Out of the box: Packaging and label priorities evolve as market pressures increase

Today’s packaging and label decision makers are navigating a complex landscape, balancing functionality, safety, and consumer demands amid rising market pressures. This report pinpoints four primary areas driving their focus:

  1. Product safety and functional design emerge as top priorities
  2. Packaging and labels key to meeting sustainability goals, consumer expectations
  3. E-commerce growth pressure tests brands’ abilities to adapt
  4. Complexities in supply chain and material sourcing require strategic attention

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Report Vitals

What we did: Surveyed 300 U.S.-based business leaders and managers with decision-making responsibilities for their companies’ packaging and labels needs, focusing on their priorities and strategies within these operations. Nearly half (47%) of the survey respondents identified as decision makers for both packaging and labels.

When we did it: September 2024

Why we did it: To gain insights into how companies are adapting packaging and labels operations in response to trends such as product safety, e-commerce growth, sustainability goals, and supply chain challenges, and to better understand the factors shaping these decisions.

Report highlights

1. Product safety and functional design emerge as top priorities

To meet consumer expectations for quality, companies are prioritizing safety and functionality in both packaging and label designs. This focus on protective materials and appealing design choices reflects an industry-wide commitment to ensuring products arrive intact, meet consumer standards, and align with broader corporate responsibility goals.

In the next two years, 89% of packaging respondents expect to make changes to their designs — with 36% anticipating major changes — to enhance functionality and adapt to evolving consumer expectations.

To support product integrity, the majority of packaging respondents are:

The two primary design changes all respondents expect to make are functional design (75% for packaging, 60% for labels) and materials and composition (73% for packaging, 70% for labels).

According to packaging respondents,
the top factors driving these changes are:

For labels respondents,
the primary drivers include:

While product safety remains the top priority for 62% of packaging respondents when choosing materials, the top three factors impacting labels operations focus on supply chain issues:

72% cite material price increases
67% report supply chain shortages
64% note supplier reliability as a critical factor

By addressing these pressures in both packaging and labels, companies are better positioned to maintain quality and strengthen customer trust.

Expert take:

"As consumers demand higher accountability from the brands they choose to support, building functional design and safety features into packaging remains essential to ensuring product integrity and a great user experience. Meeting this increasing demand will require a balance between three competing priorities: protection, convenience, and brand appeal. Brands that strike this balance with their packaging will have an opportunity to deliver a product experience customers can trust, boosting loyalty and reducing damage concerns."

Lisa Pruett

Lisa Pruett, President, RRD Packaging, Labels and Supply Chain Segment

2. Packaging and labels key to meeting sustainability goals, consumer expectations

Sustainability remains a key driver in packaging and labels decision-making as companies work to meet environmental targets and respond to growing consumer demand for eco-friendly options. By adopting sustainable materials, reducing waste, and investing in responsible design, packaging and labels teams are minimizing their footprint while aligning with broader corporate responsibility goals.

73%

73% of respondents say that consumer demand for eco-friendly, minimalist packaging has led to changes in sourcing over the past year

In the past year, 83% of packaging respondents say their organization has moved toward its sustainability goals — 81% say their packaging operations have played a role in this move toward their company’s sustainability goals.

The majority of respondents say these are sustainability considerations when making packaging decisions:

73%

of respondents say that consumer demand for eco-friendly, minimalist packaging has led to changes in sourcing over the past year, with 57% planning to focus on sustainable aesthetics in the next two years.

Material usage is the leading tactic, with 73% of respondents saying their organization utilizes it to formally measure environmental impact.

Labels executives highlighted sustainability as a core focus as well, with 79% of respondents reporting that their initiatives contribute to their organization’s environmental goals. Top sustainability considerations in labels decisions include:

78%

Looking ahead, sustainability remains a top priority for those overseeing labeling operations. More than two-thirds of respondents reported that environmental regulations and corporate sustainability goals (78%) and inflation and rising material costs (79%) are reshaping their approach to sourcing labels.

Expert take:

"Sustainability in packaging and labels is more than just the materials we use; it’s about rethinking the whole supply chain to cut waste, improve recyclability, and support a circular economy. Today’s consumers care more than ever about eco-friendly practices, and companies committed to making sustainable choices in both packaging and labels are earning more loyalty and gaining an edge in the market. Forward-looking organizations are putting these practices into place now to stay in step with long-term environmental goals and rising market expectations."

Dennis Aler

Dennis Aler, Director, Environmental, Health, Safety (EHS) and Sustainability, RRD

3. E-commerce growth pressure tests brands’ abilities to adapt

As e-commerce continues to thrive, packaging and labels decision makers are focusing on innovations that meet the rising demand for operational efficiency and evolving consumer expectations. Companies are actively streamlining processes and designing solutions optimized for online sales to strengthen their e-commerce presence and remain competitive in a rapidly changing market.

55%

Of those respondents who have seen e-commerce growth, the majority have designed packaging specifically to accommodate that increase.

Among packaging respondents:

Of those respondents who have seen e-commerce growth, the majority have made the following changes to accommodate that increase:

Aligning labels with e-commerce demands

Companies are adapting their labels operations to meet the fast-paced demands of the online marketplace. This shift has prompted updates to labels designs focused on balancing cost efficiency, sustainability, and production speed:

77%

77% of labels respondents plan to make changes to their designs in the next two years, with 25% expecting major changes.

To support these evolving needs, labels decision makers are prioritizing key factors when choosing a supplier:

More than half (51%) of labels respondents expect AI to play a major role in design and development over the next two years, supporting greater efficiency and innovation.

This focus on adaptability, cost, speed, and expertise underscores the critical role of suppliers in helping companies succeed in e-commerce.

Expert take:

"Today’s e-commerce landscape pushes brands to think beyond the basics. Every box or label is a touchpoint that brings the brand experience right into consumers’ homes. Effective e-commerce isn’t just about safe delivery; it’s about creating a seamless, memorable unboxing experience. As competition heats up, the brands that combine functionality with a strong presentation will be the ones that stand out."

Brian Techter, President, RRD Packaging Solutions

Brian Techter, President, RRD Packaging Solutions

4. Complexities in supply chain and material sourcing require strategic attention

Supply chain disruptions and material price volatility are prompting packaging and labels decision makers to reassess sourcing strategies and build resilience into their operations. This renewed focus on flexibility has led companies to explore diverse supplier relationships and adopt innovative cost-control measures, helping them navigate market pressures and safeguard operational continuity.

54%

The majority of labels respondents (54%) diversified suppliers to deal with supply chain issues, inflation, and other market pressures.

According to packaging respondents:

  • 93% report that their operations have been impacted by supply chain disruptions in the last year, with 61% noting missed deadlines as a result.
  • 86% say inflation and rising costs of raw material have caused changes in the way their organization sourced packaging over the past year, with 75% saying that material price increases have influenced operations.

To cope with these pressures:

  • 50% are “very willing” to switch to different materials when advantageous.
  • 75% said that suppliers, vendors, and manufacturers are their top source for information when looking for guidance in packaging decisions.

The need for resilient sourcing strategies extends to labels as well:

  • More than 75% of labels respondents report rising material costs, environmental regulations, and corporate sustainability goals have reshaped their sourcing approach in the past year.

Over the next two years, respondents across both packaging and labels operations expect AI to have a major impact:

  • Design and development: 42% for packaging, 51% for labels
  • Production and manufacturing: 41% for packaging, 40% for labels
  • Supply chain and logistics: 39% for packaging, 33% for labels
  • Sustainability: 27% for packaging, 28% for labels
  • Consumer experience (packaging only): 23%

Expert take:

"Navigating today’s supply chain challenges takes a strategic approach to sourcing; where flexibility and a diverse supplier network are just as important as the materials themselves. Companies that can pivot quickly with market changes are in a better position to meet customer needs and strengthen their ability to respond to future disruptions. Industry leaders are already building relationships with alternative suppliers and fine-tuning logistics strategies across both packaging and labels to stay ahead of tomorrow’s challenges."

John Marrow, President, RRD Supply Chain Solutions

John Marrow, President, RRD Supply Chain Solutions

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