Smart Packaging Market Size Growth - By Technology (Active Packaging, Intelligent Packaging, Modified Atmosphere Packaging), By Application, By Packaging Type (Primary Packaging, Secondary Packaging, Tertiary Packaging), By Material (Solid, Liquid) and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2024-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

The Smart Packaging Market was valued at US$ 22.4 Bn in 2024, It is estimated to grow at a CAGR of 8.3% from 2024 to 2032 and reach US$ 41.2 Bn by the end of 2032. The market for smart packaging is going to grow rapidly because of the increasing demand from the food and pharma industries, which require some advanced features in it, like tamper-evident seals and temperature monitoring.

Market Dynamics

Smart packaging is one such device which enhances the effectiveness and strength of the engine. The term "smart packaging" refers to a specific type of packaged system, which comprises sensors within that is implemented over several products, like food and pharmaceutical products. The smart packaging technology leads to enhancing the quality of the product, longer shelf-life, freshness, customer, and even product safety. These intelligent systems provide information about the freshness when packed with an intelligent technology.

This was majorly due to the COVID-19 pandemic, which had limited industrial activities and, therefore, hindered the installation of new smart packaging systems. Lockdown had also affected the sales of the smart packaging solutions because it was not possible to sell these solutions effectively through OEMs. Drivers for this market are the increasing demand for advanced packaging solutions from the food processing and pharmaceutical industries, customer concern towards minimizing food waste, as well as growing demands of smart and functional packaging. In addition to these are the developing E-commerce industry, industrialization, and high demand to excel in supply chain management will create appealing opportunities for market players.

The costs of the sensors and radio frequency identification (RFID) used for packaging applications account for the failures over the mass applications for packaging systems, thus making better packaging costlier than traditional forms of packaging. Besides, it leads to accumulation of client data, which, in the manufacturers' view, may eventually result in manipulative and tensed situations that confine the market.

The COVID-19 pandemic disrupted the hotel, tourist, industrial, and construction sectors. Production activities remained largely halted or curtailed. Many regions witnessed the presence of coronavirus, which was causing disruptions in the supply chains of construction and transportation industries. This resulted in decreased smart packaging production and the market's demand for them, which restrained the growth of the smart packaging market. Conversely, businesses started resuming the provision of their traditional products and services gradually. Because of that, the smart packaging companies were back in business in full swing and helped ease the market by the end of 2021.

Market Trends

Improved Product Traceability and Authentication Smart Packaging Product Developments are Unfolding as Emerging Key Trend

The market for packaging has witnessed the focus on improved product traceability and authentication, and the trend is currently increasing. This trend has been spurred by consumer awareness concerning origin and authenticity of products, as is often the case with industries that handle pharmaceuticals, food, and luxury products. Such technologies as RFID, NFC, and QR codes will become efficient tools in tracing products through the supply chain. Especially in the case of RFID, real-time tracking of products across the supply chain becomes possible, thus yielding accurate information on location and movement of the good.

The NFCs and QR codes enable the consumer to access more detailed information about the product for verification of the genuineness of the product. The advancement in smart packaging technologies makes it more challenging for rogue firms to counterfeit products because every item can be uniquely identified and verified. These factors are expected to fuel the growth of the smart packaging market over the coming years.

Growth Drivers

Increasing Emphasis on Sustainability and Environmental Awareness to Drive Market Growth

The more recent critical factor driving market growth is the escalating priority of sustainability and environmental awareness. Smart packaging technologies contribute to sustainability because of increased resource efficiency as well as through a decrease in an environmental footprint. For example, packaging can be embedded with sensors that monitor the freshness of perishables, so consumers do not waste products unnecessarily because they are not certain of the shelf life. Intelligent packaging also facilitates easier recycling as it provides enough information to enable users to distinguish recyclable material parts from others.

In the recent past, many countries are initiating the companies to adopt eco-friendly techniques and, therefore, more businesses are opting for smart solutions for their sustainability solutions. Such exclusive characteristics of smart packaging technologies are propelling market growth.

Restraining Factors

High cost along with data security and privacy issues may hamper the market growth

The most significant single restraining growth of the smart packaging market is the expensive nature of introducing smart technologies into packaging solutions. The inorganic and digital or active elements tend to be quite cost-intensive for the entire production cost of the packaging, and thus creates a financial barrier for a number of businesses, especially small and medium-sized businesses. The technology, software development, and infrastructure of the solution might be quite expensive in terms of initial investment.

There is also the rate at which digital technology develops, thus the constant need to update and upgrade; this makes the technology more complex and costly in terms of maintenance. Furthermore, increased connectivity to the internet and other networks does raise issues about data security and privacy.

Competitive landscape

Major players operating in the smart packaging industry are:

• 3M
• Avery Dennison Corporation
• Ball Corporation
• BASF SE
• Crown
• International Paper
• Stora Enso
• Sysco Corporation

Market Segmentation

The global smart packaging market is mainly classified based on by technology, by Packaging Type and by application. By technology is segmented into active packaging, intelligent packaging, modified atmosphere packaging and Others. By Application, the market is divided into food & beverages, healthcare & pharmaceuticals, cosmetics & personal care, logistics & transportation, automotive & industrial products, consumer electronics, and Others.

Based on material, the smart packaging market is divided into solid and liquid. By Packaging Type is primary packaging, secondary packaging, tertiary packaging.

Regional Analysis

The North America smart packaging market was the largest in terms of market revenue share, holding around 46.0% in 2024. Majorly, increased e-commerce operations have had an effect on the smart packaging market in North America. As online shopper confidence grows, the demand for secure and efficient transportation packaging solutions to ensure product integrity at the point of delivery has also increased. To fulfill all of these demands, innovative smart packaging technologies like tamper-evident seals and temperature-controlled packs are becoming quite important.

The North America market revenue was led by the highest share in the U.S. smart packaging market. The need for convenience and personal experiences is widespread among U.S. consumers. As consumers continue to demand more interactive and customized experiences, brands employ smart packaging solutions to reach the audience. For instance, Coca-Cola's "Share a Coke" campaign included labels with names that could be scanned through an app and customized content, in addition to social media integration. This promotes more interactions with the brand by the consumers and better loyalty for the brand through smart packaging solutions.

Europe smart packaging market was seen as huge potential in the year 2023. The EU has actively created legislation so as to encourage smart packaging solutions improving the safety and traceability of the food. General Food Law Regulation, EU also describes rules that apply in the whole supply chain along, hence focusing on the entire process ensuring food safety and promoting conditions where smart packaging technologies can be adopted by manufacturers. European Commission's Circular Economy Action Plan seeks to make packaging recyclable by 2030, further pushing investment into smart packaging technologies.

Recent Market Updates

In April 2024, DS Smith partnered with Bioenzymatic Fuel Cells (BeFC) to develop recyclable smart packaging solutions. The collaboration focuses on enhancing supply chain efficiency by using recyclable paper, real-time tracking, and reducing wastage through accurate product monitoring.

In November 2023, TOPPAN Digital Inc. showcased its smart packaging solutions at the AIPIA World Congress in Amsterdam. The company presented NFC-tagged packaging, an ID authentication platform, and eco-friendly tags, highlighting their efforts to enhance consumer engagement, prevent grey market diversion, and promote sustainable packaging initiatives.