Risks and Mitigation Strategies in Packaging Design Services Procurement 2023-2030

Packaging Design Services Category Overview

The packaging design services category is anticipated to grow at a CAGR of 4% from 2023 to 2030. The packaging industry is witnessing a shift toward sustainable packaging to optimize the amount of material used. Corporate Social Responsibility (CSR) has come into the spotlight to improve brand perception in recent years. Companies are now adopting “rightsizing” as part of their CSR initiatives. This is the practice to reduce overall packaging size, fill material, and paper waste through conscious packaging design choices. In addition, the growing demand for personalization and the rise of e-commerce are driving the growth of the category. With increased digitization and the rapid rise in adoption of the work-from-home model, large companies are now engaging with multiple stakeholders to create efficient packaging designs.

 

Access of the Packaging Design Services Procurement Intelligence Report, 2023 – 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

 

Factors such as increased demand for hygienic and safe packaging and the shift to e-commerce and contactless deliveries have led to the evolution of packaging designs. In 2023 and 2024, some of the latest and emerging packaging design trends include interactive packaging, augmented packaging, hyper-contrast, saturated labels, brutalist-type designs, vintage inspired designs, flat graphics, translucent and semi-opaque designs, etc. Increasingly, brands are focusing on crafting experiences rather than merely pushing products. Smart packaging, also called interactive packaging, can take a variety of shapes and forms. The key is to make packaging multifunctional so that consumers can interact with the brand in a more meaningful way. For example, a puzzle wine bottle label that reveals a message when the pieces are rearranged, or a cereal box that folds into a board game.

 

Packaging designs with technology may include NFC (Near Field Communication) chips or QR codes. Technology-embedded packaging design can initiate an augmented reality (AR) experience, offer comprehensive product details, or even present a virtual tour of the production process when scanned or touched by a smartphone. For instance, a Croatian wine company, Enosophia, created interactive wine labels that, when scanned, start playing music in the bottle. In 2022, Enosophia introduced two wine bottles, Grasevina TRS No. 5 and rosé Matarouge, with AR labels. On the other hand, Ace Squad, an energy drink company, added a fun AR game to its packaging design (or, known as, gamification packaging design) by using a QR code in 2023.

 

It’s becoming increasingly difficult to communicate brand positioning through advertising due to stagnant or reduced marketing budgets and increased media clutter. Hence brands are increasing their investments in unique packaging designs to boost sales. According to a 2023 research survey report, 52% of customers would return to a store if they purchased a product in quality packaging, and more than 40% of consumers shared a packaging design on social media if it was unique and intriguing. According to the Ipsos 2021 survey report, 72% of consumers made their purchase decisions based on packaging design, and 67% based it on packaging material. Additionally, it was found that 81% of consumers tried something new due to a unique packaging design and 63% of consumers repurchased a product because of the packaging’s appearance.

 

The global packaging design services category is fragmented. The larger brands mostly opt for renowned global companies or agencies to acquire a sense of security and status. Due to the increasing demand for unique packaging design, major marketing agencies such as Ruckus Marketing, Murmur Creative, DEI Creative, and The Netmen Corp are continuously upgrading their design platforms to attract new customers and increase sales. As a result of fragmentation, most of the suppliers have moderate to low bargaining power in the market. However, specialized or very large-scale agencies may command a higher bargaining power owing to their expertise and brand value. Technological advancements and the introduction of new products provide buyers with multiple options. Hence, the bargaining power of buyers is moderate to high.

 

Request for Sample Copy of the Packaging Design Services Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

 

Packaging Design Services Procurement Intelligence Report Scope

The Packaging Design Services category is expected to have pricing growth outlook of 10% – 15% (annual) from 2023 to 2030, with below pricing models.

  • Bundled-Pricing
  • Tier-Based
  • Cost-Plus Pricing Model

 

Supplier Selection Scope

  • Cost And Pricing
  • Past Engagements
  • Productivity
  • Geographical Presence

 

Supplier Selection Criteria

  • By Service Type (Print Design Website Development Packaging Design Advertising Design, Typography, Illustrations, Etc)
  • Operational And Functional Capabilities
  • Technology Used
  • Others

 

Packaging Design Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2023 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions

 

Packaging Design Services Procurement Cost and Supplier Intelligence

The major cost components include salaries of packaging designers/consultants, technology and software used, facilities and utilities, marketing, etc. Packaging designers can include a wide range of professionals from visual designers, graphic designers, box designers, etc. The level of customization and detail in the graphic design has an impact on the final cost.

 

The price of packaging design services has increased steadily over the last few years. The price of developing a packaging design differs from agency to agency. It is found that in general, for a smaller packaging design agency, charges can start from USD 10,000 compared to a larger or specialized agency which charges around USD 50,000 and above. Depending on the complexity of the design, costs can range from USD 300 for a simple design to USD 3,500 for more complex designs.

 

Packaged goods manufacturers encounter various challenges. The companies need a flexible workforce and production floor to adapt to seasonal demand and holiday promotions. These changes result in fluctuating costs throughout the year, which can be difficult to manage and cause headaches. To mitigate costs and increase efficiency, companies prefer outsourcing their packaging design services to developing countries such as China and India. Other countries such as Singapore, Australia, and the U.A.E are also preferred for procurement of services. In many cases, companies outsource both packaging and packaging design to expand product lines quickly. Including a contractor in the design stage of the product can provide a fresh and expert perspective, helping to create a better product.

 

Some of the key sourcing strategies include negotiating with more than two vendors to obtain better flexibility and customization, assessing the vendors on their experience in graphic and structural design, and how they can provide cost optimization. There are multiple avenues that the company may pursue to reduce costs without sacrificing quality. One such approach entails selecting a matte finish instead of a gloss finish and utilizing recycled materials. It is imperative that the packaging design company selected for this purpose provides assistance in this regard to ensure optimal outcomes. Another important aspect is checking the firm’s reputation, previous work samples, and years of expertise.

 

Key Companies Profiled:

Arhue, Altair Product Design Inc., ANSYS Inc., People People (DEI Creative), La Visual Inc., Murmur Creative, Ruckus Marketing LLC, Pulp + Wire, ESI Group, LGND, LLC., Mucca Design, and Forever Sincretix.

 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions.

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