Internet of Packaging Market - Forecasts from 2023 to 2028

The global Internet of packaging market is estimated to grow at a CAGR of 7.87% during the forecast period.

The Internet of Packaging (IoP) is a concept that combines packaging materials with internet-connected sensors and technology to create smart and interactive packaging solutions. IoP enables packaging to collect and exchange data, providing valuable information throughout the supply chain and to end-users. This technology can track product freshness, monitor storage conditions, authenticate products, and even engage consumers with interactive content, enhancing transparency, efficiency, and customer experience in the packaging industry.

Introduction:

The Internet of Packaging (IoP) market refers to the industry that develops, manufactures, and implements smart and connected packaging solutions. It encompasses the integration of internet-connected sensors, data exchange, and digital technology into packaging materials, enabling real-time tracking, monitoring, and engagement throughout the supply chain. The IoP market caters to various sectors, including food and beverages, pharmaceuticals, consumer goods, and logistics, offering enhanced product traceability, improved shelf life, increased efficiency, and enriched customer experiences. The market's growth is driven by increasing demands for product traceability, safety, and sustainability, as well as the need for improved inventory management and enhanced customer engagement.

Drivers:

• Product Traceability and Transparency: The demand for increased product traceability and transparency is a significant driver for the IoP market. Consumers and regulatory bodies seek accurate information about the origin, manufacturing process, and distribution of products to ensure quality, safety, and sustainability.
• Enhanced Shelf Life and Freshness: IoP solutions can incorporate sensors to monitor and control environmental conditions, such as temperature and humidity, within packaging. This capability helps extend the shelf life of perishable goods, reducing food waste and improving overall product freshness.
• Supply Chain Optimization: The real-time data collected through IoP-enabled packaging aids in optimizing supply chain logistics. Companies can track the movement of goods, identify bottlenecks, and improve inventory management, leading to increased efficiency and reduced costs.
• Anti-Counterfeiting and Authentication: IoP technologies enable unique identifiers and authentication features on packaging, helping combat counterfeiting and ensuring the authenticity of products, thereby protecting brand reputation and consumer trust.
• Consumer Engagement and Experience: Interactive packaging solutions driven by IoP foster consumer engagement. Augmented reality (AR), QR codes, or NFC tags on packages enable customers to access additional product information, promotions, or personalized content, enhancing their overall shopping experience.
• Regulatory Compliance and Safety: IoP-enabled packaging can help meet regulatory requirements in various industries, such as pharmaceuticals and food, ensuring compliance with safety standards and facilitating the recall process if necessary.
• Sustainability and Waste Reduction: IoP technologies allow for better inventory management, reducing overstocking and waste in the supply chain. Additionally, intelligent packaging can guide consumers on proper disposal methods, contributing to sustainability efforts.
• E-commerce Growth: With the increasing trend of online shopping, IoP solutions play a crucial role in providing accurate and real-time tracking of packages during transit, enhancing delivery efficiency and customer satisfaction.
• Remote Monitoring and Quality Control: IoP-enabled packaging allows manufacturers to remotely monitor product conditions, facilitating quality control measures and ensuring products meet required standards before reaching consumers.
• IoT Integration and Advancements: As the Internet of Things (IoT) continues to evolve and advance, IoP technologies benefit from improved connectivity, lower costs, and enhanced data analytics capabilities, driving further adoption and innovation in the market.

Products offered by key companies:

• Coca-Cola has developed an IoP product called the Connected Cooler. The cooler uses sensors to track the temperature and freshness of drinks, as well as the number of drinks that have been sold. The data from the cooler can be used to improve the efficiency of the supply chain and reduce food waste.

Positive growth in the food and beverage segment:

The segment of the Internet of Packaging (IoP) market that is experiencing rapid positive growth is the food and beverage industry. This growth can be attributed to several factors. Firstly, the increasing focus on food safety and traceability drives the adoption of IoP solutions to monitor and track the entire food supply chain. Secondly, consumers' demand for transparency and real-time information about the products they purchase has led to the implementation of smart packaging that provides interactive content and nutritional details. Lastly, the ongoing rise in e-commerce and online grocery shopping has accelerated the need for reliable package tracking and temperature control during delivery, further boosting the demand for IoP solutions in the food and beverage sector.

The North American region is expected to hold a significant share:

The North American region is expected to dominate the Internet of Packaging (IoP) market share. This dominance can be attributed to several factors, including the region's early adoption of IoT technologies and digital advancements, the presence of major technology companies and packaging manufacturers, and the high level of awareness and demand for smart packaging solutions in various industries such as food and beverage, pharmaceuticals, and consumer goods. Additionally, North America's robust e-commerce sector has driven the need for efficient package tracking and customer engagement, further fueling the growth of the IoP market in the region.

Key developments:

• In December 2021, researchers from Harvard and Nanyang Technological University developed smart food packaging that gradually releases microbials, effectively killing vegetable-rotting bacteria and extending the freshness of the produce. The packaging is environmentally friendly as it is biodegradable, utilizing a waste by-product called zein, obtained from corn starch or oils during ethanol production. Plant starch cellulose and acetic acid are added to zein, along with natural antimicrobial compounds from plants like thyme oil and citric acid.

Key Segment:

By Technology Deployment Type

• Barcode and QR Code
• Low-Energy Bluetooth
• Sensors and Tags
• Radio Frequency Identification
• NFC Technologies
• Indicators

By Application

• Personal Care
• Health Care
• Automotive
• Consumer Electronics
• Food and Beverages
• Homecare
• Others

By Packaging Type

• Bottles and Jars
• Films and Wraps
• Mailers
• Boxes and Cartons

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others