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Future of Packaging: 2028 Insights by L.E.K. Consulting

A recent annual study conducted by L.E.K. Consulting highlights a profound shift in the packaging strategies of consumer packaged goods (CPG) and foodservice brands. According to the findings, an astonishing 99% of these brand owners are gearing up to implement significant packaging changes by the year 2028. This transformative move is heavily influenced by a drive towards sustainability, aesthetic improvements, and innovation in packaging solutions.

Key Drivers of Change

The study indicates that 48% of the updates are being driven by sustainability initiatives, making it the leading factor influencing these decisions. Additionally, 41% of brand owners are focusing on aesthetic enhancements, including alterations in color schemes and packaging shapes. Foodservice companies are showing a particularly strong commitment to sustainability, with 83% indicating it as a primary reason for changing their packaging materials.

In a landscape where packaging has been identified as critical to brand success by an impressive 98% of respondents, these changes are not merely cosmetic; they represent a fundamental reassessment of what packaging means in the branding equation. Thilo Henkes, Managing Director at L.E.K. Consulting and coauthor of the study, asserts that packaging is crucial—not only does it serve to communicate the brand’s message, but it also represents a minimal expense relative to total retail value. This makes it an attractive investment area for businesses.

Supply Chain Resilience and Multisourcing

Amidst growing supply chain challenges, companies are increasingly adopting a multi-sourcing strategy for packaging. According to the report, 91% of brand owners utilize multiple suppliers for each packaging format. The motivations behind this strategy include achieving cost competitiveness (49%), reducing supply chain risk (48%), and ensuring shorter lead times (46%).

Interestingly, there's a tangible shift towards domestic suppliers. By 2028, it is predicted that the percentage of packaging sourced from outside the U.S. will decline to 10%, marking a significant decrease from 2019 levels. This shift reflects a strategy to bolster supply chain resilience amid tariff risks associated with imported materials. Jeff Cloetingh, L.E.K. Managing Director, emphasizes that these sourcing disruptions since 2021 have reshaped brand owners' perceptions of sourcing, thus making multi-sourcing a critical infrastructure component for uninterrupted business operations.

Embracing Digital Tools and AI

In tandem with these changes in sourcing strategies, the adoption of digital tools and technologies such as AI is also on the rise. The study reveals a notable acceleration in the digital transformation of the packaging supply chain, with 79% of brand owners already implementing B2B customer portals—digital platforms that enhance customer self-service experiences. Furthermore, 73% utilize traceability features for greater visibility in material sourcing and production, and these numbers are expected to rise significantly by 2028.

AI's role is expanding too; while 74% of brands currently leverage AI for product development, a substantial increase is anticipated, particularly in customer-focused marketing, projected to rise from 52% to 88%. Jon Moss, another Managing Director at L.E.K., highlights that 81% of brand owners have reported positive outcomes from implementing AI, reinforcing the value of investing in innovative technologies for improving packaging and branding processes.

Focus on Foodservice Brands

Foodservice companies place an added emphasis on sustainable packaging innovations, with 84% prioritizing environmental considerations when selecting packaging options. Following the trend, 83% of foodservice organizations that modified their packaging substrates in the past three years cited sustainability goals as their foremost objective.

The current trend indicates that 72% of foodservice brand owners have invested in innovative packaging solutions over the last three years, a figure expected to increase to 79% by 2028. Innovations are mainly dictated by a focus on cost efficiency (81%), transitioning to sustainable materials (69%), and ensuring enhanced security through tamper-evident packaging (60%).

Conclusion

The insights from L.E.K. Consulting's study underscore a robust shift towards sustainable and innovative packaging strategies across the CPG and foodservice sectors. As brands navigate these changes, they are not only enhancing their environmental impact but also strengthening their market positioning through strategic investments in packaging and technology. It will be exciting to monitor how these trends evolve as we approach 2028, shaping the future of how brands present themselves to consumers worldwide.

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This comprehensive study underscores a pivotal moment for the packaging industry, hinting at a fundamental transformation fueled by sustainability, innovation, and the adoption of advanced technology.