A recent study and several news articles surrounding it are reporting some interesting news for our industry. The report, done by Smithers Pira, reports that by 2018, the sustainable packaging market will reach $244 billion.Yep, that’s billion with a ‘B.’ This is mainly because we’re now living in an environment were multiple forces are pushing for more sustainable packaging. The main reasons listed in the study are below:
- Regulations—These are coming from local and federal governments, and as sustainable packaging becomes more viable, the forces coming from regulation will increase.
- Reduced costs and improved profit—This is something that we’ve already seen with our customers, as On Demand Packaging® is helping reduce their corrugated cardboard costs by up to 20 percent.
- Source reduction—Another area where Packsize helps fulfillment centers. Our customers experience reductions in void filler and corrugated.
- Customer demand—Environmentally-conscious consumers are an ever-growing segment that are willing to avoid brands that they perceive as not being sustainable.
- Corporate commitment—Smart companies realize that not only do they need to satisfy environmentally-conscious consumers, but that they also have a moral obligation to reduce their impact on the environment.
So what does this mean for fulfillment centers around the country?Technology Adoption Lifecycle (also known as the adoption curve) before. But in case you haven’t, here’s a quick summary: the response to new technology follows a normal curve where the more risk-oriented innovators adopts the new technology first, followed by other early adopters. The new technology then becomes accepted by the majority of the population, and then is eventually adopted by the laggards. Currently, sustainable packaging is still in its early stages, but it is growing increasingly clear that it is not going away anytime soon. Those who adopt this new technology are commonly seen as thought leaders in their industry (just check out the reception to Staple’s adoption of On Demand Packaging®). The companies that haven’t started looking for ways to use On Demand Packaging or other forms of sustainable packaging now have three choices:
- Adopt sustainable packaging now and be a thought-leader in your industry while gaining an advantage over your competition.
- Adopt sustainable packaging later and lose the opportunity to gain an early advantage over your competition.
- Adopt sustainable packaging after most everyone else has and be seen as a laggard in your industry.
If you would like to learn more about what On Demand Packaging can do for you, send us an email and ask for a free, no-obligation consultation by clicking the link below: