Sustainability, digitalization and shifting consumer demand: Three trends to watch in 2025

As a leading packaging company, we work every day with stakeholders across the value chain to innovate more sustainable and unique solutions that protect products, people and Earth. As recent studies show^[1], the growing focus on sustainability, the rise of digitalization, and the impact of inflation and lower consumer spending are three macro trends likely to define the packaging landscape in 2025. To explore these developments, we’ve asked our experts to share their insights.

Driving change across the value chain and meeting regulatory needs

Studies^[2] show that more consumer goods companies are intensifying their efforts to accelerate the net-zero transition. This also includes advancing packaging recyclability and promoting circularity. For their packaging, companies are actively exploring solutions that are recyclable or compostable – like molded fiber and recycled PET – that align with regulations such as the Packaging and Packaging Waste Regulation (PPWR). The combination of consumer expectations, company efforts and regulatory developments is setting an ambitious direction to address circularity challenges within the packaging value chain, enhancing sustainability throughout the operations.

Dave Clark, Amcor’s Chief Sustainability Officer, shares: “These dynamics are propelling the industry toward more sustainable solutions. Amcor is already active in helping to improve the circularity of packaging in many ways, from designing packaging that uses less material, to investing in designed-to-be-recycled film portfolios where packaging can be recycled into other products after its intended use, to using more recycled content in the production of our packaging. Today, over 95% of our rigid packaging by weight is recyclable and 94% of our flexible portfolio by area has a recycle-ready design solution available content. And there is great potential for further progress as material and technology scales.”

Amcor’s recycled-ready solutions and PCR material:

Harnessing technology for agility and customization

With the expansion of digitalization and generative AI, the implementation of solutions to streamline supply chain and drive optimization is accelerating^[3]. This not only enhances agility but also enables user-centric packaging designs that transform consumer interactions with products. Smart technologies like QR codes and near-field communication (NFC) ensure product authentication, supply chain transparency and compliance with sustainability standards. Pioneering NFC product offerings allow brands to add smart functionality to more items sustainably, while making it easier to bring traceability and interactivity to a broader range of products and packaging.

Frank Lehmann, Vice President Open Innovation and Corporate Venturing at Amcor, says: “Tapping into early-stage, cutting-edge innovation around sustainability and digitization represents a big opportunity for us. An example is the integration of NFC technology. Thanks to the partnership with Pragmatic Semiconductor, it can be integrated into our packaging solutions and bring digital traceability and interactivity to everyday items, including various paper and plastic packaging. Thanks to NFC, we will enable smart packaging applications throughout the entire product lifecycle – from manufacturing and supply chain management to consumer engagement and even material recovery.”

David Moore, CEO at Pragmatic Semiconductor, adds: “Innovations in NFC open a new world of opportunities within smart and reusable packaging for leaders in the space such as Amcor, enhancing consumer engagement and making real-time traceability and provenance a reality. Each of Pragmatic’s NFC chips has a unique ID, ensuring authenticity and helping to combat counterfeiting." Pragmatic’s NFC products are flexible, ultra-thin and have a lower carbon footprint than traditional silicon-based solutions, allowing brands to seamlessly embed intelligence in products where it previously wasn’t feasible. This enables tracking, authentication and information sharing throughout a product's lifecycle, enhancing transparency and sustainability in support of both consumer demands and regulatory requirements.

Source: Pragmatic Semiconductor. Pragmatic Semiconductor ‘s flexible integrated circuit (FlexIC)

Digitization offers immense potential, including enabling innovation in customization through digital printing.

Dario Morini, General Manager Digital Business at Amcor Specialty Cartons explains, “Digital printing technologies allow us to continue unlocking agility to deliver truly customer-centric solutions. Our digital prepress and digital printing help maintain accuracy across the most complex designs and offer speed-to-market and flexibility for small batch production and highly customized solutions. These innovations will continue to deliver substantial benefits and improve our ways of working.”

Shift in consumers’ landscape: what’s next

The persistent effects of inflation are influencing consumer priorities and spending habits. According to a recent study^[4], to stay ahead and be best positioned to succeed, companies need to cultivate an up-to-date understanding of today’s consumers – who they are and what they buy.

Today’s consumers value better price points and choices when making purchases. Sustainability continues to be preferred, with many consumers actively seeking products that use minimal or recyclable packaging. At the same time, economic uncertainty and inflation have led to greater brand exploration and a growing openness to alternative options.

As these dynamics shape the consumer landscape, partnering with companies that have a strong position in the market and a deep understanding of key trends provides a strategic advantage in navigating shifts in consumer demand and driving continuous innovation. By maintaining agile operations, ensuring supply chain reliability and supporting customers' business continuity, these players will be well-positioned to deliver tailored solutions that meet diverse needs and drive success in an evolving environment.

^[1]Source: McKinsey & Company, State of the Consumers 2024: what’s now and what’s next & Generative AI: The packaging and paper’s industry next frontiers

^[2]Source: Deloitte Insights, EU regulations drive the sustainability transition

^[3]Source: Packaging Insights, AI in packaging: Industry highlights automation and connected pack developments

^[4]Source: McKinsey & Company, State of the Consumers 2024: what’s now and what’s next