PMMI’s Snack Food Packaging Trends report identifies key shifts

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PMMI’s Snack Food Packaging Trends report identifies key shifts

10 Feb 2025

Commercial Baking Staff

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Contributing writer Rebecca Marques is the director of custom research for PMMI, the association for packaging and processing technologies.

HERNDON, VA — The snack food industry is undergoing a dynamic transformation, with packaging trends at the forefront of innovation. The latest findings from the Snack Food Packaging Trends report, produced by PMMI, the association for packaging and processing technologies, highlight key shifts shaping the future of packaging, from automation and sustainability to consumer-driven customization. As companies invest heavily in packaging and processing machinery, understanding these trends is crucial for businesses looking to remain competitive in an evolving market.

Growth and investment in packaging machinery

Optimism in the snack food industry is at an all-time high, with 92% of companies anticipating growth over the next three years. This confidence is reflected in increasing capital expenditures on packaging and processing equipment. The industry has witnessed a 10.5% rise in spending, driven by the need for increased productivity, the introduction of new SKUs and enhanced automation. Companies are not only acquiring new machinery but also expanding their fleets, with 88% planning to purchase new equipment in the near future.

One of the key investment drivers is speed. Companies prioritize machinery with higher throughput and automation capabilities to enhance production efficiency. Many also opt for modular and customizable machinery, allowing flexibility in packaging different product sizes and formats without significant retooling.

Technology and automation leading the charge

The shift toward automation is redefining snack food packaging. The PMMI report highlights a growing demand for smart sensors, AI-driven predictive maintenance and remote monitoring capabilities. Companies increasingly integrate digital technologies to improve training, troubleshooting and machine efficiency.

While predictive maintenance and remote access have gained traction, the full adoption of AI and robotics remains in its early stages. However, the demand for self-learning machinery that can adapt to production conditions is expected to rise as labor shortages persist. Companies are leveraging virtual reality (VR) training and automated troubleshooting to bridge the skills gap, ensuring employees can operate and maintain complex equipment efficiently.

Sustainability and regulatory compliance

Sustainability remains a top priority, though its implementation varies across companies. Many businesses are switching to recyclable packaging materials and minimizing waste through optimized production processes. However, consumer and retailer demands often drive sustainability efforts rather than proactive corporate initiatives. Major retailers are pushing suppliers to use more sustainable materials, prompting manufacturers to adjust their operations accordingly.

Regulations, particularly in states like California and across European markets, are shaping packaging strategies. Companies that export internationally face stringent packaging material requirements and labeling restrictions, prompting many to standardize sustainable practices across all markets. While some manufacturers are still in the early phases of their sustainability journey, the industry as a whole is moving toward greener packaging solutions.

Challenges in workforce training and retention

A major concern within the industry is hiring, training and retaining a skilled workforce. With machinery becoming more advanced, companies face challenges in ensuring employees are adequately trained to operate and maintain new systems. High turnover rates exacerbate this issue, with many machine operators leaving within a year of employment.

To address this, manufacturers are incorporating AI-driven training modules and VR-based simulations to provide hands-on learning experiences. These technologies allow employees to gain proficiency in operating equipment before stepping onto the production floor. Additionally, automation is being utilized to eliminate repetitive and labor-intensive tasks, allowing employees to focus on higher-value functions.

Emerging consumer trends and packaging innovations

Consumer preferences heavily influence the evolution of snack food packaging. Convenience, portion control and sustainability are key drivers shaping new packaging designs. Single-serve and resealable packaging formats are in high demand, catering to on-the-go consumers and those seeking portion-controlled options.

Variety packs and customized packaging solutions are also gaining traction, particularly in retail environments. Major retailers like Walmart and Costco are pushing for packaging innovations that accommodate different counts, portion sizes and formats. To keep up with these changes, manufacturers must invest in flexible equipment that can adapt easily to shifting consumer demands.

Looking ahead: The next phase of packaging evolution

The next few years will be critical for snack food manufacturers as they navigate an increasingly complex landscape of technology, regulation and consumer expectations. Companies that embrace automation, invest in flexible and sustainable packaging solutions, and implement advanced workforce training programs will be well-positioned for long-term success.

As industry leaders continue to invest in innovation, the packaging sector will become more efficient, sustainable and responsive to evolving consumer needs. The future of snack food packaging is not just about keeping pace with change — it’s about leading the charge toward a smarter, more sustainable and consumer-centric industry.

Baking and snack food professionals who want to keep up with industry trends and meet the demands of this dynamic market, have a new resource: the inaugural Pack Expo Southeast, scheduled for March 10–12, at the Georgia World Congress Center in Atlanta.

With 450 exhibitors spread over 110,000 square feet, attendees can explore new technologies, observe equipment in action, compare machines, meet key partners and find new packaging materials.

Packed with opportunities for innovation, education and connection, the debut event offers sustainable solutions such as mono-material design and reusable options, expert-led sessions on industry trends, and presentation of cutting-edge technologies such as automation, robots and cobots, AI, augmented reality, virtual reality, and predictive maintenance, as well as innovations for anticounterfeiting, smart packaging, e-commerce, food safety and cold-chain packaging.

For more information and to register online, visit packexposoutheast.com. Registration is $30 through Feb. 14, after which the price increases to $130.

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