Biodegradable, recyclable, edible packaging a new consumer trend in Vietnam
Thursday, October 13, 2022, 09:33 GMT+7
Along with greater demand for online purchases, the global packaging industry has adapted to some current trends, particularly focused on protective and sustainable packaging.
A Vietnam Packaging Market Survey conducted by Vietnam Report in September 2022 found that the packaging industry has undergone significant changes in recent years, thanks to the flourishing growth of e-commerce and online shopping habits.
According to the survey result released on October 4, the COVID-19 pandemic, which forced people to stay indoors to prevent the disease, brought a serious challenge to packaging waste.
This challenge, in turn, has forced the packaging industry to look for alternative solutions for packaging materials that are more convenient and environmentally friendly.
To that end, packaging is being designed to be more efficient for supply chains and can be opened at home instead of sitting on store shelves.
In a few years, packaging available for shipping may become a required standard for brands to manage cost pressures and sustainability.
Some e-commerce giants and countries have already implemented such standards to increase the use of this type of packaging.
Under the influence of these two major trends, the Vietnamese packaging industry is required to find smart and sustainable packaging solutions to make packaging products more customer-, brand-, and environment-friendly.
Emerging trends in the global packaging industry include the Internet of Packaging (IoP), biodegradable packaging, digital printing packaging, automatic packaging, active packaging, customized packaging, recyclable packaging, edible packaging, 3D packaging, and nanotechnology-based packaging.
"The most important solution in the packaging industry today allows us to produce packaging in a smart way," the survey report states.
"In addition, the use of 3D printing technology and robots is helping to simplify the packaging process and reduce costs for companies."
In addition to the challenges of converting production lines, 100 percent of Vietnamese entrepreneurs are suffering from the pressure of increased costs of input materials, according to the Vietnam Report survey.
A large number of them, or 43 percent, believe this pressure will continue until the end of 2023.
The packaging industry has to import 80-90 percent of raw materials and is highly dependent on world prices for oil, natural gas, and coal.
Nearly 86 percent of Vietnamese packaging companies admitted that the global economic recession is a challenge for them.
Due to the great openness of the Vietnamese economy, these companies face difficulties when their two largest markets, Europe and America, fall into recession, and they have to restrict their imports.
Considering the current situation, the Vietnamese packaging industry's profit growth may be smaller than sales expansion in 2022.
The average annual growth rate (AAGR) of Vietnam's packaging industry is currently estimated at more than 13 percent, with the AAGR for food packaging always at 15-20 percent and that for plastic packaging at 25 percent.
The Vietnamese paper packaging market is projected to reach US$3.1 billion by 2027.
Vietnamese enterprises in the packaging industry mainly include small- and medium-sized firms.
They have been left behind by foreign companies that have greater advantages in terms of capital, technology, administrative capabilities, and relationships with large partners.
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