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.

Check Out: https://event.futuremarketinsights.com/thought-leadership/whitepaper-intelligent-packaging-for-circular-economy

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