Five strategies redefining packaging, operations, and supply chain initiatives

Economic pressure, sustainability demands, and operational complexity are transforming the way leaders plan and invest in integrated packaging ecosystems. Operational production has become a balancing act: How can organizations increase competitiveness while also reducing supply chain risk?

RRD’s latest research highlights how market changes are affecting packaging, operations, and supply chain initiatives — and how decision-makers are modernizing workflows to adapt. Here are five strategies forward-thinking organizations are deploying:

Report Vitals

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WHAT WE DID
Surveyed 400 U.S.-based managers who influence decision-making within the functional areas of supply chain, packaging, and/or labels.

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WHY WE DID IT
To provide decision-makers with a clearer picture of how organizations are adjusting their production operations in response to change and innovation.

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WHEN WE DID IT

September–October 2025

1. Make advanced technology a competitive advantage

Technology is now the dividing line between organizations who can adapt quickly and those who struggle with operational pressure in packaging, labels, and logistics workflows. Decision-makers see digital capabilities as essential infrastructure — vital for speed, accuracy, and decision-making in these areas. The data shows that this level of innovation has become an expectation.

Two people reviewing printed charts and graphs with pens, analyzing financial or business data.

Organizations now expect advanced capabilities, as shown by their high commitment levels across core and emerging technologies.

Investment levels for packaging, labels, and logistics remain high across these technologies:

87% Internet of Things (IoT)

85% Predictive analytics

84% Real-time visibility

83% Smart packaging

83% AI applications

What is even more revealing is how few leaders are opting out.

For core technologies, only 1–2% stated they are “ignoring this for now,” emphasizing that modernization is now a standard industry expectation. Even with secondary or emerging tools, the opt-out rates stay surprisingly low, with the highest “ignore” levels reaching just 8% for 3D printers and 7% for VR/AR.

For core technologies, only 1–2% stated they are “ignoring this for now,” emphasizing that modernization is now a standard industry expectation.

AI is reshaping packaging and production workflows.

When asked how they are using AI now or expect to use it in the next 1–3 years, organizations highlighted four priority areas:

Primary AI use cases

65% Packaging design optimization

62% Quality control and defect detection

53% Label generation and verification

52% Translation and localization

This shift marks a clear progression from exploration to execution — organizations now integrate AI directly into high-impact workflows.

Expert take

headshot of John Marrow

“Advanced technologies are now the foundation of operational performance, not a differentiator. By treating AI, analytics, smart packaging, and visibility tools as core infrastructure, organizations are gaining speed, scale, and control.”

– John Marrow,
President, Supply Chain Solutions, RRD

2. Integrate smart packaging as an operational mandate

The adoption of smart packaging (RFID, QR codes, IoT sensors, and more) is accelerating, driven by the need for visibility, accuracy, compliance, and stronger product intelligence. The data shows a market moving quickly toward intelligence-driven packaging systems, even as teams continue to navigate the operational and technological constraints that come with implementation.

Organizations are prioritizing packaging updates that enhance performance, sustainability, and brand expression.

Leaders identified the following top planned design changes for the next 1–3 years:

Planned changes

63% Move to smart packaging

55% Improve functional design (strength, size, opening, shelf life)

54% Incorporate new materials or composition

47% Update brand name, logos, or trade dress

When leaders think of smart packaging, they most often highlight its ability to provide downstream product intelligence.

How it’s defined

58% Track-and-trace for supply-chain visibility and product data

49% Connected packaging for consumer engagement and first-party analytics

43% Brand protection and tamper/authentication features

42% Intelligent or condition-monitoring indicators

41% Packaging for shelf life or product quality

This perspective aligns directly with what leaders expect smart packaging to achieve:

Expected impact

64% Enhanced supply-chain visibility

42% Improved inventory accuracy

36% Stronger regulatory and compliance readiness

34% Consumer engagement and first-party data collection

23% Sustainability measurement and claims support

84%

Smart packaging adoption is imminent.

An overwhelming 84% (58% probably, 26% definitely) expect to transition to smart packaging within 1–3 years, underscoring its strategic importance for future competitiveness. Notably, only 1% of respondents have already completed the transition.

100%

The shift is not hypothetical.

Among organizations with revenues exceeding $1 billion, 100% of respondents expect to either probably or definitely move to smart packaging within the next three years.

Still, a few remain cautious.

A small group of packaging leaders expressed hesitation about moving to smart packaging, mainly due to IT complexity (50%) or uncertain ROI (45%). Other concerns, such as retailer readiness or sustainability implications, appear infrequently and reflect readiness concerns rather than opposition to the technology. These hesitancies underscore the importance of engaging an experienced partner to help navigate complexity and maximize ROI.

How will they measure success? Organizations adopting smart packaging will evaluate impact through improvements in accuracy, responsiveness, and product performance.

Outcomes used to evaluate the success of the transition to smart packaging

47% Fewer shipping and receiving errors

45% Faster response for recalls and incidents

37% Higher on-hand accuracy

36% Increased scan rates or engagement

31% Reduced spoilage or damage

Expert take

headshot of craig-lombard

“Smart packaging was once experimental — it’s now quickly becoming essential to visibility, accuracy, and product intelligence. Leaders should shift focus from adoption to integration, making sure that innovative packaging delivers real operational value across the supply chain.”

