The packaging industry plays a crucial role in today's world, evolving over time to meet the diverse demands of consumers and businesses. However, the industry has faced more challenges due to the economic downturn and shifting consumer habits towards innovative, affordable and sustainable packaging choices.
Shrinking purchasing power due to high inflation and economic stagnation is set to weigh on packaging demand in Vietnam. As Vietnamese-based packaging businesses have been hit by a sluggish market, they are looking for innovative packaging solutions that lower costs and increase profitability. Meanwhile, customers have become more mindful of their budgets. Therefore, they are willing to opt for more affordable packaging.
In today’s fast-paced world, consumers prefer packaging solutions that provide both convenience and reliable functionality. According to a report by Vietnam Report in October 2023, "reliability" and "convenience" have become the top concerns of consumers. Packaging design and function have to be adjusted to fulfill the consumer’s changing demands.
Furthermore, major import markets like the United States and the EU have placed a significant emphasis on packaging sustainability to minimise environmental impact. This has been achieved by utilising eco-friendly materials and reducing the overall amount of material used in packaging.
The transformation of packaging solutions has become crucial for businesses to satisfy consumer demands in both local and foreign markets. Innovation, affordability and sustainability are the unavoidable paths for businesses to ensure their long-term benefits, thereby contributing to the development of the packaging industry.
According to Mordor Intelligence, Vietnam's paper packaging market is estimated at $2.37 billion in 2023. It is expected to register a compound annual growth rate of 9.73 per cent during 2023-2028. To tap into the market potential, packaging firms are urged to make a shift towards creative, cost-efficient and green alternatives.
|Eco-friendly Packaging of SCGP
Vietnam's packaging industry embraces changes
Despite the headwinds, SCGP, the key packaging arm of SCG, one of Thailand's largest industrial conglomerates, is at the forefront of change. The company has made efforts to bring innovative, affordable and sustainable initiatives to transform Vietnam's packaging industry. Examples include paper-based exhibition booths and paper beds, which are made entirely of recycled paper.
SCGP brings innovations to life and promotes sustainable packaging development among the business community. The SCGP Packaging Speak Out competition is an initiative of SCGP to seek real-world solutions to challenges facing Vietnam's packaging industry.
Chamornwut Tamnarnchit, general director of Duy Tan Plastics Manufacturing Corporation JSC (Duy Tan member of SCGP), emphasises the importance of sustainable, customer-centric packaging.
“In just two years, SCGP Packaging Speak Out has ignited a powerful drive among young Vietnamese visionaries to shape a sustainable future through innovative packaging designs. Specifically, the recognition of the packaging industry by businesses, valuing sustainable outreach while ensuring practicality and convenience for consumers, fills us with immense pride. As we launch this year's competition, we aim to inspire and empower young talents to propel us towards a better future for our communities and a greener planet,” he said.
In 2023, SCGP Packaging Speak Out returned with a bang. With the topic "Sales-Promoting Packaging," the competition seeks design ideas that promote innovation, affordability and sustainability. In particular, the competition welcomes packaging solutions that can be turned into tangible products in a faster and more cost-effective manner.
These ideas are expected to inspire packaging firms to create new packaging innovations to adapt to market changes. Since its launch in August 2023, the competition has received many participants. Most entries were highly praised for their innovative and market-savvy solutions to create a unique selling point for their products.
|Innovative ideas of Top 10 finalists in SCGP Packaging Speak Out 2023 - Vietnam
Among the 10 finalists, team Scoopy was declared the winner of SCGP Packaging Speak Out 2023 - Vietnam with the "GIAO" Tet seed gift set. Unlike conventional gift boxes, Scoopy creatively incorporates the traditional lottery game Loto into packaging, not only to entertain but also to create a valuable opportunity for friends and family to gather and share joy during the Tet holiday. The unique shape of the packaging is inspired by the palanquin in the famed "Rat's wedding" painting. Its practical purpose is to boost sales, honour folk art, and convey humanistic values.
Ha Chieu Xuan, a member of the winning team Scoopy, said, “The competition is an opportunity for us to gain a deeper understanding of the packaging industry. It's not just about aesthetics; packaging serves various functions. It's like a 'silent salesperson' and a factor that contributes to effective sales.”
Tamnarnchit said, “The competition has reached its final round today. The 10 finalist contestants are very impressive, the quality and the graphic design of those designers are very good. And I think it's a good foundation for the designers to support industry in Vietnam in the future.”
SCGP Packaging Speak Out 2023 - Vietnam has established its reputation as a local think-tank for packaging design. Besides the winning entry, other finalists are also engaged in transforming the packaging industry towards innovations, affordability, and sustainability.
|Sustainable packaging ideas honoured at SCGP Packaging Speak Out 2022
Under the theme of Rethink for a Better Normal, the final round of the SCGP Packaging Speak Out 2022 - Vietnam competition, now in its second year, called for breakthrough ideas from young students to redefine the new normal in the two categories of Easy to Recycle and Upcycle.
|Vietnam inspires innovation with SCGP Packaging Speak Out 2023
SCGP Packaging Speak Out 2023 - Vietnam inspires Vietnamese young talents to elevate packaging’s role in business through their creativity.
|Thailand packaging company inks partnership in Vietnam
Thailand’s SCG Packaging (SCGP) is joining hands with its Vietnamese partners under an investment worth 10 billion THB (334 million USD) to expand its packaging solution business in Vietnam, where demand for packaging products is growing.