Packaging Business Model Transformation
Packaging business model transformation is an important aspect of the wider shift towards more sustainable, environmentally responsible business practices. As consumers become more conscious of the impact of packaging waste on the environment, and as regulatory frameworks around packaging become more stringent, companies in the packaging industry are under pressure to innovate and adopt new business models that prioritise sustainability, efficiency, and circularity.
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Business model transformation in the packaging industry is being driven by a range of factors, including advances in technology, changing market conditions, and evolving consumer expectations. Companies are adopting new operational models, diversifying into new markets, and embracing digital transformation, among other strategies.
Why is Packaging Business Model Transformation Important?
Packaging business model transformation is important because of the critical role that packaging plays in the economy and the environment. Packaging is a fundamental component of the supply chain, enabling the safe and efficient transport of goods from manufacturers to consumers. However, the packaging industry has historically been associated with significant environmental impacts, particularly in terms of waste generation and carbon emissions. As such, there is a growing imperative for companies in the packaging industry to transform their business models and adopt more sustainable, environmentally responsible practices.
Business model transformation in the packaging industry is being driven by a range of factors, including evolving consumer expectations, changing market conditions, and advances in technology. Companies are adopting new operational models, diversifying into new markets, and embracing digital transformation, among other strategies. For example, companies are exploring the use of innovative, sustainable materials such as bioplastics and bio-based materials, as well as the implementation of closed-loop supply chain models that prioritise circularity and reduce waste.
In addition to meeting evolving stakeholder demands and regulatory requirements, packaging business model transformation also presents significant business opportunities for companies. By adopting more sustainable, efficient, and innovative practices, companies can improve their competitive advantage, reduce costs, and create new revenue streams. As such, packaging business model transformation is critical for the long-term sustainability and success of companies in the packaging industry, as well as for the wider economy and environment.
What are the Main Challenges of Packaging Business Model Transformation?
There are several challenges associated with packaging business model transformation. Some of the main challenges include:
1. Resistance to change: One of the main challenges of packaging business model transformation is resistance to change from within the industry. Companies may be reluctant to invest in new technologies or processes or may be hesitant to disrupt their existing business models.
2. Cost: The implementation of new, more sustainable packaging practices may require significant investment in new equipment, technology, or materials. This can be a barrier for smaller companies with limited resources.
3. Technical complexity: The development and implementation of new packaging technologies and materials can be technically complex, requiring specialised knowledge and expertise.
4. Consumer behavior: Consumers have become accustomed to certain types of packaging and may be resistant to change. Companies need to balance the desire for more sustainable packaging with the need to maintain consumer preferences and expectations.
5. Regulatory environment: The regulatory environment surrounding packaging is complex and constantly evolving, with new requirements and standards being introduced regularly. Companies need to ensure that they are following all relevant regulations while also pursuing their business objectives.
6. Supply chain complexity: The packaging supply chain is complex and involves multiple stakeholders, including manufacturers, suppliers, distributors, and retailers. Business model transformation in the packaging industry may require coordination and collaboration across these stakeholders, which can be challenging.
Overall, the challenges of packaging business model transformation highlight the need for collaboration, innovation, and strategic planning to ensure a successful transition to more sustainable, environmentally responsible practices.
10 Examples of Packaging Business Model Transformation
There are numerous examples of packaging business model transformation across various industries, including food and beverage, personal care, pharmaceuticals, and more. Companies are increasingly adopting more sustainable packaging practices, utilising innovative technologies and materials, and rethinking their entire supply chains to reduce waste and improve efficiency.
Here are 10 examples of packaging business model transformation:
International Paper Business Model Transformation
International Paper (IP) has undergone a significant business model transformation in recent years by focusing on the packaging industry. The company has shifted its emphasis from being a primarily paper-based company to a leading player in the packaging industry, specifically in the corrugated packaging segment.
The business model transformation began in 2014, when IP announced its decision to spin off its xpedx distribution business and focus on its core business of packaging and paper. The company then acquired Weyerhaeuser’s pulp business in 2016, which enabled IP to expand its global pulp capacity and create a more vertically integrated supply chain.
