As product innovation stalls under the weight of global economic pressures, packaging is emerging as the new frontier for brand differentiation. That was the key insight from Mintel’s Packaging Trends 2025 webinar on 26 March, delivered by Dr Benjamin Punchard, Global Packaging Insights director at Mintel.
In a session packed with global data and regional insights for Australia and New Zealand, Punchard highlighted how brands are shifting their innovation efforts from products to packaging in order to stay relevant in a turbulent market.
“We’ve seen a marked decline in product innovation across consumer packaged goods,” said Punchard. “In the past five years, the proportion of new product launches in ANZ has dropped from around 50 per cent to closer to 30 per cent, with renovations – such as new flavours or reformulations – taking precedence.”
What’s filling the gap? Packaging. In 2007, just 7 per cent of product launches in ANZ were packaging-led; in 2024, that figure had jumped to nearly 20 per cent. Brands are using packaging as a cost-effective way to refresh product offerings and engage consumers, even when the core product remains unchanged.
Punchard pointed to Coca-Cola as a textbook case: “They haven’t radically changed the product, but they’ve built a portfolio of packaging formats tailored to different use occasions – on-the-go, at home, family size, limited editions – keeping the brand top of mind without changing what’s in the bottle.”
Functionality first
A central theme in 2025’s packaging trends is functionality. Consumers are actively seeking packaging that enhances usability, preserves freshness, and supports lifestyle needs.
“Convenience and quality are top priorities,” said Punchard. “In New Zealand, 61 per cent of consumers look for easy-to-open packaging at the point of purchase, while 62 per cent of Australians say they’re willing to pay more for products that offer higher quality.”
Globally, consumers are also embracing smart packaging features, with 50 per cent of Brazilians interested in packaging that can automatically order refills. Meanwhile, 75 per cent of UK adults believe packaging should be easier for everyone to use – an insight that highlights a growing demand for inclusive design.
Sustainability an expectation
While responsible packaging was once a way to stand out, it’s now a baseline expectation. Punchard noted that claims around recyclability, reduced plastic use, and circularity have become hygiene factors – expected, not exceptional.
“In ANZ, responsible packaging claims have grown steadily, but the majority of launches still don’t make them,” he said. “That’s a missed opportunity – especially when consumers over-index their environmental concerns on packaging more than on the product itself.”
Paper’s quiet rise
One material under the spotlight is paper. Brands are increasingly turning to paper-based packaging to respond to consumer concerns about plastic. From frozen vegetables to ready meals and even wine, paper formats are gaining traction.
But Punchard cautioned against overhyping this shift. “While we’re seeing more paper packaging, much of it is niche. The technical barriers – such as achieving necessary barrier properties – mean that plastic remains essential in many applications.”
Refill Culture
One of the most transformative trends is the rise of at-home refill systems. Whether it’s in personal care, cleaning, or cosmetics, consumers are warming to the convenience and environmental benefits of refillable packaging – particularly when it’s cost-effective.
“In Japan, 36 per cent of consumers now buy refill packs for shampoo more often than bottled versions,” Punchard said. “In India, 25 per cent associate refillable formats with sustainability.”
In the beauty and personal care sector, refillable packaging is rapidly gaining ground. Globally, refill claims are rising, particularly in premium segments.
Punchard noted, “Refillable formats are no longer just for shampoo – they’re showing up in makeup and skincare, with products like Aptar’s Star Drop offering both luxury and sustainability.”
However, in-store refills – where consumers bring their own containers – have struggled to gain traction due to accessibility issues and inconvenience. At-home refill systems, on the other hand, are proving more viable and scalable.
Emotional drivers
Packaging that solves problems isn’t just about function – it’s about emotion too. Punchard described how successful packaging connects with consumers on a deeper level by addressing physical, rational, emotional, and even irrational needs.
“This could mean packaging that supports mood states, promotes wellness, or simply makes life easier,” he said. “Disruptive design grabs attention, but it’s packaging that solves a real need that builds long-term loyalty.”
Health front and centre
In the food and drink space, packaging innovation is increasingly used to communicate freshness, local sourcing, and health attributes.
The emergence of weight loss medications will redefine perceptions of “food as medicine” from functional ingredients to meeting daily nutrient needs. Punchard described the trend as “Fundamentally Nutritious”, where consumers seek transparency and control over their diets – without compromising on value. He says food and drink packaging will need to communicate and support consumer health needs.
“In Australia, 60 per cent of adults shop with a fixed grocery budget, so the value proposition has to be clear,” he said. “Packaging that keeps food fresh and helps reduce waste – like resealable packs – is growing fast.”
Personalised care
The personal care sector is seeing strong demand for personalisation, especially among women and online shoppers. Packaging is becoming the interface for this experience.
“From customisable lipstick formats to skincare boosters that let you tailor your own blend, packaging is enabling personalisation at scale,” said Punchard. “Around 32 per cent of New Zealanders would pay more for a personalised product – so this is not a niche trend.”
Inclusive packaging
One of the most forward-looking trends is the focus on demographic disruption, particularly addressing the needs of older consumers. “Seniors are often overlooked in household care, but this is a fast-growing segment,” said Punchard.
Examples included QR codes that enable audio instructions for visually impaired users, and ergonomic closures that make packs easier to open for those with reduced dexterity. “Packaging that empowers independent living will grow in importance.”
Innovation without complexity
As brands face economic headwinds and cautious consumers, packaging innovation provides a powerful, cost-effective lever. But it must be centred on user needs.
“Sustainability is now an expectation. Functionality is a purchase driver. And convenience is non-negotiable,” said Punchard.
“Innovation doesn’t need to be complex. Simple switches – like resealable closures or recycled content – can deliver real value, if they’re well communicated.”
