Packaging is now strategic

Packaging decisions that used to sit in purchasing are moving into boardroom planning as tariffs, regulation and regional sourcing rewrite how brands buy bottles, boxes and film. (packagingdive.com) McKinsey said on April 8 that the packaging and paper industry’s long run of steady growth broke in 2022, and the rebound still has not arrived. Its 2025 global survey covered more than 11,000 consumers in 11 countries, alongside interviews with retailers, consumer packaged goods companies and packaging executives. (mckinsey.com) Packaging Dive reported April 13 that tariffs, sustainability rules, regionalization and cautious consumer spending are all hitting packaging demand at once. McKinsey partner Daniel Nordigården said shoppers looking for lower prices are also moving toward larger pack sizes that use less packaging per unit sold. (packagingdive.com) That is changing the job itself. McKinsey said packaging companies now need stronger commercial execution, tighter cost control, new leadership and more use of advanced analytics and generative artificial intelligence to protect margins in a lower-growth market. (mckinsey.com) The supply side is moving just as fast. Packaging Dive reported April 9 that one year after the so-called Liberation Day tariffs, companies were still dealing with a 10% baseline tariff on nearly all imports before the measure was struck down, while reduced tariffs on some metal derivatives still left a 50% rate on products made almost entirely of steel, aluminum or copper, including cans. (packagingdive.com) Geopolitics has added another layer. Jason Wong, chief executive of packaging manufacturer Paking Duck, told Packaging Dive that the 2026 war with Iran was raising costs and disrupting flows across paper, plastic, metal and glass packaging. (packagingdive.com) Some brands are already changing suppliers, but not always by choice. Wong said some customers switched to United States suppliers because they no longer felt confident about overseas supply, even though he also said moving all sourcing to the United States is nearly impossible for many manufacturers and consumer brands. (packagingdive.com) The cost swings can be extreme for smaller brands. Feather & Bone founder Shubhangini Prakash told Packaging Dive that the plastic twist tube for one skincare product rose from about 80 cents to $3 per unit after tariff changes, pushing her company to add alternate suppliers and test bulk refill channels. (packagingdive.com) Trade policy has been hard to plan around because it keeps changing. Packaging Dive reported in May 2025 that Hammont Premier Packaging had already spent more than 18 months diversifying suppliers across North America and Europe, while consultants warned that tariff-driven price hikes could delay product launches, rebrands and orders for printers, carton makers and co-packers. (packagingdive.com) Regulation is tightening at the same time. The European Commission said the European Union’s Packaging and Packaging Waste Regulation entered into force on February 11, 2025 and will generally apply from August 12, 2026, while legal and compliance trackers say seven United States states now have packaging extended producer responsibility programs in place. (ec.europa.eu) (hklaw.com) That leaves packaging teams handling more than unit cost. They are being asked to balance price, lead times, regulatory exposure, recycled-content goals and supplier geography at the same time, which is why a box or bottle is now being treated less like a commodity and more like a supply-chain decision. (packagingdive.com 1) (packagingdive.com 2)