In 2018, IP completed the acquisition of the pulp and paperboard business of the Spanish packaging company, Europac. This acquisition allowed the company to expand its presence in the growing European packaging market and increase its production capacity for packaging products.
IP has also invested heavily in technology and innovation to develop new and more sustainable packaging solutions. For example, the company has developed a fully recyclable, compostable, and biodegradable packaging material called “BioBlend,” which is made from renewable resources such as sugarcane fibres and bamboo.
The company has also focused on optimising its operations and supply chain to improve efficiency and reduce costs. This has included investing in automation and digital technologies, such as artificial intelligence and machine learning, to improve production processes and supply chain logistics.
IP’s business model transformation in packaging has allowed the company to better serve its customers’ needs, expand its global footprint, and position itself as a leader in sustainable packaging solutions.
Sealed Air Business Model Transformation
Sealed Air, a leading manufacturer of packaging materials and equipment, has undergone a significant business model transformation in recent years by focusing on sustainable packaging solutions. The company has shifted from being a primarily commodity-based packaging materials provider to a solutions-oriented provider that emphasizes sustainability, efficiency, and innovation.
One of the key drivers of Sealed Air’s business model transformation has been its focus on reducing waste and environmental impact. The company has developed a range of sustainable packaging materials and systems that are designed to reduce the amount of waste generated by packaging and improve the recyclability of packaging materials.
For example, Sealed Air’s Cryovac® brand offers a variety of packaging solutions that help reduce food waste, such as vacuum packaging and modified atmosphere packaging (MAP) systems. These technologies extend the shelf life of food products and reduce spoilage, helping to reduce food waste and improve sustainability.
Sealed Air has also invested heavily in innovation to develop new packaging solutions that are more efficient and sustainable. For example, the company has developed a new packaging material called “Bubble Wrap® IB” that is made with a minimum of 90% recycled content and is fully recyclable.
Another key element of Sealed Air’s business model transformation has been its focus on service-oriented solutions. The company has shifted from selling packaging materials as commodities to offering complete packaging systems and services that include design, installation, and maintenance.
Sealed Air’s “Packforum” innovation center is an example of its commitment to providing service-oriented solutions. The Packforum offers customers a space to collaborate with Sealed Air’s experts to develop custom packaging solutions that meet their specific needs.
Sealed Air’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing innovative, sustainable, and service-oriented solutions. This has allowed Sealed Air to better meet the evolving needs of its customers while also improving its environmental footprint.
Smurfit Kappa Business Model Transformation
Smurfit Kappa, a leading manufacturer of paper-based packaging solutions, has undergone a significant business model transformation in recent years by focusing on sustainable packaging and expanding its global reach. The company has shifted from being a primarily paper-based company to a provider of a wide range of packaging solutions, with a focus on sustainability and innovation.
One of the key drivers of Smurfit Kappa’s business model transformation has been its commitment to sustainability. The company has invested heavily in sustainable packaging solutions, including developing lightweight packaging materials that reduce waste and lower transportation costs. It has also increased its use of recycled fibers and invested in renewable energy sources to power its operations.
Smurfit Kappa has also expanded its global reach through a series of strategic acquisitions and partnerships. For example, the company acquired Orange County Container Group (OCCG) in 2012, which expanded its presence in the Americas. In 2015, Smurfit Kappa formed a joint venture with one of the largest integrated packaging companies in Egypt, to expand its operations in the Middle East and North Africa.
Another key element of Smurfit Kappa’s business model transformation has been its focus on innovation. The company has invested in research and development to develop new and more sustainable packaging solutions, such as its “e-commerce packaging range” which is designed to meet the unique needs of online retailers.
Smurfit Kappa has also focused on providing customised packaging solutions that meet the specific needs of its customers. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the requirements of its customers while also meeting sustainability goals.
Smurfit Kappa’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing sustainable, innovative, and customised packaging solutions. This has allowed Smurfit Kappa to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
Amcor Business Model Transformation
Amcor, a global leader in packaging solutions, has undergone a significant business model transformation in recent years by focusing on sustainable packaging and expanding its global reach through strategic acquisitions. The company has shifted from being a primarily plastics-based company to a provider of a wide range of packaging solutions, with a focus on sustainability and innovation.
