Global Smart Packaging Market By Type (Active Packaging, Intelligent Packaging, and Modified Atmosphere Packaging), By Material Type, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 99081
- Number of Pages: 215
- Format:
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Report Overview
The Global Smart Packaging Market size is expected to be worth around USD 52.1 Billion by 2032 from USD 28.7 Billion in 2022, growing at a CAGR of 6.30% during the forecast period from 2023 to 2032.
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. 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. Data-embedded barcodes and quick response (QR) codes on packaging can be scanned to access important data, and it improves traceability. Smart packaging protects the product and enhances the customer experience by providing exact information about the product.
Driving Factors
Changing Lifestyles and Its Increasing Demand in Food & Beverages
Changing lifestyles worldwide and the high demand for fresh foods are driving the need for smart packaging in the market. 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 & beverage industries.
Also, individuals prefer products with packages including preparation instructions, nutritional facts, cautions, and ingredient information. Increasing self-health concerns in individuals are driving the need for personal care products in the market. Beauty products and personal care products use solid packaging due to their properties, such as cost-effectiveness and versatile nature.
Increasing Use in Automotive Industries
Increasing globalization and growing automotive industries are driving the demand for smart packaging in automotive industries. Smart packaging solutions protect high-value goods & parts, the production of engines, small mechanical elements, and decorative interior products.
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 effective business and save time. Due to this smart packaging has high demand in the automotive industries. The increasing use of smart packaging in pharmaceutical industries also drives the growth of the global smart packaging market.
Restraining Factors
Increasing Packaging Costs and Use of Plastic
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 decompose, which causes harm to the environment, and this has a negative impact on market growth.
Growth Opportunities
The Emergence of E-Commerce Services
Smart packaging has become a new trend in the food & beverage industry to attract customers. Increasing applications of smart packaging in the food & beverages industries 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. Also increasing adoption of smartphones resulted in increasing online shopping channels.
Due to this, the demand for smart packaging is increasing to track orders. Furthermore, smart packaging provides high safety for sensitive parts of vehicles in the automotive industry, increasing its demand automotive industry. Key players in the smart packaging market focus on improving packaging ideas to provide better consumer services.
Trending Factors
High Demand from the Young Generation
Individuals are more inclined towards ready food products and dairy products due to increasing health concerns. Increasing food wastage coupled with growing concerns about food insecurity, therefore companies are focusing on various intelligent packaging solutions to overcome issues of food insecurity.
Food and beverage industries started smart food packaging to protect food from external environmental conditions and provide fresh food to consumers. Key companies in the smart packaging market are focusing on attractive packaging to attract consumers.
Manufacturers in the automotive industry started using smart packaging to reduce physical damage to vehicle parts. Such trends are currently seen in the global smart packaging market.
Type Analysis
The Modified Atmosphere Packaging Segment is Dominant
Based on type, the market is classified into active packaging, intelligent packaging, and modified atmosphere packaging. The modified atmosphere packaging segment was dominant in the market, with the largest market revenue share of 38% in 2022. Modified atmosphere packaging offers high safety and security to packed products.
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.
Modified atmosphere packaging (MAP) mainly includes packaging materials such as low-density polyethylene (LDPE), synthetic polyolefin, and ethylene vinyl which provide greater shelf life and protect packaged foods from external bacteria to improve the shelf life of the product. In addition, MAP uses liquid nitrogen gas or gas mixture in packaging that helps retain the product’s original taste, texture, and appearance.
Furthermore, MAP preserves the freshness of foods, meats, and fish by controlling their biochemical mechanism, such as fermentation, by reducing the amount of oxygen in the package. The intelligent packaging segment is expected to grow during the forecast period due to the increasing use of this packaging in food and beverages.
Intelligent packaging involves indicators and sensors that help monitor the product’s condition and provide exact information about the product. Active packaging improves the product’s shelf life and enhances the food products’ safety and quality.
Material Type Analysis
Solid Segment is the Dominant
Based on material type, the market is segmented into solid and liquid. The solid segment was dominant in the market, with the largest global revenue share of 58% in 2022. Solid packaging material is environment-friendly, moisture-resistant, compact, and able to supply high-quality printing.
Solid packaging has a high demand in the pharmaceutical industry due to its high applications in packaging tablets and capsules. In addition, solid packaging saves raw materials and manufacturing energy, reducing greenhouse emissions, which is this segment’s main growth factor. 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 Analysis
The Food & Beverages Segment is Dominant in the Market, with Largest Market Revenue Share
Based on end-users, the smart packaging market is segmented into food & beverages, healthcare, automotive, personal care, and others. 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 in the market during the forecast period.
