After the challenges of 2021, industry specialists tell Packaging Scotland about their hopes and expectations for the year ahead
FROM Brexit and the Covid-19 pandemic through to labour shortages and sustainability pressures, it’s fair to say that 2021 was a year of immense challenges for everyone connected with the packaging industry.
However, it was also a year of great innovation and ambition. Over the course of last year, Packaging Scotland covered a wide selection of stories about companies across the sector investing in staff, new solutions, facilities, and opportunities.
From the continued boom in e-commerce to advances in robotics and automated machines, the packaging industry is adapting to a period of great change.
So, what will 2022 bring? To celebrate the start of the New Year, we asked a number of industry stalwarts to forecast what might be in store over the next 12 months.
Stephen Heslop, MD of Pitreavie Group, told Packaging Scotland he expects 2022 to be a ‘transformative year’ with the introduction of the plastic packaging tax, due to come into effect in April.
“This is a real paradigm shift which will further drive the demand for sustainable products,” he explained. “Meeting demand for paper-based products will not necessarily be easy, and we’re planning on the basis that demand will outstrip supply. We think paper prices have reached a peak; however, because of high demand, manufacturers are full, and the price is unlikely to fall in the first two quarters of the year.”
Stephen added that Pitreavie has dedicated ‘significant investment’ to create further capacity and facilitate market demands.
“We expect to see corrugate grow by at least 50% and have capacity to expand further,” he said. “We see customers utilising outer packaging to communicate to their customers and finding other innovative solutions as they move to more sustainable options. We also see online shopping trends continuing throughout 2022 and are geared up to meet consumer requirement in every vein.”
Michelle Ottolini, business unit director at Pitreavie Group’s chilled packaging division Sorbafreeze, reflected on 2021 as an ‘exceptional year of growth’ in online temperature sensitive food sales, thanks in part to the initial increase in e-commerce demand triggered by Covid. She expects continued growth throughout 2022 driven by a combination of new customer acquisition and existing customer retention.
“2022 will put customer convenience at the fore by truly cementing the accessibility of purchasing packaging online,” Michelle said. “We want to encourage customers’ trust and open an array of new purchasing possibilities by making it evident that they can dispatch goods, expanding their distribution from local to international despite the challenges of Brexit.
“Environmentalism will be another important focus, with carbon neutral products in future development plans. We understand that the environmental impact of packaging is not just important to us – but to our customers and their customers also – which is why we’ll continue to create solutions that are sustainable and innovative.”
Chris Hogarth, MD of Dalkeith-based NSD Labels, is anticipating another year of growth for the business.
“The digital label market has continued to boom, and the digital emerging technologies continue to become better and more cost effective which lowers the investment barriers,” he said. “We are in a unique market where short run highly embellished label products are desired by our market sectors, and we need to be constantly able to develop and manufacture products of the highest quality and aesthetics to keep our growth curve moving in the right direction.”
Chris remarked on the continued growth and diversification of the Scottish craft beer and spirits industry, stating there are great opportunities to grow within the sector, as well as other opportunities UK-wide in more traditional markets like pharma, chemicals and personal care.
“The other major change I think we will see in 2022 is a move to more sustainable materials, starting with the larger brands,” he added. “I expect that this development will put some pressure on an already tight supply chain for certain products, especially those with recycled content in the substrate.
“2022 promises to be an interesting year for the label industry and an interesting year for the NSD labelling group!”
Winfried Muehling, general manager of Pro Carton, believes sustainability goals will take on even greater significance in the year ahead.
“There is no doubt that the future requires drastic change to reverse the centuries-old harm done to the environment,” he said. “And now is the time to help nature readdress the balance and restore Earth’s equilibrium.
“For many years, sustainability has been a growing priority across all industries, none more so than packaging. In our recent study of 7,000 European consumers, we found that more than 6 out of 10 consumers say that the environmental impact of packaging affects their purchasing decisions.
“So, as general manager of Pro Carton, in 2022 I hope to see a continued consumer focus on sustainable choices, with brand owners, retailers and consumers stepping up and making carton and cartonboard their preferred packaging material. After all, our focus is to promote the benefits of cartons as a truly recyclable, renewable and biodegradable packaging material, making it the perfect example of the circular economy.”
Colin Maher, country manager UK & Ireland at machinery manufacturer Minebea Intec, believes more firms will embrace the benefits of automation in 2022.
“The industries that we work with have experienced huge staff shortages during 2021, which is the result of Covid and Brexit,” he said. “Those working in manufacturing that were affected by lockdowns and reduced work have sought alternative employment and Brexit has meant many Eastern Europeans have returned home.
“In 2022, my hope and expectation is that these industries become more automated through the use of machinery and software in their processing. We’ve been working with cheese manufacturer Norseland to overcome staff shortages by automating their labelling processes, in turn that’s also helped reduce RSI for staff and saved them costs in recruitment and wages. Our software can also automate entire factory settings which can save manpower and costs, the investment pays for itself in time and delivers huge business benefits in the process.”
