Packaging cannibalization refers to the phenomenon where a new product or packaging design from a company ends up competing with and ultimately replacing its own existing products or packaging. This can occur when the new product or design is marketed as an improved or updated version of the existing one, causing customers to switch to the new option and decreasing sales of the original product. This can result in a loss of revenue and market share for the company, as well as confusion and frustration for consumers. In essence, packaging cannibalization is a form of self-sabotage for companies, as they inadvertently undermine their own products by introducing new ones.