The global smart packaging market size was estimated at USD 35.92 billion in 2022 and is expected to reach around USD 60.49 billion by 2032 with a registered CAGR of 5.4% from 2023 to 2032.
Smart packaging is a kind of device that boosts the engine's effectiveness and power. The term "smart packaging" refers to a particular kind of sensor-equipped packaging system used for a variety of goods, including food and pharmaceuticals. The smart packaging technology contributes to improving product quality, shelf life, freshness monitoring, and customer and product safety. These intelligent systems offer information on the product's quality and freshness when it is packaged with intelligent technology.
Due to restrictions on industrial operations during the COVID-19 epidemic, which also impeded the installation of new smart packaging systems, the market for smart packaging was hindered. Additionally, during the lockdown, the smart packaging solutions could not be efficiently sold through OEMs. The main drivers propelling the growth of this market are the increased need for sophisticated packaging solutions from the food processing and pharmaceutical industries, rising consumer concern for reducing food waste, and rising demand for smart & functional packaging. Additionally, the expanding E-commerce industry, increased industrialization, and high demand for excellent supply chain management are projected to provide up attractive potential for market participants.
The costs of the sensors and radio frequency identification (RFID) utilized for packaging applications, which are leading to the failures over the mass applications for packaging systems, make better packaging more expensive than traditional forms of packaging. Additionally, it results in the gathering of client data, which, in the manufacturers' opinion, might eventually create manipulative and tense situations that constrain the market.
Additionally, the COVID-19 epidemic had a significant impact on the hotel, tourist, industrial, and construction sectors. Manufacturing operations were suspended or limited. Globally, supply networks for the construction and transportation industries were disrupted. This reduced the production of smart packaging as well as the market's demand for them, which hindered the market's expansion for smart packaging. On the other hand, businesses gradually began providing their usual goods and services. The smart packaging businesses were able to resume operations at full capacity as a result, which assisted in the market's recovery by the end of 2021.
Report Scope of the Smart Packaging Market
|Market Size in 2023||
USD 37.68 Billion
|Market Size by 2032||
USD 60.49 Billion
|Growth Rate from 2023 to 2032||CAGR of 5.4%|
|Forecast Period||2023 to 2032|
|Segments Covered||Type, Application, Material, and Geography|
3M, Avery Dennison Corporation, Ball Corporation, BASF SE, Crown, International Paper, R.R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, Zebra Technologies Corp. (Temptime Corporation).
Key Market Drivers
Key Market Challenges
Key Market Opportunities
The sub-segment for food and drinks is probably going to have the highest market share for smart packaging. This is due to a few factors. The first is that more people desire to consume food that they are aware is healthy across the world. The second is that people like to consume food that is guaranteed to be fresh. Smart packaging makes this promise. Additionally, they prefer to purchase food that is constantly accessible, readily available, and has a lengthy shelf life. Once more, intelligent packing may ensure this. The majority of businesses in the food and beverage sub-segment are motivated to employ smart packaging since it makes it simpler for them to adhere to the most current and strict food safety regulations. Additionally, consumers want the information on their packaging to be as clear as possible. Smart packaging, according to businesses, enables them to do this while also safeguarding their brands. For reasons of sanitation and transparency, the world may already be trending toward preferring that food goods be wrapped in smart packaging. However, COVID-19 significantly sped up this process.
According to type, the intelligent packaging segment is anticipated to develop at the greatest CAGR throughout the forecast period, while the modified atmosphere packaging segment held the market's largest revenue share in 2022. According to end users, the food and beverage sector dominated the smart packaging market in 2022. However, the others category is anticipated to grow at the fastest rate over the next few years. In terms of revenue, the solid category dominated the market in 2020 and is predicted to experience the greatest CAGR throughout the projected period. North America generated the most revenue regionally in 2020, while LAMEA is predicted to have the best CAGR over the projection period.
Based on material, the solid category commanded more than two-thirds of the market in 2022, and it is anticipated that it would maintain its dominance during the projected period. Additionally, from 2023 to 2032, the liquid category is anticipated to have the greatest CAGR of 6%.
For the period that this research covers, the smart packaging market is anticipated to develop at the greatest rate in the Asia-Pacific region. This is due to a few factors. The first is that Asians nowadays are, on the whole, significantly better educated than Asians in past generations. The second is that they are becoming lot more health-conscious as a result of the first reason. They are curious about the packaging of the meals they eat. Additionally, they inquire about the packaging these goods come in. The widespread consensus is that hygienic packaging results in safer food as well. In this area, people are likewise getting wealthy. As a result, people are able to afford to purchase products (food, pharmaceuticals) that are packed in clever packaging. Asians' growing desire for their food and medications to be wrapped in ecologically friendly packaging is another factor in this.
For the time frame covered, the North American region is anticipated to have the largest market share for smart packaging. People's concern over food waste is one factor for this. Many Americans want to ensure that as little food is wasted as possible due to the fact that many Americans are hungry and that hunger is an increasing concern in America. If extra food is wrapped well to keep it fresh for as long as possible, this is achievable.
Key market players
Segments Cover in the Report
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