Report Shows Packaging Industry Impacted by Supply Chain, Grows Sustainability

R.R. Donnelley & Sons (RRD) has recently released its 2023 Unpackaging Reality Report, which highlights how brands have shifted over the course of the last year while facing supply chain challenges and maintaining the demands of e-commerce. RRD, a company that specializes in marketing, packaging, printing, and supply chain solutions, released the second edition of its annual report, which includes more detailed information from label decision makers.

The report surveyed 300 procurement, brand marketing, and packaging and labels leaders across various industries in the United States. The survey, conducted by FINN partners, aims to provide insight into different companies’ strategies and investments.

The report highlights a significant shift in concerns among industry decision-makers. The percentage of those citing product-related worries has dipped to 20%, a notable decrease from the previous year’s 34%.

Concerns surrounding packaging materials and transportation have also shown a downward trend. This can be attributed to a collective effort by brands to find innovative solutions to these challenges and optimize their supply chain strategies.

In the report, there was an indication that supply chains and market conditions are stabilizing. Packaging leaders noted a sense of relief as concerns around staffing challenges, capacity demands, and speed to market began to ease. According to RRD, this shift indicates a growing resilience and adaptability within the industry.

Sustainability remains a focal point for the industry, with 90% of respondents emphasizing its importance in packaging and labeling decisions. Despite the challenging circumstances, 77% of organizations reported making progress toward their sustainability objectives. As RRD pointed out, the prioritization of sustainable practices amidst a complicated market indicates a deeper commitment to pursuing more environmentally-friendly approaches.

Among the most notable sustainability-driven changes in packaging, 72% prioritized reducing material waste, while 66% emphasized material recyclability. This shift towards eco-friendly alternatives reflects a broader industry trend toward greener products.

The surge in e-commerce has been a game-changer for the packaging and labeling sectors. Some 60% of respondents reported an increase in e-commerce orders, and in response to this demand, 92% saw an uptick in packaging needs, while 86% experienced an increase in labeling requirements. This shift has prompted decision-makers to reconsider their packaging strategies to meet the unique demands of the online shopping landscape.

The report suggests that the momentum toward sustainability is set to continue. Two-thirds of respondents expressed their intention to make sustainability-led changes in the next two to five years. While progress is evident, there is room for improvement. Only 49% of decision-makers currently measure their environmental impact, highlighting the need for increased transparency and accountability.

Additionally, the report reveals that the industry’s focus on recyclability is significant. Less than half (48%) strongly agreed that their brand’s packaging is easily and widely recyclable across the U.S. As sustainability takes center stage, ensuring packaging is recyclable and environmentally friendly will play a crucial role in shaping the industry’s future.

To gain a comprehensive understanding of the findings and insights from the 2023 Unpackaging Reality Report, interested parties can access the full report on the RRD website.