The global smart packaging market was worth around USD 22781.7 million in 2021 and is estimated to grow to about USD 31056.7 million by 2028, with a compound annual growth rate (CAGR) of approximately 5.3 percent over the forecast period.
Smart Packaging Market
The global smart packaging market was worth around USD 22781.7 million in 2021 and is estimated to grow to about USD 31056.7 million by 2028, with a compound annual growth rate (CAGR) of approximately 5.3 percent over the forecast period. The report analyzes the smart packaging market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the smart packaging market.
Smart packaging offers a detailed insight into the product that it envelops and this is what majorly drives its popularity of it. Consumers are becoming more aware and this is expected to turn the tide of the packaging industry in the coming years hence the demand for smart packaging is expected to bolster over the forecast period through 2028.
Smart packaging for food is expected to see a rise in demand as consumers want to know the contents of the food they are consuming owing to the rise in healthy eating and fitness trends. Smart packaging is aimed at improving the shelf life of packaged goods by proper monitoring of multiple parameters such as temperature, etc.
The COVID-19 pandemic slowed down markets all over the world and the markets linked to international trade activity and manufacturing sectors saw a major negative impact on their businesses in this era. Disrupted supply chains and shortage of raw materials hindered the markets to a major extent and rendered huge losses in terms of precious factory downtime as well as profit margin shrinkage.
A drop in demand for packaged goods, reduced e-commerce activity, and closure of sales channels such as malls, grocery stores, and retail stores led to a major drop in demand for smart packaging. However, the demand is expected to see a steady spike in rising as lockdown restrictions are lifted and demand for packaged goods returns to its normal trend.
With industrial activity resuming and increasing demand, smart packaging companies would have to focus on boosting their production and distribution capabilities in the post-pandemic world to cater to the growing demand.
Changing lifestyle trends to Foster Demand for Smart packaging
Consumers are preferring to know more about the product and this rising demand for more information about the product is what majorly drives the demand for smart packaging. Increasing technological proliferation, rising urbanization, and growing demand for monitoring and tracking are some crucial factors that are positively influencing smart packaging market growth through 2028. Rising urbanization is expected to play a pivotal role in the global smart packaging market growth over the forecast period.
High Costs of Smart Packaging
Smart packaging comprises sensors, RFID (radio frequency identification) tags, and other technological components which make it a very expensive packaging setup for multiple small businesses and increase the overall cost of the product as well. This is expected to majorly restrain the adoption of smart packaging across the world. The collection of consumer data through smart packaging could also lead to adverse situations where this data could be manipulatively used and this is also expected to hinder smart packaging market growth through 2028.
Rising Demand for Sustainable Packaging Solutions
Smart packaging components comprise some elements that cannot be recycled or reused and this creates a major barrier for smart packaging companies as pressure on them is mounting to innovate and launch sustainable packaging solutions to reduce waste and conserve the environment.
The global smart packaging market is segregated based on type, material, end-user, and region.
By type, the market is divided into modified atmosphere packaging (MAP), active packaging, and intelligent packaging. The modified atmosphere packaging segment held a dominant market share in 2020 and is expected to see a bright outlook over the forecast period. Rising demand for high-quality fresh food is what majorly drives this segment and is expected to further bolster smart packaging market growth through 2028 as this trend picks up the pace on a global scale.
By End-user, the smart packaging market is segmented into food & beverage, personal care, automotive, healthcare, and others. The increasing demand for smart packaging in the food & beverage industry is expected to majorly influence smart packaging market growth. Increasing consumer preference for knowing the ingredients of it and the freshness of food are two major factors propelling demand for smart packaging in the global smart packaging market landscape.
Asia Pacific region will lead the global smart packaging market in terms of revenue and volume share owing to changing lifestyle trends, increasing demand for packaging solutions with longer sustainability, increasing demand for packaged goods, and growing demand for fresh & quality food products. China, Japan, and India are estimated to be the most lucrative markets in this region owing to their expanding consumer base and increasing sales of packaged goods.
The market for smart packaging in North America and Europe is expected to provide lucrative opportunities and is expected to see high demand from food & beverages and personal care end use industry verticals in these regions.
Some of the main competitors dominating the global smart packaging market include - 3M, Avery Dennison Corporation, Ball Corporation, BASF SE, Crown, International Paper, R.R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, and Zebra Technologies Corp. (Temptime Corporation)..
Increasing demand for fresh food and rising consumer awareness for smart packaging solutions are expected to be major trends propelling smart packaging market growth through 2028.
According to the Market Research report, the global smart packaging market was worth about US$ 22781.7 million in 2021 and is predicted to grow to around US$ 31056.7 million by 2028, with a compound annual growth rate (CAGR) of around 5.3 percent.
Asia Pacific region will lead the global smart packaging market in terms of revenue and volume share owing to changing lifestyle trends, increasing demand for packaging solutions, etc.
Some of the main competitors dominating the global smart packaging market include -- 3M, Avery Dennison Corporation, Ball Corporation, BASF SE, Crown, International Paper, R.R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, and Zebra Technologies Corp. (Temptime Corporation).