Brand Owners Spending More on Packaging — and Don’t Plan To Stop

Spending on packaging by consumer packaged goods (CPG) brands has grown over the past two years — and will continue to do so over the next two years, according to a recent study of CPG brand owners by global strategy consulting firm L.E.K. Consulting. In fact, the increased spending on packaging is expected to grow well in excess of inflation.

Fifty-six percent of CPG brand owners reported an increase in spending on packaging since 2019 and 65% said they anticipate growing their spending in 2022 and 2023. And a full 78% of brands classified as Tier 1 — those with more than $1 billion revenue and a branded international presence — plan to increase their spending on packaging, with one-third of Tier 1 brands expected to increase spending over 6% in the next two years.