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Packaging in 2026: Navigating Cost, Compliance and Change

Recent Pregis market research highlights five trends emerging from these forces, each influencing how companies design, source and deliver consistency in a more complex operating environment.


Why Packaging Decisions Are More Complex Than Ever in 2026

Packaging decisions are facing a new set of realities in 2026. Across industries—from healthcare and automotive to retail and beyond—packaging must perform under pressure while meeting rising expectations for accountability, precision and cost control. These demands are driven by a mix of global, regulatory and consumer forces that are changing how products move through supply chains.

1. ​​Global Geopolitics Put Cost Control in the Spotlight

Geopolitical tensions are driving up costs and risk, disrupting supply chains through tariffs, conflict and sudden policy shifts. Decisions about where to source materials and which technologies to adopt can no longer be made on business objectives alone, regulatory pressures are now firmly part of the equation. According to BCG, nearly 90% of large companies are spreading production across more regions to manage geopolitical risk. Yet with governments simultaneously pushing for greater domestic production, the competing priorities are fundamentally changing how global supply chains are structured.

Healthcare supply chains offer a clear example of how these key tensions are playing out. Many pharmaceutical ingredients and specialized device sourcing components are produced in a small number of countries, which increases supply chain exposure to policy changes or trade disruptions. As demand grows for therapies such as GLP-1 drugs in North America, companies are also facing uneven growth across regions. Stricter regulatory enforcement, rising compliance costs and growing demand for end-to-end traceability are adding significant cost pressure across the healthcare supply chain.

$9.6B

The global pharmaceutical cold chain market is projected to reach $9.6 billion by 2035

Packaging plays an important role in that response. The global pharmaceutical cold chain market is projected to reach $9.6 billion by 2035. This is driven in part by growing demand for advanced cold-chain packaging, which ensures compliant distribution of biologics and temperature sensitive therapies. With medical devices, which often contain delicate electronics with difficult-to-source components and robust protection requirements, solutions such as PolyPlank® Engineered Foam Plank are needed to travel safely through longer and more complex distribution routes. In an uncertain global landscape, packaging is helping companies protect product integrity and maintain reliable market access.

2. Regulations Turn Sustainability Goals Into Requirements

Sustainability is increasingly treated as a business requirement. In the European Union, the proposed Packaging and Packaging Waste Regulation (PPWR) puts limits on empty space in packaging to cut down on material waste and shipping inefficiency. In the U.S., Extended Producer Responsibility (EPR) laws are spreading state by state, setting fees for packaging that uses too much material or is difficult to recycle. For companies shipping large volumes of parcels, these rules can directly affect packaging costs, compliance risk and brand reputation.

To keep up, companies are taking a more disciplined approach—reducing material use, right-sizing packaging and enabling recyclability where it matters most. Many are also increasing the use of mono-materials and recycled content, while simplifying packaging portfolios to protect brand reputation and manage compliance more effectively.

Pet retail exemplifies how these changes are playing out in real time. Research shows 73% of pet owners say they’re willing to pay more for sustainable pet products, signaling a growing preference for sustainability and greater consideration of brand choices. As such, packaging has become an important first impression for these shoppers.

Packaging choices–from material selection to structural design–not only help meet evolving regulatory requirements, but for retailers such as pet care, also reinforce signals of quality, care and transparency that build long-term brand trust. As a result, flexible packaging that enables recyclability has become a key focus for pet brands navigating both regulatory requirements and shopper expectations.

3. Intentional Spending Redefines Consumer Experience

Consumers are spending more intentionally, with a sharper focus on value and performance. As budgets tighten, brand loyalties soften and shoppers increasingly choose mass-market or private-label alternatives that offer similar product efficacy at a lower price. This shift is putting pressure on brands that once relied on premium positioning to compete more directly on value and results.

94%

94% of prestige beauty buyers also purchase mass-market products

For example, in beauty retail, the change is clear: 94% of prestige beauty buyers also purchase mass-market products, and many shoppers are experimenting with lower-priced “dupes” that promise similar results. Consumers are prioritizing product effectiveness, a cohesive aesthetic, and sustainability, with younger shoppers especially willing to switch brands for sustainable options.

Packaging plays an increasingly important role in communicating the values consumers are now prioritizing. Mass-market brands often streamline packaging to control cost while maintaining a consistent, trustworthy look. In the beauty space, mailers are emerging as a more efficient fulfillment choice, reducing the footprint of each order, freeing up space at the pack station and delivering a sleek, memorable unpacking moment that beauty shoppers increasingly expect. Prestige brands focus on design-to-value, using sustainable materials like Pregis AirSpeed® Hybrid Cushioning RenewPCR—made with a minimum of 80% post-consumer recycled content and reducing carbon footprint by 40% (in contrast to comparable virgin solutions) to reinforce both product quality and brand responsibility. In both cases, packaging helps signal the value proposition, and stands out more impactfully, as shoppers weigh each purchase.

5. Parcel Network Costs Keep Climbing

Shipping costs continue to rise as parcel networks tighten. Major carriers have announced nearly 6% rate increases, with fuel surcharges following and last-mile delivery now accounts for more than half of total ecommerce logistics costs. As margins come under pressure, businesses are responding by consolidating shipments, setting minimum order thresholds and adjusting pricing to offset higher transportation expenses.

The automotive aftermarket shows how these pressures are playing out across fast-growing ecommerce channels. Online sales now represent more than 25% of aftermarket revenue, and that number is continuing to grow at double-digit rates—making parcel shipping essential for fast delivery and nationwide product availability. As order volumes increase, even small inefficiencies in packaging can quickly raise shipping costs.

Packaging efficiency is becoming a key lever for protecting margins. For companies who manage large and complex product SKUs, packaging becomes critical for operating efficiently within parcel networks. Durable, protective packaging also helps reduce damage in both outbound and return shipments. When a leading automotive OEM switched to Pregis AirSpeed® ChamberPak® to address packaging durability and ease of repacking for re-manufactured headlamps, damage rates dropped by 50% resulting in nearly $5 million in savings. In high-volume parcel environments, improving packaging efficiency helps companies control cost while maintaining reliable service and expansive product portfolios.

Looking Ahead

The companies that thrive through the rest of 2026 will treat packaging as a strategic business lever. Whether through automation, material innovation or smarter design, packaging is where cost, compliance and customer experience meet.

Connect with Pregis to explore how smarter packaging strategies can help you navigate these trends and position your business for sustainable growth through 2026 and beyond.

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