There is growing competition in the eCommerce industry across sectors with several new online businesses starting each day and numerous others shutting down. The industry is witnessing rapid changes in various spheres. Only those who keep up with the changing market trends and consumer demands can survive in the market. Personalised packaging is one of the trends that have been catching up in the industry these days.
Do you know why businesses are investing in this kind of packaging? This blog discusses personalised packaging, the challenges with customised packaging, and the future outlook.
An Overview of the Current eCommerce Packaging Market
eCommerce stores pay special attention to packaging to ensure safe and efficient shipping of the products. In addition to keeping the products safe during transit, good packaging reflects the effort made by the sellers. It also enhances the perceived value of the product. No wonder, online businesses are spending a substantial amount on product packaging these days. In 2023, the global market size of eCommerce packaging was valued at 69.3 billion. As the eCommerce industry continues to grow, the demand for different kinds of packaging materials is rising. An increase in the demand for personalised packaging has also been observed. It has shown a compound annual growth rate of 6.6% from 2018 to 2022.
Personalised Packaging: Definition and Importance
Personalised packaging, as the term suggests, is customised to meet the specific packaging requirement of a business’s products. It not only ensures that the product fits appropriately in the box but also enhances your brand visibility. Unlike the usual readymade packaging material, personalised packaging is imprinted with a business’ logo, colour scheme, tagline, and/or other elements. This sets a brand apart from others. It is a unique way to market your brand and boost your sales.
The Role of Personalised Packaging in eCommerce
More and more businesses have started investing in personalised packaging because it plays a crucial role in the eCommerce industry. To begin with, it helps brands differentiate from others. By incorporating your company’s logo, design, and other elements on your packaging, you boost brand awareness which is necessary to stand out in the competitive market. Customising your packaging helps increase your brand value in the market by creating an impact on your customers and acquainting others with your brand. It creates a memorable experience for your customers. This often encourages repeat sales. It has also been observed that an unboxing video of a product with personalised packaging proves to benefit the brand far more. This makes it an excellent marketing tool.
Besides, a key role of personalised packaging is to keep the products safe as it is moved from one place to another. How? Well, customised packaging is cut and designed in a way that it wraps your product perfectly minimising the chances of damage. Many brands are choosing eco-friendly materials for personalised packaging. The demand for biodegradable and recyclable materials is increasing among businesses opting for this type of packaging. This is an excellent way to show your commitment to environmental protection and enhance your brand image. As consumers these days are growing conscious of environmental issues, they prefer purchasing products from brands that adopt eco-friendly practices.
Challenges and Considerations for Personalised Packaging
While personalised packaging offers several benefits, it comes with its set of challenges that businesses must consider. Here is a quick look at the same:
Increased Expense
One of the key challenges is the increase in the cost of packaging. Compared to readymade packaging materials, the cost of personalised packaging is far greater. This is because it needs to be imprinted with specific text and design. Thus, small businesses or start-ups may find it difficult to invest in it.
Delayed Delivery
Readymade packaging material is readily available in the local market as well as online. You can purchase it as and when the requirement occurs. If the demand for your products increases during a certain period, you can quickly order readymade packaging accordingly and get it delivered in no time. However, it is not the same with customised packaging. It takes time to get personalised packaging material as it is made on order. This may cause delays in the deliveries.
Design Challenges
Creating customised packaging that aligns with your brand’s identity and can create a lasting impression is not as easy as it seems. Only an experienced designer who understands your industry and consumer preferences can handle the task efficiently.
Time and Effort
This activity can be time-consuming and require additional effort. You may have to appoint a dedicated staff member who take care of it or squeeze in time from your busy schedule to accomplish it.
Innovations and Solutions in Personalised Packaging
With the advancement in technology, new and innovative ways are being devised for personalised packaging. Here is a look at some such solutions:
Digital Printing
The use of digital printing enables short-run packaging at a cost-effective price. It allows high-quality printing on different packaging materials.
Eco-friendly Materials
Eco-friendly and biodegradable materials are increasingly being used in personalised packaging. This helps attract environmentally conscious consumers and reduces the carbon footprint.
3D Printing
3D printing helps create personalised packaging designs that stand out. They grab attention and thus enhance brand awareness.
Holograms
Holographic packaging is also catching up. In this kind of packaging, holograms are used to create product labels that appear to be three-dimensional although they are two-dimensional.
Multi-Sensory Packaging
This kind of packaging incorporates elements such as scent and sound in addition to vibrant fillers and textured surfaces. This creates an engaging unboxing experience and creates a delight factor for the customers. As per a survey, 40% of shoppers like uploading pictures or unboxing videos of a product if its packaging is unique.
Future Outlook for Personalised Packaging
The need for personalised packaging is being felt by more and more businesses these days. It is a unique and innovative way to bring your brand to the limelight and create a mark. Many established businesses as well as start-ups have adopted this kind of packaging and many more are likely to do so in the times to come. Statistics reveal that the eCommerce packaging market is likely to grow at a CAGR of 13% from 2023 to 2032. During this period, it is anticipated to grow from USD 63.21 billion to USD 213.61 billion.
Conclusion
Personalised packaging is certainly an effective way to make your brand stand out. Creating an innovative design with the use of advanced technology can help fetch the desired attention. Using eco-friendly materials and incorporating multi-sensory packaging elements can help amp up your packaging game further. However, all this adds up to the cost. Personalised packaging is expensive in comparison to general packaging that most businesses use. It does not only require monetary investment but also demands time and effort. Thus, the decision to opt for personalised packaging should be taken after careful consideration of the challenges that come along. The aforementioned points should help you understand the various challenges as well as benefits associated with the same and aid in making an informed decision.