A roadmap for 2025 and looking back at 2024

Introduction
Over the last 40+ years at Persson Innovation at our core remains the commitment to always work together with our clients, partners and network to craft well-functioning, cost-efficient and high-quality handles for customers in the packaging supply chain.

Building long-term customer relationships has over the last few years become a necessity, as converters strive to support their CPG (Consumer Packaged Goods) clients in driving a better end customer experience and delivering sustainable solutions.

At Persson, we pride ourselves on being able to adapt to the challenges our customers face through product innovation, championing sustainability, using Nordic pine, and the excellence of Swedish craftsmanship.

What we experienced in 2024 as we grew our company footprint across different territories around the globe is that our raw materials, primarily Nordic pine from sustainably managed forests possess unmatched strength and quality.

Additionally, by keeping our handle production in Kumla, Sweden, we benefit from 40 years of R&D knowledge and a team of skilled and experienced individuals who ensure that our products continue to meet the highest standards of durability and sustainability.

What did Persson learn from the CPG packaging industry throughout 2024?
Over recent years, the CPG industry has deepened its collaboration with packaging converters.

As CPG companies navigate a challenging world economy, facing stiff competition from retailers and e-commerce, working alongside converters is crucial. CPG companies are continually seeking inspiration on how to integrate sustainable practices and maintain cost-effectiveness. All done whilst optimizing processes and ensuring that packaging solutions meet with consumer expectations.

Packaging of CPG products has evolved significantly and has come a long way from just simply protecting the goods inside. CPG brands understand that packaging can be leveraged like any marketing tool to drive sales, reinforce brand values, and demonstrate a commitment to quality and sustainability.

If you think about packaging, it is one of the first things a customer notices when they see an item on the shelf or online. Those first impressions of a product, stacked alongside competitors, build brand recognition, and hopefully compel consumers to pick product X over product Y.

A big shift over the last few years has been a change in the consumer psyche when it comes to sustainability, a watchword now in the packaging industry, magnified by the increasing public awareness of packaging waste and particularly plastic pollution.

Governments, regulators, consumers, shareholders, employees, and society at large are placing growing pressure on brands to mitigate their environmental impact. In response, companies must not only embrace the principles of reusability and recyclability in their product lifecycle but also align their business practices with the expectations of eco-conscious consumers.

In a year where the packaging industry continued to grapple with these challenges, there were also supply chain disruptions, rising material, energy, and transportation costs, and evolving regulatory standards that needed to be complied with.

While the demand for sustainable alternatives continued to rise in 2024, Persson’s focus on recyclable solutions has unlocked new opportunities. This export-driven growth has solidified our reputation as a trusted and innovative partner for businesses across the globe.

What trends did you see happening in 2024 that had an impact on the packaging and handles market globally?
Sustainability has emerged as a pivotal concern in the packaging industry, with demand growing for eco-friendly packaging solutions that reduce waste and lessen the environmental impact of CPG companies.

There has been a notable shift towards using sustainable materials, such as recyclable papers and reimagining the CPG packaging design process by adopting new designs that use fewer materials, without impacting the end customer experience, durability or shelf life. Additionally, designing packaging that can be easily recyclable after use helps to close the loop in the circular economy.

At Persson we continue to work with our partners to prototype and iterate new handle designs. Our R&D team is focused on advancing sustainable packaging materials and testing methods that mirror the rigorous environments some of our products must endure.

Historically, companies may have regarded sustainability initiatives as an additional financial burden. However, an increasing number of company executives now recognize that integrating sustainability into their strategy can generate economic value.

This change in mentality is driven by factors such as reduced energy costs, opportunities for organic sales growth linked to sustainability, and the growing consensus among stakeholders that it’s the right thing to do.

Importantly, however, packaging can highlight a brand’s sustainability credentials, shaping brand perceptions. Second to knowing how a product is sourced, consumers place a lot of emphasis on the packaging itself.

Climate change, air pollution, and waste are the top-of-mind sustainability concerns globally, and avoiding excessive packaging is the action that consumers are most willing to take. An added bonus, reducing the amount of materials in packaging reduces costs and has a positive impact on the environment.

Packaging innovation helps CPG’s secure shelf space, improve market share, and meet consumer demands. An impactful way to reimagine a brand’s commitment to sustainability is through product packaging. A change in packaging can re-position a brand and support new features such as a paper handle with enhanced ergonomic comfort.

The regulatory landscape for the paper packaging industry is also rapidly evolving in the United States and in the European Union with new regulations to enhance environmental sustainability.

Consumers continue to reshape their packaging needs
The growth of e-commerce continues to significantly impact packaging requirements, necessitating solutions that are easy to open, return, and recycle.

Plus, e-commerce has many more “touch points” for a package as the items are handled more along the distribution journey. And with the number of end-users who receive packages growing, more consumers are forming stronger views on packaging and waste.

A recent McKinsey study demonstrated that, in many retail categories, there’s a clear and substantive correlation between consumer spending and sustainability-related claims on product packaging.

And when it comes to sustainability consumers are saying they want information on the packaging, as that’s where they learn about a brand, at the point of sale.

Brand owners have responded to increased public scrutiny and regulatory pressure by making commitments to increase packaging recyclability. As the urgency of sustainability commitments is increasing, companies must provide clear answers to stakeholders on their actions and compliance strategies, showing end customers that their changes are beyond just consumer sentiment.

Consumer demands for sustainability and how this can potentially influence their shopping behavior and habits is rising. According to a Harvard Business Review research paper, for most consumers, sustainability was considered a “nice-to-have”, but research suggests we’re on the brink of a major shift in consumption patterns, where truly sustainable brands will seize the advantage from brands that have not invested in sustainability.

The common thread is that consumers are demanding a more responsible approach to packaging waste and are keen to see manufacturers respond in an appropriate way.

What has been the Persson business focus in 2024?
Converters continued to feel the pressure in 2024 as they had to rethink materials and design requirements, to meet their customers’ demands for sustainable packaging.

We continued in 2024 to deliver on our goal to develop the Persson proposition across the globe, offering high-quality sustainable paper handles for converters and CPGs globally.

In 2024, we introduced an enhanced version of our recyclable paper handles. Combined with strategic investments in production capacity, this innovation positions us to meet increasing global demand in the years to come.

Going forward we will continue to offer paper handles as a serious alternative packaging material to plastic. From a raw materials standpoint paper is a viable and sustainable alternative that replaces single-use plastic.

Looking into 2025, strategically how will Persson try to grow its business?
As a global company with strong, local Swedish roots we are lucky to have a dedicated team of professionals to take on everything from paper handle designs and production to ensuring we keep on top of our sustainability commitments.

At Persson we are proud of our 40+ years of packaging experience, a wealth of product development expertise, access to exceptional raw materials and rigorous quality control. All of which help us to meet the needs of a diverse, global customer base, where sustainability is becoming a priority.

In 2025 the packaging industry will continue to embrace sustainability as consumer attitudes change and companies work to comply with the new regulatory requirements.

At Persson we will continue to try and make a difference to each of our customers through a commitment to innovation, sustainability, and Swedish craftsmanship which will be at the core of everything we do.

“Together with our partners, we aim to shape a global future where sustainability is not just a goal, but the standard,” says Andreas Carlson.

Re-think packaging. Think Persson!
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