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The Future of Digital Packaging: Where Sustainability Meets eCommerce, AI, and Personalisation

  • June 22, 2023
  • Blog, Production Print & Technology

Digital packaging – by which we mean packaging printed on a digital press – is a growing market and one that our customers are increasingly part of. 

The packaging industry is changing rapidly. Driven by increasing demand for sustainable packaging and the growing power of artificial intelligence, the future for digital packaging producers is bright.

Digital packaging offers several advantages over traditional methods of printing, offering opportunities to be greener, more efficient, and more personalised. 

As the packaging industry evolves, there are opportunities for commercial printers to grow profits in the sector. In the following post, we investigate six areas of development that we believe are key to the future of digital packaging:

  • Sustainability
  • Ecommerce
  • Influencers
  • AI (Artificial Intelligence)
  • Personalisation
  • Print Quality
 
Learn more about digital packaging in our post, What Is Digital Packaging?

Sustainability: the Power of Green Packaging

People want to feel good about the purchases and choices they make. Brands that get their sustainability policies and messaging right will pull in consumers – and profit. Packaging is a key part of the visual identity for most products, drawing people to a shelf (or an online gallery, for that matter – a virtual shelf if you like). But packaging also has practical purposes, such as providing information about ingredients or batch numbers and protecting the product inside. 

Because packaging is both practical and profitable, sustainability has become a driving force in the industry and is likely to become even more important in the future. Good for the planet is good for marketing, so businesses want to minimise waste and harm to the environment. Forward-thinking companies are already embracing the challenge, adopting green materials, implementing innovative recycling programs, and revolutionising packaging practices. 

There are different ways to go about designing sustainable packaging; the best solutions will depend on the product:

  • Sourcing sustainable stocks and substrates, which might include recycled products (although renewable sources may work out less carbon intensive than recycled sometimes)
  • Reducing the amount of packaging needed
  • Enabling the re-use of packaging, either because it’s refillable or because it lends itself to use for something else afterwards
  • Making recycling the product simple, not just when it gets to the recycling facility, but for the end user to get it back into the recycling system – this will include clear messaging for the consumer
  • Keeping production waste to a minimum and limiting emissions related to the distribution of the packaging once created

 

This all sounds good, but how does it relate to digital printing? Well, digital print reduces obsolescence and waste. Digital turnarounds are much quicker than litho, with no need for plates and extensive setup and make ready. More packaging can be printed on demand, reducing the need for storage and disposal of unwanted printed packaging. ‘Just in time’ manufacturing is especially beneficial for seasonal and brand-new products. The future of digital packaging – and packaging in general – will be greener.

Ecommerce: Seamless Online Shopping

Ecommerce has forever transformed our shopping habits – a survey in 2022 showed 82% of the population had made at least one online product purchase in the previous year. Online shopping was on the rise before 2020 anyway, but the pandemic brought skyrocketing demand for virtual purchases. Although the rising trend in e-commerce has once again rejoined the curve predicted before Covid, delivery of more and more products to homes and businesses means big business for efficient, sustainable and protective digital packaging. And did we mention beautiful packaging?

With more than 580,000 ecommerce websites in the UK now and getting on for a million active Etsy sellers, packaging companies are rising to the occasion by designing smart solutions tailored to the unique needs of online retailers. From compact and secure packaging to the art of personalised unboxing experiences, there is so much more to be tinkered with and customised in the future of digital packaging.

Influencers - The New Brand Ambassadors Are Your End Customers

Everyone’s an influencer. Social media means more exposure for businesses and individuals alike. Every customer, whether B2B or B2C, has the potential to become a mini brand ambassador. They can share their experiences and recommendations with a wide audience with just a few clicks, persuading or dissuading others to make purchasing decisions. This phenomenon has transformed how businesses approach customer service and marketing – and, therefore, the future of digital packaging.

When customers have a positive experience with a brand, they are likely to share it with their friends, family, and followers. This word-of-mouth marketing can be compelling, as it comes from a trusted source. Social media platforms amplify this effect, allowing customers to post reviews, photos, and videos that showcase their satisfaction with a product or service. Packaging, being visual, can have a surprisingly large part to play here. Does it entice you to open the product? Does it lend itself to an unboxing reel or TikTok? Does it link the physical and the digital? Because that’s the future. 