– Craig Lombardi,
Vice President, Labels and Packaging, RRD

RRD’s integrated packaging approach helps connect smart packaging, data, and operations.

3. Innovate through economic uncertainty

Economic pressure is accelerating modernization. Leaders should view this as an opportunity to innovate with cost-efficient packaging and supply chain strategies that safeguard margins, support resilience, and inspire confidence in long-term growth.

Leaders are reshaping packaging budgets in three clear ways:

Where they are adjusting

65% Looking for ways to cut packaging costs

65% Increasing focus on sustainable packaging

58% Increasing investment in packaging

A notable pivot.

To address market uncertainties, many organizations are planning to shift or have shifted to domestic or nearshore sourcing to improve resilience and sustainability — a move that controls costs today while creating fresh challenges and future opportunities.

Actions organizations plan to take: packaging teams are preparing for continued supply chain and economic pressures with several forward-looking moves:

Actions planned

53% Diversify suppliers

48% Switch to more cost-effective materials or processes

34% Reshore operations

34% Outsource additional production tasks

Strategies already in motion: Over the past two years, packaging teams have taken decisive steps to counter market uncertainty.

Actions that have been implemented

71% Increased sourcing from domestic suppliers

53% Built new relationships with additional suppliers

48% Adopted geographically dispersed suppliers

48% Reduced label costs

45% Reduced packaging costs

36% Nearshored or reshored production

Change is coming from every direction. Across nearly every factor measured, 66% to 82% of leaders expect a significant impact on their packaging operations over the next 1–3 years. These factors range from faster speed-to-market expectations and retailer mandates to material price increases, compliance requirements, supplier reliability, and sustainability demands.

Expert take

headshot of Lisa Pruett

“Economic pressure is accelerating decision-making. The organizations navigating uncertainty most effectively are balancing cost discipline with targeted investments that improve resilience, sourcing flexibility, and long-term competitiveness.”

– Lisa Pruett,
President, Packaging & Labels Segment, RRD

4. Make sustainability goals achievable under constraints

Sustainability remains at the center of operational planning. When asked to allocate 100 points across three competing priorities, leaders assigned the greatest weight to sustainability, followed by product quality and cost-cutting. This shows that organizations are prioritizing the advancement of their sustainability efforts — not compromising them amidst uncertainty.

Cumulative point allocation:

38 Sustainability

32 Improve quality

30 Cost-cutting

What’s moving the packaging needle? Sustainability, by a landslide.

The sustainability commitment also shows up in the motivation behind packaging changes over the next 1–3 years. Among organizations planning packaging updates or moving toward smart packaging, meeting internal sustainability goals is the strongest driver of change (74%) — ahead of cost pressure (59%), new regulations (56%), and increased product protection needs (49%).

74%

DRIVER OF
CHANGE

59%

COST
PRESSURE

56%

NEW
REGULATIONS

49%

PRODUCT
PROTECTION

Sustainability progress is expected, not assumed.

Do leaders expect their packaging operations to move their company
toward or away from overall sustainability goals in 1–3 years?

Progress outlook

77% Closer

20% No change

3% Further away

Expert take

headshot of John Marrow

“Leaders are taking a forward-looking view of the market environment, treating current conditions as temporary — and believing that the future justifies continued commitment to sustainability. The challenge is translating the ambition for sustainability into practical, scalable decisions that deliver progress without compromising quality or cost discipline.”

– John Marrow,
President, Supply Chain Solutions, RRD

5. Optimize packaging for a fast-growing e-commerce ecosystem

With nearly all organizations operating an e-commerce channel, packaging must now support faster turnaround times, more touchpoints, and higher performance demands. E-commerce growth requires packaging that performs better, provides improved protection, and adapts more easily — prompting teams to rethink materials, formats, and fulfillment processes.

Organizations reporting having an e-commerce operation

96%

YES

4%

NO

E-commerce is widespread — and it’s scaling.

80% of organizations expect continued e-commerce growth, increasing pressure on packaging to manage more touchpoints, faster cycle times, and higher protection requirements.


E-commerce outlook over the next 1–3 years

80% Grow (a lot or somewhat)

17% Stay about the same

2% Decline

E-commerce growth is driving meaningful operational change.

To keep pace, organizations are redesigning packaging, reworking inventory and vendor models, and adopting technologies like AI to maintain speed and resilience.


Planned e-commerce shifts

49% Increase inventory levels

39% Increase support from external vendors

38% Design packaging specifically for e-commerce

37% Implement AI in targeted processes (operations, smart labels/RFID)

36% Change labeling materials based on availability

34% Expand warehousing

24% Modify packaging materials

Expert take

headshot of craig-lombard

“E-commerce growth is redefining packaging performance standards, from durability and protection to speed and adaptability. Organizations will be better positioned to scale efficiently when they design packaging specifically for e-commerce realities instead of trying to force old models to work with new initiatives.”

– Craig Lombardi,
Vice President, Labels and Packaging, RRD

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These five strategies show how integrated packaging operations are evolving into a strategic switch for performance resilience and growth. The organizations that align technology, sustainability, and packaging intelligence will be best positioned to adapt and succeed in 2026.

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