Packaging Scotland recently asked a number of key stakeholders from across the packaging industry to provide their predictions for what we can expect in the 12 months ahead.
Mergers and acquisitions, sustainability legislation, and political stability (or instability as the case may be) are just some of the issues expected to dominate the packaging landscape this year.
Peter Atkinson, chief executive of Macfarlane Group, expects the packaging industry to benefit from a ‘period of political stability and a government which encourages economic growth’.
“In the drive for sustainability we would encourage those designing any future packaging legislation to ensure it is fully thought-through, that consultation with key stakeholders is intensive and that greenwashing, which adds no real value to the environment, is identified and eradicated. The journey towards sustainability requires companies to take a holistic view of the volume and type of packaging they use, packaging that protects against product damage and optimises logistics costs.
“Macfarlane Packaging will continue to focus on supporting our customers to operate with the minimum amount of packaging necessary to protect their products and use sustainable packaging materials. At the same time, we will add incremental value to customers by helping them reduce packing, transport and storage costs.”
Steve Gough, CEO at Valpak by Reconomy, said that while 2024 concentrated on setting up the mechanisms for packaging EPR, 2025 is likely to see producers and local authorities scramble to meet the new legislative demands.
“We know that many are uncertain of their responsibilities – last year, Valpak responded to an unprecedented 19,000 queries around pEPR. Preparing an entirely new set of data is challenging, but it is crucial in advance of eco-modulation. Without data evidence, producers will be charged the highest rate fees, whatever the actual fee status of the material.
“Aside from meeting the legal requirements around data submission, the most important action for obligated brands is to assess their packaging and look for ways to reduce costs. The announcement of Defra’s Recyclability Assessment Methodology (RAM) will help to clarify where this attention should be focused, while the recent announcement of a communications and behaviour change campaign to promote participation will be welcomed by the entire value chain.”
Jude Allan, interim MD, OPRL, agreed that communicating with members of the public will be ‘critical’ in the success of packaging extended producer responsibility (pEPR) in 2025.
“We know from experience that a lack of engagement with recycling leads to lower volumes of material being collected. Under the terms of pEPR, this will result in higher costs for producers. So, in 2025, it is time to focus on participation.
“OPRL applauds Defra’s decision to introduce a behaviour change campaign, while we continue to focus on providing the tools for on-pack labelling. Our recently launched Recyclability Assessment Tool uses our metrics to assess recyclability, and this will be updated with the release of Defra’s Recyclability Assessment Methodology (RAM). Our research shows that packaging is the first port of call for those looking for recycling instructions so, while mandatory labelling is on hold, we still see the more savvy brands choosing to label packaging products. We are seeing no sign of this trend abating into the coming year.”
Donald McLaren, MD of McLaren Packaging, said there is a ‘degree of uncertainty’ confronting the Scotch whisky industry in 2025 due to various geopolitical developments such as a second Trump USA presidency, while the recent budget has increased cost pressures on operations.
“We will take these challenges into account while continuing to explore opportunities for growth to maintain a stable and solid business for our employees and clients. We will continue our programme of expansion, investment and diversification through exploring further opportunities for growth, whether organic, through acquisition or entering strategic partnerships.”
Julian Freeman, MD of MM Packaging Deeside, thinks the packaging industry faces a year of opportunities and challenges.
“While economic pressures remain, the sector has shown resilience, adapting to evolving demands and navigating financial headwinds with innovation and strategic focus. The shift from plastics to fibre-based alternatives, particularly cartonboard, will continue. Its sustainability, recyclability and versatility make it a key product in addressing many environmental concerns and meeting consumer expectations for greener packaging solutions.
“Advances in technology and design will further cement its position as a go-to material in the drive for more eco-friendly packaging. We will also begin to see the initial effects of industry consolidation. Recent mergers and acquisitions are reshaping the competitive landscape, creating opportunities for streamlined operations and expanded product offerings. These changes will play a pivotal role in defining the future of the packaging sector.”
Emma Verkaik, CEO of the BCMPA – The Association for Contract Manufacturing, Packing, Fulfilment & Logistics, said 2025 will see the BCMPA remain committed to raising the profile of third-party outsourcing to brands and retailers.
