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Smart packaging is an advanced form of packaging involving the incorporation of specialized materials, science, and technology over the conventional packaging systems for the purpose of achieving advanced protection.
The application of smart packaging aids in the prevention of food spoilage i.e. prolonged shelf-life, enhancement of product attributes such as taste, flavor, and aroma; active tracking of changes in products or package environment; easy communication of product information, product history, or condition to consumer; assurance of seal integrity; confirmation of product authenticity; and antitheft prevention. Additionally, it also helps in waste reduction, premium pricing, supply chain management, brand protection and customer engagement.
It also protects the packed product from moisture, corrosion, and in the regulation of temperature.
The global smart packaging market is anticipated to grow at a CAGR of around 5.9% over the next 5 years.
The growth of this market is attributed towards major pertaining factors including; the globally increasing application of smart packaging to increase the shelf life and traceability of food products, the rising demand for improving health, the wide-scale implementation of innovative technologies like RFID chips and others, the increasing demand for advanced packaging solutions from various food processing and pharmaceutical sectors, the increasing consumer concerns over food safety, the rising need for environment-friendly sustainable products and the growing R&D investment to reduce the carbon footprint etc.
Additionally, smart packaging systems use QR code, bar code, RFID tags, sensors or other printed codes and technologies that can provide essential information regarding contents of the package and provide other functions as well. In the healthcare or pharmaceutical industry, these can be tremendously helpful in monitoring the authenticity of medicines and providing details about the expiry date, consumption, and dosages to the people involved. Also, it aids in detection of counterfeit products and patient compliance and offers enhanced security. This is creating massive opportunities for growth of the products in this industry and also in all other related industries.
Moreover, key players in the market are investing heavily in the development of research and innovations in the field of smart packaging currently. With the introduction of biodegradable smart packaging, the integration of wireless technologies with smart packaging in the food & beverage industry to provide consumers with real-time conditions of the perishable goods and the exploration of nanotechnology into varied F&B applications, the global smart packaging market is poised to witness substantial growth in the years to come.
Furthermore, other factors such the rapid growth in consumption of beauty products, the proliferating investment in developing intelligent packaging with sensing devices and smart labels, the increasing consumption of packaged food products, the growth in hygiene concerns among consumers globally, the growing government regulations in various regions, the developments in printing processes in various industries also enhance the growth of this market. With that said, the rising industrialization in various regions, the growing E-commerce market coupled with strong demand for superior logistics and supply chain management also propel the overall demand and growth of this market.
However, the high cost of active and intelligent packaging, unwillingness of consumers to pay high prices, non-recyclability of raw materials used in smart packaging, security issues, introduction of new techniques for fabricating such sensors and indicators that are compatible with current packaging standards and awareness among consumers are a few factors that hinder the growth of this market.
SMART PACKAGING MARKET SEGMENTATION:
By Packaging Functionality:
By End User Industry:
The North American region is the largest regional market for smart packaging followed by Europe and is also expected to continue this dominance in the next few years to come. The growth in the region could be attributed to factors such as the rapid growth in various end-use industry verticals, the rising spending capability of consumers coupled with growing concerns on improving the general health in the region, the rising emphasis by the government to enhance the packaging quality in terms of environmental friendliness, the increased R&D investment and product innovation, the stringent food safety policies in the countries and the high presence of key players in the region etc. The U.S. is the major contributor in the region followed by Canada.
The European region holds the second largest share in the smart packaging market. The growth in the in this region can be accounted to factors such as the relatively higher adoption of new technology in this region, the growing focus of governments to reduce toxic content in packaging materials, the rising R&D activities in the pharmaceutical industry and the increasing favorable European Commission laws for application of smart packaging over conventional packaging etc.
The Asia Pacific region is the fastest growing regional market for smart packaging and is projected to register substantial growth in the upcoming years owing to factors such as the growing health awareness among consumers in the region, the increasing demand for packaging solutions with longer sustainability, the growing demand for fresh & quality food and the increasing application of smart packaging across various logistics industry pertaining to the rising utilization of RFID (Radio Frequency Identification) tags etc. Furthermore, the growing disposable income of consumers in the region, the increase in urbanization and change in lifestyle of consumers in the developing countries, such as China, India, and Thailand also considerably contribute to the market growth in the region.
FEW KEY PLAYERS IN SMART PACKAGING MARKET: