This quarterly newsletter to the Packaging team is designed to share information, keep up to date on market developments that affect our business, and progress towards our vision of being a formidable $1B Global Provider of Packaging Solutions! Inside, you’ll find highlights on market developments shaping our industry, customer shifts that may impact our strategy, and innovations driving packaging forward.

Please share feedback, as well as any articles that you think the Packaging team should know about, with Madeline DuCharme.

Industry Reports 

(Reports stored on Packaging Market Research Sharepoint)

2026 Building an AI Advantage in Packaging Equipment (February 2026)

• AI adoption in the packaging industry has accelerated since 2024, with the most significant advancements occurring in knowledge transfer, predictive maintenance, machine vision, regulatory compliance, and data transparency.
• Knowledge transfer and predictive maintenance are expected to deliver the strongest near‑term impact. Among CPGs, 43% already use predictive maintenance, and 45% plan to adopt it within three years.
• Packaging companies face growing challenges in AI adoption, including internal attitudes, accountability for errors, cybersecurity, latency, and ROI measurement, though progress has been made in secure implementations and user acceptance.
• Looking ahead, falling AI costs, increasing specialization among AI vendors, and the need to coordinate multiple AI systems are expected to drive expansion, market consolidation, and growing competitive pressure over the next 12 months.

Gen AI could transform packaging pricing: McKinsey: Packaging companies are quickly moving from early experimentation to large‑scale deployment of generative AI, especially in commercial areas like pricing, sales optimization, and competitive intelligence. Although challenges like privacy and unclear use cases remain, AI is increasingly enabling granular customer insights, faster contract analysis, and new opportunities for end‑to‑end operational transformation.

Top Priorities and Strategic Imperatives for US Manufacturers: Aftermarket Capabilities: Aftermarket parts and services give manufacturers high‑margin, recurring revenue while creating frequent customer touchpoints that have the power to deepen relationships. A strategic aftermarket approach can help OEMs strengthen loyalty, uncover pain points earlier, and build a more resilient business less dependent on capital equipment cycles.

State of the Consumer 2025: When disruption becomes permanent: Consumers continue to spend despite low sentiment, making unpredictable trade‑offs as pandemic‑era behaviors become permanent—reflected in the fact that nearly 40% of consumers surveyed in the US, UK, and Germany used grocery delivery the prior week. To stay competitive, companies must adapt for a more value‑driven, convenience‑centric consumer who excepts easy, fast delivery right to their door.

Customer News 

PepsiCo will cut prices on Lay's, Cheetos by as much as 15%: PepsiCo is rolling back chip prices by up to nearly 15% — including Lay’s, Doritos, Cheetos, and Tostitos — after inflation‑strained shoppers began shifting to cheaper store brands and buying fewer snacks overall. PepsiCo and others, like General Mills, hope the cuts will win back cost‑conscious consumers whose budgets have become the biggest barrier to buying name‑brand products.

Kraft Heinz pauses work to split the company as new CEO says ‘challenges are fixable’: Kraft Heinz has postponed its planned corporate split to focus on stabilizing the business and driving growth through investments in pricing, marketing, and consumer-focused initiatives. The move drew mixed reactions from investors and analysts, even as the company reported better‑than‑expected earnings but weaker revenue.

Nestlé’s Chief Is in Turnaround Mode. He Drinks 8 Cups of Coffee a Day: Nestlé’s new CEO, Philipp Navratil, is working to revive growth and rebuild trust after a leadership scandal. His aggressive reset means portfolio shifts, new pack‑price architectures to fit consumer budgets, and increased emphasis on AI‑driven agility, all of which signal coming changes in packaging formats, line requirements, and future equipment needs.

Packaging News

EU Packaging and Packaging Waste Regulations (PPWR): The PPWR establishes rules covering the packaging lifecycle. The aim of this regulation is to reduce the quantity of packaging on the market and avoid packaging waste. It will apply to all packaging placed on the market in the EU, regardless of the packaging type and material. However, there will be exceptions for some markets and items (e.g. medical supplies and dairy products). 

While this regulation may not directly impact our own operations, it will significantly impact customers operating in Europe, as their products will need to meet these sustainability requirements in member countries. Customers may look to us for support and products that help them meet these requirements. It will be important for our teams to consider how these changes could influence the products and services we provide, so we are prepared to help customers respond effectively. 

If you have any additional questions about this regulation, or details about the specific requirements, please contact: bwsustainability@barry-wehmiller.com

2026 U.S. Packaging Laws Reshape Sustainable Materials and Machine Design: New packaging regulations are accelerating the shift toward recyclable, PCR‑rich, and PFAS‑free materials—directly impacting machine specs, format flexibility, and the need for equipment that can run evolving substrates without compromising throughput. Both Jim Kolmus, VP of Innovation, and Maggie Tucker, Global Sustainability Leader, contributed to this article!

Ardagh saw boost for cans, decline for glass in 2025: Fast‑growing energy drinks and strong North American can demand lifted metal packaging shipments, while deep cuts to glass capacity and a weak beer market dragged down the glass side of Ardagh's business.

Feedback

Thank you for reading through the Packaging newsletter! We want this to be useful, so please send feedback, any articles you think should be included in the next newsletter, or nominations of people for recognition if they are working on a project connected to a market trend to Madeline DuCharme.

