Rafael Alvarado, Sector Lead for the Packaging Sector at Pacific International Executive Search, introduces the 2026 Outlook Report to help senior leaders navigate a rapidly evolving landscape in this space. The report explores the key forces shaping the year ahead, including sustainability as a source of competitive advantage, the growing role of AI across operations, and the impact of supply chain transformation on strategic decision-making. It also highlights the leadership and talent priorities that will define success, offering HR leaders and hiring managers practical insights on how organisations can turn industry disruption into long-term growth by building the right team capabilities.
The global packaging industry stands at a pivotal moment, defined by structural change, heightened regulation, and rapid technological innovation. In pharmaceutical packaging, precision, compliance, and temperature integrity remain non-negotiable. Success in 2026 will depend on two imperatives: achieving strategic clarity and building high-performing teams aligned with transformation priorities.
Leaders must now balance sustainability with compliance, integrate AI into core operations, and navigate geopolitical volatility. These challenges demand executives with technical credibility, strategic foresight, and cultural agility. Companies cannot build these capabilities overnight. HR leaders must plan hiring and development with precision.
Transformation depends as much on people as on systems. As regulatory scrutiny and consumer expectations rise, leadership becomes the ultimate differentiator. The defining question for 2026 is this: Do you have the talent to turn vision into execution?
Key Developments and Challenges
- Margin Pressure from Overcapacity
Persistent overcapacity in mature markets continues to erode profitability. Boards now expect disciplined capital allocation and operational excellence to protect margins. In pharma packaging, executives must improve efficiency without compromising quality or compliance. To stay competitive, assess cost structures quarterly and maintain innovation pipelines that deliver real value.
- Supply Chain Vulnerability
Global supply chains still face geopolitical shocks and logistical disruptions. In pharmaceuticals, these risks extend beyond finances to patient safety. Executives should regionalise production, strengthen supplier partnerships, and implement digital traceability to protect cold chain integrity for temperature-sensitive products. Building resilience into sourcing strategies is now a strategic necessity.
- Regulatory and Sustainability Mandates
Compliance has evolved from a cost centre into a growth enabler. Emerging regulations such as the EU PPWR and EUDR require accelerated investment in circular design and carbon reduction. In pharma packaging, sustainable practices must coexist with strict safety and sterility standards. Leaders should create innovation roadmaps that align recyclable materials with operational and regulatory requirements.
Trends and Predictions Shaping 2026
- Sustainability as Competitive Advantage
Sustainability will separate market leaders from laggards. Bain & Company reports that 59% of customers will switch suppliers if sustainability targets are not met within 3 years (1). Expect advances in bio-based barrier materials and reusable cold chain containers that meet environmental and compliance standards. To stay ahead, embed sustainability milestones in R&D and supplier evaluation criteria.
- AI-Driven Digital Transformation
Predictive analytics, automation, and scenario planning will become operational standards. In cold chain management, AI-enabled sensors will cut spoilage, improve compliance, and streamline logistics. Although 95% of packaging executives agree on the need to invest in generative AI, McKinsey finds only 24% have begun implementation (2). Executives who act early will capture efficiency gains and stronger decision-making capabilities.
- Regionalised and Resilient Supply Chains
Nearshoring and friend-shoring continue to accelerate. According to Capgemini, 83% of consumer goods companies are investing in friend-shoring (3), while PwC notes localisation as central to cost efficiency and resilience (4). Leaders should balance cost, risk, and sustainability, using data analytics to model trade-offs across sourcing options.
- Portfolio Focus and Strategic Partnerships
The era of sprawling conglomerates is ending. Boards increasingly prioritise core businesses and pursue selective M&A or joint ventures to spark innovation and growth. Executives should sharpen portfolio focus by divesting non-essential assets and identifying partnerships that accelerate technology adoption or market reach.
- Workforce Transformation and Skills Gap
Automation is redefining roles across the sector, creating heavy demand for digital, analytical, and sustainability expertise. Within five years, AI adoption will become standard practice, with 71% of paper packaging firms expecting full integration. Leaders must anticipate this shift by creating upskilling programmes and embedding workforce strategy into board-level discussions.
The Executive Imperative: Building High-Performing Teams
Leadership now requires orchestrating transformation, not just managing improvement. High-performing teams drive strategy implementation. Executives can maximise impact through these priorities:
Embed Sustainability in Team Objectives
Integrate environmental goals into every team’s KPIs. Encourage collaboration across the value chain to accelerate circularity and regulatory readiness.
Drive Digital Fluency and Data-Driven Culture
Invest in training so teams can use AI, analytics, and predictive tools effectively. Promote decision-making based on reliable data and forward-looking insights.
Build Agility for Supply Chain Resilience
Create cross-functional groups that can respond quickly to disruptions. Use real-time visibility and scenario modelling to test reaction plans and keep continuity.
Focus on Strategic Alignment and Accountability
Clarify how every role contributes to enterprise priorities. Measurable objectives and shared purpose drive engagement and consistent execution.
Invest in Talent Development and Diversity
Develop structured learning programmes and recruit for adaptability and diverse thinking. Teams with varied backgrounds innovate more effectively and recover faster from disruption.
Conclusion
Executive search now functions as a strategic growth lever in a market where traditional hiring models no longer deliver. Search partners bring deep sector knowledge, global reach, and rigorous assessment methods to identify leaders who thrive amid uncertainty and transformation. They shorten time-to-hire for pivotal roles and prevent leadership gaps during transitions.
In 2026, competitive advantage will rest on people—those who combine vision with resilience. The winning organisations will treat leadership acquisition as a core strategic discipline, working with executive search partners to attract transformational talent. In packaging, pharma, and consumer sectors alike, growth will come from leaders who turn disruption into opportunity and teams that execute with purpose.
If you are a hiring leader in the Packaging Sector, connect with Rafael Alvarado to schedule a confidential, no-obligation chat to discuss navigating talent or diversity challenges within your team.
(1) Bain & Company Paper & Packaging Report 2026
(2) McKinsey Sustainable packaging 2025: Top barriers for packaging purchasers
(3) Capgemini Research Institute, Illuminating the Path – Building Resilient and Efficient Supply Chains in the Consumer Products and Retails Industry
(4) PwC Report: Localising supply chains and its impact on performance