As we continue to move towards a more digitalised lifestyle with increasing materialistic needs, online shopping and retail purchases have become an unmissable part of our daily lives. In this day and age, product packaging does not only serve the role of protecting the product, but it also plays a crucial role in branding and marketing. Survey results reveal that 72% of consumers agree that the packaging design influences a purchase when deciding between products[1].
With product packaging playing such an influential role in consumer purchases, there is no surprise that the global packaging market is forecasted to grow by US$233 billion within four years with a CAGR of 3.92%[2].
The constantly changing consumer landscape gives rise to the need for innovative packaging and creating new designs. Businesses should adapt their strategies to consumer trends and adjust their packaging in coherence with their brand strategy to retain and attract customers to their products.
1. Augmented Reality (AR) Packaging
With over 6.8 billion smartphone users worldwide and people spending an average of 4.8 hours a day on their phones, it is expected that businesses will try to integrate technology into packaging to enhance overall consumer experience[3][4]. This includes using elements of Augmented Reality (AR) to provide customers with a more meaningful way to engage with their products.
For example, AR can be used to enable consumers to understand more about their products, improve brand awareness or help with marketing via social media spread – ultimately to help with sales. According to a study conducted by Deloitte, companies utilising branded AR experiences are 41% more likely to be considered by consumers compared to those without[5]. Almost 75% of consumers express that they are even more likely to pay more for products that can be explored via AR.
With consumers having more screen time due to the time spent at home during and after the COVID-19 pandemic, the growth rate on the use of AR in packaging has also been further expedited.
According to research, the global AR packaging market is expected to grow with a CAGR of whopping 35%, providing great motivation for packaging suppliers to invest and involve their business within this sector[6].
2. Sustainable Packaging
Another key packaging trend that is going to continue past 2023 is the focus of sustainability. While this realm has been trending since the past decade, the Gen-Z consumers are strongly leading this impact in which brands have no choice but to follow. Survey even showed that the almost 75% of Gen-Z shoppers find that sustainability is more important than brand names[7].
However, what is different in sustainable packaging compared to the previous years is the extent to which sustainability is pushed. Apart from packaging crafted solely from eco-friendly materials, we’re looking at further downsizing and light-weighting the packaging to further reduce the amount of materials used to create packaging. Businesses are also looking to adopt bio-based inks – such as soy-based or vegetable based inks – that can easily be washed off and be better for the environment.
3. Minimalistic Packaging
For years, brands had the impression that packaging had to be bold and colourful to successfully attract consumer attention. However, ironically, to stand out from this loud crowd, some brands have opted for a streamlined and minimalistic design to win consumer’s hearts. This design has been especially successful to the younger generation who are more focused on authenticity and quality of a product.
Apart from conveying an image of sophistication and purity, a simplistic design is associated with being more eco-friendly and sustainable. Following with the sustainability movement, minimalistic packaging can further help brands who are focused on sustainability to express this message.
4. Personalised Packaging
With the prevalence of Direct-to-consumer (DTC) brands, many businesses are looking to find ways to connect and customise a shopping experience further by providing personalised packaging. By adding a personal touch such as providing handwritten notes or messages, allowing consumers to add their names or customise their designs can create a more meaningful shopping experience for consumers.
Personalised Packaging, regardless of what form it comes will undoubtedly improve consumer interest and enhance sales. According to research, 75% of consumers agree that they prefer buying from brands that offer personalized experiences[8]. Especially in Gen Z consumers where 74% expressed interest in personalized products and packaging compared to other generations[9].
Understanding the importance that product packaging plays in the consumer landscape can help brands improve their business in unimaginable ways. Businesses should work with trustworthy partners such as verified suppliers from HKTDC Sourcing to help with their product packaging and bring sales to new heights.
From sustainable packaging or minimalistic packaging, hktdc.com Sourcing can perfectly match your needs with experienced suppliers around the world. Connect with your future business partner and discover more sourcing solutions at our eMarketplace by clicking the banner below:
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[2] https://www.marketresearch.com/Infiniti-Research-Limited-v2680/Global-Packaging-32662078/
[3] https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/
[4] https://www.bbc.com/news/technology-59952557
[5] https://deloitte.wsj.com/articles/augmented-reality-shifts-from-toy-to-practical-tool-01630518417
[6] https://markwideresearch.com/global-augmented-reality-packaging-market/
