CHICAGO — A new PMMI report on Snack Foods Packaging Trends to be released in December will show that three of four snack companies purchased packaging equipment in the past year, and almost 90% of them are expecting to invest in packaging systems over the next three years, noted Tom Egan, vice president of industry services for PMMI.

“PMMI members are feeling strong about the outlook for shipments in this area,” he said.

During the recent Pack Expo 2024 show, the association’s largest ever held in Chicago, Egan discussed how ongoing PMMI research reflects continued optimism for growth while highlighting potential opportunities and issues affecting the packaging arena.

He mentioned that PMMI’s 2024 State of the Industry Report shows the packaging industry in the United States is expected to grow 2.4%, but then expand at a more robust single-digit rate from 2025 through 2027.  Several factors, Egan added, are driving the thriving market, including workplace issues, sustainability and the implementation of artificial intelligence (AI) that will drive future efficiencies in packaging operations.

“There’s a need to bring more individuals into the workforce in the manufacturing environment,” Egan said. “The statistics from the US government and various manufacturing groups like the National Association of Manufacturers indicate that there are millions of manufacturing jobs that are going to be unfilled through the remainder of this decade. So what do we do not only to attract those good paying jobs, but also to provide tools that new employees need to be successful?”

The answer, he said, involves enhanced training programs that combine video and more user-friendly instruction tools to enable workers on production lines to do their jobs more efficiently. Moreover, advances in technology are allowing consumer packaged goods (CPG) manufacturers to harness more data from their packaging machinery and use it to fuel efficiency and reduce downtime.

“We can improve the information that the production team is utilizing, and if there is some hiccup in the line, here is information to help them rapidly review and move to correcting it and getting back into operation,” Egan observed.

Specifically, companies are exploring ways incorporate this data into their preventive and predictive maintenance programs to identify equipment that is not operating at an optimal level.

In other cases, data-driven analysis can more quickly identify potential problems, sometimes daily, before a production stoppage occurs. The use of AI, he said, will eventually enhance these operational initiatives to create greater efficiencies on the production floor.

“You’re able to get the individual machine information to draw some feedback that says, ‘I need to be looking at this. It’s telling me it’s not quite running as well as yesterday. Let’s make sure we take a look at it,’ ” Egan said.

He pointed out sustainability remains an integral part when it comes to packaging initiatives. While other factors such as product taste, variety and cost are prime factors when buying snacks, baked goods or other food products, consumers also consider multiple other factors, including sustainability, when it comes to making their final purchasing decisions.

Looking forward, Egan said CPG companies need to be aware of extended producer responsibility (EPR), which may become a larger concern as several state laws start to take effect. EPR is an environmental initiative that holds manufacturers responsible for their products throughout their lifecycle, including after they are used. Companies that distribute their products nationally or in states where legislation has been passed will be affected, possibly as early as next year.

Additionally, he said initiatives such as GS1 “Sunrise 2027” within the next couple of years will support companies to provide traceability and tracking information using UPC and QR codes on their packaging. The codes could enable food producers to voluntarily add merchandising, sales and other information “to enrich the consumer experience” at the point of sale.

“Companies should be aware that [this initiative] is coming faster than what you might be thinking about,” Egan said. “It seems so far away, and then it will be on us before you know it.”