One of the key drivers of Amcor’s business model transformation has been its commitment to sustainability. The company has invested heavily in developing sustainable packaging solutions, including materials that are biodegradable, recyclable, and compostable. Amcor’s Eco-Tite® R solution, for example, is a fully recyclable high-barrier packaging material that has been certified by the Association of Plastic Recyclers.
Amcor has also expanded its global reach through a series of strategic acquisitions. In 2019, the company completed its acquisition of Bemis, a leading producer of flexible and rigid packaging solutions. The acquisition expanded Amcor’s presence in the Americas and enabled the company to offer a broader range of products and services to its customers.
Another key element of Amcor’s business model transformation has been its focus on innovation. The company has invested in research and development to develop new and more sustainable packaging solutions. For example, Amcor’s Genesis™ technology uses recycled PET to create high-quality packaging solutions that meet the same performance requirements as virgin materials.
Amcor has also focused on providing customised packaging solutions that meet the specific needs of its customers. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the requirements of its customers while also meeting sustainability goals.
Amcor’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing sustainable, innovative, and customised packaging solutions. This has allowed Amcor to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
WestRock Business Model Transformation
WestRock, a leading provider of paper and packaging solutions, has undergone a significant business model transformation in recent years by focusing on innovation and sustainability. The company has shifted from being primarily a manufacturer of paper and packaging products to a provider of a wide range of packaging solutions, with a focus on sustainability and differentiated products.
One of the key drivers of WestRock’s business model transformation has been its focus on innovation. The company has invested heavily in research and development to develop new and differentiated packaging solutions. For example, WestRock’s OptiLedge® is a patented alternative to traditional wooden pallets that is lighter, more durable, and more environmentally sustainable.
WestRock has also focused on providing customised packaging solutions that meet the specific needs of its customers. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the requirements of its customers while also meeting sustainability goals. WestRock’s “Box On Demand” service, for example, enables customers to produce custom-sized boxes on-site, reducing transportation costs and waste.
Another key element of WestRock’s business model transformation has been its commitment to sustainability. The company has set ambitious goals to reduce its environmental footprint, including a commitment to increase the use of recycled fibers in its products and reduce greenhouse gas emissions. WestRock has also invested in renewable energy sources to power its operations and has developed innovative packaging solutions, such as its PaperSeal® packaging, which is made from renewable materials and is fully recyclable.
WestRock has also expanded its global reach through a series of strategic acquisitions. In 2017, the company completed its acquisition of Multi Packaging Solutions, a global leader in premium packaging solutions. The acquisition expanded WestRock’s capabilities in high-value markets and enabled the company to offer a broader range of products and services to its customers.
WestRock’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing innovative, sustainable, and customised packaging solutions. This has allowed WestRock to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
Berry Global Business Model Transformation
Berry Global, a leading provider of plastic packaging solutions, has undergone a significant business model transformation in recent years by focusing on sustainability and expanding its global reach through strategic acquisitions. The company has shifted from being primarily a manufacturer of plastic products to a provider of a wide range of packaging solutions, with a focus on sustainability and innovation.
One of the key drivers of Berry Global’s business model transformation has been its commitment to sustainability. The company has invested heavily in developing sustainable packaging solutions, including materials that are biodegradable, recyclable, and compostable. Berry Global’s Versalite® solution, for example, is a fully recyclable and reusable material that is an alternative to traditional foam containers.
Berry Global has also expanded its global reach through a series of strategic acquisitions. In 2019, the company completed its acquisition of RPC Group, a leading provider of rigid plastic packaging solutions. The acquisition expanded Berry Global’s presence in Europe and enabled the company to offer a broader range of products and services to its customers.
Another key element of Berry Global’s business model transformation has been its focus on innovation. The company has invested in research and development to develop new and more sustainable packaging solutions. For example, Berry Global’s PureCycle® technology uses recycled polypropylene to create high-quality packaging solutions that meet the same performance requirements as virgin materials.
