Intelligent Packaging: Key Prospects, Opportunities and Challenges
What can be the expected
growth and competitive landscape of the Intelligent Packaging Market?
Intelligent
packaging’s multi-faceted ability to create a lasting impression and maintain
product quality has made it an essential asset for different end user
industries. Pharmaceutical, food & beverage and consumer goods industries
are driving the growth of their businesses through intelligent packaging.
Intelligent packaging is majorly driven by smart, interactive and connected
packaging solutions that not only help in tracing the product but also notify
about the well-being of the product through RFID tags and sensors. This, in
turn, is gaining the trust of consumers and increasing investment in the same.
Consumer
choices too are playing a key role in reshaping the intelligent packaging
industry. According to a research study published
by Future Market Insights on Intelligent Packaging, millennials and Generation
Z are becoming conscious of their purchasing choices and want to invest in
products that are sustainably packaged.
The
packaging industry has been under constant scrutiny for its non-degradable
packaging solutions that create tons of waste and pollute the planet in more
ways than one. This has led packaging companies to redesign their existing
packaging models and make them more environmentally friendly. Thus, from using
less water to reducing carbon emissions, packaging companies are taking every
step to offer sustainable packaging.
Sustainable
packaging has opened doors of opportunities for intelligent packaging
manufacturers. Companies are planning to collect plastic through the use of
blockchain technology and are focusing on combating food waste by using
sensors. The increasing integration of the Internet of Things (IoT) that
supports artificial intelligence and augmented reality is changing the dynamics
of the intelligent packaging industry.
The
intelligent packaging industry is offering a promising change of sustainability
and delivering on the same. Avery Dennison’s innovations to advance circular
packaging and Graham Packaging’s innovations for circulatory are two prime
examples of how sustainability can be achieved through intelligent packaging.
Thus, the amalgamation of sustainability and technology is changing the
intelligent packaging industry in more ways than one.
What
can be the expected market size and challenges in Intelligent Packaging market
in the near future?
Future
Market Insights states that the intelligent packaging market is expected to
garner a market value of 46.7 Billion by
registering a CAGR of 9% by the end of 2031. Most end user
industries are relying on intelligent packaging to drive customer engagement
and gain brand loyalty. Intelligent packaging is not only helping in tracing,
tracking and informing the content and whereabouts of the product but also
bridging the gap between consumers and manufacturers. With the integration of
intelligent packaging, manufacturers are able to gain deeper insights into
product shelf-life, changing behavior characteristics of products due to
external weather and are able to identify reasons for product damage during
transportation.
Although
intelligent packaging promises the safety and security of products, the
industry is facing certain challenges that are derailing its progress. In
comparison to traditional packaging, intelligent packaging is expensive. This
is due to intelligent packaging not being adopted by small and large-scale end
user industries and its tech-driven nature. Thus, intelligent packaging is not
becoming mainstream.
In
certain cases, intelligent packaging is not completely sustainable owing to the
components it uses. Sensors, electronically-driven printing, batteries and
circuits do not get completely recycled. Thus, these components of intelligent
packaging end up polluting the landfills. Manufacturers of these components
need to take a deeper dive into the carbon footprint and its impact on the environment.
Owing to this, intelligent packaging companies are focusing on using green
flexible electronics that are made of biodegradable materials.
Moreover,
a similar solution of intelligent packaging cannot be applied to all end user
industries. For example, the consumer goods industry requires the backing of
strong blockchain technology whereas the food and beverage industry heavily
relies on sensors, indicators and RFID tags. Owing to this, manufacturers of
intelligent packaging have to invest more to cater to a wide range of end user
industries.
How is the
market size of intelligent packaging expected to grow?
Manufacturers are realizing the possibilities existing within
the intelligent packaging market in terms of recyclability, monetary advantages, and
environmental friendliness. Companies are using intelligent packaging solutions
to attract a growing segment of eco-conscious customers who demand recyclable
and sustainable packaging. With emerging innovations and material development,
packaging is no longer a secondary factor; these packaging developments have
the potential to disrupt existing business models.
Several growth factors are anticipated to bolster the
intelligent packaging market in the future.
Intelligent packaging market leaders currently rely primarily on key technological
advancements, such as nanotechnology, to provide packaging solutions that safeguard
food, beverage, personal care, and pharmaceutical products. Simultaneously,
active and smart labels (RFID tags, barcodes, Bluetooth packaging) are
increasing in demand in the intelligent packaging sector. As the worldwide
import and export of rare active pharmaceutical ingredients (APIs), edibles and
drinks have expanded in recent years, active packaging is seeing rapid growth.
By 2031, the global intelligent packaging market is forecast to expand at a 9
percent CAGR and reach US$ 46 billion by 2031.
Within food, the dairy segment, fruit and vegetable segment, and
ready-to-eat segment are the major revenue generators for intelligent
packaging, creating a US$ 5.5 billion incremental opportunity during the
forecasted period. The main purpose of intelligent packaging in the food and beverages industry is real-time food monitoring. This allows for the tracking and
gathering of information about processes such as rancidity, oxidation, or
reactivity with other biotic components. Modified atmosphere packages (MAPs)
for carbon dioxide detectors, oxygen detection, and humidity sensors, to name a
few examples. Coca-Cola, PepsiCo, Sainsbury, and Jack Daniels are among the
food and beverage firms that have used intelligent packaging solutions.
