Europe/USA: two views on packaging in the face of customs duties

Hervé Bouix, packaging innovation consultant, explains the differences between the American and European approaches to packaging. He believes that Europe has a head start, having developed its ability to adapt to restrictive environmental and societal changes without sacrificing the quality perceived by the user. And according to him, few US suppliers achieve this level of excellence.
As for customs duties, he believes that US policy will inevitably lead to an increase in product prices, which will be passed on to American consumers and others. Explanations...

As President of the PCD Awards jury, you are in a privileged position. This allows you to observe the trends followed by brands, as well as the suppliers who work for them, year after year. What are your initial conclusions?

Hervé Bouix: Looking at the new packaging presented each year, it is clear that the trends are moving towards:
– a reduction in virgin plastic in general,
– an increase in PCR (recycled plastic)
– and the use of paper and cardboard, which are now appearing in so-called primary packaging.
In addition, we are seeing a change in consumption patterns in both the mass market and the luxury sector, regardless of the category and positioning of the brands.
For example, more and more refillable systems are emerging. This phenomenon therefore requires improvements in packaging efficiency.
In response to these changes, packaging departments are coming up with the following solutions:
– Use of more technical paper and cardboard
– Use of refill systems and more sustainable containers
– Increased use of recycled plastic
– Optimization of glass and aluminum

Your experience in the US, combined with that you gained in Europe, gives you a global perspective.

Hervé Bouix: Indeed, we can say that Europe is making definite progress thanks to its ability to adapt to challenging environmental and societal changes without sacrificing the quality perceived by the user.
Its expertise has enabled the use of lighter glass, the continued elegance of refill systems, and the invisibility of eco-design by maintaining the quality of their packaging while using materials in a more rational way. And it’s fair to say that few American suppliers achieve this level of excellence.
Question: A difference that can be explained historically!
Hervé Bouix: We can go back to the oil crises of the 1970s, when Europe experienced a surge in energy prices, unlike the US. As a result, European suppliers had to adapt and challenge themselves. They had to find solutions and optimize processes to maintain their position on the global packaging stage. In their quest to stay afloat, they acquired undeniable expertise that enabled them to excel and maintain a superiority that continues to this day.
The famous saying, “In France, we don’t have oil, but we have ideas,” undoubtedly played a role!
In Europe, high-end packaging is just as important for a brand as the “raw” product it sells. It has its place and importance in the brand’s own identity, in its know-how and its savoir-faire.
Moreover, if you look at the glassware sector, which requires highly technical processes, the majority of high-end suppliers are based in Europe.
On the other hand, Americans outperform Europeans in what I would call rapid innovation and branding, i.e., everything related to impact, visuals, and storytelling.
Indeed, what American brands do better than some European brands is the use of more direct and emotional claims on packaging.

Any examples?

Hervé Bouix: Take the Glossier brand in the United States, for example, where packaging serves as a medium for the brand, beyond simply being the product’s container. It becomes a “double agent,” literally and figuratively structuring and supporting the brand’s identity and values while ensuring the product’s packaging.
Its packaging thus allows for immediate recognition of the brand with its identity and values. The packaging is simple and refined, featuring a millennial pink color that is soft and reassuring and perfectly suited for subsequent use on social media.
It is clear that design in the United States is more impactful and daring, with easier use of bright colors and large fonts, for example, so that the brand’s message is visible and recognizable from a distance.
The packaging is therefore designed as a tool and selling point in its own right. In addition to describing the ingredients of the creams, it highlights certain characteristics such as “paraben-free,” “vegan formula,” and “visible results in X days.” The promises are explicit and attractive to consumers. They can be more easily shared on social media.
This allows brands to capitalize on the “before and after” culture, with visual impact and immediate product promises from influencers who attract consumer interest. (For example, Kiko’s First Alert First Push It Up ‘Ciao Amore’ for Valentine’s Day quickly sold out following posts by influencers renowned in the art of professional makeup. The packaging is simple but features a bold red color with original and daring packaging featuring a red lip print.)

So the European approach is more reserved, less ostentatious. Is the emphasis more on elegance than on immediate impact?

Hervé Bouix: The advantage of the United States lies in its rapid commercial effectiveness with efficient deployment and clever, ingenious shelf visibility.
In my opinion, this situation is facilitated in the United States by less stringent regulations than those that exist on the European continent.
Claims are highly regulated in Europe in order to protect consumers, as they should be. In France, the DGCCRF (Directorate General for Competition, Consumer Affairs, and Fraud Control) ensures that the cosmetics industry complies with current regulations. Claims must be based on scientific evidence, reliable studies, traceability, etc.
In contrast, in the United States, cosmetic products are tested more quickly and reactively, with less stringent procedures.
In conclusion, we can say that American cosmetic packaging has undisputed commercial effectiveness, recognized creative freedom, and speed in its capacity for innovation.

Social media has really changed the game!

Hervé Bouix: We are witnessing a change in sales methods, and social media has completely changed consumer behavior and purchasing methods. Cosmetics companies now have to deal with this and can no longer ignore it.
Influencers’ accounts cleverly include hyperlinks on their pages that take users directly to the product in the online store, sometimes with a promo code, which explains the increase in online purchases. The COVID pandemic has undoubtedly also played a significant role in this phenomenon.
This shift in purchasing methods, with the rise of e-commerce, has shaken up the concept of packaging.
In this case, it is no longer the consumer who goes to the products, but the product that goes to the consumer. This means that the product must be shipped to the customer’s home, with the need to protect the product during transport and use materials that ensure protection while remaining as light as possible, not to mention traceability.... . Consumers obviously want to receive these products undamaged. It should be noted that the unboxing phenomenon requires products to arrive in perfect condition, providing a premium experience upon opening that does not damage the brand.

The unavoidable question of customs duties... What influence do they have?

Hervé Bouix: The Trump administration has surprised us, to say the least, by changing the rules of the game so quickly with a restructuring of customs duties that affects many sectors, including packaging suppliers.
The customs duties that have been imposed on European products, including cosmetics, of course, are around 15%.
But we are also seeing the emergence of very high additional duties of up to 50%. This surcharge has been applied to certain components, such as certain metal parts of packaging.
Furthermore, these customs duties may also apply to the declared value and weight of the product.
Glass, which is a thick and heavy material, is therefore subject to this tax. Premium perfume glass is affected by numerous criteria related to this tax.
It is to be hoped that brands will appreciate the expertise of European glassmakers and the quality of the decoration and finishes, and will choose to continue their partnership despite the additional costs imposed by the US authorities.
These new taxes therefore have a direct impact on suppliers in the packaging sector, as is easy to understand.
Given these additional duties, the product is significantly more expensive on the US market.
A recent report estimates that French cosmetics exports could fall by around 20% in 2026. It is certain that European brands that export to the United States and source their packaging from Europe will in fact have higher unit costs. This will put pressure on and have consequences for markets throughout the chain, from brands to packaging subcontractors.
Beyond the impact on the purchase price of the product, the risk we fear is the impact on direct and indirect jobs linked to the cosmetics industry, as we have seen in the past in other sectors. We are talking about approximately 10,000 jobs that could be threatened in France.

Since nature abhors a vacuum, this US policy would allow Asian products, being less taxed, to be more competitive and take advantage of the situation to increase their market share on the American continent. What do you think?

Hervé Bouix: If we try to look ahead to the near future, this US policy will inevitably lead to an increase in product prices, which will be passed on to American consumers.
Unfortunately, it seems likely that brands will adopt a strategy of simplification, relocation, and increased pressure on suppliers.
It would be regrettable if “necessity became the law” and the increase in these taxes forced a simplification of packaging, leading to instability in the positioning of luxury goods.
We must hope that packaging will not lose its prestige. We must continue to say that “packaging transforms the ordinary into the extraordinary.”

Hervé Bouix joined L’Oréal in 1982 and spent seven years in charge of Packaging Technology and Innovation Development.
He then spent four years at Vichy Laboratories working on packaging for skincare, suncare, and men’s products.
After four years at Helena Rubinstein in charge of makeup packaging development, he joined Estée Lauder in the United States at the end of 1996 to create the internal Packaging Innovation department.
Since 2022, he has been a Packaging Innovation Consultant.