Packaging trends to expect in 2025
As the year comes to an end and the winter cold sets in, it’s time to look to the year ahead and the packaging trends to expect in 2025.
It’s fair to say the UK has seen many changes this year. With a new government and inflation rates at 2.3%, still above the Bank of England’s 2% October target, it has been a challenging year for businesses and individuals alike.
The impact of recent budgets, especially tax contributions increasing for businesses, means many are looking at ways to improve their labour management and productivity, as well as reducing operating costs.
In this article we’ll look back and consider key areas of focus for the packaging industry in 2024, as well as economic, legal and social factors that could impact the packaging trends we’ll see in the next year. Plus, we’ll dive into the packaging trends our experts are predicting.
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A look back at Macfarlane Packaging in 2024
It’s been a busy year for the packaging industry and here at Macfarlane Packaging, it’s been no different. From investing in sustainability to celebrating our 75th anniversary in the first half of the year, a huge achievement for the business, we’ve certainly hit some key milestones!
This year, Macfarlane Packaging has worked closely with our customers to improve their sustainability and help reduce their associated packaging costs. Overall, supporting businesses in their preparation for the impact of Extended Producer Responsibility in 2025 has been a significant focus for us.
In the late summer we launched our 9th annual Unboxing Survey. Key takeaways from the survey highlight the importance of businesses preparing for Extended Producer Responsibility (EPR) as, when it comes to sustainability, our research found that 73% of customers are not willing to pay the price for eco-friendly packaging, an interesting factor to consider as businesses are pushed to adopt easier to recycle packaging.
In addition to supporting customers to meet their sustainability goals, we’ve been focusing on our own sustainability too. This included announcing a 37% reduction in carbon emissions intensity in our annual sustainability report and investing in solar energy at our GWP Group site, which will help us further reduce our carbon by approximately 70 tonnes per year.
What will influence packaging trends in 2025?
There are multiple factors that will influence packaging trends in 2025, including Extended Producer Responsibility, announcements made in the October budget – like rises in businesses’ National Insurance contributions and sustainability targets from the new Labour Government. Let’s explore these in more detail…
Extended Producer Responsibility: The UK government has introduced new measures for businesses who supply packaged products into UK households, including data reporting and modulated fees. Companies that are in scope of the legislation will need to pay taxes based on the volume of packaging they put on to the UK market and how easy it is to recycle.
The legislation is expected to add a whopping £2bn of extra costs associated with packaging to UK businesses’ outgoings.
The Government hopes that these regulations will encourage businesses to use more sustainable materials and use less packaging where possible. For more information about EPR, you can read our handy guide here.
Increase in Plastic Packaging Tax Rates: In October 2024, the Chancellor said businesses should expect UK Plastic Packaging Tax rates to rise again. So, from 1st April 2025, rates will be £223.69 per tonne, charged on plastic packaging that contains less than 30% recycled content
Significantly, the Government has also indicated that they will be making changes to what constitutes recycled content plastic. It is thought that only plastic that contains 30% post-consumer recycled waste will be exempt in the future.
The aim of this tax is to encourage businesses to use recycled plastic in the manufacture of plastic packaging, creating greater demand for the material and therefore, increasing levels of recycling and collection of plastic waste, diverting it from landfill.
Rises in National Insurance contributions & changes to the economic environment: The UK’s Autumn Budget included increasing employers National Insurance contributions from 13.8% to 15% on workers earnings above £5,000 per year from April. The National Living Wage (NLW) will also rise by 6.7% from the 1st April 2025 for those ages 21 and over, from £11.44 to £12.21 per hour. This will have an influence on business costs as well as labour management.
This year the Bank of England Bank Rate is expected to fall to 3.5% by the end of 2025, which means businesses’ costs will be rising but economic growth will remain slow, as markets are not recovering as expected. This, this means keeping a tight control on costs will be a big factor in packaging trends next year.
