FEATURE

Opportunities to increase market share will increase when companies are pre-positioned for growth in a resilient and scalable way.

Adapting to the Evolving Landscape of Packaging: Trends and Challenges for the Industry and FMCG Segment

By Lisa Anderson, Founder and President, LMA Consulting Group

By Adhesive Technology Experts at H.B. Fuller, St. Paul, Minnesota

As economic shifts, stricter regulations, and sustainability pressures reshape the packaging landscape, FMCG companies are rethinking materials, processes, and design strategies.

The packaging industry is undergoing a profound transformation, driven by a confluence of economic, regulatory, and environmental factors. These changes are not only reshaping the sector but also imposing significant challenges and opportunities for its primary clients, fast moving consumer goods (FMCG) companies.

Economic Pressures and Consumer Demands

Global economic growth and variations in disposable income are shaping consumer expectations and, consequently, packaging needs. In emerging markets, increasing purchasing power is fostering demand for affordable, conveniently packaged foods. FMCG companies, to capture this market, rely on the packaging industry to develop solutions that optimize costs and enable mass-production scale.

Conversely, in developed countries, demand is shifting towards smarter, smaller, and more convenient packaging, reflecting faster lifestyles and the desire for controlled portions or premium products. This market duality requires the packaging industry to be versatile, offering everything from low-cost, high-efficiency solutions to sophisticated designs and advanced functionalities to meet the diverse market strategies of FMCG companies. This information is based on the PwC Global Consumer Insights Survey, found at www.pwc.com.

Regulatory and Food Safety Imperatives

Regulations are becoming increasingly stringent, particularly concerning food safety. Many regulations set a new benchmark for hygiene, traceability, and safety standards for materials in contact with food. For FMCG companies, this means that every package must act as a reliable barrier against contamination, protecting both the product and the brand's reputation, as well as consumer health.

The packaging industry is compelled to innovate to meet these demands, adding materials and adhesives that do not migrate into food, designs that facilitate cleaning, and manufacturing processes that ensure sterility are part of this requirement. Regulatory compliance is not just a legal obligation but a competitive differentiator, requiring continuous investment in research and development by the packaging industry to offer solutions that mitigate risks and secure consumer trust.

More information about food safety regulations for packaging can be found at the FDA website for U.S. and the European Food Safety Authority for Europe.

The Urgency of Sustainability and the Drive for a Circular Economy

Sustainability remains a paramount priority, driving the widespread adoption of packaging specifically designed for enhanced recyclability. This push includes a significant shift towards environmentally friendly alternatives, with paper packaging serving as a prime example. This critical transition is strongly supported by ambitious legislative frameworks, notably the European Green Deal and new U.S. environmental legislation, both aimed at fostering a comprehensive circular economy. This approach is particularly effective in regions and countries boasting well-established recycling streams that align seamlessly with industry demands.

In this evolving landscape, the role of adhesives becomes increasingly critical. To enable a circular economy for packaging, these bonding agents must be engineered to support the recyclability of the materials they join. This means developing adhesives that are easily separable from the primary packaging material during repulpable processes without contaminating the recycling stream.

Furthermore, the sustainability of the adhesives themselves is leading to innovations in biobased, solvent-free, lower carbon footprint, and formulations that enable the reduction of material, energy, and water.

Ultimately, the successful transition to a more sustainable and circular packaging system hinges on the development and adoption of adhesives that are not only effective but also fully compatible with the environmental goals of the industry.

The Necessary Balance for FMCG Companies

Fast moving consumer goods (FMCG) companies find themselves at the epicenter of this complex dynamic, tasked with balancing the demands for innovation, regulatory compliance, and sustainability within a diverse global landscape. To meet these evolving expectations, they are actively seeking out the packaging industry to explore new materials, more energy-efficient production processes, and smarter designs able to reduce the quantity of the material and the impact on the environment. This shift highlights the critical need for inputs like adhesives that are both effective and environmentally responsible, paving the way for solutions to tackle these challenges head-on.

A Solution

Amidst these challenges, Advantra^® Earthic™ 9500 stands out as an adhesive solution, representing a significant advancement in adhesive technology, offering an impressive 25% reduction in the amount of adhesive required per application. Traditional adhesives often necessitate substantial quantities to ensure secure sealing, but this formulation enhances bonding strength, allowing businesses to use less without sacrificing the integrity or security of their packaging. This translates to substantial cost savings, as companies can achieve the same results with less adhesive, freeing up resources to invest in other areas and drive growth and innovation.

Economic and Environmental Benefits

The benefits of switching to this adhesive extend beyond mere cost savings. For a company using 220 lb of this adhesive, it can close at least 89,000 boxes — 22,000 more than with other state-of-the-art hot-melt adhesives. This improved efficiency not only boosts productivity but also significantly reduces the environmental footprint. By upgrading, a company can save approximately 90 kg of CO₂ emissions per year, equivalent to a car journey of 230 miles.¹ These reductions are crucial for businesses striving to meet sustainability goals and contribute positively to the environment.

Enhanced Performance Features

The adhesive is designed to meet the rigorous demands of high-speed production lines, featuring a short open time and fast setting time for greater efficiency. Its temperature resistance is suitable for various climates and conditions, withstanding cold temperatures as low as -40 °F and heat up to 130 °F. Furthermore, it complies with food safety standards due to its low migration design, offering significant reductions in comparison with other hot-melt adhesives.

Sustainability

The adhesive is a strategic solution for companies looking to optimize operations and achieve their sustainability targets. By reducing adhesive consumption and minimizing the carbon footprint, this adhesive aligns economic and environmental goals, proving that they can coexist harmoniously.