Berry Global has also focused on providing customised packaging solutions that meet the specific needs of its customers. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the requirements of its customers while also meeting sustainability goals.
Berry Global’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing sustainable, innovative, and customised packaging solutions. This has allowed Berry Global to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
Mondi Group Business Model Transformation
Mondi Group, a global leader in packaging and paper solutions, has undergone a significant business model transformation in recent years by focusing on sustainable and innovative packaging solutions. The company has shifted from being primarily a manufacturer of packaging and paper products to a provider of a wide range of packaging solutions, with a focus on sustainability, innovation, and digitalisation.
One of the key drivers of Mondi’s business model transformation has been its commitment to sustainability. The company has set ambitious sustainability targets, including a commitment to reduce its carbon footprint, use sustainably sourced materials, and increase the recyclability of its products. Mondi’s EcoSolutions approach focuses on developing sustainable packaging solutions that meet the specific needs of its customers while also reducing environmental impact.
Mondi has also focused on innovation to drive its business model transformation. The company has invested in research and development to develop new and more sustainable packaging solutions. For example, Mondi’s BarrierPack Recyclable is a high-barrier, recyclable packaging material that is a sustainable alternative to traditional multi-material laminates.
Mondi has also embraced digitalisation to transform its business model. The company has developed a range of digital solutions, including its eShop platform, which enables customers to order customised packaging solutions online. Mondi’s digital solutions also include tools for optimising packaging design and reducing waste in the supply chain.
Another key element of Mondi’s business model transformation has been its focus on providing customised packaging solutions that meet the specific needs of its customers. Mondi has developed a range of services, including design and testing, to ensure that its packaging solutions meet the requirements of its customers while also meeting sustainability goals.
Mondi’s business model transformation has enabled the company to differentiate itself in the packaging industry by providing sustainable, innovative, and customised packaging solutions. This has allowed Mondi to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
DS Smith Business Model Transformation
DS Smith, a leading provider of sustainable packaging solutions, has undergone a significant business model transformation in recent years by focusing on circular economy principles and expanding its global presence through strategic acquisitions. The company has shifted from being primarily a manufacturer of paper and cardboard products to a provider of a wide range of sustainable packaging solutions, with a focus on innovation, digitalisation, and customer-centricity.
One of the key drivers of DS Smith’s business model transformation has been its commitment to circular economy principles. The company has embraced the concept of closed-loop recycling, in which materials are continuously reused and repurposed, with the goal of reducing waste and maximising resource efficiency. DS Smith’s Circular Design principles focus on designing products that are fully recyclable and can be easily integrated into existing recycling systems.
DS Smith has also focused on innovation to drive its business model transformation. The company has invested in research and development to develop new and more sustainable packaging solutions. For example, DS Smith’s Greencoat® is a sustainable alternative to traditional wax-coated cardboard that is fully recyclable and compostable.
DS Smith has also embraced digitalisation to transform its business model. The company has developed a range of digital solutions, including its DISCS platform, which enables customers to design, order, and track their packaging solutions online. DS Smith’s digital solutions also include tools for optimising packaging design and reducing waste in the supply chain.
Another key element of DS Smith’s business model transformation has been its focus on providing customer-centric solutions. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the specific needs of its customers while also meeting sustainability goals.
DS Smith has also expanded its global reach through a series of strategic acquisitions. In 2020, the company completed its acquisition of Spanish-based Papeles y Cartones de Europa, S.A. (Europac), a leading provider of sustainable packaging solutions in Europe. The acquisition strengthened DS Smith’s presence in Europe and enabled the company to offer a broader range of products and services to its customers.
DS Smith’s business model transformation has positioned the company to differentiate itself in the packaging business model transformation industry by providing sustainable, innovative, and customer-centric packaging solutions. This has allowed DS Smith to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
Sonoco Business Model Transformation
Sonoco, a global provider of packaging business model transformation solutions, has undergone a significant business model transformation in recent years by focusing on sustainability, innovation, and customer-centricity. The company has shifted from being primarily a manufacturer of paper and packaging products to a provider of a wide range of packaging solutions, with a focus on developing sustainable products and services.