“With over 200 members offering a diverse range of outsourcing services, our network can help brands take their products to market, quickly and efficiently. A key initiative will be the launch of our Associate Membership programme, designed to connect suppliers with members and provide an information exchange from professionals within the industry.
“The value of engaging with a wider network was seen at the BCMPA Conference in 2024, where members enjoyed the introduction of a broader dialogue. Our programme will build a network that not only facilitates cooperation but also strengthens sustainable practices across the industry.
“Indeed, our message for 2025 is clear: as brands face growing pressures to bring products to market speedily and cost-effectively, the need for strong outsourcing partnerships has never been greater. If you want your project to be designed, produced, packed and despatched – ask a BCMPA member!”
Josephine Coombe, chief commercial officer for Nulogy, also expects the trend of leading FMCG brands relying on contract manufacturers, 3PLs and co-packers for late-stage customisation and new product innovation to continue to grow.
“In response, digitalisation has become essential for third-party outsourcers, as supply chain leaders recognise that digitalised partners are far better equipped to provide the accurate, timely information they require. A digitalised shop floor empowers co-packers to capture real-time production data, giving them the ability to respond to customer demands more swiftly than those relying on paper records, spreadsheets, or the recollection of warehouse staff.
“From a quality assurance and traceability standpoint, digital operations significantly reduce the risk of human error and the inefficiencies of manually searching for information. 2025 will be the year of digitalisation and the rise of the smart factory, enabling co-packers and manufacturers to meet the growing expectations of FMCG brands while improving efficiency and agility in an increasingly competitive world.”
In terms of packaging machinery, Wayne Kedward, MD of Autopack, said legislation, such as the Plastic Packaging Tax, is pushing businesses to adopt more sustainable practices, with flexible and refillable packaging solutions often leading the way.
“For instance, lightweight options like doy packs with spouts offer substantial weight savings, reducing material usage and meeting sustainability goals. At the same time, the need for streamlined, highly efficient production is reshaping manufacturing processes.
“Minimal-touch lines are becoming increasingly popular, particularly in the food and drink sector, where automation can significantly boost productivity and reduce labour costs. These trends are also closely tied to the surge in new product launches, with businesses requiring adaptable, efficient packaging lines to bring innovations to market quickly.
“By addressing these challenges with turnkey solutions and a full-service approach, from design and installation to ongoing support, we anticipate 2025 will see continued growth for the latest packaging machinery.”
Angel Jimenez Gil, business development manager at Xaar, expects the trend towards personalisation in labels and packaging to grow, driven by consumer demand for tailored products and advances in digital print technology.
“Innovations, such as Xaar’s Versatex printbar, enable brands to incorporate high-opacity colours, intricate textures, and varnish effects, creating packaging with tactile, interactive features that enhance the consumer experience. Labels can now include haptic elements such as raised textures, matte finishes, and spot varnishes, all printed simultaneously in a single pass.
“This capability not only differentiates premium products on crowded shelves but strengthens brand identity and consumer engagement. Furthermore, mass customisation can aid anti-counterfeiting efforts by producing premium, short-run labels with unique digital cold foil effects.
“As digital print technology evolves, the potential for personalised packaging will expand in the next year and beyond, enabling brands to meet the growing demand for products that feel as impressive as they look.”
Finally, Martin Kersh, executive director at the Foodservice Packaging Association (FPA), made a series of predictions for 2025, including that the Scottish Government will press on with a 25p minimum charge on single-use cups; the Competition & Markets Authority will turn its attention to packaging that breaches the Green Claims Code; the foodservice sector will prove government was wrong not to go ahead with mandatory retailer takeback of paper cups; the USA will impose high tariffs on Chinese packaging, with even more packaging dumped in the UK; and new pEPR guidance will be released to help clear up the chaos, with greater alignment between EPR, Simpler Recycling and Recyclable Assessment Methodology.
Martin also expects EPR fees will be published and, as a consequence, we’ll see retailers reversing moves from plastic to paper and board-based equivalents. His other predictions are: that the environment agency will fail to act on EPR fraud, claiming insufficient funding; the UK Government will finally take action to ban oxo-degradables; Defra will appoint a new permanent secretary; the UK Government will begin the process for banning sachets (the FPA will argue for an exemption for sachets containing food); there won’t be a single successful trial of reusable packaging on the high street, but they will continue to flourish in closed environments; and the number of mergers among packaging producers will increase.
