Smart Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Smart Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The smart packaging market is expected to register a CAGR of 5.8% over the forecast period. The self-heating food packaging techniques make it easy for consumers to have a snack, a hot beverage, and a snack. It also helps to communicate and monitor food quality using time-temperature indicators.

Key Highlights

• The changing lifestyle of customers because of quick urbanization and expanded utilization of individual personal items with advanced integrated innovation drive the smart packaging market growth. Moreover, undiscovered geographical markets offering gigantic open doors for the market players are relied upon to fuel the worldwide packaging market industry.
• The market's growth is evolving due to the exploration of nanotechnology into varied F&B applications, demand for shelf-stable and sustainable packaging solutions among food and beverage retailers and manufacturers, and increasing consumption of packaged food products.
• The developments in the printing processes in various industries have also been drivers for this market. Printed technologies have proved their functionality in processing and presenting information on paper and other substrates. Hence, recently, there has been a lot of scientific research on printed electronics and RFID technology, which create the framework for the potential development of smart packaging applications.
• However, the high cost of capital for installment, security issues, new techniques for fabricating such sensors and indicators compatible with current packaging standards, and awareness among consumers are key restraints and challenges to the market's growth.
• The global impact of COVID-19 significantly affected the smart packaging market in 2020. This was mainly due to strict lockdowns in some regions and several problems, such as truck shortages, reduced deliveries, and employees contracting COVID-19. In addition, truncated air freight capacity, port congestion, roadblocks, and logistic disruptions in Southeast Asia escalated as stricter measures were implemented by governments.

Smart Packaging Market Trends

Intelligent Packaging Technology Expected to Lead the Smart Packaging Market

• Intelligent packaging is the newest technology within the packaging sector. This technology is growing faster in the food sector, with enormous potential to improve convenience for consumers.
• Intelligent packaging can report the condition on the outside packaging and directly measure the quality of the product inside the package. Biosensors for pathogen or toxic identification, a significant concern in food and intelligent packaging, are helping it by attaching antibodies to a plastic attaching surface which can give a sign of a false sense of security to the customers.
• The commercialization of printed electronics for intelligent packaging and smart labels is rising. Printed electronics is one of the core products of the intelligent packaging revolution and has the potential to be the breakthrough technology for reducing costs and expanding functionality.
• Technological encroachments support this demand for intelligent packaging. For instance, the advent of advanced packaging machinery has enabled companies to manufacture new packaging solutions incorporating communications technologies, such as Rfid, sensors, etc.

North America to Account for a Significant Market Share

• The United States occupies the larger share of the market value in North America, followed by Canada. The growing working population and the increasing demand for interactive and improved packaging solutions account for the expected growth in the market in the region.
• The United States is home to one of the busiest consumer markets, which forms a significant part of the workforce. The demand for food and beverage has risen markedly due to the growing population (both from within and due to immigration).
• To meet the enormous demands of the food industry, there has been a significant increase in the volume of the import of food from different regions across the world, thus, driving the demand for smart packaging solutions in the area.
• Extending shelf life for foods and increasing investment has pushed the global demand for smart packaging in the North American region.

Smart Packaging Industry Overview

The smart packaging market is highly fragmented as players are emerging to enter this industry, and many small firms are present with a high intensity of rivalry. Many smaller firms are on the rise to capture the high growth potential of the market. Therefore, competitive rivalry is high in this market. Some of the key players in the market include Huhtamaki Group, Amcor Ltd, and BASF. Some of the key developments in the smart packaging market are as follows:

• September 2021 - Avery Dennison Corporation launched its AD Maxdura Tire Tag for the tire industry. The new product enables tracking and tracing through the logistic chain and makes it easier to identify tires at warehouses and dealerships.
• August 2021 - Kellogg’s permanently adapted all of its cereal boxes for blind and partially sighted consumers after a successful trial on Coco Pops boxes with UK supermarket Co-op. The inclusive cereal boxes are printed with coding technology enabling smartphones to detect and playback labeling and allergen information to users. The NaviLens technology is reportedly similar to a QR code but can be detected from up to three meters away in a fraction of the time. NaviLens was initially created to provide navigational assistance, meaning it can help shoppers find a product and provide packaging information.
• August 2021 - Zai Urban Winery's organic wine was launched in beverage cans. Crown Bevcan Europe & Middle East (Crown) was tasked with bringing this visually engaging story to life as the brand's partner for manufacturing and designing the six unique cans, which feature high-quality graphics and a premium appearance, attracting a younger audience. The winery had assigned six distinct characters for each of its organic wines, which are available in 250 ml cans.
• April 2021 - Stora Enso introduced the world’s first sustainable RFID for microwave-safe use. It helps in item-level tagging and ready-made meals.
• May 2021 - BASF joined Digital Watermark Initiative “HolyGrail 2.0” for smart packaging recycling. Under the auspices of AIM, the European Brands Association, BASF, and more than 120 companies and organizations from the packaging value chain joined forces in the initiative to prove the viability of digital watermarking technologies for accurate sorting and the business case at a large scale.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support