In July 2026, the packaging industry’s performance in the first half of 2026 was much more stable and progressive compared to its previous years. Many packaging companies in the first half of 2026 shifted their focus from protecting their margins to planning for longer-term growth. The attention of such companies has also been diverted towards regulatory compliance, targeted investment, and technologies capable of improving both operational efficiency and sustainability performance. Together, such developments help to look into the challenges and also opportunities to shape the industry during the second half of the year.
Sustainability played a significant role in the packaging industry during the first half of 2026, although the conversation increasingly centered on implementation rather than corporate commitments. In Europe, the Packaging and Packaging Waste Regulation (PPWR) continued to influence packaging design decisions as businesses prepared for stricter requirements around recyclability, recycled content, and packaging reduction. On the other hand, EPR schemes in various markets are increasingly linking packaging design to more significant commercial considerations. Such regulatory developments continued to accelerate interest in packaging formats that are easier to collect and recycle.
In the H1 material, such as mono-material flexible packaging, fibre-based alternatives, and recyclable corrugated solutions were the areas of investment as manufacturers and brand owners sought to simplify compliance while responding to customer demand for more sustainable packaging. The H1 also observed increased scrutiny of environmental claims, placing greater emphasis on verifiable evidence. Hence, it led to increased investment in lifecycle assessment tools, improved traceability, and digital product information to strengthen reporting and demonstrate compliance.
Sustainability is also becoming an integral part of various packaging companies, especially of their day-to-day business operations, rather than just a standalone environmental initiative. The same procedure is being followed in the H2 as well, leading to further investments in data management, reporting systems, and packaging redesign.
The first half of the year for the packaging industry observed changes across the packaging industry. Rather than pursuing large-scale acquisitions centred primarily on increasing production capacity, many strategic buyers focused on businesses offering specialist technologies or technical expertise. Companies operating in various areas such as flexible packaging, digital printing, smart labelling, and sustainable materials continued to attract attention as larger organizations sought to strengthen capabilities in higher-growth market segments. Hence, technology investment followed a similar pattern.
Connected packaging solutions, inclusive of QR codes, NFC-enabled packaging, and cloud-based traceability platforms, continued to gain wider commercial adoption. Initially, these technologies were introduced in the industry to support consumer engagement, while on the other hand, businesses are increasingly using them to improve product authentication, supply chain visibility, and regulatory compliance.
AI also gained major importance within packaging development workflows. AI-assisted design tools are also helping packaging teams to have a look at the multiple design options with ease, optimize pack dimensions, and also reduce material usage. It helps to support both cost reduction and sustainability objectives. Right-sized packaging was a major attraction for manufacturers as they look to reduce transport costs and also improve logistics efficiency without compromising product protection. Such trends suggest that technology during H2 is likely to remain focused on practical applications capable of delivering measurable operational benefits.
Trading conditions remained stable in the first half of the year, whereas performance continued to vary across different packaging markets. Demand for food, beverage, and healthcare customers remained resilient as it provides a relatively dependable source of business for many packaging manufacturers. These sectors also continue to underpin global packaging demand regardless of broader economic conditions.
A few packaging machinery suppliers also experienced slower order activity as manufacturers were cautious about major capital expenditure, along with various other issues, such as ongoing geopolitical uncertainty, which continued to influence energy markets and also selected raw material prices. For a few converters, such factors continued to limit the pace of margin recovery despite improvements elsewhere in the supply chain.
The packaging producers also continued to implement pricing strategies introduced during the previous year. With the renewal of customer contracts and operational efficiency programs maturing, many businesses are also expected to begin to see a greater financial benefit from such initiatives during the second half of the year. Paper-based packaging was also highly preferable in the first half and continues to be in the packaging industry.
Continued growth in the e-commerce industry, retail logistics, and transport packaging is also expected to support demand for containerboard and corrugated solutions, while, on the other hand, advances in barrier coatings are expanding the range of applications where fibre-based materials can provide a viable alternative to conventional plastic packaging.
For the global packaging sector, H2 2026 is expected to be characterised by incremental progress rather than dramatic change, with practical implementation taking precedence over new commitments and strategic execution becoming an increasingly important differentiator.
26 August 2026
24 August 2026
24 August 2026
24 August 2026