Packaging was once a purely manual process—boxes were packed, sealed, and stacked by human hands alone. But that was then. Now, with labour shortages, rising costs, and the constant push for efficiency, automation is stepping in to take the wheel (or the box). And while some may envision a robotics takeover of jobs within the industry, the reality is much less dramatic and much more necessary.
The packaging industry is evolving fast, with automation projected to hit a whopping $161bn (£124bn) market value by 2033. That’s not just a trend—it’s a full-blown revolution.
But why is automation becoming the go-to solution?
Changing customer demands and the automation boom
You, me, and just about everyone we know have probably ordered something online this week. And thanks to the instant gratification culture (did someone say next-day shipping?), companies are struggling to keep up. Small businesses and start-ups that once relied on manual fulfillment are now investing in automated pack stations, void-fill machines, and robotic labelling. Even mom-and-pop shops are feeling the shift, realising that if they want to scale, they need to automate.
One healthcare distributor, for example, tackled skyrocketing labour costs, shipping expenses, and packaging waste by automating void-fill operations using AI-driven scanners. The result? Lower costs, less waste, and a more sustainable operation. That’s the kind of transformation that’s keeping automation in the spotlight.
According to Jeff Wettersten, vice president of packaging at Keypoint Intelligence: “Automation isn’t just about speed—it’s about adaptability. As e-commerce fulfillment becomes more complex, businesses are turning to AI and robotics to customise packaging on demand, optimise shipping costs, and meet sustainability goals. The companies that integrate smart automation today will be the ones defining the industry tomorrow.”
Sustainability Through Smarter Packaging
Sustainability is an outright necessity. The packaging industry is facing mounting pressure to cut waste, use recycled materials, and shrink its environmental footprint. And automation is proving to be a game-changer. AI-driven filling systems ensure that only the exact amount of packaging material is used—no excess, no waste. Companies are also incorporating smart tracking with RFID tags to manage reusable packaging (think crates, pallets, and containers that cycle back into use rather than ending up in landfills).
At last year’s Pack Expo International in Chicago, sustainability and automation were major talking points. Why? Because businesses know that going “green” must be cost-effective to be viable… and automation is making that balance possible.
Wettersten explained: “We’re seeing a rapid convergence of automation and sustainability. AI-powered packaging systems are reducing material waste while improving efficiency. This isn’t just a ‘nice-to-have’ anymore—regulatory pressures and consumer demand for sustainable practices are making automation a necessity for survival in the modern packaging landscape.”
Why some companies are still hesitant
Despite the clear advantages, not everyone is jumping on the automation train.
The main roadblocks? Cost and fear of the unknown—both valid concerns. Many businesses assume automation is too expensive, but a collaborative robot can cost less than a family car. And with leasing and rental options now available, automation isn’t just for the big players anymore. Small businesses can have a spot on the playing field with low costs.
There’s also the skills gap—some companies worry that their employees won’t know how to operate or maintain automated systems. But here’s the thing: training is evolving, too.
Younger generations who’ve grown up with tech are more comfortable working alongside robotics. As more digital-native employees enter the workforce, automation adoption will only accelerate.
Keypoint Intelligence Opinion
The packaging industry is at a turning point. Companies that embrace automation are futureproofing their operations, while those that resist may find themselves struggling to keep up. But this isn’t just about efficiency or cost savings. It’s about creating a safer, smarter, and more sustainable industry by letting robots handle the monotonous and/or dangerous tasks so that human workers can focus on what they do best—solving problems, innovating, and improving the customer experience.
The shift is happening whether we’re ready or not. The question is: Will you ride the automation wave and position your company for long-term success, or risk getting swept under it as the industry moves forward without you?
For more information into how automation is transforming the packaging industry and what it means for your business, explore our latest research and discover how our Labels and Packaging Advisory Service can help you stay ahead of the curve.
About Jeff Wettersten
Jeff Wettersten is an influential analyst in the print and packaging industry, who distills complex data and analysis into actionable insights and strategic direction. With a diverse background spanning electrical equipment, metal processing, packaging, and printing, Jeff continually helps Keypoint Intelligence’s clients capitalise on emerging opportunities, overcome industry challenges, and develop forward-thinking strategies to stay ahead in an increasingly competitive market.
About Keypoint Intelligence
For over 60 years, clients in the digital imaging industry have relied on Keypoint Intelligence for independent hands-on testing, lab data, and extensive market research to drive their product and sales success. Keypoint Intelligence has been recognised as the industry’s most trusted resource for unbiased information, analysis, and awards due to decades of analyst experience.
