2025 Trends Check In: How Things Look & What it Means for Your Bottom Line

At the start of 2025, we identified three key trends that would shape the year for packaging and fulfillment. Now that we are over half-way through the year, we asked the question–where do those trends stand today?

Trend 1: Refining cost management strategies will be key to sustained profitability

2025 Prediction: We expect omni-channel fulfillment solutions ​​such as centralized fulfillment, ship-from-store operations, and services like “Buy Online Pick Up In-Store” to remain critical as retailers seek tailored solutions that benefit both consumers and brands. Businesses will need to refine these systems for maximum profitability and convenience—especially as an uncertain global marketplace takes shape.

Status: Retailers are under pressure to deliver faster, more convenient, and more transparent experiences. With 74% of consumers now expecting same-day or two-day shipping, fulfillment systems must be both agile and efficient. The U.S. micro-fulfillment market is projected to grow at a CAGR of 33.05% through 2032, driven by small-scale automated hubs near urban areas that bring inventory closer to the customer and optimize last-mile delivery.

Additionally, rising material costs and tariffs have only heightened the need to streamline operations and protect margins.

What it means: Omni-channel fulfillment isn’t optional—it’s the foundation for meeting customer expectations while managing rising costs. But to make it profitable, retailers need systems that work harder across every touchpoint. That includes rethinking packaging strategies to reduce dimensional weight, eliminate shipping inefficiencies, and streamline in-store and last-mile workflows.

Viewing packaging through a Total Cost of Ownership (TCO) lens highlights opportunities to boost profitability and efficiency—by reducing materials, consolidating SKUs, and designing formats that flow seamlessly through micro-fulfillment operations. In a cost-sensitive, speed-driven environment, smarter packaging is a direct lever for profitability.

Trend 2: Increasingly discerning customers will expect more from their brands

2025 Prediction: Brands will further steer their operations to align with the sustainable, social, and purpose-driven causes and initiatives that have become increasingly important to their customers. Not only will this help meet market expectations, it will also enhance long-term viability. Recyclability and circularity are sure to be among these efforts, especially as cost-efficient solutions become more widespread.

Status: Even as wallets tighten, consumers still expect brands to stand by their values. In fact, 44% of U.S. consumers say environmental impact is “extremely” or “very” important when making a purchase decision—a level that’s held steady even through shifting political and regulatory climates. And it’s not just talk: 37% have walked away from a purchase due to unsustainable packaging. As value-driven shopping becomes the norm, brands that invest in responsible packaging practices will be better positioned to earn trust and loyalty. 

Brands are responding by rethinking packaging strategies with sustainability in mind, focusing on recyclability, waste reduction, and material efficiency without sacrificing product protection. 

What it means: With sustainability now embedded into both consumer expectations and business priorities, forward-thinking brands are moving from broad ambitions to clear, achievable targets. Choices like right-sizing and material reduction can cut freight costs, reduce damage, and free up space, while renewable inputs can strengthen brand perception and loyalty. In some cases, that means shifting from rigid to flexible formats—like Pregis EverTec®   mailers—made with renewable materials and designed for curbside recycling, helping brands meet sustainability goals without compromising protection, speed, or profitability.

Trend 3: Companies will embrace the power of information in business

2025 Prediction: As warehouses and e-commerce fulfillment centers increasingly automate, integrating advanced Warehouse Management Systems (WMS) and IoT connectivity will be critical to monitor progress and efficiency. On-demand packaging systems designed for seamless warehouse integration will maximize uptime, ensuring businesses hit operational KPIs while delivering exceptional customer experiences.

Status: To keep pace with rising order volumes and evolving consumer expectations, retailers are, often hastily, doubling down on warehouse automation and inventory management. While 82% of retail operations leaders  view warehouse automation as critical to achieving operational agility in 2025, only 71% have a finalized plan in place. At the same time, 60% of retail leaders are prioritizing real-time inventory accuracy to reduce stockouts and improve fulfillment speed. But without systems that work together, even automated operations can stall.

What it means: Automation gaps are quietly driving up labor costs, slowing fulfillment, and creating friction across the operation—especially when implementation plans are incomplete or disconnected from day-to-day workflows. Addressing these hidden drivers of rising labor costs  starts with identifying the inefficiencies that are hiding in plain sight and tying every automation investment, whether warehouse and material handling, order fulfillment, or AI and data, to cost-of-service benchmarks.

Packaging is a critical part of that equation. Integrating on-demand systems—like Pregis Sharp™ automated bagging equipment—into warehouse management and conveyance flows helps reduce downtime, eliminate bottlenecks, and keep pace with rising order volumes. When packaging is fully embedded in warehouse automation, it becomes a performance driver—not a productivity drain.

Looking ahead 

The second half of 2025 will continue to test the flexibility, precision, and cost control of packaging and fulfillment operations. Whether navigating omni-channel complexity, meeting growing sustainability expectations, or closing the gap between automation goals and execution, one theme is clear: reactive cost-cutting won’t cut it. The companies that come out ahead will be those that treat packaging as an integrated part of their operation—factoring in not just material costs, but the ripple effects on labor, freight, storage, and product damage. Smarter packaging decisions made with this broader view can drive measurable gains across the entire supply chain.

The trends shaping 2025 are accelerating, and staying ahead will take more than quick fixes. By making strategic packaging decisions and always considering the Total Cost of Ownership, businesses can uncover real savings and keep operations running efficiently.

Looking to turn these trends into action?  Connect with a Pregis representative to explore smarter packaging strategies today.