As you evaluate your current product packaging investments, staying updated on trends is essential, whether you’re selling products, designing boxes, or supplying packaging materials. Research your local market to gauge competitor presence by observing how frequently their custom packaging appears. Understanding global packaging trends can also inspire new ideas and prepare you for future developments.
Despite ongoing cost and pricing challenges, there is a strong global demand for custom packaging. Let’s explore why this sector remains robust and thriving worldwide.
1️⃣ North America dominates the product packaging market
North America dominates the global custom packaging market, valued at $43.88 billion in 2023, and is expected to grow at a CAGR of 5.32% to $63.07 billion by 2030. The global packaging design services market was valued at $24.63 billion in 2023, with a projected growth to $32.42 billion by 2030 at a 4% CAGR. Packaging printing is forecasted to grow at a 4.2% CAGR, with the food, beverage, personal care, and cosmetic sectors anticipated to reach $433.4 billion by 2026.
Regionally, North America leads with over 35% of the global market share due to its established industry and branding practices. Europe follows with over 25% market share, driven by eCommerce and sustainability innovations. The Asia-Pacific region holds over 20% of the market, with growth expected to rise to 41% due to the booming eCommerce in China, India, and Japan.
2️⃣ Food and beverage make up the largest end-user segment
In 2023, the global food and beverage packaging market reached $385.1 billion, with bakery items, confectionery, noodles, and pasta leading the pack. The appetite for convenience is driving demand for packaged foods like pre-cut veggies, microwaveable snacks, and ready-to-eat meals. Consumers want packaging that’s perfect for on-the-go—think single-serve drinks and snacks—and that keeps food fresh longer so they can stock up with confidence. Food safety and hygiene are top concerns, prompting more manufacturers to explore flexible product packaging options. Plus, plastic bottles for drinks remain a favorite due to their ease of use and recyclability.
3️⃣ Paperboard is the most widely used packaging material
According to Smithers’ report, “The Future of Global Packaging to 2028,” paperboard remains the most widely used product packaging material, holding 31.8% of the global packaging material value. While flexible plastics and paperboard are both popular choices, paperboard—encompassing folding cartons, corrugated board, and liquid paperboard—dominates. Growth in eCommerce and the rise of premium sustainable paper alternatives to plastic are driving this trend. Paperboard will continue to be the preferred choice for packaging soft cheeses, flour, sugar, fast food, medical supplies, and metalized cigarette packs.
4️⃣ Demand for sustainable packaging in Increasing
The demand for sustainable packaging will push the market’s value to $285.3 billion in 2024. From 2019 to 2023, the sustainable packaging industry grew by 4.9%, with bags and sacks capturing a 25.4% share. North America is expected to lead the market with a 25% share, followed by East Asia (18.5%) and Western Europe (16.4%).
U.S. attitudes vary: 43% of consumers prioritize sustainability, with millennials and Gen Z more focused than baby boomers. Urban residents also show greater concern than those in rural areas. Two-thirds struggle with identifying recyclable packaging.
A TIPA survey reveals 84% of U.S. respondents are worried about plastic waste. Although 50% are willing to pay a premium for sustainable packaging, the increase is only 1% to 3%.
5️⃣ Luxury packaging’s market value may reach $17.77 billion in 2024
The luxury packaging market could reach $17.77 billion by 2024, with two-piece boxes leading at 31.4% of the market, driven by demand for electronics, perfumes, cosmetics, and jewelry. Magnetic closure boxes are expected to capture 45% of the market, valued for their premium look, ease of use, and protection.
Asia-Pacific will lead luxury packaging growth with increased fashion and cosmetic launches. High-end brands are shifting to sustainable materials, with Apple committing to fiber-based packaging by 2025, phasing out plastic.
6️⃣ The label printing solutions market is soaring
Pressure-sensitive labels dominated the label printing market, holding nearly 45% of the share. Flexographic printing, used by about 40% of suppliers in 2023, is favored for its high-speed, high-quality output on various materials. Digital label printing is expected to grow at a 6.39% CAGR, reaching $2.32 billion by 2028. Alcoholic drink manufacturers are the top users of these labels, with the chemicals sector also driving growth due to needs for durability and anti-counterfeiting.
7️⃣ Consumers clamor for more transparency in product labels
Consumers are increasingly demanding clear, honest labels. From 2018 to 2023, the desire for “clean labels” rose to 76%, with shoppers seeking straightforward info on ingredients and origin. In fashion, two-thirds want details on sourcing and labor, leading to QR codes for transparency. Meanwhile, 67% are wary of “greenwashing,” and 77% will avoid brands they suspect of misleading sustainability claims.
8️⃣ Smart packaging enhances product traceability
Smart packaging is transforming product traceability with technologies like QR codes, RFID, and NFC chips. This $24.6-billion market, growing at a projected CAGR of 4.5%, is set to reach $38.3 billion by 2033. Driven by the eCommerce boom, an aging population, and tech advancements in emerging economies, smart packaging enhances safety, authentication, and provides interactive experiences for consumers.
9️⃣ The adoption of packaging automation accelerates
Packaging automation is booming, with 91% of North American companies using it to boost efficiency and cut costs. Autonomous robots now handle warehouse transport, labeling, and palletizing, while cobots assist with repetitive tasks. Asia-Pacific, leading in packaging automation with 63% of global robot sales, drives significant growth. The market, valued at $68.95 billion in 2023, is expected to reach $124.53 billion by 2032, growing at a CAGR of 7.67%.
🔟 Brands and suppliers embrace AI
AI is revolutionizing packaging, with market growth expected to hit $7.33 billion by 2033, growing at a CAGR of 11.26%. Machine learning (ML) holds a 47% market share, enhancing operational efficiency through quality control, predictive maintenance, and inventory management. AI also aids in optimizing delivery routes and minimizing costs. In packaging design, AI helps personalize products by analyzing consumer behavior, boosting sales by over 70%.
