Is Digital Packaging Now as Important as Sustainable Packaging?
For more than a decade, the agenda for packaging innovation has been dominated by the sustainable agenda. The familiar themes of reducing plastics use, paperization, biodegradability, recyclability and, latterly, reuse, have been played out across numerous stages around the world, involving Retailers, Brands, Packaging Material Makers, Non-Government Organizations (NGOs) and, not least, Governments.
But more recently and certainly since COVID, the need to Digitize packaging has become a much more discussed and acted upon topic. Indeed, it would appear that many Brand Owners are now prioritizing the need to authenticate, track, and communicate about their products in both the business-to-business (B2B) and business-to-consumer (B2C) worlds. For sure, the pandemic highlighted the need to improve Supply Chains and the provenance of products. But at the top of the list is communicating with customers in a more impactful and direct way. Connected Packaging is one of the few effective — and cost effective — options open to them.
What has brought about this change in their agendas? Well, for sure, part of it is due to the overblown claims and targets rather forced on packaging companies and Brands by NGOs and legislators, to use recycled material and replace plastics to achieve a ‘Çircular Economy’ or ‘Carbon Neutrality’. Of late we have seen more and more of the major Brands rowing back on their sustainability targets as it has become clear that they are simply not realistic, affordable, or achievable.
More recently, a flurry of surveys and reports highlight increasing concerns on loss prevention (shrinkage in America), counterfeiting, and losing touch with consumers from those big Brands and some of the international Retail chains — bricks and mortar, as well as online. Pioneers like Walmart have shown the value of mandated tracking for some goods. Are the others finally ready to catch on?
The value of communication, along the supply chain through to the consumer, is shown to have a much greater impact on things like provenance, product waste, or, goodness me, recycling and reuse. The ubiquitous quick response (QR) code and radio frequency identification (RFID) or near field communication (NFC) tag can act as a trigger to help people do the right thing with their used packs, but also tell them simply loads of interesting and useful stuff about the product, the Brand story, or to offer special promotions and loyalty programs.
And on the other side of the coin the Brands and Retailers can gather vast amounts of data to make their production, new product development, and marketing more effective. Put simply, a direct link to provable ROI.
Consumers are really savvy these days. But there should be a healthy scepticism about the surveys which claim “75% of consumers would pay more for sustainable packaging.” Have you met many? Maybe in the upmarket eco-supermarkets and high-end retail stores — but certainly not most of the folk who populate the everyday places to fill their fridges or cupboards. They DO want to know the product is not a “knock off” and whether it is in good condition. But, for most, their interest in the sustainable aspect of packaging begins and ends when they put it in the correct recycle bin. Hence, the reason why industry takes ownership of the science by developing digital technologies for sorting plastics, for example, such as HolyGrail 2.0.
Helping people to understand the complex choices around sustainability — as well as product provenance, authentication, and condition — requires a simple and effective method of communication. What better medium than a Connected Pack? This enabler is easy to access via a smartphone at the point of purchase and can continue to offer information well beyond that point. What information? Well, that is almost entirely up to the Brand Owner, or if they want to add some in store value, the Retailer.
Digitized packaging is a revolution in the way we can use and perceive this rather taken for granted part of a product’s journey. The last five years has seen huge advances in the technologies associated with digitization: digital printers, digital twins, and now the GS1 digital link to name only some. If the Retailers and Brand Owners seize the opportunity, it could revolutionize the sustainable agenda too!
Learn more at the 2025 AIPIA World Congress. Digitisation, Data Use, Brand Empowerment, and Supply Chain Efficiency are key themes at this year’s event, scheduled for June 23-24 in Amsterdam.