Packaging in any industry is directly influenced by market dynamics such as user convenience, feasibility, and economic viability besides sustainability. FMCG packaging has been witnessing prominent alterations, markedly influenced by the changing dynamics of e-commerce and online retail.

Directly influenced by the burgeoning acceptance of smartphones and pervasive internet availability globally, e-commerce sector is poised to grow multifold, also influencing FMCG packaging market in a big way. Advances in omnichannel marketing with various evolving features such as same-day-delivery and easy return policy along with festive season sales are some of the contemporary trends influen

Packaging in any industry is directly influenced by market dynamics such as user convenience, feasibility, and economic viability besides sustainability. FMCG packaging has been witnessing prominent alterations, markedly influenced by the changing dynamics of e-commerce and online retail.

Directly influenced by the burgeoning acceptance of smartphones and pervasive internet availability globally, e-commerce sector is poised to grow multifold, also influencing FMCG packaging market in a big way. Advances in omnichannel marketing with various evolving features such as same-day-delivery and easy return policy along with festive season sales are some of the contemporary trends influencing the online retail, also directly influencing the FMCG packaging market in a big way.

The brick and mortar sector in FMCG retail is strongly facing the brunt of magnanimous online retail wing, and remains impacted by shrinking customer footfall. Needless to say, besides exclusive online FMCG retailers, several traditional brick and mortar retailers have launched spin-offs online, thus improving their e-commerce participation. Parallel to innovations in marketing and sales concepts, packaging remain vital factor influencing consumer purchase journey. Packaging must thus comply with online buyers' value chain.   

According to new predictions by Mckinsey, the face of packaging industry is amidst disruptive alterations, driven strongly by market developments, new product categories, evolving consumer patterns, besides the seismic shift towards novel marketing channels and sustainability. The report further emphasizes economic developments rampant across emerging economies in Asia which could further expand diversity in FMCG packaging market in the coming years.

Growing Demands for On-the-Go Edible amongst Populations across Emerging Economies to Mimic Growth

In this light of relentless advances in emerging economies such as India and China, FMCG veterans are ever expanding their functional scope to cope with customer and industry demands. In a recent report by FMCG veteran, Cavinkare VP, some of the prominent factors pushing growth in FMCG marketing include, consumer preferences, e-commerce, as well as need for sustainable packaging to nurture environmental balance. Changing lifestyles and convenience centric packaging options for food and beverages along with other regular consumables are driving novelties in packaging industry in FMCG industry.

Countries such as India is undergoing dynamic alterations in FMCG packaging landscape. Factors such as growing populations and steadily growing women workforce have expedited dependence on FMCG products to entail greater consumer experience. Items such as ready-to-eat and quick serve edibles besides on-the-go food items are highly desirable amongst nuclear families where women are mostly employed. Therefore, elaborate cooking takes a back seat, pushing demands for ready-to-eat edibles. Factors as such are also significantly fuelling large scale advances in FMCG packaging formats.

Organic Product Portfolios to Pave Way for Sustainable FMCG Packaging Formats

Yet another prominent development in e-commerce and FMCG packaging is growing advances in sustainable packaging formats. Besides novel packaging formats, market players are further encouraged to invest in material innovations to offer eco-friendly packaging solutions with bare minimum influence on carbon footprint. Hence, recyclability plays a crucial role deciding future prospects in packaging tactics. Packaging waste contributes substantially towards landfill accumulations.

Market players are fast banking upon new packaging materials such as paper, cardboard, glass and metal. However, in the light of sustainable packaging, paper and cardboard packaging materials still dominate FMCG packaging landscape. Yet another boost for sustainable alterations in FMCG packaging is growing demands for organic products. Consumer demands for organic products has orchestrated sustainable packaging formats in FMCG packaging market.

Additionally, following suit like matured economies who have curbed single plastics from use, emerging economies such as India is also passing new regulatory norms to limit usage of single use plastics. Recycling therefore has become crucially vital to diversify waste management across these countries.

Further into this initiative, FMCG behemoths such as Coca Cola Bisleri, and PepsiCo have joined hands to contribute towards FMCG packaging waste managing, under the title, Karo Sambhav which largely focuses on complete waste management ecosystem encompassing plastic waste collection and recycling of plastic waste generated. These ongoing strides are further envisioned to bolster growth in FMCG packaging space.

Bioplastics Poised to Substitute Conventional Plastic as Core FMCG Packaging Solution

Minimal investment in packaging with better outcome in terms of consumer satisfaction and sustainability are driving new developments in FMCG packaging market. This has significantly led to developments in smart packaging which is a refurbished packaging solution comprising better functionality and material innovations. Smart packaging has seeped in deep in F&B industry as potential packaging alternatives to render minimal product wastage. Connected communication translated through evolved tracking system to monitor delivery and status of the products is a novel development in FMCG packaging landscape, more specifically catering to a growing online retailers segment.

Yet another development in FMCG packaging sphere is the growing reliance on cellulose based packaging solutions. Growing burden of plastic based waste has led market players to invest in cellulose based packaging solutions, owing to its biodegradable attributes. These biodegradable materials for bioplastics are procured from various plant sources. However, the developments are still at nascent stage and are likely to take considerable time in becoming mainstream globally. Bioplastics have the potential to minimize burden on fossil fuels which are used extensively in plastic production. Bioplastics are majorly sourced from plants and crop wastes to offset environmental implications. Therefore, agro-based cellulose bioplastics are likely to become the norm in forthcoming years.

Amcor Diversifies its Packaging Portfolio with Novel High Barrier Packaging Solution

Considering the negative implications of plastic waste towards environment degradation, various industry forerunners in FMCG sector are investing on a mega scale to refurbish their packaging capabilities. In this regard, to coincide with recycling, manufacturers are fast adopting high barrier-packaging solutions, appropriate for FMCG packaging. This largely favors packaging needs across a range of end-use industries such as pharmaceuticals, F&B amongst others. Amcor has therefore recently refurbished its FMCG packaging portfolio with the addition of AmLite Ultra Recyclable based on high barrier material polyolefin film in contrast to conventional PET. These breakthroughs in packaging material are poised to nurture optimistic growth trajectory in FMCG packaging market in the years to come.