Think partnerships instead of being lone warriors

Digitalisation, automation, smart partnerships - 2025 opens up new perspectives for the packaging industry. In the second part of our exclusive interview, Dietmar Flügel and Mario Males from BDO AG Wirtschaftsprüfungsgesellschaft show how companies can actively shape the upturn with innovation and foresight.

Dietmar Flügel: 2025 opens up promising prospects for the packaging industry, particularly as a result of advancing automation and digitalisation, which have a positive effect on the efficiency and flexibility of production processes. In addition, the strategic importance of European packaging manufacturers as a ‘safe harbour’ for both US and Chinese players to avoid any tariffs between the two largest economies is increasing. Sustainability also remains a key growth driver: customers and legislators are demanding environmentally friendly materials, a circular economy and CO₂ reduction, which means that innovative, resource-saving packaging solutions are becoming increasingly important. Nevertheless, sustainable substrates do not yet offer comparable functionality to the use of conventional materials such as plastic and aluminium in a large number of product areas. As long as there are no viable sustainable substitutes, conventional materials will continue to be of great importance in the future, despite the political will for change.

Companies can prepare for upcoming changes by investing in sustainable materials, automation technology and flexible production systems, diversifying their supply chains and proactively keeping an eye on regulatory developments. Those who pick up on these developments at an early stage and promote innovation can strengthen their market position and ensure long-term competitiveness. The financial resources required for this can be procured in various ways, for example through traditional bank financing, special debt funds, leasing models, subsidies or equity-based financial products.

Mario Males: Geopolitical upheavals, trade conflicts, supply chain disruptions and fluctuating commodity prices are among the key exogenous factors that can have a significant impact on the recovery of German packaging companies. In particular, dependencies on individual suppliers and supplier countries or raw materials that are difficult to obtain make companies more susceptible to crises and sudden cost increases. In order to become more resilient, companies should diversify their supply chains, examine alternative materials and establish strategic partnerships. The expansion of recycling capacities and greater regionalisation of production can also help to mitigate risks. Risks associated with fluctuating commodity prices can be significantly minimised through targeted hedging - for example, by using financial instruments such as futures and options transactions. In the long term, a proactive, forward-looking risk strategy pays off in order to be able to react flexibly to global changes.

Dietmar Flügel: Close cooperation along the entire value chain enables access to expertise, the acceleration of innovations, the optimisation of recycling processes, cost sharing in the scaling of solutions that would hardly be feasible on their own and the faster achievement of market maturity for new materials or technologies. Such collaborations make it possible to establish best-practice solutions and jointly master the challenges of complex, recyclable and resource-conserving packaging systems.

By cooperating with recycling companies and specialised service providers, packaging manufacturers can ensure that their products are better recycled and that the use of recyclates (e.g. post-consumer recyclate) increases. Examples such as Unilever's Closed Loop Programme or collaborations to develop new recyclable materials show that such partnerships close the material loop and make sustainability goals achievable more quickly. The market challenges are prompting the packaging industry to explore new, previously unimagined solutions that go beyond traditional, established business models.

Dietmar Flügel: Digital technologies such as artificial intelligence and intelligent packaging in particular have long since found their way into the packaging industry and are becoming increasingly relevant with regard to the switch to resource-saving production processes and the development of sustainable packaging solutions.

For example, AI is already able to optimise packaging processes through precise predictions of material requirements, the selection of sustainable materials, real-time monitoring of supply chains and the adaptation of production processes. Bottlenecks can be recognised autonomously, quality control can be improved and energy-efficient operating modes can be used to conserve resources and reduce costs. In addition, AI supports packaging design through trend analyses, personalised designs and automated layout creation. It also helps with colour selection and creates realistic 3D models. In terms of sustainability, AI contributes to the development of environmentally friendly materials, the evaluation of recyclability and the optimisation of packaging sizes in the context of waste avoidance.

Another development that reflects the increasing relevance of digitalisation within the packaging industry is the cross-sector introduction of the Digital Product Passport (DPP) by the European Union by 2030. The DPP contains important information on the origin, materials, recyclability and environmental impact of a product. In the packaging sector, the DPP helps to improve traceability and promote the recyclability of packaging. This enables manufacturers and consumers to make informed and resource-saving decisions and transparently understand the life cycle of a product.

This is accompanied by the introduction of intelligent packaging functions, known as smart packaging, which are becoming increasingly popular. In particular, functions and sensors for measuring and regulating temperature fluctuations, light incidence and humidity, among other things, are appreciated by retailers and consumers.

Please also read part 1.