One of the key drivers of Sonoco’s business model transformation has been its commitment to sustainability. The company has set ambitious sustainability targets, including a commitment to reduce greenhouse gas emissions, increase the use of renewable energy, and reduce waste in its operations. Sonoco’s EcoReel® is a sustainable alternative to traditional wire and cable reels, made from 100% recycled paperboard.
Sonoco has also focused on innovation to drive its business model transformation. The company has invested in research and development to develop new and more sustainable packaging business model transformation solutions. For example, Sonoco’s TruVue™ canisters are made from 100% recycled paperboard and are a sustainable alternative to plastic packaging.
Sonoco has also embraced customer-centricity to transform its business model. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the specific needs of its customers. Sonoco’s Packaging Services division provides customised solutions that enable customers to optimise their supply chain and reduce costs.
Another key element of Sonoco’s business model transformation has been its focus on expanding its global presence through strategic acquisitions. In 2019, the company acquired Corenso Holdings America, Inc., a leading provider of sustainable paper cores and tubes, to strengthen its presence in the packaging business model transformation market.
Sonoco’s business model transformation has enabled the company to differentiate itself in the packaging business model transformation industry by providing sustainable, innovative, and customer-centric packaging solutions. This has allowed Sonoco to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
Graphic Packaging International Business Model Transformation
Graphic Packaging International (GPI), a leading provider of sustainable packaging solutions, has undergone a significant business model transformation in recent years by focusing on innovation, sustainability, and customer-centricity. The company has shifted from being primarily a manufacturer of paperboard packaging products to a provider of a wide range of packaging business model transformation solutions, with a focus on developing sustainable products and services.
One of the key drivers of GPI’s business model transformation has been its commitment to sustainability. The company has set ambitious sustainability targets, including a commitment to reduce greenhouse gas emissions, increase the use of renewable energy, and reduce waste in its operations. GPI’s barrier-coated paperboard packaging, for example, is fully recyclable and a sustainable alternative to plastic packaging.
GPI has also focused on innovation to drive its business model transformation. The company has invested in research and development to develop new and more sustainable packaging solutions. For example, GPI’s PaperSeal® technology is a sustainable alternative to plastic trays for food packaging, made from renewable materials and fully recyclable.
GPI has also embraced customer-centricity to transform its business model. The company has developed a range of services, including design and testing, to ensure that its packaging solutions meet the specific needs of its customers. GPI’s Studio One® design services enable customers to create custom packaging designs that stand out on the shelf and meet sustainability goals.
Another key element of GPI’s business model transformation has been its focus on expanding its global presence through strategic acquisitions. In 2020, the company acquired AR Packaging Group, a leading provider of sustainable packaging solutions in Europe. The acquisition strengthened GPI’s presence in Europe and enabled the company to offer a broader range of products and services to its customers.
GPI’s business model transformation has positioned the company to differentiate itself in the packaging industry by providing sustainable, innovative, and customer-centric packaging solutions. This has allowed GPI to expand its global reach and meet the evolving needs of its customers while also improving its environmental footprint.
The Future of Packaging Business Model Transformation
Business model transformation in the packaging industry is likely to continue along the path of sustainability and innovation. Companies will continue to seek out more eco-friendly materials and production methods to reduce their environmental impact. The trend towards digitalisation is also likely to play a significant role in the future of packaging business model transformation, with technologies like automation and data analytics improving operational efficiency and enabling more personalised and interactive packaging experiences.
In addition to sustainability and digitalisation, there is likely to be an increased focus on circular economy principles and the development of closed-loop supply chains. This will involve designing products and packaging with end-of-life in mind, to ensure that materials can be recycled, reused, or repurposed instead of ending up in landfills or polluting the environment.
Another trend that is likely to impact the future of packaging business model transformation is the growing demand for e-commerce packaging solutions. As online shopping continues to rise, there will be a need for packaging that can protect products during shipping while also being sustainable and cost-effective.
Overall, the future of packaging business model transformation will be driven by a combination of sustainability, digitalisation, circular economy, and e-commerce packaging solutions. Companies that are able to adapt and innovate in response to these trends will be well-positioned for success in the evolving packaging industry.
