March 12, 2024

Weekly Business Insights 03/12/2024

Artificial Intelligence in the Packaging Industry: A Revolution from 2023 to 2032. 5 Ways Generative AI Will Transform Packaging by 2030. How AI is Reshaping the Packaging Industry.


Artificial Intelligence in the Packaging Industry: A Revolution from 2023 to 2032

The packaging industry stands at the forefront of a revolution, driven by the incredible potential of artificial intelligence (AI). In this transformative journey from 2023 to 2032,AI is set to redefine packaging design, manufacturing, sustainability, and even recycling.

As businesses prioritize efficiency, quality, and security, the demand for ML-driven solutions in packaging will surge. Embracing ML presents an opportunity for companies to enhance competitiveness, protect their supply chains, and deliver high-quality products, fostering sustainable growth and customer satisfaction.

The packaging industry evolves due to AI’s adoption, driven by e-commerce growth, changing consumer preferences, and sustainability concerns. AI enhances order accuracy and waste reduction in e-commerce fulfilment centres. It also analyses consumer data for personalized packaging, increasing brand loyalty.

AI-driven design, reduced material usage, and sustainability align with evolving industry demands. AI revolutionizes packaging logistics by maximizing load capacity in delivery trucks, reducing packaging material requirements, and cutting the carbon footprint per item. This sustainable approach aligns with the triple bottom line concept —achieving social, environmental, and economic success.'s%20transformative%20role,5%25%20decrease%20in%20shipping%20costs.

5 Ways Generative AI Will Transform Packaging by 2030

Speed to market is increasing, driven by more personalization and promotions, shorter runs, regional/smaller brands, more channels to market, consumer convenience and the ability to quickly follow trends from the social media world. This is putting huge pressure on brands, retailers and suppliers across the packaging value chain – including graphic and packaging designers. Today, generative AI can struggle with basic packaging terms (in contrast it is excellent at replicating cartoons or celebrities as there is a lot of available data). This will change as massive improvements in performance will lead to AI becoming a powerful tool for getting customized products to market faster. Lot of development work going into design, prepress, and workflow tools. Human creativity will still be needed to reduce risks of plagiarism. Brands and their packaging/graphic designers will have many more additional inputs to work with, including deeper and richer consumer research, live data on product performance and insights on regional or micro preferences. For example, a new product could be created off the back of social media trends. A social media influencer develops an idea and publishes a “fake version” to create a buzz (helped by generative AI) and if it goes viral, the brand chooses to get on-board and develop the “real” thing. Another trend is a local brand popular in one country going viral and desired by consumers in another country, as seen with Waken toothpaste, a UK brand, getting a big launch in Australia. There is huge potential for AI combining with digital print to enable fast failure and rapid scale up. All digital print equipment suppliers are using AI (or at least talking about it) for autonomous production on print and converting equipment.

Generative AI will significantly lower the barriers for creativity for packaging design and its contents. A brand could be disrupted by packaging through explosively growing personalized content, including text, image, video & other virtual content, and versatile packaging format generated through generative AI. Brands will move faster and launch new products based on a better interpretation and understanding of consumers’ needs. Generative AI will help to formalize packaging design based on consumer preference. It reduces the time of experimental trials and improves the success rate. This will have an impact on printing for packaging, with a further integration with digital printing, digital finishing and automatic forming machines.

How AI is Reshaping the Packaging Industry

The use of AI in packaging is not restricted to a single aspect. Instead, its applications encompass almost all processes in the packaging sector. Sophisticated technologies such as computer vision, machine learning, and 3D printing have widespread use insourcing, manufacturing, design, and distribution processes, among many others.

The numbers speak volumes about the exponential growth trajectory of AI within the packaging sector. In the current landscape, the estimated worth of AI in the packaging market stands impressively at $1.79 billion. In a decade, this is projected to soar even higher at a staggering $23.4billion by 2034–that’s a remarkable 29.3% CAGR. This underlines the immense potential and market demand for AI in the packaging industry.

AI will undoubtedly play a key role in driving innovation in the packaging industry. Industry experts foresee AI primarily impacting production, distribution, and logistics processes. It will be crucial in meeting the increased demand for sustainable, smart, and connected packaging. AI will also enable the development of packaging that not only meets consumer demands but also reduces environmental impact. As AI technology matures, we are bound to see it at work in virtually every aspect of packaging.

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