Smart packaging in food & beverages helps in monitoring the condition of packaged foods and the environment around the food. Changing lifestyles and increasing safety concerns of food among individuals are driving the need for smart packaging in the packaging of food products.
Also, enhancements in new areas such as biotechnology and nanotechnology are driving the need for smart packaging that helps to extend a product’s life span and shelf life and helps to retain the original quality of packaged foods. In addition, demand for smart packaging in food & beverages is increasing environmental factors such as insects, lights, microbes, smells, dirt, and harmful vapors packaged foods. Smart packaging also allows consumers to get essential information about products by scanning RFID or QR codes on packaging.
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 smart packaging protects the drug from physical damage and also prevents the drug from biological degradation.
Smart packaging protects sensitive drugs that need protection from light, water, and other sensitive substances.
Key Market Segments:
By Type
- Active Packaging
- Intelligent packaging
- Modified Atmosphere Packaging
By Material Type
- Solid
- Liquid
By End-User
- Food & Beverages
- Healthcare
- Automotive
- Personal Care
- Others
COVID-19 Impact Analysis
Disruption in the Supply of Raw Materials
Smart packaging has significant applications in the food & beverages and pharmaceutical industries. The COVID-19 pandemic resulted in strict governmental lockdowns in many countries. The manufacturing and food & beverages were closed during the pandemic.
Due to this, the demand for smart packaging from end-users was reduced, which resulted in a decrease in the revenue share of the smart packaging market. Also, disruption in the supply and manufacturing chain of smart packaging materials had a negative impact on market growth.
Regional Analysis
Asia Pacific Dominates Due to Increasing Consumption of Fresh Packaged Foods and Emergence of Online Shopping Channels
Asia Pacific Region was dominant in the market, with the largest market revenue share of 33% in 2022. Market growth in the Asia Pacific region is propelled by increasing demand from manufacturing industries in emerging economies such as China, Japan, and India.
The increasing demand for ready-to-eat foods and rising consumption of dairy products in the Asia Pacific region are driving the growth of the global market. Increasing trends toward the consumption of fresh packaged foods also drive market growth. The increasing adoption of smartphones and the emergence of online shopping channels drive the demand for smart packaging in e-commerce industries.
In addition, key players in the Asia Pacific region, such as Ester Industries Ltd., and TCPL Packaging Ltd., are fueling the market growth.
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.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
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 Key Players:
Listed below are some of the most prominent key players in the smart packaging market.
- 3M Company
- Avery Dennison Corporation
- Ball Corporation
- BASF SE
- Amcor Plc
- International Paper
- R. Donnelley & Sons Company
- Stora Enso
- Sysco Corporation
- Zebra Technologies Corp.
- Sealed Air Corporation
- Huhtamaki
- Other Key Players
Recent Developments:
- In January 2022, Huhtamaki acquired the joint venture with the Polish Smith Anderson Group. Huhtamaki Smith Anderson had manufactured paper packaging bags.
- In March 2021, Amcor collaborated with JD Farm to develop the next generation of packaging for more effective and interactive consumer engagement.
Report Scope:
Report Features Description Market Value (2022) USD 28.7 Bn Forecast Revenue (2032) USD 52.1 Bn CAGR (2023-2032) 6.3% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type- Active Packaging, Intelligent packaging, and Modified Atmosphere Packaging; By Material Type- Solid and Liquid; By End-User- Food & Beverages, Healthcare, Automotive, Personal Care, and Others. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape 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. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of the Smart Packaging Market in 2022?The Smart Packaging Market size was estimated to be USD 28.7 billion in 2022.
What is the projected CAGR at which the Smart Packaging Market is expected to grow at?The Smart Packaging Market is expected to grow at a CAGR of 6.3% (2023-2032).
List the key industry players of the Smart Packaging Market ?3M Company,Avery Dennison Corporation, Ball Corporation, BASF SE, Amcor Plc, International Paper, R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, Zebra Technologies Corp., Sealed Air Corporation, Huhtamaki, Other Key Players Other Key Players engaged in the Smart Packaging Market .
Which region is more appealing for vendors employed in the Smart Packaging Market ?Asia Pacific Region was dominant in the market, with the largest market revenue share of 33% in 2022. Market growth in the Asia Pacific region is propelled by increasing demand from manufacturing industries in emerging economies such as China, Japan, and India.
- 3M Company Company Profile
- Avery Dennison Corporation
- Ball Corporation
- BASF SE Company Profile
- Amcor Plc
- International Paper
- R. Donnelley & Sons Company
- Stora Enso
- Sysco Corporation
- Zebra Technologies Corp.
- Sealed Air Corporation
- Huhtamaki
- Other Key Players
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