If the customer is the King, the return customer is the queen. The foray of augmented reality (AR) in packaging has transpired to become a tempting marketing tool to boost customer retention by providing an interactive, personalized, and engaging experience. The expanding penetration of AR with the applications of a QR code, an explanatory prompt, storytelling, product visualization, and enabling customers to interact with the product virtually has separated innovators from laggards. For instance, millennials and Gen Z consumers have exhibited notable traction toward exploring products in 3D and gaining access to web-based AR.
The prevailing trends are far from surprising, as a report from Grand View Research asserts that augmented reality packaging market could provide over half a billion dollars (US$ 510.0 million) revenue opportunity by 2030. Moreover, in September 2024, the U.S. FDA gave a green signal to 69 medical devices that incorporate AR and VR. Entrepreneurs, investors, shareholders, and other stakeholders may look to make hay when the sun shines.
The industry dynamics are such that well-established companies and startups across the food & beverage, pharmaceuticals, manufacturing, and cosmetics industries have jumped on the bandwagon. In September 2024, Nestlé Confectionery announced the trial of accessible QR codes with KitKat and Quality Street. Since over two million people in the UK are living with sight loss, the company believes the innovative QR codes will help blind and partially sighted shoppers retrieve important product information.
In October 2024, Kellanova announced the use of AR packaging to provide a motivational message from a holographic coach. The promotion marked Kellanova’s inroads into AR-scannable packaging for the RxBar brand.
Meanwhile, in May 2024, Bandit Wines revealed an AR platform featuring a 360-degree video portal to bolster consumer engagement and foster environmental conservation.
AR in packaging has brought a paradigm shift across the business verticals, creating a richer brand experience and increased loyalty. Some of the mega-trends that are poised to shape the global ecosystem are delineated below:
The integration of Artificial Intelligence with AR in packaging has become prevalent, allowing companies to provide personalized and advanced experiences. The reality of packaging adapting its digital content based on a consumer’s past preferences and interactions is not merely the future; it is happening now.
Environmental stewardship has become paramount for industries to stay ahead of the curve. So much so that AR has gained ground to enhance sustainability efforts by providing digital information, negating the need for printed materials.
The trend for AR in the e-commerce sector has become apparent as millennials and Gen Z shoppers have exhibited an increased traction for an interactive platform. It has enabled customers to visualize products in their real-world spaces and enhance the shopping experience. For instance, a potential customer can virtually try a pair of trousers sitting at home before purchasing them.
The wave of state-of-the-art technologies across industries has prompted brands to integrate interactive games or reward systems into their packaging, powered by AR. The next half a decade will potentially witness the applications of game mechanics, including points, leaderboards, badges, and rewards, into packaging to underscore brand loyalty, boost engagement, and provide a unique experience.
With AR, packaging tends to be in a gold fish bowl, incorporating technologies such as NFC and RFID to provide product traceability and security by monitoring the supply chain process. For instance, a buyer can gain access to safety certifications, detailed ingredient breakdowns, traceability, and reveal a product’s sustainable journey, enabling consumers to make informed decisions and choices. Furthermore, AR can also help detect counterfeit products by allowing buyers to verify product authenticity, a factor indispensable in the pharmaceutical and food industries.
If companies are not living under a rock, augmented reality will continue to receive an impetus in 2025 and beyond. With every brand striving to have a repeat customer, AR could be a silver bullet to enhance customer engagement, higher purchase intentions, increased loyalty, and unparalleled customer satisfaction. Unsurprisingly, AR has become a vital touchpoint to redefine how customers engage with products, providing opportunities for brands to unleash their creativity and create personalized experiences that resonate with their audience.
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