Contract packaging is projected to grow by more than 10% through 2020. There are a few main reasons for such steep growth in global contract packaging. One of the most talked about topics globally is ways to improve a company’s green footprint. This means sustainability is now one of the largest drivers for the rapid growth in contract packaging. The forecasted growth is also due to companies using contract packaging to cut some costs. By contracting out additional packaging, companies are able to cut machine and labor costs.
At Opportunities, Inc. our main focus for sustainability is recycling. Product is most often shipped to us in corrugated packaging. As we break down the bulk packs, the larger packaging is sent down a conveyor system. Opportunities, Inc. recycles over 45,000 corrugated trays and cartons daily at just one of our three packaging locations throughout Southeastern Wisconsin.
As the world continues making an effort to become more “green”, big businesses are sure to follow suite. Yahoo Finance says, “Consumer and manufacturers will give more importance to sustainable packaging during the forecast period because it is recyclable, sustainable, and environmentally friendly.” As younger generations look for new ways to clean up the planet, large manufacturers have no other option if they want to keep their strong brand loyalty.
As we move forward, larger companies are finding that contract packaging is a great way to outsource some of their excess packaging needs, as well as cut machine and maintenance costs. Outsourcing your packaging can do a lot more than just save money, it can also “ease labor shortages, allow companies to focus on core competencies, and even change a company’s corporate culture”, says Packaging.com. Outsourcing can benefit any company whether these current packaging trends continue or not. A survey conducted by Packaging.com stated that the top reason to outsource is to, “reduce cost (40%)” followed closely by “access to expertise (38%).”
Sustainable packaging and reduction of costs are huge factors that will drive future market growth. Keep these in mind as time progresses to keep your company on a path for growth. Stay up to date on sustainability and remember that there is always someone that is looking to keep their costs down and your area of expertise could be exactly what they are looking for.
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