The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The smart packaging market was valued at USD 36.81?billion in 2019, and is expected to reach USD 46.25?billion by 2025, registering a CAGR of 4.19% over the forecast period of 2020-2025. The self-heating food packaging techniques are making it easy for consumers to have a snack and a hot beverage and a snack. It also helps to communicate and monitor regarding food quality using time-temperature indicators.
- 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 growth for the market 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 product.
- The developments in the printing processes in various industries have also been drivers for this market. Printed technologies have proved their functionality in the process processing and presentation of 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, excessive cost of capital for installment, security issues, new techniques for fabricating such sensors and indicators that are compatible with current packaging standards and awareness among consumers are key restraints and challenges for the growth of the market.
Scope of the Report
Smart packaging refers to packaging systems with embedded sensor technology used with foods, pharmaceuticals, and many other types of products. There has been an increase in the applications owing to the availability of different forms, such as fabric, plastic, plastic films. The various advantages offered by smart packaging over their conventional counterparts are reduced counterfeiting, increased shelf life, improved safety, and easy implementation.
Key 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 at a faster pace in the food sector with enormous potential to improve the 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, the great concern in the food and intelligent packaging, is 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.
- This demand for intelligent packaging is supported by technological encroachments. 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 major 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 huge 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 the smart packaging solutions in the region.
- Extending shelf life for foods along with increasing investment has pushed the global demand for smart packaging in the North American region.
The smart packaging market is highly fragmented as players are emerging to enter in this industry and many small firms are present with a high intensity of rivalry. Many smaller firms are on the rise, with intentions of capturing the high growth potential of the market. Therefore, the 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:
- April 2019 - Tetra Pak launched a connected packaging platform, which will transform milk and juice cartons into interactive information channels, full-scale data carriers, and digital tools. For retailers, it will offer greater supply chain visibility enabling distributors to track stock movements and real-time insights.
- February 2019 - Sealed Air acquired MGM’s (MGM is a prominent packaging company that provides flexible food packaging materials for consumer packaged goods markets in Southeast Asia) the flexible packaging division. The acquisition is majorly aimed at enhancing its presence in Asia-Pacific and improving its printing and lamination capabilities.
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