Smart Packaging Market

According to Stratistics MRC, the Global Smart Packaging Market is accounted for $25,721.43 million in 2022 and is expected to reach $39,695.93 million by 2028 growing at a CAGR of 7.5% during the forecast period. Smart packaging is a kind of device that boosts the engine's effectiveness and power. The term "smart packaging" refers to a particular kind of sensor-equipped packaging system used for a variety of goods, including food and pharmaceuticals. The smart packaging technology contributes to improving product quality, shelf life, freshness monitoring, and customer and product safety. These intelligent systems offer information on the product's quality and freshness when it is packaged with intelligent technology.

According to the Flexible Packaging Association, flexible packaging is mainly used for food, which accounts for more than 60% of the total market. According to the UN environment program, approximately 1.3 billion metric tons (1.43 billion tons) of all food produced globally is lost or wasted every year. In the United States, an estimated 133 billion pounds of food are wasted yearly, valued at USD 161 billion.



Market Dynamics:

Driver:

Increasing demand for smart packaging in the food industry

Smart packaging can be used in the food and beverage industry to track a product's position during transportation, monitor its quality and freshness, and provide the consumer with information about its contents and nutritional value. This could improve the quality and safety of the goods as well as the shopping experience. As people become more concerned with food freshness and defence against contaminants including dust, grime, odour, water vapours, heat, oxygen, and germs, these elements are being taken into account more and more. The market for smart packaging is also being expanded by consumer demand for smart packaging that regulates temperature and keeps food safe and fresh.

Restraint:

High costs in mass applications

Due to the higher cost of sensors and radio frequency identification (RFIDs) used for packaging applications, better packaging is more expensive than conventional packaging, which contributes to the failure of mass applications for packaging systems. Better packaging is more expensive than traditional forms of packaging because the sensors and radio frequency identification (RFID) utilised for packaging applications are more expensive and are failing in large applications for packaging systems.

Opportunity:

E-commerce creates an opportunity for the packaging section

In order to provide clients with security and safety, more technological advancements are being made as the e-commerce industry grows. Online shopping is becoming more popular in developed, developing, and developing nations. Additionally, intelligent packaging solutions that provide clients with information about shipment monitoring and product delivery create attractive market potential. Furthermore, it is projected that the expanding E-commerce industry, accelerated industrialisation, and rising need for superior supply chain management would present market participants with appealing possibilities.

Threat:

Incorporating expensive technologies

The largest difficulty facing firms in the field of smart packaging is figuring out how to put pricey new technology into the packaging without raising or cutting customer prices. Educating consumers about the advantages of this kind of packaging and creating unique production processes for cutting-edge sensors that can adhere to packaging rules are additional obstacles.

Covid-19 Impact

Construction, manufacturing, hospitality, and the tourism industries were all significantly impacted by the COVID-19 outbreak. Manufacturing operations were suspended or limited. Globally, supply networks for the construction and transportation industries were disrupted. This reduced the production of smart packaging as well as the market's demand for them, which hindered the market's expansion for smart packaging. On the other hand, businesses gradually began providing their usual goods and services. The smart packaging companies were able to resume operations at full capacity as a result, which assisted in the market's recovery by the end of 2021.

The solid segment is expected to be the largest during the forecast period

The solid segment is estimated to have a lucrative growth. Packaging that makes use of solid-state technologies, such as sensors and smart labels, to enhance the consumer experience and provide additional product information, as well as freshness, safety, and storage recommendations, is referred to as solid smart packaging. These technologies can be used to create interactive packaging that provides consumers with up-to-date product information. Solid smart packaging typically has applications like temperature-sensitive labels, humidity-sensitive labels, RFID-enabled packaging, and interactive packaging.

The food and beverage segment is expected to have the highest CAGR during the forecast period

The food and beverage segment is anticipated to witness the highest CAGR growth during the forecast period. There are a few reasons for this. They favour buying food that is always available, accessible, and has a long shelf life. Again, intelligent packing can guarantee these. Since it makes it easier for them to comply with the most recent and stringent food safety laws, the majority of enterprises in the food and beverage sub-segment are motivated to use smart packaging.

Region with highest share:

North America is projected to hold the highest market share during the forecast period owing to the requirement for food and liquids has clearly increased as a result of the growing population. To meet the enormous demands of the food industry, the amount of food imported from different areas of the world has substantially expanded, which has boosted the demand for smart packaging solutions in the area. The lengthening of food shelf life and growing investment are driving up the demand for smart packaging in the North American region.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the rising adoption of advanced packaging technologies in numerous end-use industries, the rising demand for food and beverage items in the area, and the expansion of e-commerce. In addition, the Asia-Pacific region is home to a number of significant economies, including China, India, Japan, and South Korea, which are anticipated to propel the expansion of the area's smart packaging market.



Key players in the market

Some of the key players profiled in the Smart Packaging Market include Sysco Corporation, Zebra Technologies Corp., Ball Corporation, BASF SE, Crown, R.R. Donnelley & Sons Company, Avery Dennison Corporation, 3M, International Paper, Stora Enso, Sealed Air Corporation, Amcor Plc, Huhtamaki PPL Ltd, Thin Film Electronics ASA, Smartrac N.V. and Emerson Electric Co.

Key Developments:

In April 2019, Tetra Pak unveiled a linked packaging platform that would transform milk and juice cartons into technology tools, large data carriers, and interactive information conduits. Distributors will be able to track stock movements and obtain real-time information if retailers have more access to the supply chain.

In February 2019, Sealed Air acquired the flexible packaging section of MGM. Flexible food packaging materials are provided by the well-known packaging company MGM for Southeast Asian markets for consumer packaged goods. The two major objectives of the purchase are to strengthen its position in Asia-Pacific and to advance its printing and laminating capabilities.

Technologies Covered:
• Intelligent Packaging
• Modified Atmosphere Packaging
• Active Packaging

Materials Covered:
• Liquid
• Solid

Applications Covered:
• Automotive
• Food & beverage
• Healthcare
• Personal care
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances