Automation and Digitalization in the Packaging Industry: A Path to Innovation and Efficiency

The packaging industry is not immune to the pressures that today’s businesses face. Challenges, such as growing demand by brands for faster delivery times to respond to rapidly changing consumer buying behaviors, as well as the need for efficiency, speed, and sustainability, to name but a few, are requiring packaging professionals to be more agile than ever before. Automation and digitalization are essential tools to help companies navigate this changing landscape, enabling them to streamline operations, reduce costs, and maintain high-quality standards and output. 

In this article, we’ll explore why automation and digitalization are becoming indispensable in the packaging industry and what the future holds. 

Societal demands set the stage for the evolution of business practices. And clearly, there has been no shortage of significant market redirections since the early 2020s. For example, the rise of ecommerce, labor and skills shortages, stricter regulations, the growing pressure for sustainability, and short production runs have required businesses to implement new and flexible processes at an expedited pace. There is no reason to believe these pressures won’t continue to occur.  

It’s a lot to manage. People now have to wear ten hats just to do their jobs effectively. That’s not how it should be. The solution lies in the automation and the digitization of processes. In fact, almost 40% of those who responded to Esko’s Packaging Trends 2025 Survey believe automation and digitalization will be the biggest focus for their business in 2025. 

Before we can talk about automation, we need to address the issue of standardization. Standardization is an essential prerequisite for automation, and therefore standardization of the workflow across departments and production is a big efficiency driver and cost avoidance strategy. As 50% of respondents to the survey stated, standardization had the biggest impact on how they managed their business in 2024.  

Automation plays a critical role in helping packaging companies overcome the above challenges. By automating repetitive tasks—such as prepress processes, production workflows, and job handovers between teams—companies can streamline operations and reduce the likelihood of human error. This not only boosts productivity but also improves precision and consistency across the production line and reduces time to market. 

Survey respondents agree, with the highest percentage (42%) indicating their belief that automation will have the biggest impact on the packaging industry in 2025. 

As Jan De Roeck, Marketing Director – Industry Relations & Strategy at Esko, states, “The beauty of automation is its flexibility—it allows brands to adapt quickly to changing market demands while keeping packaging inventory (and the capital locked into that inventory) as low as possible, yet still respond swiftly to evolving trends with packaging updates.” 

Furthermore, automation enables companies to scale their operations without the need for significant increases in labor, enhancing efficiency, and making it easier for smaller businesses to compete and grow. This also addresses the increasing skills gap within the industry.

The current demand for shorter print run lengths is a good example of automation adding value. Brands no longer want to maintain large inventories of packaging or labels, which forces them to place multiple, smaller orders. For converters, decreasing print run lengths means they now need to process more jobs than ever before, making automation a critical factor in managing the increased workload. 

As De Roeck notes, “Turning jobs around faster is not just a competitive advantage, it’s a necessity. Customers are asking for shorter lead times and more efficiency, and automation helps compress time-to-market.” 

For packaging companies, the primary motivations for automation include cost reduction, improved responsiveness, and the agility to adapt quickly to consumer preferences. They avoid long production campaigns to maintain flexibility, enabling them to modify packaging in response to trends. This results in more packaging orders, which adds complexity to order management—an issue that automation helps alleviate. 

The surge in mergers and acquisitions within the packaging industry has further highlighted the need for workflow automation. When companies come together under the same corporate umbrella, they often have different workflows that need to be standardized across facilities, including newly acquired ones, for better job balancing and use of resources.  How is this accomplished? Through automation. 

Additionally, automation occurs in a cloud-based environment. This enables standardization of workflows across multiple production sites and is infinitely more efficient.  

De Roeck references the classic “unattainable triangle” of time, cost, and quality. Vendors often find it impossible to achieve all three simultaneously. However, workflow automation offers a potential pathway to balance these priorities and perhaps make them more achievable. 

As De Roeck explains, “You can’t have all three—time, cost, and quality—at the same time. The challenge is figuring out which two you can prioritize, but automation helps balance those trade-offs.” 

Digitalization and automation go hand-in-hand. Digital technologies like workflow automation software, cloud computing, and artificial intelligence can be integrated into every aspect of the packaging process, from design and production to distribution and consumer engagement. By doing so, companies can optimize their workflows and leverage data to make more informed decisions.

Digitalization enhances traceability throughout the supply chain. With digital tools, companies are able to track and monitor every step of the production process, ensuring quality control and compliance with regulatory standards. 

Additionally, digitalization permits access to real-time data and analytics. Platforms like Esko S2, a multi-tenant, cloud-native platform that leverages cloud computing, data sharing, and artificial intelligence (AI), enables teams to monitor production in real time, identify bottlenecks, and make adjustments quickly. This level of visibility also facilitates better collaboration between teams, helping to break down silos and improve efficiency across departments as well as with external partners. 

Despite the clear benefits, implementing automation and digitalization can be challenging. One of the most significant barriers is the high upfront investment required for new technology. Many companies, particularly small- and medium-sized businesses, struggle with the initial costs of adopting automation tools, which can slow down their digital transformation.  

Change management is another challenge. Some employees may be accustomed to traditional methods and therefore hesitant to adopt new technologies, fearing they might disrupt established workflows or require additional training. However, others, such as younger generations, are likely to find state-of-the-art digitalization more attractive which may provide a solution to the skills gap in the industry.

Irrespective of the challenge, companies should consider taking a gradual approach to digital transformation rather than overhauling entire systems at once. They might start by integrating automation tools into existing workflows and expanding their use over time. Training and development programs are also essential for ensuring employees feel comfortable using new systems to fully leverage their potential. 

This provides a good opportunity to engage a solutions provider such as Esko to help make the right technology choices, strategize regarding digital transformation processes, and obtain support for technology deployment.

Such a collaboration will minimize the complexities of implementing new tools, providing valuable insights into best practices and ensuring a smoother transition to automated and digital systems.

Automation and digitalization are no longer optional in the packaging industry—they are essential to remain competitive. In fact, our survey respondents indicated automation was one of the top three contributors to the biggest positive impact on how they managed their business in 2024, along with quality and standardization. Clearly, Companies that embrace these technologies will not only benefit from increased efficiency and reduced costs, but also be better positioned to meet the demands of the modern market. As the industry continues to evolve, automation and digitalization will be key drivers of long-term growth and success.