustion of the world’s resources, production of too many greenhouse gases, and too much plastic waste.
Feber said most of plastic packaging can be made with recycled material and most can be designed to be recycled or composted.
Delia stressed the importance of educating people on the total impact of the package.
They added the higher cost of making a more sustainable package versus a more conventional package is insignificant as it relates to the retail price. – Press release
