Smart packaging has increasingly gained more attention since it transforms the packaging industry and the consumer product packing industry. The term “smart” describes new developments in the packaging sector that improve the usefulness of products for consumers, making it easier to access and monitor company and product-related data. This enhanced utility results from the consumer learning more about businesses and goods they are using and buying from as a result of improved information tracking and sharing. From a commercial perspective, smart packaging offers a more individualized, distinctive, and approachable way for customers to interact with a brand.
The smart packaging market size is estimated at USD 22.67 billion in 2024 and is expected to reach USD 31.98 billion by 2029, growing at a CAGR of 7.12% during the forecast period (2024-2029). Smart packaging refers to a specific type of sensor-equipped packaging system used for various items, including food and medication. The technology used in smart packaging helps to increase product quality, shelf life, freshness monitoring, and customer and product safety. When products are packaged using intelligent technology, these systems provide details about the product’s quality and freshness.
Based on technology, the market is divided into active packaging and intelligent packaging. The active packaging segment dominates the market and is expected to reach over USD 13.02 billion by 2032. Innovative packaging solutions that actively interact with the packaged product or its surroundings to increase shelf life, preserve product quality, or provide new functions are referred to as active packaging. It often includes components or technologies such as moisture absorbers, temperature sensors, antibacterial agents, and oxygen scavengers. Active packaging regulates variables including oxygen levels and moisture content to maintain freshness, stop spoilage, and improve safety. It assures food safety and quality throughout the supply chain and satisfies the customer demand for products with long shelf life.
Based on packaging material, the market is categorized into plastic, paper & paperboard, glass, metal, and biodegradable materials. The biodegradable materials segment is the fastest growing segment with a CAGR of over 8% between 2024 and 2032. Biodegradable packaging materials decompose naturally in the environment. These materials include biodegradable polymers from renewable resources such as cellulose, sugarcane, and maize starch. Biodegradable packaging promotes sustainable practices by lowering carbon footprint and limiting landfill trash. The use of biodegradable materials in packaging aligns with the growing consumer and regulatory demands for environment-friendly substitutes. This encourages environmental stewardship and conscientious consumption habits in a variety of industries such as consumer goods, food, and pharmaceuticals.
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.
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.
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech