Innovation, Product Innovation

How e-commerce is revolutionizing the future of packaging

28/08/2024 | 6 min read
Sebastian Diensthuber

The boom in e-commerce has not only changed how we shop – it’s also placed new demands on the packaging industry. E-grocery, or online grocery shopping, is experiencing remarkably rapid growth, presenting unique challenges and opportunities for packaging solutions. 

Together with TGW Logistics, a leading provider of highly automated intralogistics systems with headquarters in Marchtrenk and the logistikum.RETAIL Innovation and Competence Center at the University of Applied Sciences Upper Austria, Greiner Packaging, has addressed the challenges faced by packaging in the e-commerce process in the “e-Pack” research project. 

What is e-grocery?

E-grocery refers to the online purchase of groceries, including fresh produce, packaged food, and other household items. This type of shopping has grown significantly due to its convenience, particularly in urban areas, and has been further accelerated by the increased focus on home life. 

Why is e-grocery relevant?

E-grocery is increasingly becoming an essential part of the retail market for several reasons: 

  • Retail growth rates: E-grocery sales are growing faster (6.8%) than brick-and-mortar retail (2%). 
  • Changing lifestyles: Urbanization, convenience, and the desire for comfort mean that more and more consumers prefer online shopping to traditional methods. 

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Challenges that e-grocery brings to packaging

The e-grocery sector presents specific challenges for packaging compared to traditional retail, including: 

  • Stability: Packaging must withstand handling by automated picking systems and the delivery process without compromising the quality and integrity of the products. Impact resistance and robustness are crucial. 
  • Size and shape: Efficient use of space in delivery vehicles and warehouse systems is crucial, so square or rectangular packaging would save space and reduce shipping costs. Smooth surfaces are also beneficial – both for robotic processes and for the proverbial “last mile” in the delivery process. All this improves overall stability during transportation and is optimally compatible with automated picking systems. 
  • Sealing systems: Improved sealing solutions are necessary to ensure that packaging remains securely sealed during automated robot handling. Plastic sealing is ideal, as aluminum foil is more easily damaged. 
  • Informative design: As customers cannot physically see the products, packaging should contain the most important information about the contents, ingredients, expiry date, and storage. 

Investigations by the three project partners revealed that the focus is on preserving the integrity of the products during transportation and on facilitating the automation of order-picking processes.  

Therefore, packaging rigid enough to withstand the logistics process, whose size and shape are adapted to this process, and whose closure system ensures that the filled content remains undamaged is essential in the e-grocery business. 

Future-proof e-grocery packaging

For detailed recommendations and specific packaging solutions, download our checklist.

Results of the empirical tests at TGW Logistics:

As part of the project, project partner TGW Logistics tested various packaging for its properties in the process. These tests provided two key findings. 

  • Efficiency of picking robots: Robots equipped with advanced grippers and machine learning algorithms showed a high success rate in handling different product types.
  • Challenges with certain packaging shapes: Cylindrical or irregularly shaped packaging can be more difficult for robots to handle as they are not always perfectly grippable. In such cases, innovative gripping and handling technologies are required to increase efficiency and minimize damage. 

Strategic framework for future-proof packaging solutions:

  • Matching packaging design to operational requirements: The project’s findings emphasize the need to adapt packaging design to the requirements of automated systems and the logistical challenges of the last mile. 
  • Improving e-commerce operations: Optimizing packaging design can significantly improve the performance of automated systems, leading to more resilient and efficient e-commerce operations. 

Conclusion

Overall, the study shows that targeted improvements in packaging design can significantly improve not only the efficiency of automated picking, but also stability and safety during transportation. These findings provide important guidelines for developing packaging solutions that meet the specific requirements of the e-grocery market. 

As e-grocery continues to evolve, some packaging solutions will have to adapt to new requirements. Greiner Packaging is committed to leading this transformation and providing customers with the most efficient, sustainable, and consumer-friendly packaging solutions for the e-grocery era.

*Source: McKinsey Analyse / The State of Grocery Retail Europe 2024 | Retail | McKinsey & Company

Ultimate tips

Request our detailed checklist to learn how your packaging can meet the demands of the e-grocery market. The checklist includes: 

  1. Structural integrity: Tips for optimizing the stability of your packaging without using excessive material. 
  2. Standardization: Benefits of standardized packaging systems to improve automated picking. 
  3. Sealing technologies: Recommendations on advanced sealing solutions for maximum security. 
  4. Optimal shape: Why square or rectangular packaging is preferred for better logistical efficiency. 
  5. Automated processing: How to customize decorative elements and packaging designs for automated processing

Request your free checklist

Ultimate tips for future-proof e-grocery packaging 

The rapid development of the e-grocery market places special demands on packaging. This checklist offers valuable recommendations on adapting your packaging solutions to the specific needs of online grocery to maximize efficiency and customer satisfaction. 

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Sebastian Diensthuber
Global Product Group Manager

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