Is New Zealand's Packaging Industry in Crisis or Transition?

There’s something ongoing in the New Zealand packaging industry. Some think it maybe crisis while others think it’s a transition that might change the industry trends.

Are you also stuck between “Is New Zealand’s packaging industry in crisis or transition?” If yes, you are not alone; there are many others just like you.

Let us be clear about what the real tragedy behind it is. Make sure to read this blog post to the end.

Is New Zealand's Packaging Industry in Crisis or Transition?

In New Zealand, the news has not favourable for the packaging industry for the past few months. But is this really a crisis, or are we watching an industry going through the growing pains of necessary change? The truth, as it often is, lies somewhere in between.

Let’s disclose the facts behind all this controversy.

The Warning Signs Are Real

No doubt, the packaging industry of New Zealand is facing serious challenges. Several closures have been reported in the past few months.

When brands that have been operating in the industry for decades suddenly shut their operations, that’s not something that can be ignored easily. It shows how the industry operates or transforms.

The pressures are coming due to several factors. If we talk about a few of them. One important factor is the rising operational cost. Plus, the major issue is that customers demand products at low prices while input costs keep rising without any break.

Then, another factor is the global competition factor. Cheaper imports, particularly from Asia, have flooded the market in recent years.

For some New Zealand manufacturers, especially those producing standardised packaging solutions, it's become nearly impossible to compete on price alone.

But Innovation Is Happening

The term ‘innovation’ comes with a twist in the whole story. We noticed that only traditional packaging companies are struggling, while others are adapting innovative ways to compete in the market.

Some New Zealand packaging companies want to go for eco-friendly packaging solutions. And nowadays, customers, especially eco-conscious customers are willing to pay premium prices if brands fulfill their demands.

Others are focusing on unique customisation options to target local brands where customers only pay for how the packaging looks. When brands work with a quality packaging supplier that knows their demands and manufactures packaging exactly the way the brand wants, it’s like a cherry on top.

With time, it has become mandatory to use advanced manufacturing techniques and invest in automation processes. This may require more budget, but it’s an amazing way for brands to reduce per-unit costs and compete more efficiently.

The Regulatory Push and Pull

Environmental regulations in New Zealand are getting stricter, and that’s not only a challenge, but it’s also an opportunity.

The government’s commitment to reducing plastic waste shows clear signs that now brands have to work on eco-friendly products, otherwise they may lose their place in the industry.

This might create more challenges for small or initial startups, but definitely beneficial for growing or forward-thinking companies. There is an increasing demand for eco-friendly packaging.

Brands that have invested in developing these solutions early are now reaping the benefits as more businesses seek to meet their own sustainability commitments.

What "Transition" Really Means?

What do you think, is this a crisis or a transition? We think it’s a transition, but a crisis for those who don’t follow the path of the latest technology and do the wrong side of it. Any major shift in industry creates both winners and losers.

Packaging companies that are struggling right now are those that relied on high-volume, low-margin production of standard products. They have not been able to adapt quickly enough because things take time.

Meanwhile, the companies that are succeeding now are those that took measures early and repositioned themselves on time. They made predictions in the past that help them now efficiently.

Looking Ahead!

Is New Zealand’s packaging industry in crisis or transition? Whatever it is, it’s confirmed that the change will be quite different from what we know. It will be potentially more innovative and high-value as compared to the past era.

It will be more focused on sustainability, more automated, and more closely integrated with the specific needs of New Zealand businesses rather than trying to compete in global commodity markets.

So, survival is possible only if brands follow the latest technology, adapt innovative methods, and prioritise sustainability.