In Part One of this look at the challenges facing the packaging for CPG industry and the opportunities that industrial inkjet provides, we looked at trends in consumer tastes and preferences as drivers of change. In Part Two, we look at more macro, market-level forces driving change.
Megatrends in Packaging: Is Digital the Answer?
CPG and Retail Margin Compression
At The Packaging Conference, held February 4-6 in Las Vegas, David Feber, Partner at McKinsey & Company, identified several megatrends affecting the packaging industry. Chief among them was squeezed margins. “Many CPGs are losing the battle for shelf space and margin growth, which is increasing pressure on suppliers such as packaging manufacturers to decrease cost. That is likely to continue, and will likely have consequences on the full value chain that’s selling into consumer packaged goods,” said Feber.