What is the situation in the packaging market? What challenges are the players facing? And how important are cooperation and knowledge exchange? As can be seen, although there are country-specific characteristics and features, the fundamental aspects are cross-border. It is undisputed that the concept of networking has arrived in the packaging industry. “The strength of medium-sized wholesale companies lies in their flexibility and customer focus, which enables them to generate and exploit opportunities even in difficult times. This is particularly true when companies network within an association without giving up their independence,” says PackSynergy CEO Thomas A. Baur.
Market, Customers, Competition
Across national borders, member companies are looking at a market that has been disrupted in recent years. While COVID had led to rising demand for packaging and related services, problems in the supply chain and rising material and energy prices as a result of the war in Ukraine led to increasing expenses and higher costs. At the same time, however, prices were also raised.
These extraordinary times are now being followed by a situation in which the general economic slowdown is leading to falling demand and falling prices. The economy and energy prices are having different effects in different countries. The negative effects are particularly strong in Germany. Nevertheless, Lisa Horna, authorized signatory at HORNA GmbH Verpackungen, emphasizes that “there is always a market of opportunity for our industry, even if many others in Germany are not doing well. We have a product that is needed in all areas, which means that there are always opportunities and chances for new customers and business areas.”
With regard to customer behavior, Andrew Grant, Group Managing Director of Samuel Grant Packaging in the UK, notes that "customers once again have more choice. More materials are available and there are more options. We are therefore under intense competitive pressure, as customers are increasingly willing to switch suppliers in order to obtain lower prices.
However, the willingness to accept new suppliers works both ways and also opens up opportunities." In addition to the increased demand for consulting services, particularly in the area of sustainability, another positive factor is that many companies are once again focusing more on their core business due to cost pressures and outsourcing ancillary products and processes to service providers.
Competition from online platforms is of little concern to wholesalers. Most of them have their own online shops. At the same time, the focus in online business is usually on price-sensitive standard solutions. “But we offer complete, tailor-made solutions and select the best products to solve the task in the most effective way,” says Grant.
Thomas Horna, managing director of HORNA GmbH Verpackungen, adds that the company is not just a pure retailer, but also develops customized packaging “that helps to make shipping processes efficient, cost-effective, and sustainable. We are also available to answer questions and requests for changes to packaging solutions, spare parts, or repairs.” This distinguishes PackSynergy partners from most (online) retailers.
Sustainability and regulation
All member companies of the association are seeing growing demand for sustainable solutions in their markets. This trend presents both opportunities and risks. The opportunity lies in customers' desire for new solutions, which retailers have developed in recent years. Increased costs justify higher prices. Risks arise from strong cost pressure. If price becomes the predominant argument again, investments made cannot be recouped.
Another challenge arises from incomplete and vague regulations. “Information is often very scarce. There is a lot of speculation and much remains unclear for a long time. Once the information situation is clear and the regulation has been passed, things often have to move very quickly,” says Lisa Horna. The design of individual regulations also causes problems. Max Dalsgaard, CEO and owner of the Danish company KD Emballage A/S, sees difficulties arising from the upcoming ERP regulation for packaging, which will take effect in Denmark on October 1, 2025.
One positive effect of regulatory requirements is the growing demand for consulting services on the part of customers. The constantly increasing requirements are leading to a level of complexity that is creating an additional need for skilled workers and expertise among PackSynergy members. However, since this complexity also exists on the customer side, distributors can use their expertise to offer new services and consulting.
This is another reason why Dalsgaard notes: “In the past, many of us were simply suppliers. Today, we are important partners for our customers. This requires a realignment in many respects, but it also allows us to focus more strongly on growth.”
Labor market, digitalization, logistics
All PackSynergy members surveyed are struggling with rising labor costs. The increase in the minimum wage in particular is having a significant impact on the cost of manual labor and work at the lower end of the pay scale, not only in Germany but also in the UK. In addition, there is a shortage of technical personnel and difficulties in finding qualified employees, as Pieter Groeneveld, CEO of the Dutch company Contimeta, reports. In response, wholesalers are investing more in training and further education.
One way to offset rising labor costs is through consistent digitization in logistics and handling, where a lot of manual work is usually involved. "Process optimization is basically our daily business. There are only a few areas left where we are not fully digital,“ reports Thomas Horna. Pieter Groeneveld sees a ”trend toward customers preferring to source their goods locally in order to reduce logistics costs and be more sustainable. In this context, it is important to have sufficient stock to be able to deliver quickly. The efficiency of logistics has a significant impact on the overall cost structure."
For the member companies of the association, the “virtual warehouse” pays off here. This allows stocks to be shared between different locations. “This is particularly useful for top products in order to ensure availability and shorten delivery times. Cooperation between locations and partners is a decisive factor in increasing efficiency,” says Groeneveld.
Network and Knowledge Transfer
PackSynergy members see the exchange of know-how and expertise as a key advantage of the corporate network. “We are all innovative in different ways when it comes to finding solutions to the same problem. Everyone sets their own priorities and finds their own solutions, which they can then share. Being part of the network is also an advantage when it comes to customers, because they can see how much expertise and know-how we can bring to bear on their issues,” says Grant.
Lisa Horna emphasizes the complexity of regulations: “A network with many professionals is particularly valuable when the information situation is unclear. The exchange provides new ideas and information that we can pass on to our employees and customers. That's a huge advantage.”
Dalsgaard and Groeneveld also emphasize that belonging to an industry network is crucial to remaining competitive. Networks offer the opportunity to learn from best practices and exchange information about current trends and developments. By working together with partners, synergies can be exploited and joint projects realized.
The network will be present at FACHPACK 2025 with numerous partners at booth 4A-326.
Author: Christian Nink