Almost every industry has felt the effects of COVID-19 in some form or another – the packaging industry is no different. In early 2020 no one could have predicted what was to come, and just how much of an impact COVID-19 would have on our day-to-day lives. For the first time ever for many of us, social distancing was a behaviour that had to be followed to try and reduce the spread of the virus. Limiting the number of places we visit and the amount of people we see continues to be a common theme for many Kiwis as different, more infectious variants of COVID-19 emerge, and as the New Zealand government relaxes protection frameworks.
With packaging, in particular, businesses of all shapes and sizes have had to adapt to different ways of working, and differing needs from their customers. Many brick and mortar stores have had to move solely online as their customers decide to stay home and shop online, to limit their interaction with others. E-commerce retailers have in turn had to evaluate the types of packaging that they’re using to meet growing sustainability concerns.
The effects that COVID-19 has had on the packaging industry are vast. Here we unpack a few of the challenges that the packaging industry is facing due to COVID-19, and how these challenges are changing the packaging world.
The shift from brick and mortar to online
More people staying at home due to the pandemic has seen a big shift in the way that many Kiwis choose to shop and in turn, businesses have had to adapt and move online to avoid getting left behind. Statistics from NZ Post show a record couple of years for online shopping since the pandemic started and it appears that it’s only on the way up!
As stated in NZ Post’s 2021 eCommerce Spotlight, lockdowns implemented in 2020 introduced many New Zealanders to the convenience and safety that online shopping provides. And by the end of 2020, more than half of adults throughout the country were enjoying the perks of shopping online. Further lockdowns in 2021 brought about by the Delta variant only cemented the popularity of online shopping. The result? A whopping $1.35 billion of new online spending occurred throughout 2021, driven by a permanent change in shopping habits.
The big shift to online has had a big impact on packaging and the products required to get purchases to customers safely and in perfect condition. This is a new concept for many brick and mortar retailers that traditionally only had to keep stock of carry bags. Physical retail stores are now acting as fulfilment centres so they need to ensure they have enough stock of packaging items like mailer bags and packaging tapes which takes careful planning. To add to this headache, we continue to face challenges nationally with supply chain disruptions due to COVID-19 which can make it hard to get a quick supply of items via courier. Couriers are also busier than ever due to heightened online shopping which only adds to the issue.
While online shopping is convenient for consumers and the returns for businesses can be significant, careful planning must be done to ensure that you can keep up with consumer demand not just for your products, but for everything else like packaging that is imperative in shipping items out to customers.
Supporting sustainability
With many Kiwis making the shift to online shopping they’re also equally conscious of the effect that purchases and the packaging that they arrive in has on our planet. Research shows Kiwis are willing to change their shopping habits to make more sustainable choices. In the study completed by Colmar Brunton, they found that 86 percent of people surveyed were willing to change the retailers that they buy from or the products that they buy, in order to be more sustainable.
With sustainability at the forefront for consumers, businesses now need to consider the impact that their products and their packaging have on the environment. This shift in thinking has only been accelerated by the pandemic and more people staying at home and heading online to fulfil their shopping needs. In 2021 alone, NZ Post recorded $7.7billion of online spend, this is up 21% on 2020.
Some simple things can be done by businesses to contribute to a more sustainable, circular economy. One easy switch could be to evaluate the types of packaging that you’re currently using to see what sustainable switches could be made. Popular sustainable packaging choices include paper packaging tape, recyclable cardboard cartons, compostable courier bags and recyclable void fill.
Packaging will become a part of the branding experience
With more and more people choosing to shop from the comfort of their own homes, it’s only natural that packaging will evolve, to become a bigger part of the branding experience. There is a demand already from many businesses for packaging that better represents their brand and will ensure that their products stand out from the rest during transit.
Whether you choose to print your brand and message on the exterior of cardboard packaging boxes, you use printed packaging tape or you have specially printed courier bags, there are many different options now when it comes to custom branding packaging items. As custom packaging experts ourselves, we are seeing more demand for packaging that is not only functional but stands out, and is the best representation of a brand.
You can learn more about the benefits of custom packaging and the custom packaging services we offer in the video below.
COVID-19 has changed many aspects of our daily lives; for many of us, it’s also meant the need to adapt. As more businesses shift to the e-commerce space this will naturally impact the shopping experience that we offer consumers and in turn, this will continue to impact the types of packaging that we use. And with a growing shift towards sustainability in the e-commerce and retail spaces, this adds another level of complexity for businesses.
As a New Zealand business that promotes sustainability and sustainable packaging, we are excited to see more businesses choosing to operate in a more environmentally friendly way. We have an entire range of sustainable packaging supplies perfect for businesses looking to reduce their environmental footprint. You can view and shop our range by clicking below.
