According to Market.us, The smart packaging market is expected to achieve a CAGR of 6.3% from 2023 to 2032, resulting in a market value of approximately USD 52.1 billion by 2032 from USD 28.7 billion in 2022.
Smart packaging is advanced packaging that allows transparency through an instantaneous ability to track and trace the exact location of a product in a supply chain using barcodes, RFID, and QR codes.
Smart packaging protects the product and improves the customer experience by providing exact information about the product. Data-embedded barcodes and quick response (QR) codes on packaging can be scanned to access essential data, improving traceability. It helps in predictive planning and more efficient inventory management. It also protects packaged products from external environmental conditions and helps to maintain product quality for a long time.
Factors affecting the growth of the smart packaging market
Several factors can affect the growth of the smart packaging market. Some of these factors include:
Increasing use in healthcare: Smart packaging in pharmaceutical products helps to maintain the quality of drugs and helps to protect drugs from the external environment. The main benefits of smart packaging in drugs are that it protects drugs from physical damage and prevents them from biological degradation. In addition, smart packaging protects sensitive drugs that need protection from light, water, and other sensitive substances.
Increasing use of personal care products: Worldwide, individuals are more aware of their personal health and hygiene, and due to this, they are more inclined to use personal care products. Consumers prefer products with ingredient information on the packaging. Due to this, the demand for smart packaging in personal care products is increasing.
Growing demand for packaged ready meals: With increasing globalization, individual lifestyle is also changing. With increasing disposable income, consumers are shifting towards ready-packaged foods. Therefore, demand for smart packaging is growing in dairy products and packaged ready meals, which provides more shelf life and helps retain the food’s flavor.
Top Trends in Smart Packaging Market
Key companies in the smart packaging market are focusing on attractive packaging to attract consumers. Automobile industry manufacturers started using smart packaging to reduce physical damage to vehicle parts. Due to increasing health concerns, individuals are more inclined towards ready food and dairy products. Increasing food wastage coupled with growing concerns about food insecurity, companies are focusing on various intelligent packaging solutions to overcome food insecurity. Food & beverage industries started smart food packaging to protect food from external environmental conditions and provide fresh food to consumers.
Market Growth
Smart packaging solutions protect high-value goods and parts. The production of vehicles requires engines, small mechanical elements, decorative interiors product, and smart packaging to protect these from being damaged. Increasing globalization and growing automotive industries are driving the demand for smart packaging in automotive industries. Sensors and barcodes on the packaging of products give the exact location of the product during transportation of products, which helps industries to preplan their manufacturing strategies which helps to develop effective business activities and save time. The increasing use of smart packaging in pharmaceutical industries also drives the growth of the global smart packaging market.
Regional Analysis
The smart packaging market was dominated by Asia Pacific, which acquired the most significant revenue share of 33% in 2022. The presence of key players in the Asia Pacific region, such as Ester Industries Ltd. and TCPL Packaging Ltd., is fueling the market growth. Market growth in the Asia Pacific region is propelled by increasing demand from manufacturing industries in emerging economies such as China, Japan, and India. In addition, the increasing adoption of smartphones and the emergence of online shopping channels drive the demand for smart packaging in e-commerce industries. North America is expected to grow at the fastest CAGR during the forecast period due to changing lifestyles and increasing demand for packaged foods in developed countries such as the United Kingdom, Belgium, France, and Germany. Also, the presence of key players in the smart packaging market, such as International Paper Co., Berry Global Group Inc., and Crown Holdings Inc., is driving the growth of the market.
Competitive Landscape
The market for smart packaging is very fragmented. This is due to numerous players entering the market and small players having high competition between them. Major key players are now focusing on expanding their businesses in foreign countries. Key players focus on business strategies such as merging, joint ventures, and acquisition to gain a competitive edge in the market. Some major key players in the smart packaging market include 3M Company, Avery Dennison Corporation, Ball Corporation, BASF SE, Amcor Plc, International Paper, R.R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, Zebra Technologies Corp., Sealed Air Corporation, Huhtamaki, and Other Key Players.
Market Drivers
Consumers are more aware of freshness, nutrition, purity of food, and protection against dirt, dust, smell, heat, and other environmental factors. Due to this, the demand for smart packaging is increasing in the food & beverages industries. Changing lifestyles worldwide and the high demand for fresh foods are driving the need for smart packaging in the market. Also, individuals prefer products with packages including preparation instructions, nutritional facts, cautions, and ingredient information. In addition, increasing self-health concerns in individuals are driving the market’s need for personal care products. Beauty and personal care products use solid packaging due to their properties, such as cost-effectiveness and versatility.
Market Restraints
Increasing costs of advanced packaging materials are the primary factors restraining the market growth. Increasing governmental restrictions on the use of plastic packages also restrain the market growth. Some packaging materials, such as plastics, do not get decomposed, which causes harm to the environment, and this has a negative impact on market growth.
Market Opportunities
smart packaging provides high safety for sensitive parts of vehicles in the automotive industry, increasing its demand automotive industry. Growing applications of smart packaging in the food & beverages and healthcare industries are expected to create lucrative growth opportunities in the global market. The increasing emergence of e-commerce driving the need for smart packaging with advanced technologies such as QR codes, RFID, and sensors for product safety and security is anticipated to drive the market during the forecast period.
Segmentation of the Smart Packaging Market
Type Insight
Based on type, the modified atmosphere packaging segment was dominant in the market with the largest market share and is expected to continue its dominance during the forecast period. Modified atmosphere packaging is the imposition of a gas atmosphere, which contains inert gases, such as nitrogen, combined with antimicrobials, and active gases like CO2 in packaged food, to improve packaged food shelf life. Worldwide demand for ready-to-eat packaged food is increasing. Due to this, the demand for modified atmosphere packaging is also increasing to protect food quality and nutrition.
Material Type Insight
The solid segment dominated the market based on material type, with the largest global revenue share in 2022. Solid packaging material is environment-friendly, moisture-resistant, compact, and can supply high-quality printing. Solid packaging is highly demanded in the pharmaceutical industry due to its high applications in packaging tablets and capsules. The liquid packaging segment is expected to grow at the fastest CAGR due to the increasing need for the packaging of dairy products. Worldwide consumption of dairy products is increasing, and due to this, the liquid segment is anticipated to grow to protect the product quality and maintain its nutritional values.
End-User Insight
Based on end-user, The food & beverages segment was dominant in the market with the largest market revenue share of 34% in 2022 and is anticipated to remain dominant during the forecast period. Smart packaging in food & beverages helps monitor the condition of packaged foods and the environment around the food. Changing lifestyles and increasing food safety concerns among individuals are driving the need for smart packaging in food products.
Source: Market.Us