AI: Artificial Intelligence in Packaging

Artificial Intelligence, and in particular generative AI, has been hitting the headlines all year, and its applications in the packaging industry are beginning to make themselves known. AI technologies in packaging workflow are revolutionising efficiency, streamlining processes, and reducing errors. 

Imagine machines capable of designing functional and visually captivating packaging, paying attention to every intricate detail. Or, in the meantime, humans ‘augmented’ with AI that speeds up their copywriting, designing and editing and, further down the track, implements the optimum pre-press workflows and device settings. 

And that’s just in the packaging creation process. AI and its friends, AR (Augmented Reality) and VR (Virtual Reality), can help brands connect with consumers in a more engaging way. For example, brands could use AR to allow consumers to see how a product would look in their homes or use VR to take consumers on a virtual tour of their sustainability projects.

AI’s transformative power knows no bounds, from optimising the supply chain to predicting demand and ensuring quality control. Once companies harness AI’s full potential, they can enhance productivity, drive cost-effectiveness, and create unforgettable customer experiences.

How far will AI be embedded in print companies in the next few months? Time will tell, but the tech is progressing fast.

Personalisation: the Power of Variable Information

Personalisation has gained significant importance in today’s world, where consumers seek unique and tailored experiences. Variable information printing (aka Variable Data Printing (VDP)) in digital packaging enables brands to unleash the power of personalisation. By leveraging cutting-edge digital printing workflow software, brands can bring a new level of engagement to their packaging by infusing personalised codes, messages, or dynamic graphics.

One of the key advantages of VDP is the ability to create targeted marketing campaigns. Brands can incorporate customer data and analytics or preferences into the packaging design, allowing for customised promotions or offers for groups of people or even individuals. For example, a beverage company could print unique QR codes on each bottle, leading customers to exclusive discounts or personalised content when scanned – or even print customers’ faces and names on the labels. This level of personalisation not only increases customer engagement but also boosts the effectiveness of marketing initiatives.

VDP also facilitates the implementation of loyalty programs. Brands can print personalised loyalty points, rewards, or unique identifiers on the packaging, encouraging customers to participate in the programme. By making customers feel valued and appreciated, brands can foster a sense of loyalty and strengthen the bond between the brand and the consumer.

Beyond marketing, brands can also use personalisation for security marking, batching and barcoding. 

As you can see, the future of digital print is personal.

Increased Quality: Hardware is Moving On Too

Differences in quality between lithographic and digitally-printed material are increasingly hard to discern, even on more challenging stocks up to 400 gsm. Digital machines can upscale lower-resolution images more readily, and speciality inks and toners have extended the gamut and enabled better Pantone coverage. 

As digital machines develop and potentially eat into the B2 market, the traditional strengths of litho – solid single colours, metallics and Pantone matching, for example – may be eroded.

Will digital vendors produce bigger machines to take on new segments? Will litho manufacturers introduce new digital devices? The future of digital packaging hardware promises to be interesting!

An infographic titled, "Future of digital packaging". It explores ecommerce, AI, influencers, print quality, sustainability and personalisation.

Conclusion

You’ll have noticed that the themes in this blog post are interconnected. AI can drive personalisation, which in turn drives social sharing and increased ecommerce. Sustainability messaging, augmented design and print quality also sell more products. The future of digital packaging will be greener, more efficient and more targeted, but with the help of AI, it will do all of that without lowering packaging quality or losing the personalisation aspect.

Over the following months and years, we can expect digital packaging to become ever more innovative and creative and an even more powerful tool for brands to harness. 

Interested in learning more? Talk to our specialists to learn how Xerox and First Copy can help you grow your business and invest in digital packaging. You can call us on 01223 811311 or email info@firstcopy.co.uk. 

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Elizabeth
Elizabeth
Six years into her tenure at First Copy, Liz particularly enjoys writing about new production innovations and market trends.
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