Market Overview

The active and intelligent packaging market was valued at USD 17.5?billion in 2019, and is expected to reach a value of USD 25.16? billion by 2025, registering a CAGR of 6.78%?during the forecast period of 2020-2025.?

  • Active packaging demand is driven by food processing companies to keep food fresh for a longer period of time, during its duration in the supply chain, to reduce food waste and promote more convenient packaging for consumers.
  • With the growing urban population and changing lifestyle trends across the globe, the demand for ready-to-eat, frozen meat, and packaged food is increasing. The supply of frozen foods, meat products, vegetables, and fruits is surpassing boundaries, thus giving regional markets global exposure.
  • Moreover, with the retail industry propelling at a rapid pace, the need for attractive and advanced packaging is also increasing.



Scope of the Report

Active and intelligent packaging involves the use of permitted additives in packaging film, or within packaging containers, for the maintenance and extension of product shelf life. Active packaging allows packages to interact with food and the environment and plays a dynamic role in food preservation.

Key Market Trends

Food to Account Significant Share

  • Food organizations are increasingly embracing sensory marketing, which is a strategy focused on the engaging of multiple senses in the consumer environment, where not only the color or shape, but texture, sound, and even the smell of a pack can influence consumer’s purchasing decisions.
  • For instance, when Nestle launched Maggi Healthy Soups, it used the new and patented ’granulation-based technology’, which retains the freshness of the key ingredients and delivers a multi-sensorial experience.
  • The evolution of intelligent packaging systems through the use of sensor technologies, indicators (including freshness, integrity, and time-temperature indicators (TTI)), and radio frequency identification (RFID) has been assessed for potential use in meat and meat products as well.



The United States to Account for Largest Share

  • The United States is witnessing a rapid rise in its existing population, primarily due to the work-related migrations into the country. This rising population has directly burdened the food industry and affected the packaging industry. It is home to the busiest markets and forms a major part of the workforce dependent on the frozen foods and packaged food for appetite
  • The pharmaceutical industry is a major segment, which has a vital role to play in the active and intelligent packaging market in the United States. The spending on medicines in the country rose from USD 316 billion in 2010 to USD 450 billion in 2016. Also, the country accounts for more than a quarter of the total pharmaceutical industry, which has critical importance for active and intelligent packaging.
  • Companies in the country, such as VerifyMe, Inc. entered into a reseller agreement with eAgile. Under this agreement, eAgile will be able to offer its clients VerifyMe’s RainbowSecure Ink Identifier Serialization Technology.
  • Companies in the country are also entering into strategic mergers and acquisitions to gain a competitive edge. For instance, Resource Label Group, a service provider of pressure sensitive label, shrink sleeve, and RFID/NFC technology for the packaging industry acquired Best Label Company to broaden its west coast presence and position in the label and packaging industry.



Competitive Landscape

The active and intelligent packaging market is fragmented with many players competing in the same space. The unstructured nature of the industry with very few major players involved implies that there is a high rivalry between the smaller companies. Smaller firms are on the rise, with intentions of capturing the high growth potential of the market studied. Some of the key players in the market include BASF, Amcor Ltd, and Honeywell International Inc. These players are strategically expanding there presence in the existing as well as untapped markets.

  • May 2019 - Amcor Limited and Bemis Company, Inc. announced that regulatory clearance has been received from the US Department of Justice in relation to the combination of the two companies. A condition of this approval is the previously announced sale of certain Amcor assets located in the US to Tekni-Plex, Inc.
  • December 2018 - Amcor opened new home care packaging site in India. As part of a seven-year agreement with Unilever signed in 2017, Amcor, the global packaging leader, made a substantial investment to build and equip the state-of-the-art Bharuch plant, at Gujarat, in the Western region of India
  • December 2018 - Amcor opened new home care packaging site in India. As part of a seven-year agreement with Unilever signed in 2017, Amcor, the global packaging leader, made a substantial investment to build and equip the state-of-the-art Bharuch plant, at Gujarat, in the Western region of India.



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