Global Smart Packaging Market Assessment, By Type [Active Packaging, Intelligent Packaging, Others], By End-use [Food and Beverage, Healthcare, Automotive, Personal Care, Logistics, Others], By Region, Opportunities, and Forecast, 2016-2030F

Global Smart Packaging Market Assessment, By Type [Active Packaging, Intelligent Packaging, Others], By End-use [Food and Beverage, Healthcare, Automotive, Personal Care, Logistics, Others], By Region, Opportunities, and Forecast, 2016-2030F

Global smart packaging market is expected to reach USD 61.43 billion by 2030 from USD 34.7 billion in 2022. The market is displaying a remarkable growth rate that is forecasted to be 7.4% compounded annually for the forecast period between 2023 and 2030.

The packaging of a product holds as much importance as the product itself, and the way products have been packaged over the years is changing. The market growth is driven by technological innovation, eco-friendly solutions, consumer demand for engagement and the rise of e-commerce. Technology plays an important part in everyday life, and many brands are leveraging technology in product packaging to provide more functionality and increase customer engagement. The global smart packaging market represents a transformative evolution in the way products are packaged, offering a blend of cutting-edge technology and traditional packaging functionality.

The convergence of physical packaging and digital interaction has opened new avenues for businesses to provide dynamic experiences, ensure authenticity, and gather real-time data insights. In an era driven by technological innovation, smart packaging stands at the forefront of a revolution that has redefined the concept of product packaging.

Customer Engagement

Smart packaging is an efficient way for brands to build and enhance customer engagement through personalized experiences. Smart packaging can offer interactive elements like QR codes or NFC tags that consumers can scan to access additional product information, promotions, or related content. Augmented Reality (AR) is becoming popular in the global smart packaging market as its features allow consumers to access tailored content, promotions and usage instructions, and transform packaging into interactive touchpoints.

With connected packaging, there are countless possibilities for consumer interaction, whether informative, entertaining, or a part of a loyalty program. Quick access to digital instructions help brands to understand customers' usage patterns of shipping, preparation, dosage, and disposal, and makes the products easier to use. For a smoother consumer experience, it makes ordering, reordering, and returning easier for the user.

Tetra Pak, a significant food processing and packaging firm, has added an entertaining and engaging smart packaging experience to its cartons for a top European fruit juice producer to inform and motivate its customers. The creative technology studio Appetite Creative and Tetra Pak worked together to design the feature.

McDonald's oversees approx. 38,000 restaurants in more than 100 nations and thousands of suppliers. To assure ingredient availability, reduce supply chain disruptions, and safeguard its commitment to food safety and ethical sourcing, the company uses real-time supply chain monitoring.

Significance Across Various Industries

The global smart packaging market has made its impact across industries, all over the world. From FMCG to healthcare and from automotive to logistics, the global smart packaging market is playing a vital role for various brands, across industries, in keeping the product safe, extending its life and gathering data to get deeper insights. In the food and beverage industry, using sensors, smart packaging monitors temperature and humidity, ensuring that food goods stay safe and fresh throughout the supply chain. In logistics, smart packaging improves security by enabling real-time monitoring and alarms for potential theft or loss and businesses can maintain ideal inventory levels and decrease stockouts with the aid of sensors in packaging.

EVERTHNG company has developed the ""Product Cloud"" system , encompassing the entire lifecycle from sourcing, manufacturing, distribution, retail, and consumption, to recycling. Noteworthy brands such as Mondelez, Unilever, Coca-Cola, LVMH, and Diageo have embraced EVERTHNG's intelligent packaging solutions.

Tracking and Transparency

Real-time insights about the movements of products are being made possible in large part by smart packaging. Brands can monitor temperature, humidity, and location by integrating GPS tracking and sensors, guaranteeing that items are kept in ideal conditions throughout the supply chain. In the global smart packaging market, tracking and transparency has become an important aspect of smart packaging, such as product’s journey from the starting point to the endpoint can be traced.

This kind of packaging tracks a product's travel through the supply chain using RFID tags or other tracking tools. The supply chain's effectiveness can be increased, and theft can be avoided with the use of this information. Real-time tracking and monitoring capabilities are provided by smart packaging systems, improving visibility across the supply chain. It results in improved inventory management, decreased waste, and simplified logistics processes.

Symbiotic Relationship with E-Commerce

The rise of e-commerce and growth in online sales channels is one of the primary reasons why the global smart packaging market is growing as the growth of online shopping has heightened the importance of packaging. As smart packaging's capabilities closely match the requirements and expectations of online retailers and consumers, e-commerce and smart packaging have developed a symbiotic relationship.

Smart packaging can provide e-commerce companies with tools to enhance customer experiences, gather feedback, and facilitate returns. QR codes NFC tags, and other interactive elements on packaging allow consumers to access product information, promotions, and related content, creating a personalized and memorable experience. The e-commerce sector is concerned about counterfeit goods. Customers have options to confirm the legitimacy of their purchases to smart packaging solutions with anti-counterfeiting features, which increases customer faith in the platform.

Impact of COVID-19

The COVID-19 pandemic had a significant impact on the global smart packaging market, influencing trends and developments in several different industries. As smart packaging market is dependent on other industries, the demand smart packaging solutions reduced due to restrictions and lockdowns. As the pandemic hit, the demand for personal care products, automotive, food and beverage declined and the subsequent demand for smart packaging decreased. However, as the demand for pharmaceuticals and healthcare products increased, the global smart packaging market showed positive impact. As the world’s economy rebounded, the demand for smart packaging increased across the industries. Changed consumer behavior pushed the market further, like Smart packaging, with its QR codes and NFC technology, offering touchless ways to access information and interact with products. The pandemic led to the expansion of online shopping, which had a huge demand for smart packaging solutions.

Key Players Landscape and Outlook

Over the years, the global smart packaging market has expanded significantly with a positive outlook. The global smart packaging market is anticipated to grow steadily for the forecast period, catering to various industries across regions all over the globe. The market is expected to gain most in the Asia-Pacific, as India and China have huge population size as well as growing incomes with urbanization. Factors such as increased consumer demand for interactive experiences, advancements in IoT technology, and a growing emphasis on sustainability and supply chain optimization have prompted many businesses to invest in smart packaging. Significant smart packaging is not limited to big business houses, but to SMEs as well.

Key players are likely to continue investing in research and development to offer innovative solutions that cater to various industries needs and address evolving consumer expectations.