Display Packaging Market Analysis

Display Packaging Market (Global, 2023)

Introduction

The market for display packaging is undergoing a period of change, driven by the shifting preferences of consumers and the growing importance of brand differentiation in a highly competitive environment. Product visibility and appeal at the point of sale are becoming ever more important, and the display package is increasingly being seen as a key tool in achieving this. In this market, a wide variety of materials and designs are used, from the eco-friendly to the graphically striking, and this range of products is used in many industries, from food and beverage to cosmetics and electronics. The growing importance of e-commerce is also having an effect on display packaging, and companies are now rethinking their packaging strategies to make sure they are able to meet the needs of both the online and the physical retail environments. As consumers’ interest in sustainable practices increases, the integration of eco-friendly practices into display packaging is no longer just a trend, but a necessity for brands that want to connect with their consumers. This report provides an overview of the key trends, challenges, and opportunities in display packaging.

PESTLE Analysis

Political

In 2023, the display packaging market will be affected by various political factors, including government regulations on the use of packaging materials. In Europe, for example, the European Union has issued a packaging and packaging waste directive, requiring that by 2025 all packaging waste must be recycled. The directive has a significant impact on manufacturers, who must adapt their materials and processes to meet these standards, which in turn affects the cost of production and the design of products. In addition, the imposition of import duties on display packaging materials in some regions can affect the price and supply chain. The import duty on display packaging materials in some regions is as high as 25%.

Economic

In 2023, the economy is recovering, the display packaging industry is booming, and the demand for display packages is soaring. In 2023, the total retail sales of the world are expected to reach about 26 trillion dollars, and the e-business has risen sharply, accounting for about 19 percent of the total retail sales. The e-business has become a major trend in the industry. It is also an opportunity for display package innovation. But the price of raw materials is still fluctuating, and the price of paperboard has increased by 15 percent due to the shortage of raw materials. , the overall cost of display package manufacturers is rising.

Social

In 2023, consumers’ preferences will be shifting towards more sustainable and eco-friendly packaging solutions. A survey revealed that 72% of consumers are willing to pay more for products with sustainable packaging, demonstrating their growing awareness of the environment. This trend is pushing brands to adopt biodegradable and recyclable materials for their display packaging. Furthermore, the rise of social media has increased the importance of packaging aesthetics. According to a study, 60% of consumers say they share images of attractive packaging on social media.

Technological

DISPLAY PACKAGING MARKET IN 2023 KEY TRENDS AND TECHNOLOGIES In recent years, digital printing technology has shortened the production process by up to 30%, enabling more customized and short-run packaging. In addition, the integration of smart packaging technology, such as NFC tags and QR codes, can increase the interaction between consumers and brands, and collect consumers' behavior data. The proportion of smart packaging will reach about 25% in 2023, and the industry will become more digital.

Legal

By 2023, the legal conditions influencing the market for display packaging are strict labeling and safety regulations. The Food and Drug Administration (FDA) has revised its guidelines on labeling, which affects about 40 percent of the packaging market. These regulations require additional investment in quality control and labeling processes. Intellectual property rights are becoming increasingly important for brands, which want to protect their own unique design of the packaging. The number of patents in the packaging industry increased by 12 percent in the last year.

Environmental

In 2023, the market for display packaging will be dominated by the environment, with a strong emphasis on reducing the carbon footprint. The global packaging industry is responsible for up to 30 per cent of the world’s plastic waste, which is why companies are looking for sustainable alternatives. In response, many manufacturers are investing in eco-friendly materials. It is estimated that by 2023 at least 50 per cent of all new packaging products will be made from recycled or renewably derived materials. In addition, companies are adopting the life cycle assessment (LCA) to assess the impact of their packaging on the environment, with around 35 per cent of them already using this method in their product development.

Porter's Five Forces

Threat of New Entrants

Display-packaging has moderate barriers to entry. These include substantial capital expenditure on machinery and equipment, and compliance with regulations. However, the increasing demand for new and inventive packaging solutions can also bring new players to the market, resulting in an increase in competition.

Bargaining Power of Suppliers

Suppliers of display packaging have low bargaining power, because there are a large number of suppliers of raw materials and components. This enables manufacturers to change suppliers easily, which reduces the influence of any one supplier on prices and terms.

Bargaining Power of Buyers

The buyers in the display market have high bargaining power, because they can choose from many suppliers and products. Also, the increasing importance of sustainability and customization in the packaging solutions gives buyers an even higher bargaining power.

Threat of Substitutes

The threat of substitutes in the display-packaging market is moderate. There are substitutes, such as digital displays or online marketing, that can be used as substitutes. But the unique advantages of display-packaging in enhancing product visibility and engaging consumers limit the extent of this threat.

Competitive Rivalry

The level of competition in the field of display packaging is very high, owing to the number of established competitors and the constant need for new and attractive packaging solutions. Companies constantly seek to differentiate themselves from their competitors. This leads to a strong emphasis on marketing and a price war.

SWOT Analysis

Strengths

• Growing demand for sustainable and eco-friendly packaging solutions.
• Innovative designs enhancing product visibility and consumer engagement.
• Strong growth in e-commerce driving the need for effective display packaging.

Weaknesses

• High production costs associated with advanced materials and technologies.
• Limited awareness among small businesses about the benefits of display packaging.
• Dependence on fluctuating raw material prices affecting profitability.

Opportunities

• Expansion into emerging markets with increasing retail sectors.
• Integration of smart packaging technologies for enhanced consumer interaction.
• Collaboration with brands for customized packaging solutions.

Threats

• Intense competition from alternative packaging solutions.
• Regulatory challenges regarding packaging materials and waste management.
• Economic downturns affecting consumer spending and retail sales.

Summary

In 2023, the display packaging market is characterized by the strength of its innovation and its sustainability, which drive the demand for the market, especially in the e-commerce sector. However, challenges such as high production costs and lack of awareness of small and medium-sized enterprises will weaken the market. Opportunities for growth are emerging markets and technological innovations, while competition and regulatory restrictions will affect market dynamics. The strategic focus on the development of collaboration and individualization can mitigate these threats and take advantage of market opportunities.