Changes in sustainability targets: The new Labour Government plans to introduce measures to boost growth, innovation and sustainability with a focus on decarbonisation targets for businesses. As packaging plays a crucial role in impacting supply chain utilisation, it will become key in helping businesses to hit their scope 3 emission targets.
Packaging trends to expect in 2025
With key packaging legislation and business running costs shaping the landscape, let’s look ahead to the future packaging trends our experts are predicting for 2025…
Implementing Packaging Automation
The first packaging trend is the rise in businesses implementing packaging automation. With the rises in labour costs announced in the October budget many businesses will be looking at ways to reduce costs through packaging automation. This trend has an array of benefits to businesses including…
- Reducing operational costs by optimising the packing processes and costs associated with materials, productivity, transport and labour.
- Increasing productivity by streamlining the packing processes.
- Improving workflow so that your team can work smarter.
- Saving transport space as these solutions ensure that Parcel cubage is at a minimum
- Reducing material waste and lowering carbon emissions.
Many packaging processes can be automated. Options include small scale solutions like gummed paper tape machines through to full automated options like case erectors and case sealers. While automation often has an initial financial outlay, it can often return on investment quickly to provide long-term savings.
Optimising packaging to improve sustainability and cut costs
The second trend we’re predicting is packaging optimisation. During 2025 businesses will be challenged to manage rising costs while simultaneously using less packaging and making it easier to recycle. So, if you’re a business looking to do this, how can you still protect your products while cutting costs and minimising your environmental impact?
The key is packaging optimisation, which is why it’s our second packaging trend for 2025. This is when your packaging is assessed and redesigned to make it as efficient and ergonomic as possible. You use the least amount of packaging, while still effectively protecting your products.
An example of packaging optimisation might be redesigning a box style or implementing use of a lightweight performance cardboard or stretch film.
At Macfarlane Packaging, we have a tool called the Packaging Optimiser, which can show you what your packaging currently costs you and the environment. Including predicted EPR fees! The same software can also show you what new solutions can save you financially and in terms of CO2e. Learn more here.
Switching away from plastic packaging
The thrid packaging trend we’re predicting is businesses making the switch away from plastic packaging. Drivers like the Plastic Packaging Tax and modulated EPR fees, coupled with consumer pressure, mean some businesses may be looking to make the switch from plastic-based packaging to paper during 2025.
However, it’s important that businesses make an informed choice about sustainable packaging swaps.
Many of the packaging-based fees and taxed are levied by weight, as well as material. This can make the discussion around swapping from plastic to paper more nuanced. For example, recycled content plastic air pillows can be much lighter in weight vs. their paper equivalent.
Therefore, it’s essential businesses take a holistic approach to sustainable packaging swaps – considering material and weight in the context of protecting their products and their supply chain. Services like packaging audits can help with this.
Increase in businesses using returnable packaging
Our final packaging trend for 2025 is an increase in businesses using returnable packaging. With our 2024 Unboxing Survey finding that 89% of respondents are willing to return packaging, it’s clear that the market for returnable packaging is popular with consumers as well as for businesses looking to reduce their environmental impact and save costs.
This type of packaging is any box, tote, tray or container that can be used over multiple journeys rather than a single trip.
Businesses are beginning to take a more holistic view of their environmental impact, with many looking at the whole lifecycle of their packaging. Single use packaging is cheaper than returnable at first glance however, over time, it absorbs more energy to produce, as well as cost to replenish
Support implementing packaging trends in 2025
At Macfarlane Packaging, we have a wide range of products, services and facilities to help you implement the packaging trends that 2025 will throw you way. Tools like the Packaging Optimsier can show you ways to cut CO2 emissions in your packaging operation and your predicted EPR fees. Whilst, our Innovation Labs can help you design and test your ideal packaging and our e-trading portal can generate packaging usage data at the click of a button.
Don’t hesitate to get in touch to see how we can help. Contact us today!