The State of Packaging Automation, Today & TomorrowThe State of Packaging Automation, Today & Tomorrow

With automation and technology advancing as artificial intelligence and data continue to drive global innovation forward, it comes as no surprise that the way companies are producing and packaging products is also changing at a rapid pace.

Automation continues to reshape the packaging sector with a forecasted demand for packaging automation expected to reach a high of $161 billion by 2033. While the shift to increased packaging automation is not an overnight transition, it continues to drive productivity, efficiency, and sustainability efforts. As companies look ahead to 2025, the following industry trends are expected to continue to grow in the packaging automation space: increased ecommerce automation investments, reducing the number of safety issues, reducing waste, and meeting sustainability goals.

Increasing ecommerce automation investments.

Due to labor shortages, ecommerce continues to be a focal point for packaging automation growth. Ecommerce enables entrepreneurial businesses to grow rapidly, which requires automation to meet the explosive demand especially when social media drives customer traffic and behaviors. Start-ups and newer companies see the benefits of selling direct, either through their own websites or through third-party websites like Amazon. This provides global exposure, which can result in growing pains due to manual processes and struggling with how to fulfill orders. The mom-and-pop companies are having to set up bona fide manufacturing and shipping operations causing many to reach out to providers for entry-level automation support. While there is not a one-size-fits-all approach for packaging automation solutions, they can range from pack stations, void fill machines, case sealing equipment, automated labeling, case erectors, and pallet wrappers.

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For example, a healthcare service customer was interested in utilizing automaton to solve their distribution challenges including rising shipping costs, increasing labor expenses, packaging waste, and pick-and-pack accuracy.  After working with an automation specialist, they were able to solve for each challenge by automating void-fill operations with scanners and imaging technology to determine and dispense the correct amount of void-fill for each box. This resulted in reduced labor costs, operational sustainability, and drastically reduced material waste.  The customer is now implementing these automation solutions across seven locations, which will optimize the benefits of automation and drive consistently across the enterprise.

I anticipate this trend will continue to grow in 2025 and increase further with the advancement of artificial intelligence (AI) technology influencing consumer behaviors. Ecommerce companies will need to become more efficient and offer lower operating costs as competition grows in this space.  The pandemic in 2020 rapidly accelerated the consumer ecommerce adoption rate. While there has been some rebalancing of customer engagement with brick-and-mortar stores, the convenience factors of online ordering will continue to drive ecommerce expansion.

Stretch wrappers and all machinery are increasingly automated. (Image: Veritiv)

Reducing safety issues and injuries.

Packaging automation increases employee and warehouse safety, allowing employees to perform less dangerous activities. Employee safety is often linked to company performance in many ways including reduced injuries and cost, improved productivity and reliability, increased employee engagement, and better customer satisfaction, which all tie into improved financial results.

By implementing automation, companies can drastically reduce repetitive motion and improve ergonomics for warehouse employees. A simple example of this would be replacing manual pallet shrink wrapping with the installation of a stretch wrapping machine.  With the right application, the warehouse workforce will experience a significant reduction in incidents.

Autonomous guided vehicles are also entering the market in several formats including driverless forklifts which would reduce the number of accidents of employees getting in and out of the forklift. There are also automated warehouse floor scrubbers and robotic material handling. Each of these solutions is designed to lower labor costs, improve scalability, and reduce the chance of injuries.

Reducing excess material waste.

By using more efficient automated machinery, companies can reduce waste in material use, labor, and emissions. When organizations evaluate automation solutions, the primary decision filters include process, reliability, and cost reduction. However, we continue to see increasing customer interest in sustainable and environmentally friendly solutions with the caveat that the end game results in a healthier bottom line. 

Packaging automation can help with sustainability by reducing manual labor, reducing waste, and making operations more efficient.  Examples include automated filling processes, pouch-making machines, and remote monitoring systems to optimize material usage. The interest and adoption of sustainability will continue to grow, but the implementations will primarily occur where cost is equivalent or reduced and waste is better managed.

Looking ahead.

Many organizations currently take a conservative approach to incorporating automation solutions, however, as we look to the near future, I believe we will experience rapid adoption of new automation technologies. As competition and inflationary pressures continue to increase, I believe we will see greater eagerness to adopt technology. Organizations should seek an expert packaging supplier partner with expertise in both automation and materials for an integrated approach to the long-term sustainability of their automation solutions for years to come.