Market Research Report
Global Smart Packaging Market - 2021-2028
|Global Smart Packaging Market - 2021-2028|
Published: September 27, 2021
Content info: 180 Pages
Delivery time: 2 business days
Smart packaging is a combination of specialized materials, science, and technology that enhances the packaging functionality by implementing active and intelligent packaging in conventional packaging. It helps to prevent food spoilage, enhance food product attributes such as aroma, taste, and flavor, and also helps in brand protection, premium pricing, and waste reduction. Rising use of smart packaging to increase the shelf life and traceability of food products is expected to witness the positive impact on overall industry growth in the forecast period. Moreover, the growing E-commerce market and rising industrialization coupled with strong demand for superior logistics and supply chain management are likely to create lucrative opportunities for players operating in this market. The global smart packaging market valued USD XX billion in 2020 and is estimated to reach USD XX billion by 2028, at a CAGR of XX% during the forecast period
Increasing demand for fresh processed food is boosting the smart packaging market
Increasing awareness in population towards their health makes people prefer healthy and fresh fruits and vegetables. The indicators on the packaging play an essential role in giving information about the product, its ingredients and expiry date, which boosts the demand for smart packaging. A freshness indicator directly shows the quality of the product; it is usually in the form of labels on the container. RipeSens is the first intelligent sensor tag that switches colors to indicate ripeness of fruits. It performs over-reaction of the aroma discharged by the fruit as it ripens; initially, it is red and then graduates to orange and finally yellow, depending on the choice of the wanted level of development when eating fruit. A recent trend like rising use of wireless technologies in combination with smart packaging in the food & beverage industry to provide consumers with real-time conditions of the perishable goods is likely to drive the industry demand. In addition, rising use of smart packaging in the pharmaceutical and healthcare industry on account of its improved durability, flexibility, and lightweight properties is likely to fuel market growth.
On the other hand, recyclability issues with waste generated by smart packaging are retraining smart packaging market. Although government policies for treating packaging waste and recycling have been in place for quite any time, effective practice shows that recycling various packaging waste is complicated. One of the main problems in the design and production of smart packaging is to advance research on recycling packaging waste, such as finding more suitable materials for implementing sensors and bio-degradable functionalities
Growing awareness for safe and fresh food, boost the demand for intelligent packaging
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.
Food & beverage was the largest application of smart packaging in 2020, accounting for XX% of the revenue share. Rising use of active products in the food & beverage industry coupled with growing emphasis to preserve the quality and safety of packaged products from manufacturing to the time the food is consumed is likely to propel the segment growth. Furthermore, growing demand for self-heating and cooling packaged products in the beverage industry which can heat beverages including tea, coffee, and chocolate to a temperature suitable for consumption is expected to fuel demand for such products in the colder regions such as North America and Europe over the forecast period.
North America is expected to dominate the global smart packaging market during the forecast period
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.
Asia Pacific region is expected to grow at the fastest pace over the projected period. Growing health awareness among consumers in Asia Pacific region especially in developing countries including China and India coupled with the growing disposable income of consumers is anticipated to boost the pharmaceutical market in the region over the projected period.
The global smart packaging market is fragmented with large number of companies operating in the market. Key players include Huhtamaki Group, Amcor Ltd, and BASF among others. Major companies in the smart packaging market are focusing on product launches, acquisitions and technological advancements. For instance,
COVID-19 Impact: Positive impact on the smart packaging market
The fear of microbial strains and the raging pandemic is likely to trigger the need for secure packaging solutions. Consumption of packaged and processed foods is estimated to bode favorably for the industry in the future. Increasing awareness of the advantages of packaged products over loose goods can sustain the demand for solutions such as smart and intelligent packaging. Limitations on in-store shopping and trend towards online shopping are a massive opportunity for smart packaging producers. The need for digital experiences for consumers and creatively employing them drive the market demand. Brands can employ the technology for attracting customer tastes and obtain data on their customers' patterns. Moreover, when COVID-19 vaccine was found, it was supposed to be transported worldwide at the same time in all climatic zones. This has helped effective packaging solutions. This is one of the major factors that will boost the demand for smart packaging in the market.