For instance, Coca-Cola held a recycling challenge at the Active
Intelligent Packaging Industry Association (AIPIA) Congress in Amsterdam,
inviting delegates to present a solution to the problem of packaging waste.
These solutions prioritize ease to recycle with maximum efficiency and minimal
effort. Such initiatives are projected to fuel the intelligent packaging
industry and expand the market.
What is the
current Global Market Overview of the Intelligent Packaging market?
The Intelligent Packaging market has formed a crucial aspect of the global packaging
industry, owing to the fact that customers prefer eco-friendly and recyclable
alternatives. The global market for intelligent and sustainable packaging is
steadily growing, fueled by a gradual but robust commercialization of
healthcare, food and beverage, and cosmetic industries. Intelligent packaging is predicted to account for 5% of total
packaging by 2030. Businesses are utilizing intelligent packaging as a
comprehensive solution to boost consumer engagement and overall product sales.
Market leaders are also implementing intelligent packaging solutions to track
consumer satisfaction and boost brand value. Such innovations hold the key to
altering business by collecting and integrating data to make successful
business decisions and to uplift the market to new heights in the future.
The latest intelligent packaging solutions are gaining market
appeal among domestic and international businesses in the food and beverage
industry. Coca-Cola, for example, has turned to intelligent packaging by
printing electronically printed NFC (Near Field Communication) labels on its
bottles. The global demand for alternative technology-based packaging solutions
is expanding as more firms, especially fresh food and the FMCG industries use
intelligent packaging.
The healthcare sector is also heavily dependent on the
intelligent packaging market for ensuring safety of pharmaceutical products.
Every year, it is claimed that $35 billion in pharmaceutical products and
materials are wasted owing to factors such as incorrect storage. As a result,
firms have begun to use active and smart label solutions to check drug quality and temperatures, such as NFC
tags and time-temperature indicators. Globally, these prominent factors will
drive the intelligent packaging market towards adopting new technologies to
increase the efficiency of the tags and labels. Thus, by the end of 2022, this
market is expected to gain a global market size worth US$ 21.47 Billion.
What can be the
Key Trends Impacting the Intelligent Packaging Market in the near future?
The term
“Intelligent” has turned out to be a triggering word for key end-users in the
industry. According to a research study published by
Future Market Insights on Intelligent Packaging, “The primary objective of
intelligent packaging is to combat waste generation and improve overall product
shelf life. Intelligent packaging can reduce the risk of counterfeiting, and
improve tracking and tracing of products.”
The increasing
rate of technological enrichments are projected to massively support demand for
intelligent packaging. From RFID to sensor based packaging, prominent industry
stakeholders are leaving no stone unturned to ensure that packaging formats
take a turn for the better.
Through the
years, various sectors, including the food industry, are generating demand for
intelligent packaging, thus, impacting the market positively. The food sector
has enormous potential to improve the convenience for consumers. Food delivery
companies are investing big time in intelligent packaging to be able to measure
the quality and condition of the food inside the package.
Studies suggest
that an estimated 48 million people become sick from foodborne disease
annually. This is majorly an outcome of improper storage or packaging of food
items. Also, 32% of such cases arise due to temperature abuse. These startling
figures clearly indicate the immense opportunity for intelligent packaging
solutions in the food industry. Food processors, manufacturers and distributors
actively look to enhance the shelf-lives of their finished products.
Real time food
tracking is one of the core functions of intelligent food packaging. It helps
in tracking concerning food related issues such as oxidation of the food
components. Biosensors in the intelligent packaging, for instance, help in the
identification of pathogens and toxic substances in the food. Moreover,
inclusion of antimicrobials, antioxidants, moisture absorbers, MAP, VAP, and
others in the packaging is rapidly increasing to delay ripening of the food
products and prolong shelf life by reducing microbial growth. Hence, demand for intelligent food packaging is
spurring.
What are the expected
sales expectations from the Intelligent Packaging Market?
Intelligent packaging is
a highly sought after solution for various industries intended to drive
customer engagement. Expected sales are projected to be significantly high
owing to the fact that these innovative solutions allow brands to analyse and
monitor various attributes of the product. Intelligent packaging generated revenue of US$
19.7 Billion in 2021, and is anticipated to grow at 9% CAGR,
reaching US$ 46 Billion by 2031. This has created scope for companies to offer
a higher degree of customer satisfaction and capitalize on their loyalty.
Furthermore,
manufacturers are exploring the potential that intelligent packaging holds in
gaining monetary gains in the years to come. Gen Z and millennials prefer
solutions that are sustainable and recyclable. As sustainability acquires
precedence, key players are increasing their commitment towards innovating the
intelligent packaging solutions, leading to disruption of traditional modes of
business and increasing the sales exponentially.
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