In 2026, the biggest risk in food packaging and processing is no longer missing innovation but investing in the wrong part of the system.
As packaging and processing become increasingly connected, isolated upgrades can create hidden inefficiencies across operations. The companies pulling ahead are not necessarily investing more; they are investing smarter, taking a system-wide approach to technology, automation and operational performance.
As equipment, data and production processes become more interconnected, financing is playing a more strategic role in enabling the right outcomes, an area where companies such as DLL are helping businesses align investment with operational goals.
Production lines are under pressure to deliver on safety, traceability, efficiency and environmental impact at once. When packaging and processing decisions remain siloed, the result is often inefficiency, rework and slower regulatory readiness.
At the same time, smart packaging and sustainable materials are evolving through automation, AI and resource-efficient formats, while tightening regulation and rising consumer expectations accelerate investment in solutions that reduce waste, improve transparency and strengthen food safety.
According to Market Research Future, global demand for food packaging is forecast to grow from $675 billion in 2026 to $1.08 trillion by 2034. StartUs Insights projects the global food processing industry will reach $558 billion by 2034, growing at 7.6 per cent, driven by automation, advanced processing and changing consumer preferences.
From production line to data environment
For producers, these pressures are not theoretical. They show up in labour constraints, rising energy costs and tighter margins.
The packaging line is becoming a data environment. AI-powered systems are enabling more efficient packaging design, reducing material usage and improving yield. Automation and robotics are increasing consistency and minimising manual variability, while digital tools such as QR codes are strengthening traceability across the supply chain.
Food, Agriculture, and Outdoor, Asia Pacific,
Koen van Vlijmen.
DLL head of New Business Development Food, Agriculture, and Outdoor, Asia Pacific, Koen van Vlijmen, says the packaging line is no longer just about throughput.
“It is about visibility and control. Data is what allows manufacturers to improve quality, reduce waste and respond faster when something goes wrong.
“The impact is measurable, including faster recall readiness, improved product quality and greater operational resilience,” van Vlijmen says.
Sustainable packaging beyond compliance
Sustainability is also shifting from a compliance exercise to an operational priority.
Manufacturers are exploring bio-based and biodegradable materials alongside advanced recycling and reuse systems designed to maintain food safety while supporting circularity. Regulatory developments, including Packaging and Packaging Waste Regulation (PPWR), are accelerating the transition, while consumer expectations continue to reshape packaging formats.
Scaling these solutions, however, remains a key challenge.
“Sustainability at pilot level is one thing, scaling it across operations is another. It requires changes to processes, equipment and how teams operate day to day,” says van Vlijmen.
While pilot programs demonstrate potential, broader adoption requires investment in commissioning, changeovers and workforce capability, along with systems that reduce scrap and improve consistency at scale.
Why collaboration now drives execution
Delivering on these priorities is not just a technology challenge, it is a capability one.
“Most of the complexity now sits between systems, not within them. That is why early alignment between partners across the food processing and packaging value chain is becoming critical.
“When stakeholders are aligned early, it becomes much easier to manage risk and introduce changes without disrupting production,” he says.
In this environment, collaboration is often what separates strategic intent from execution.
What manufacturers are prioritising in 2026 and beyond
In practical terms, most investment remains focused on incremental, high-impact improvements. Automation, inspection systems and data integration are leading priorities because they deliver immediate gains in efficiency, quality and compliance. While longer-term innovations such as edible packaging continue to develop, they are unlikely to drive near-term investment at scale.
“The focus is shifting toward solutions that deliver value within existing operations. Flexibility is becoming just as important as innovation.”
Where competitive advantage is built
The businesses that perform best will not be those chasing every new innovation. They will be the ones that make disciplined, system-level investment decisions aligned to how their operations run.
“Technology on its own does not create advantage. It is how those investments come together across the operation that makes the difference,” van Vlijmen says.
Today, success in food packaging and processing is defined less by what companies invest in, and more by how effectively those investments work together in practice.
Where DLL adds value
When investment decisions are complex and interdependent, financing becomes more than a funding mechanism, it becomes an enabler of smarter execution.
DLL supports manufacturers and supply chain partners with financing solutions that align investment with operational realities. By structuring financing around technology lifecycles, production ramp-up and performance outcomes, DLL helps businesses adopt new equipment, automation and sustainable solutions without overextending capital or disrupting cash flow.
“Our role is to make innovation commercially achievable,” says van Vlijmen. “We work alongside partners to ensure investment decisions can be implemented at scale, in a way that fits how businesses actually operate.”
Whether enabling phased upgrades or financing complete processing and packaging lines, DLL helps accelerate time to value.
Interested in how DLL can support your food packaging and processing investments? Visit the DLL website or contact Koen van Vlijmen on +61 482 188 304 or Koen.vanvlijmen@dllgroup.com.
Disclaimer: Finance is provided by De Lage Landen Pty Limited (ABN 20 101 692 040) (DLL). Equipment to be used for business purposes only. Subject to DLL’s standard credit criteria, fees and terms and conditions apply.