This quarterly newsletter to the Packaging team is designed to share information, keep up to date on market developments that affect our business, and progress towards our vision of being a formidable $1B Global Provider of Packaging Solutions! Inside, you’ll find highlights on market developments shaping our industry, customer shifts that may impact our strategy, and innovations driving packaging forward.

Please share feedback, as well as any articles that you think the Packaging team should know about, with Madeline DuCharme.

Industry Reports 

(Reports stored on Packaging Market Research Sharepoint)

2026 Building an AI Advantage in Packaging Equipment (February 2026)

• AI adoption in the packaging industry has accelerated since 2024, with the most significant advancements occurring in knowledge transfer, predictive maintenance, machine vision, regulatory compliance, and data transparency.
• Knowledge transfer and predictive maintenance are expected to deliver the strongest near‑term impact. Among CPGs, 43% already use predictive maintenance, and 45% plan to adopt it within three years.
• Packaging companies face growing challenges in AI adoption, including internal attitudes, accountability for errors, cybersecurity, latency, and ROI measurement, though progress has been made in secure implementations and user acceptance.
• Looking ahead, falling AI costs, increasing specialization among AI vendors, and the need to coordinate multiple AI systems are expected to drive expansion, market consolidation, and growing competitive pressure over the next 12 months.

Gen AI could transform packaging pricing: McKinsey: Packaging companies are quickly moving from early experimentation to large‑scale deployment of generative AI, especially in commercial areas like pricing, sales optimization, and competitive intelligence. Although challenges like privacy and unclear use cases remain, AI is increasingly enabling granular customer insights, faster contract analysis, and new opportunities for end‑to‑end operational transformation.

Top Priorities and Strategic Imperatives for US Manufacturers: Aftermarket Capabilities: Aftermarket parts and services give manufacturers high‑margin, recurring revenue while creating frequent customer touchpoints that have the power to deepen relationships. A strategic aftermarket approach can help OEMs strengthen loyalty, uncover pain points earlier, and build a more resilient business less dependent on capital equipment cycles.

State of the Consumer 2025: When disruption becomes permanent:

Consumers continue to spend despite low sentiment, making unpredictable trade‑offs as pandemic‑era behaviors become permanent—reflected in the fact that nearly 40% of consumers surveyed in the US, UK, and Germany used grocery delivery the prior week. To stay competitive, companies must adapt for a more value‑driven, convenience‑centric consumer who excepts easy, fast delivery right to their door.

Customer News 

PepsiCo will cut prices on Lay's, Cheetos by as much as 15%: 

PepsiCo is rolling back chip prices by up to nearly 15% — including Lay’s, Doritos, Cheetos, and Tostitos — after inflation‑strained shoppers began shifting to cheaper store brands and buying fewer snacks overall. PepsiCo and others, like General Mills, hope the cuts will win back cost‑conscious consumers whose budgets have become the biggest barrier to buying name‑brand products.

Kraft Heinz Reverses Course on Company Split as Sales Continue to Slide: Kraft Heinz has postponed its planned corporate split to focus on stabilizing the business and driving growth through investments in pricing, marketing, and consumer-focused initiatives. Despite facing declining sales and industry pressures, leadership believes there are near‑term opportunities to strengthen the company before revisiting the split in 2027.

Nestlé’s Chief Is in Turnaround Mode. He Drinks 8 Cups of Coffee a Day: 

Nestlé’s new CEO, Philipp Navratil, is working to revive growth and rebuild trust after a leadership scandal. His aggressive reset means portfolio shifts, new pack‑price architectures to fit consumer budgets, and increased emphasis on AI‑driven agility, all of which signal coming changes in packaging formats, line requirements, and future equipment needs.

Packaging News

EU Packaging and Packaging Waste Regulations (PPWR): The PPWR establishes rules covering the packaging lifecycle. The aim of this regulation is to reduce the quantity of packaging on the market and avoid packaging waste. It will apply to all packaging placed on the market in the EU, regardless of the packaging type and material. However, there will be exceptions for some markets and items (e.g. medical supplies and dairy products). 

While this regulation may not directly impact our own operations, it will significantly impact customers operating in Europe, as their products will need to meet these sustainability requirements in member countries. Customers may look to us for support and products that help them meet these requirements. It will be important for our teams to consider how these changes could influence the products and services we provide, so we are prepared to help customers respond effectively. 

If you have any additional questions about this regulation, or details about the specific requirements, please contact: bwsustainability@barry-wehmiller.com

2026 U.S. Packaging Laws Reshape Sustainable Materials and Machine Design: New packaging regulations are accelerating the shift toward recyclable, PCR‑rich, and PFAS‑free materials—directly impacting machine specs, format flexibility, and the need for equipment that can run evolving substrates without compromising throughput. Both Jim Kolmus, VP of Innovation, and Maggie Tucker, Global Sustainability Leader, contributed to this article!

Ardagh saw boost for cans, decline for glass in 2025: Fast‑growing energy drinks and strong North American can demand lifted metal packaging shipments, while deep cuts to glass capacity and a weak beer market dragged down the glass side of Ardagh's business.

Feedback

Thank you for reading through the Packaging newsletter! We want this to be useful, so please send feedback, any articles you think should be included in the next newsletter, or nominations of people for recognition if they are working on a project connected to a market trend to Madeline DuCharme.