Digitalization and sustainability help packaging transformation and upgrading

After the epidemic, the recovery of the manufacturing industry accelerated, and the era of major reforms is coming. In this process, digitalization, intelligence, and sustainability are the major trends affecting and creating this era, and they are also the only way to transform and upgrade the manufacturing industry. For the plastic printing industry, this trend is even more significant.

According to the latest research report "The future of global Printing by 2026", "The future of green printing by 2026" and "The future of packaging digital printing by 2026" from the Smithers Peel Institute, the global printing market will grow to $834.2 billion in 2026.

One of the emerging trends in the industry is the exploration of greener and more sustainable printing processes, and the market size of digital printing for packaging and labels will reach $35.88 billion by 2026. The pandemic is having an impact on people's consumption, with 75% of US consumers experimenting with sustainable consumption. This shift and the changing preferences of Gen Z consumers are also driving brands to be more environmentally friendly and sustainable.

Most importantly, new regulations have been created in response to global consumer concerns, and greenwashing no longer works. Capital allocation is beginning to focus on corporate sustainability and related performance, and this trend will continue to strengthen in the future.

Reduce waste packaging pollution, improve material recycling, reduce carbon footprint. As a result, the industry's understanding of sustainability can be expected to become increasingly comprehensive and balanced.

Paper and cardboard are often considered circular economy materials due to their ease of recycling, but as the life cycle becomes more complex, green printing is not just about using recycled or recyclable paper, but involves all stages of the supply chain.

Currently, the printing process increases carbon emissions by using fossil fuel energy to run equipment, transport raw materials and finished products, and support the entire process. The manufacture and release of volatile organic compounds from paper and plastic substrates, inks, cleaning solutions, etc., all contribute to carbon emissions. Among them, the main alternative to solvent-based inks is water-based inks, many of which have been released in the past two years. But the carbon footprint of water-based ink, like its composition, is related to how it is handled, stored and cleaned. As a result, more work should be done on waterless inks or other technological innovations.

The growing sustainability trend has also prompted brands to adjust their products and sales practices to remain competitive. Many brands have begun to respond to changing consumer needs by forming alliances with national or international industry groups.

Digitization is another great opportunity in the coming years. Digitization can help manufacturers realize intelligent manufacturing and improve production automation and intelligence. Through digital technology, manufacturers can implement smart devices and intelligent controls, reduce manual intervention and errors, and improve production efficiency and quality. Digitization can also realize the interconnection in the intelligent manufacturing process, through the Internet of Things and cloud computing, to achieve seamless connection and information sharing in the manufacturing process, and improve the efficiency and controllability of the entire production process.

"Ready to ship" packaging may become a necessary means for brands to manage costs and sustainability pressures. We have seen many e-commerce giants, as well as many countries such as China, rapidly adopt standards to expand the use of such packaging, which will eventually eliminate much of the need for secondary packaging.

From the perspective of enterprise structure, manufacturers should consider two aspects of change. First, companies will increasingly focus on growth drivers and spin off non-core businesses into new independent entities. On the other hand is digital empowerment, which is reflected in customer engagement, internal workflow, supply chain, manufacturing automation and decision improvement. The packaging industry is still in the early stages of digitization, but it is expected to become a clear development priority and an important means of value creation, especially in the current context of raw material market volatility and the rise of protectionist trade policies, digitization can enhance supply chain transparency and drive sourcing excellence.