Recent Pregis market research highlights five trends emerging from these forces, each influencing how companies design, source and deliver consistency in a more complex operating environment.
Why Packaging Decisions Are More Complex Than Ever in 2026
Packaging decisions are facing a new set of realities in 2026. Across industries-from healthcare to retail and beyond-packaging must perform under pressure while meeting rising expectations for accountability, precision and cost control. These demands are driven by a mix of global, regulatory and consumer forces that are changing how products move through supply chains.
1. Global Geopolitics Put Cost Control in the Spotlight
Geopolitical tensions are driving up costs and risk, disrupting supply chains through conflict and sudden policy shifts. Decisions about where to source materials and which technologies to adopt can no longer be made on business objectives alone, regulatory pressures are now firmly part of the equation. According to BCG, nearly 90% of large companies are spreading production across more regions to manage geopolitical risk. Yet with governments simultaneously pushing for greater domestic production, the competing priorities are fundamentally changing how global supply chains are structured.
Europe’s pharmaceutical market offers a clear example of how these tensions are playing out, navigating a complex environment where cost control, supply chain resilience and operational efficiency are increasingly important. Reliance on imported active pharmaceutical ingredients (APIs), with a significant share sourced from Asia, has highlighted supply vulnerabilities, particularly amid geopolitical disruptions and rising energy costs. In response, pharmaceutical manufacturers are prioritizing practical measures such as evaluating opportunities for more localized production, often balancing improved resilience with added cost and complexity.
Packaging plays an important role in that response. As pressures intensify, packaging execution becomes a key lever at the point of fulfillment. Solutions such as Poly Lite® Multipurpose Bags compatible with Sharp™ automated bagging systems are designed to support higher throughput and consistent output, with configurable options to meet different application requirements. These types of capabilities can help standardize operations and reduce variability in fulfillment performance. In a more volatile environment, that consistency becomes critical to managing costs, maintaining service levels and reducing additional operational risk.
2. Regulations Turn Sustainability Goals Into Requirements
Sustainability is increasingly treated as a business requirement. In the European Union, the proposed Packaging and Packaging Waste Regulation (PPWR) puts limits on empty space in packaging to cut down on material waste and shipping inefficiency. In the U.S., Extended Producer Responsibility (EPR) laws are spreading state by state, setting fees for packaging that uses too much material or is difficult to recycle. For companies shipping large volumes of parcels, these rules can directly affect packaging costs, compliance risk and brand reputation.
To keep up, companies are taking a more disciplined approach-reducing material use, enabling recyclability and increasing recycled content where it matters most. Many are also simplifying packaging portfolios to protect brand reputation and manage compliance more effectively.
Pet retail illustrates how these shifts are playing out in real time. In Europe, sustainability-driven consumer preferences are accelerating demand for biodegradable and responsibly sourced pet care products. As a result, packaging is increasingly serving as a critical first point of evaluation, shaping perceptions of brand credibility and influencing purchase decisions.
Packaging choices–from material selection to structural design–not only help meet evolving regulatory requirements, but for retailers such as pet care, also reinforce signals of quality, care and transparency that build long-term brand trust. Solutions such as Pregis AirSpeed® Renew® Zero inflatable air systems extend this approach into protective packaging, utilizing materials crafted from renewable plant-based waste and post-consumer recycled content. As a result, packaging designed for recyclability or incorporating post-consumer recycled content has become a key focus for pet brands navigating both regulatory requirements and shopper expectations.
3. Intentional Spending Redefines Consumer Experience
Consumers are spending more intentionally, with a sharper focus on value and performance. As budgets tighten, brand loyalties soften and shoppers increasingly choose mass-market or private-label alternatives that offer similar product efficacy at a lower price. This shift is putting pressure on brands that once relied on premium positioning to compete more directly on value and results.
leading supermarket groups are expanding their own-label lines, often pricing them 30–40% below national brands
For example, in beauty retail, the shift is increasingly visible: leading supermarket groups are expanding their own-label lines, often pricing them 30–40% below national brands. As a result, consumers are actively trading down and experimenting with lower-priced “dupes” that deliver comparable results. This reflects a broader shift in purchase criteria, shoppers are placing greater emphasis on proven product effectiveness and value, rather than brand alone. At the same time, factors like cohesive brand experience and sustainability are influencing decision-making, with shoppers willing to switch brands for sustainable options.
Packaging plays an increasingly important role in communicating the values consumers are now prioritizing. Mass-market brands and private label retailers often streamline packaging to control cost while maintaining a consistent, trustworthy look. In the beauty space, rightsized solutions, such as mailers, are emerging as a more efficient fulfillment choice, reducing the footprint of each order, freeing up space at the pack station and delivering a sleek, memorable unpacking moment that beauty shoppers increasingly expect. Prestige brands focus on design-to-value, using sustainable materials like Pregis AirSpeed© Hybrid Cushioning Renew PCR—made with a minimum of 80% post-consumer recycled content and reducing carbon footprint by 25% (in contrast to comparable virgin solutions) to reinforce both product quality and brand responsibility. In both cases, packaging helps signal the value proposition, and stands out more impactfully, as shoppers weigh each purchase.
4. Automation Answers the Labor and Efficiency Challenge
Work is becoming harder to staff and more costly to manage, while expectations for speed and accuracy keep rising. To stay competitive, businesses are increasing investment in automation to improve throughput and precision, while reducing dependence on manual labor when it’s scarce. In Europe, automation investments are often driven by labor availability, while in the United States the focus is more on controlling costs and improving operational efficiency
40% of 3PL operating expenses. At the same time, facility costs continue to climb. U.S. warehouse rents now average $9.12 per square foot, and European warehouse rents have risen 26% since 2022, further tightening margins for fulfillment providers.
Packaging automation is playing a key role in balancing rising labor and operational costs. Semi-automated pack stations, including Pregis Automated Mailing and Bagging solutions, help 3PLs offset labor shortages while maintaining consistent packing quality. By improving efficiency and output, these systems can enable fulfillment operations to meet their delivery commitments with the service levels shippers expect.
5. Parcel Network Costs Keep Climbing
Shipping costs continue to rise as parcel networks tighten. Major carriers have announced rate increases, with fuel surcharges following and last-mile delivery now accounts for more than half of total ecommerce logistics costs. As margins come under pressure, businesses are focused on reducing parcel size and improving shipment efficiency to better manage transportation costs.
online pharmacies growing at a 13% CAGR (2024-2032)
Retail Pharmacy shows how these pressures are playing out across fast-growing ecommerce channels. E-pharmacy adoption is accelerating, with online pharmacies growing at a 13% CAGR (2024-2032) as consumers seek convenience, transparent pricing, auto-refills, and subscription-based medication fulfillment, making parcel shipping essential for fast delivery and nationwide product availability. As order volumes increase, even small inefficiencies in packaging can quickly raise shipping costs.
As a result, packaging efficiency is becoming a key lever for protecting margins. Improving packaging efficiency and reducing void space allows companies to operate more effectively within parcel network constraints. Solutions such as Pregis Easypack® on-demand paper packaging systems enable rightsized packaging by conforming to product dimensions, supporting high throughput while minimizing excess space. In high-volume parcel environments, this helps reduce dimensional weight, control shipping costs and maintain reliable service across expanding product portfolios.
Looking Ahead
The companies that thrive through the rest of 2026 will treat packaging as a strategic business lever. Whether through automation, material innovation or smarter design, packaging is where cost, compliance and customer experience meet.
Connect with Pregis to explore how smarter packaging strategies can help you navigate these trends and position your business for sustainable growth through 2026 and beyond.
