08.31.23
The second edition of RRD's annual (Un)Packaging Reality Report has just been released, and it now includes complementary input from label decision-makers, in addition to the original audience of packaging decision-makers.
The research from RRD reveals how brands navigated last year’s market pressures and shortages to ease certain supply chain challenges and meet e-commerce demands. Other key takeaways include: Supply chains and market conditions show stability despite challenges; e-commerce growth continues to fuel demand for packaging and labels; sustainability is a priority with continued advancement in near future; and market pressures prompt changes to labels, but change isn’t easy.
RRD surveyed 300 procurement, brand marketing, and packaging and labels engineering decision-makers located in the US across a variety of industry sectors to deliver insight into numerous topics.
In 2022, packaging and label decision-makers began to see some supply chain and market conditions stabilize. In addition to easing concerns around product, packaging materials, and transportation, there were other signs of improvement in market dynamics. Concerns settled around staffing challenges, demands on capacity, and speed to market compared to last year’s study. Of those surveyed, 87% stated disruptions to the global supply chain caused their organization to change how they source packaging and/or labels, and 72% felt the pressure to make changes to packaging selections over the past year. This included altering designs for efficiency and cost reductions in transportation.
"Inflation, material availability, consumer expectations – product teams across the country are experiencing packaging-related pressures from all sides. As we work with clients to navigate these pressures, we’re seeing a greater willingness to consider all available options," says Lisa Pruett, president, RRD Packaging & Labels Solutions. "These options are often revealed when businesses work closely with their packaging suppliers to explore alternative materials and design modifications. Having that open mind to talk through new or different approaches with a trusted supplier can more than meet an immediate need. It can be a catalyst for true innovation."
Plus, the number of respondents seeing increased e-commerce orders was up slightly from last year’s report. The majority of packaging and labels decision makers had to adapt their selections to meet these needs. According to respondents, 74% changed materials based on availability for packaging, 37% developed e-commerce-specific package design/structure, and 39% boosted support from external vendors.
More than half of the organizations we surveyed for this year’s report are experiencing a rise in eCommerce orders — following a similar pattern in 2022. If a large volume of your product is going the eCommerce route, then why not design a package specific for that channel?" says Brian Techter, SVP, RRD Packaging & Labels Solutions.
Decision-makers continue to agree that sustainability is a key consideration in packaging and label decisions. Despite the challenging macro environment, more than three-quarters of respondents claimed they moved at least slightly closer to their organization’s sustainability goals. According to the survey, 66% report they are likely to make sustainability-led changes to current packaging in the next two-to-five years.
"From a packaging design standpoint, the question continues to be: How can we produce something more sustainable without negatively impacting its performance, branding, and manufacturability? When you look at your packaging, are there pieces that can be removed? Can the size be reduced? Can you lower the weight of the material? Consider losing just 5-10% of material weight in the package – now extrapolate that across an entire truck load of both incoming and outgoing material. The impact could quickly become significant and positive," explains Joe Schewe, director of Structural Design & Engineering, RRD Packaging Solutions.
Compared to packaging, slightly fewer respondents (66%) said they were forced to make changes to existing label selections over the past year due to market pressures. The most widely reported changes included: selections to minimize costs, the inclusion of more sustainable materials, and making efforts to improve readability.
The research from RRD reveals how brands navigated last year’s market pressures and shortages to ease certain supply chain challenges and meet e-commerce demands. Other key takeaways include: Supply chains and market conditions show stability despite challenges; e-commerce growth continues to fuel demand for packaging and labels; sustainability is a priority with continued advancement in near future; and market pressures prompt changes to labels, but change isn’t easy.
RRD surveyed 300 procurement, brand marketing, and packaging and labels engineering decision-makers located in the US across a variety of industry sectors to deliver insight into numerous topics.
In 2022, packaging and label decision-makers began to see some supply chain and market conditions stabilize. In addition to easing concerns around product, packaging materials, and transportation, there were other signs of improvement in market dynamics. Concerns settled around staffing challenges, demands on capacity, and speed to market compared to last year’s study. Of those surveyed, 87% stated disruptions to the global supply chain caused their organization to change how they source packaging and/or labels, and 72% felt the pressure to make changes to packaging selections over the past year. This included altering designs for efficiency and cost reductions in transportation.
"Inflation, material availability, consumer expectations – product teams across the country are experiencing packaging-related pressures from all sides. As we work with clients to navigate these pressures, we’re seeing a greater willingness to consider all available options," says Lisa Pruett, president, RRD Packaging & Labels Solutions. "These options are often revealed when businesses work closely with their packaging suppliers to explore alternative materials and design modifications. Having that open mind to talk through new or different approaches with a trusted supplier can more than meet an immediate need. It can be a catalyst for true innovation."
Plus, the number of respondents seeing increased e-commerce orders was up slightly from last year’s report. The majority of packaging and labels decision makers had to adapt their selections to meet these needs. According to respondents, 74% changed materials based on availability for packaging, 37% developed e-commerce-specific package design/structure, and 39% boosted support from external vendors.
More than half of the organizations we surveyed for this year’s report are experiencing a rise in eCommerce orders — following a similar pattern in 2022. If a large volume of your product is going the eCommerce route, then why not design a package specific for that channel?" says Brian Techter, SVP, RRD Packaging & Labels Solutions.
Decision-makers continue to agree that sustainability is a key consideration in packaging and label decisions. Despite the challenging macro environment, more than three-quarters of respondents claimed they moved at least slightly closer to their organization’s sustainability goals. According to the survey, 66% report they are likely to make sustainability-led changes to current packaging in the next two-to-five years.
"From a packaging design standpoint, the question continues to be: How can we produce something more sustainable without negatively impacting its performance, branding, and manufacturability? When you look at your packaging, are there pieces that can be removed? Can the size be reduced? Can you lower the weight of the material? Consider losing just 5-10% of material weight in the package – now extrapolate that across an entire truck load of both incoming and outgoing material. The impact could quickly become significant and positive," explains Joe Schewe, director of Structural Design & Engineering, RRD Packaging Solutions.
Compared to packaging, slightly fewer respondents (66%) said they were forced to make changes to existing label selections over the past year due to market pressures. The most widely reported changes included: selections to minimize costs, the inclusion of more sustainable materials, and making efforts to improve readability.