The global packaging industry entered 2026 in a more stable position than it had experienced in recent years. Following a prolonged period marked by inflation, supply chain disruption and volatile raw material costs, many packaging businesses spent the first half of the year shifting their focus from protecting margins to planning for longer-term growth.
While economic uncertainty has not disappeared, attention increasingly turned towards regulatory compliance, targeted investment and technologies capable of improving both operational efficiency and sustainability performance.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Together, these developments offer insight into the challenges and opportunities likely to shape the industry during the second half of 2026.
Sustainability regulation moves into implementation
Sustainability remained one of the defining themes across the packaging sector during H1, although the conversation increasingly centred 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.
At the same time, Extended Producer Responsibility (EPR) schemes in several markets increasingly linked packaging costs to environmental performance, making material selection and packaging design more significant commercial considerations.
These regulatory developments continued to accelerate interest in packaging formats that are easier to collect and recycle.
Mono-material flexible packaging, fibre-based alternatives and recyclable corrugated solutions remained areas of investment as manufacturers and brand owners sought to simplify compliance while responding to customer demand for more sustainable packaging.
Regulators also increased scrutiny of environmental claims, placing greater emphasis on verifiable evidence. As a result, more businesses continued investing in lifecycle assessment tools, improved traceability and digital product information to strengthen reporting and demonstrate compliance.
For many packaging companies, sustainability is increasingly becoming part of day-to-day business operations rather than a standalone environmental initiative.
As regulatory requirements continue to develop during H2, further investment in data management, reporting systems and packaging redesign is likely.
Investment focuses on specialist capabilities
Investment activity during the first half of the year reflected changing priorities 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 areas such as flexible packaging, digital printing, smart labelling and sustainable materials continued to attract attention as larger organisations sought to strengthen capabilities in higher-growth market segments.
Technology investment followed a similar pattern.
Connected packaging solutions, including QR codes, NFC-enabled packaging and cloud-based traceability platforms, continued to gain wider commercial adoption.
While these technologies were initially introduced to support consumer engagement, businesses are increasingly using them to improve product authentication, supply chain visibility and regulatory compliance.
Artificial intelligence also became more firmly established within packaging development workflows. AI-assisted design tools are helping packaging teams evaluate multiple design options more quickly, optimise pack dimensions and reduce material usage, supporting both cost reduction and sustainability objectives.
Right-sized packaging, in particular, continues to attract interest as manufacturers look to reduce transport costs and improve logistics efficiency without compromising product protection.
These trends suggest that technology investment during H2 is likely to remain focused on practical applications capable of delivering measurable operational benefits.
Market conditions remain mixed
Although trading conditions appeared more stable than in recent years, performance continued to vary across different packaging markets.
Demand from food, beverage and healthcare customers generally remained resilient, providing a relatively dependable source of business for many packaging manufacturers. These sectors continue to underpin global packaging demand regardless of broader economic conditions.
Elsewhere, conditions proved more uneven.
Some packaging machinery suppliers experienced slower order activity as manufacturers remained cautious about major capital expenditure, while ongoing geopolitical uncertainty continued to influence energy markets and selected raw material prices.
For some converters, these factors continued to limit the pace of margin recovery despite improvements elsewhere in the supply chain.
Many packaging producers also continued implementing pricing strategies introduced during the previous year. As customer contracts are renewed and operational efficiency programmes mature, some businesses may begin to see a greater financial benefit from these initiatives during the second half of the year.
Paper-based packaging also remains an area to watch.
Continued growth in e-commerce, retail logistics and transport packaging is expected to support demand for containerboard and corrugated solutions, while advances in barrier coatings are expanding the range of applications where fibre-based materials can provide a viable alternative to conventional plastic packaging.
Regional differences are also becoming more apparent.
Parts of Europe continue to experience softer demand in some industrial packaging segments, contributing to excess production capacity and greater pricing pressure. At the same time, competition from lower-cost imports remains a consideration for manufacturers operating in mature markets.
Looking ahead
The first half of 2026 suggests that the packaging industry is entering a period defined less by rapid disruption and more by steady execution.
Regulatory compliance is becoming an increasingly important factor in business planning, while digital technologies are moving beyond pilot projects into wider commercial use.
Investment activity also points towards continued demand for specialist capabilities that help businesses respond to changing customer expectations and an evolving regulatory landscape.
Although economic conditions remain uneven across regions and end markets, many of the themes that shaped H1 are expected to continue through the remainder of the year.
Businesses that improve operational efficiency, adapt to new regulatory requirements and invest selectively in technologies that support long-term competitiveness are likely to be better positioned as the market continues to evolve.
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.
