Smart Packaging that Connects the Digital and Physical worlds

Smart packaging can link the physical and digital worlds, forming a perfect digital bridge between manufacturers, retailers, consumers, and social media channels. So, what exactly is smart packaging? In principle, smart packaging describes packaging with extended functions. Generally, there are two types of smart packaging: active packaging and intelligence packaging. Active packaging can interact with the contents and thus improve the shelf life or quality of the content during storage. This is achieved using light-filtering materials, oxygen and ethylene absorbers, antimicrobial surface coating, or moisture-regulating materials. For example, beer in a plastic bottle containing an oxygen absorber in the screw cap extends the shelf life from three to six months.

Intelligent packaging offers additional benefits beyond the mere packaging task—the intelligence of packaging results from communication with the outside world. The additional benefits include diagnostic and indicator functions that use indicators or sensors to monitor the product’s condition and provide information on, e.g., tightness, storage time, temperature, or freshness. Alternatively, the indicators or sensors can be integrated into the packaging and placed on the outside or inside. Intelligent packaging also fulfills information, automation, marketing, or protective functions, e.g., through barcodes, LEDs, augmented reality, NFC, loudspeakers, radio chips, or displays. One example is intelligent drug packaging with built-in RFID chips, LEDs, and tiny loudspeakers that register the removal of pills and sound an alarm if they are taken incorrectly or even inform the doctor treating the patient. The same applies to packaging with NFC chips, which use an NFC reader (e.g., smartphone), making it possible to read out the package insert and reorder the medication.

บIntelligent packaging offers smartphone users additional product information on the origin, production conditions, or ingredients. By scanning barcodes or RFID chips, the information can be called up in conjunction with a suitable app on the internet. At the same time, this technology can also be used for logistics and marketing purposes. Johnnie Walker Blue Label, for instance, uses extremely thin electronic sensors that transmit when the bottle has been opened or where it is in the distribution chain. In addition, Diageo can upload promotional offers while the bottle is in the store. However, the information is remitted as soon as the sensor indicates the bottle has been opened.

According to Maximize Market Research, the smart packaging market size was valued at USD 39.68 billion in 2022, and the total revenue is expected to grow at 4.56% from 2023 to 2029, reaching nearly USD 54.23 billion. Market growth drivers such as demographic shifts, demand for processed foods, the need to extend the shelf life of packaged products, food safety concerns, rising health awareness, and better supply chain management are all driving demand for smart packaging. Changes in lifestyle patterns fuel the market’s growth due to increased urbanization, particularly in emerging economies.

Based on packaging technology, modified atmosphere packaging accounted for the highest part of the market in 2022. The growing demand for fresh and high-quality packaged food goods such as bread, fruits and vegetables, processed meat, fish, seafood, and dairy products is mainly responsible for this segment’s significant share. In addition, the on-the-go lifestyle, the change toward easy-to-handle & convenient packaging, and growing economies all contribute to the market’s need for modified atmosphere packaging. The intelligence segment, on the other hand, is expected to grow at the fastest rate during the forecast period. Based on application, the pharmaceutical segment is predicted to have the greatest CAGR over the forecast period. The increased integration of barcodes, RFID, and sensor technologies in the pharmaceutical business to monitor information such as medications’ expiration dates, consumption, and doses, as well as innovations in the pharmaceutical business, all contribute to this segment’s massive growth. In 2022, however, the food and beverage segment dominated most of the market.

According to Market.Us Research, the smart packaging market was dominated by Asia Pacific, which acquired the most significant revenue share of 33% in 2022—the presence of key players in the Asia Pacific region, such as Ester Industries LTD and TCPL Packaging LTD is fueling the market growth. Market growth in the Asia Pacific region is propelled by increasing demand from manufacturing industries in emerging economies such as China, Japan, and India. In addition, the increasing adoption of smartphones and the emergence of online shopping channels drive the demand for smart packaging in e-commerce industries. However, according to Mordor Intelligence, North America is expected to hold a significant market share. Due to favorable regulations, a focus on sustainability, and rising demand for active and intelligent packaging across various end-user segments, particularly the food and healthcare industries, the smart packaging market in the United States has experienced significant growth over the past few years.

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech