Packaging and Labeling Services NAICS 561910

Mar 28, 2025 - Tariffs May Disrupt Packaging Markets

• Some packaging manufacturers and trade groups have expressed concerns that the Trump administration’s tariff-based trade policies could disrupt packaging trade flows and increase costs, according to Packaging Dive. The American Forest & Paper Association suggested trade strife could disrupt North America’s complex paper product supply chains. Several paper companies – including Cascades, Clearwater Paper, and Smurfit Westrock – expressed concerns about escalating US-Canada trade tensions during earnings calls in February. In a recent statement, the Aluminum Association said the US aluminum industry imports about two-thirds of its primary aluminum from Canada because US smelters operating at 100% capacity cannot meet demand. The Plastics Industry Association recently stated deep concerns about tariffs as the US imported and exported more than $70 billion in plastics in 2023.
• Durable goods orders – a demand indicator for packaging and labeling services – may have gotten a boost in February as companies scrambled to make purchases ahead of tariffs. February durable goods orders increased 0.9% over January, beating a forecast of a 1% decline by economists polled by Reuters. Shipments of durable goods increased 1.2% in February over January. While economists suggested the February gains were led by firms front-loading purchases ahead of tariff-related cost increases, the Atlanta Fed expects first-quarter GDP to decline amid mounting economic uncertainty.

• The global market for labels and release liners is valued at $47.2 billion in 2025 and is projected to post average annual growth of 3.6% through 2030, reaching a value of more than $56.3 billion, according to market research firm Smithers. Key demand drivers include packaging volumes and sustainability. Major product areas include paper, film, and ink labels.
• Amid mounting regulatory requirements and consumer demand, more brands are shifting away from plastic packaging in favor of fiber-based alternatives, according to Packaging Dive. The United Nations Environment Program estimates that nearly all single-use plastic products are made with fossil fuel feedstocks, and production, use, and disposal of single-use plastics will account for almost 20% of the global carbon budget by 2040. So far, most of the shifts toward paper packaging have been food and shipping. Several brands are working with packaging firms to develop a paper-based bottle that is durable enough to contain liquids and can be easily recycled.