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DID YOU KNOW?
The evolution of packaging The e-commerce boom has meant a scramble for packaging. By JAMES FRANCIS
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here is overwhelming evidence that e-commerce enjoyed an enormous boost during the pandemic. That’s according to the Global Ecommerce Update 2021 report, which shows that while global physical retail contracted by 3 per cent, e-commerce retail grew by 27.6 per cent. The habit appears to have stuck and independent research company Insider Intelligence predicts a further 16.5 per cent growth rate for 2021. The surge caused an unprecedented scramble for packaging, leading to a cardboard shortage as major e-commerce companies bought up stock to meet demand. Though demand has balanced out, the packaging industry is playing catch-up to new market demands. According to ThePackHub’s Global Packaging Trends Compendium 2021, there are nine new packaging trends – mostly fuelled by the e-commerce market. These include presentation sleeves for cans and hygienic cardboard layers.
Secondary packaging And while a purchase arrives in a box and is not displayed on a shelf, for example, in a carton of cigarettes, experts believe the need remains for secondary packaging: the branded packaging that contains the packaged products.
These may seem less relevant if the goods arrive in a courier box, but says Niel Burg, creative director at branding and packaging design agency Burg Design, secondary packaging plays a significant role in creating new retail experiences for customers. “We believe that secondary packaging is even more important in the e-commerce space, which has become retail therapy during this pandemic. Secondary packaging evokes an emotion of excitement, similar to unwrapping a birthday gift. It gives a brand a certain degree of quality and assurance. This is what turns a customer into repeat business.” Branding is key, but so is ensuring a customer gets their order in one piece. As Burg says, “There is no greater disappointment than when you receive your parcel and your purchased product is damaged. It’s important to take the
“It’s important to take the necessary steps to ensure the packaging arrives in the same condition that it left the warehouse.” – Niel Burg
necessary steps to ensure the packaging arrives in the same condition that it left the warehouse.”
New demands According to Justin Drennan, CEO of logistics-as-a-service-provider Parcelninja, e-commerce places new demands on packaging. “Products need to be packaged correctly for e-commerce, which differs considerably from traditional retail. We adhere to drop tests, package requirements and a stringent on-boarding process. We find most packaging is inadequate and have a process to improve product packaging or repack products correctly.” Many retailers rely on their logistics partners – couriers and warehousing – to put the proper measures in place. These include parcel tracking and security, supported through technology service platforms. “We are working together with customers to improve this further upstream, and if not possible we offer services to help improve the quality of the packaging, in adherence to our packaging standards,” says Drennan. “In order to ensure quality of delivery, we need to make sure products are packaged appropriately for e-commerce.”
FAST FACT Packaging is divided into three classes: primary; secondary and tertiary. 1. Primary packaging is branded “retail” packaging and how you’d encounter a product on a retail shelf. 2. Secondary packaging is branded exterior packaging that surrounds primary packaged products, such as a six pack of drinks, and sometimes acts as a display stand. 3. Tertiary packaging consists of the nondescript boxes that freight products, though these are also increasingly branded.
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• In 2019, the global packaging market reached R13-trillion and is anticipated to reach R23.5-trillion by 2027 according to Research and Markets. • Plastic still leads the market, valued at R4.9-trillion in 2020 (Grand View Research), but cardboard is not far behind. • The corrugated board packaging market was valued at R3.7-trillion in 2019, and is projected to reach R4.8-trillion by 2025 according to Research and Markets.
F R E I G H T, L O G I S T I C S & W A R E H O U S I N G
2021/05/20 9:05 AM
