The global intelligent packaging market is expected to account for US$ 23.6 billion in 2023. Total demand for intelligent packaging will rise at 9.0% between 2023 and 2033. By the end of 2033, the global intelligent packaging industry size is set to reach US$ 56.0 billion.
Intelligent packaging sales will accelerate at a robust pace over the next ten years. In 2022, top held nearly 35 to 40% of the market.
Demand remains particularly high for interactive packaging/data carriers and active packaging. Together these two segments will hold around 72% of the market share in the next ten years. This is attributed to rising need for user-friendly packaging and better-quality products.
Intrinsic demand for track & trace packaging across the food & beverage industry propels the sales of intelligent packaging. The global intelligent packaging industry is set to expand 2.4 times the current market value during the forecast period.
· Rising need for protecting sensitive products during storage and transportation will spur growth
· Rapid shift towards next-generation packaging solutions such as anti-microbial packaging to boost sales
· High demand for security and tracking solutions to create opportunities for intelligent packaging companies
· Growing popularity of active and interactive packaging solutions will bode well for the market
· Development of advanced packaging solutions with sustainable features will foster market development
· Growing focus on improving consumer engagement to foster intelligent packaging sales
· Increasing adoption of advanced intelligent medical packaging to create growth prospects
Intelligent packaging has become a fascinating new trend for packaging manufacturers, designs, brands, and consumers alike. It allows end users to communicate the conditions of packaged products. Hence, they help in minimizing the risk of spoilage of sensitive products.
Intelligent packaging can effectively sense environmental changes and inform these changes to users. Adoption of intelligent and smart packaging helps users to extend shelf life of products, monitor freshness, and enhance product and consumer safety.
Rising applications across healthcare and food & beverage industries is expected to boost the global intelligent packaging industry. Most of the intelligent packaging sales remain concentrated in healthcare and food sectors.
Rise in food wastage coupled with growing concerns about food insecurity has prompted companies to use various intelligent packaging solutions. This includes active packaging and interactive packaging.
Besides this, packaging solutions such as freshness indicators and time temperature indicators are gaining wider popularity. Time temperature indicators monitor and inform about the temperature of package during shipping and storage. These indicators are technologically advanced to inform users about any damage in the packaging due to temperature abuse. They are expected to reduce food and pharmaceutical product wastage.
Intelligent Packaging Sales Outlook Compared to Demand Forecast
Global intelligent packaging sales witnessed a CAGR of 6.3 % during the historic period. At the end of 2022, the worldwide intelligent packaging industry reached a valuation of US$ 21.6 billion. Over the next ten years, global intelligent packaging demand is set to increase at 9.0% CAGR.
Intelligent packaging refers to packaging solutions that carry out intelligent functions such as tracing, tracking, detecting, recording, identifying, etc. These packaging solutions are smart, connected, interactive, eco-friendly, and user-friendly.
Intelligent packaging not only protects the product but also provides information such as temperature and freshness related information, information about the product origin, etc.
It offers various benefits that fuel the demand for intelligent packaging among various industries including food & beverage, healthcare, logistics & transport, and consumer electronics. The benefits include improved product quality, enhanced product shelf life, protection against counterfeit products, increased brand value, and others.
Rising inclination towards interactive packaging among various industries to improve consumer engagement is expected to fuel demand for intelligent packaging. Also, growing need for enhancing customer satisfaction and loyalty to gain business opportunities will bode well for the market.
Key Trends Shaping the Augmenting Intelligent Packaging Sales
Track & Trace Packaging to Drive Smart and Connected Packaging Sales
Manufacturers, logistical partners, and various stakeholders ensure the smooth flow of packaged food & beverages by producing, supplying, and delivering the product to the final consumer.
Leading brands are facing huge losses due to the penetration of counterfeit products in the market. To overcome such drawbacks of traditional packaging solutions, they are utilizing next-generation packaging solutions.
Latest intelligent packaging solutions are witnessing increased market acceptance by both domestic and international players in the food & beverage industry. For instance, by providing electronically printed NFC (Near Field Communication) labels on its bottles, Coca-Cola shifted towards intelligent packaging recently.
Overall, global demand for different technology-based packaging is witnessing an exponential increase as more and more brands, especially in the fresh foods and the FMCG sectors are adopting intelligent packaging solutions over all other previously used packaging solutions.
Strict Packaging and Transport Norms for Healthcare Drugs & Supplies to Augments Sales of Intelligent Packaging
Why is the United States Considered the Most Lucrative Market for Intelligent Packaging?
Need for Reducing Food Wastage Propelling Intelligent Packaging Demand in the United States
North America remains the second-highest market generating huge demand for intelligent packaging. According to FMI, the United States will account for 85% of North America intelligent packaging market by 2033.
Rising need for smart packaging and antimicrobial packaging solutions is driving the USA market. Intelligent packaging which is smart, connected, interactive, user-friendly, and eco-friendly aids in minimizing food wastage.
It does this by monitoring, measuring, and warning about the freshness and temperature level which helps in protecting and preserving food products. As per the Food and Drug Administration (FDA), food waste in the USA is estimated at around 30% to 40% of the food supply.
What is Driving Sales of Intelligent Packaging Across India?
Rising Adoption of Connected Packaging by Food & Beverage Companies Fostering Sales in India
Intelligent packaging demand across India is set to rise at 11.8% CAGR between 2023 and 2033. Rising demand for smart and connected packaging in the food & beverage sector is driving intelligent packaging sales in India.
In recent years, the adoption of connected packaging has increased across the Indian food & beverage industry. With expansion of this industry, demand for intelligent packaging will rise.
As per the India Brand Equity Foundation (IBEF), food industry in India is expanding at a 11% CAGR. Food and beverage companies are using connected packaging to ensure consumer engagement. This also allows them to provide product information just by scanning the QR code.
· In September 2021, Timestrip United kingdom Ltd. introduced a new temperature indicator for vaccines. The indicators will help in avoiding the wastage of vaccine supplies.
· In 2021, JRI Company announced the expansion of its capacity by introducing full integration of the Labguard 3D equipment into the JRI-MySirius solution.
· In March 2021, to develop the next generation of packaging for a more effective and interactive consumer engagement, Amcor collaborated with JD Farm