The shift towards circular economy is driving digital transformation in the packaging sector, according to the latest findings by GlobalData.
GlobalData highlights that packaging providers are under considerable pressure from manufacturers, retailers and consumers to provide alternative and eco-friendly packaging solutions, thus driving the shift towards circular economy.
“Packaging companies are adopting intelligent and sustainable packaging solutions to minimise their carbon footprint,” said Mannish Dixit, practice head at GlobalData.
“It is noted that seven deals among the top 10 investment deals in Q2 2022 fall under the sustainability and ethics theme, reflecting the interest of global investors.
“Even the global consumer brands like Coca-Cola, PepsiCo, Unilever, Danone and Nestle have committed to provide 100 per cent recycled plastic in their packaging and introduced reusable or recyclable packaging.”
GlobalData’s latest report, Digital Innovation Case Studies in Packaging, highlights the implementation of emerging technologies with real-world use cases, and assesses the return on investment.
“Both regulators and non-governmental institutions are encouraging the packaging sector shift towards a circular economy to maximise efficiency and minimise resource wastage,” explained Prathyusha Paruchuri, senior disruptive tech analyst at GlobalData.
“With the importance of sustainability to the packaging sector becoming explicit, many packaging firms are being regenerative by design and enhancing their buy-and-build partnership strategy in the circular economy space to avoid falling behind with their peers, competitors and clients.”
Paruchuri added that sustainability has become so vital that plastic packaging firms face difficulty to access capital as investors tighten their policies around non-sustainable packaging.
“The end-to-end technology adoption by packaging companies into their supply chain is resulting in operational improvements, supplier reliability and customer engagement,” Paruchuri continued.
“Global providers are speeding up innovations such as the development of advanced materials, products with embedded technology, and custom solutions to promote reusable, biodegradable and sustainable packaging.”
