The global smart packaging market size was USD 10.8 Billion in 2015. The market is expected to witness growth owing to rising demand from end-use industries including healthcare, manufacturing, and automotive. Growing use of smart packaging products in food & beverage industry for improving the shelf life of the packaged food products is expected to drive the market growth over the forecast period. Also, additional benefits such as improved moisture control and temperature control are expected to drive the industry over the next eight years. Furthermore, rising emphasis by the regional government in the matured economies such as U.S. and Europe to reduce the toxic content in plastic packaging material is likely to fuel the growth of environment-friendly products over the forecast period.
Smart packaging accounts for a significant share in the industry on account several characteristics. These include improved durability, flexibility, toughness and dimensional stability. Also, superior weathering resistance to extreme weather conditions is likely to propel the market. Rising need for environment-friendly sustainable products on account of growing demand from food & beverage and pharmaceutical industries is expected to propel the market over the next eight years. Also, rising R&D investment to reduce the carbon footprint is likely to fuel growth over the forecast period.
U.S. Smart Packaging Market Revenue, By Application, 2013 - 2024 (USD Million)
Food & beverage sector was the largest application segment and accounted for a share of over 45% in 2015. Rising use of use of active products in the food & beverage industry coupled with growing emphasis to preserve the quality and safety of packaged products from manufacturing to the time the food is consumed is likely to propel the growth. Furthermore, rising need for high quality and ready to eat food products coupled with changing consumer preferences globally is expected to drive the industry. Increasing demand for packaged food products which can provide nutritional enrichment and functional benefits is expected to drive the demand in the food & beverage industry over the next eight years. Growing demand for self-heating and cooling packaged products in the beverage industry which can heat beverages including tea, coffee and chocolate to a temperature suitable for consumption is expected to fuel demand for such products in the colder regions such as North America and Europe over the forecast period.
Healthcare segment accounted for around 15% of the global market in 2015 and is expected to grow at a CAGR of over 12% from 2016 to 2024. Rising advances in the pharmaceutical industry on account of growing R&D in the field of medicine is expected to fuel the product demand over the forecast period. Increasing product use in the healthcare industry particularly pharmaceuticals on account of its rising application scope including threat detection, diagnostics, and drug delivery is likely to propel the growth over the forecast period.
Rising product use in industries such as pharmaceutical, food & beverage, personal care, automotive and logistics owing to improved protection and real-time tracking which prevents the incidents of thefts, organized crime and counterfeiting is expected to drive the growth of the industry.
Active packaging accounted for largest share valued at over USD 7 billion in 2015. This segment accounted for a significant share of demand in industries including food and beverage, pharmaceutical and personal care owing to its superior moisture control and corrosion protection properties. Also, growing application scope on account of availability in various forms including plastic, fabric, and plastic films is expected to be the key driver for the industry. Rising industrialization in the emerging economies including India and China coupled with strong demand for superior logistics and supply chain management is likely to drive the industry over the forecast period.
Intelligent packaging is expected to be the fastest growing segment, growing at a CAGR of around 14% from 2016 to 2024. The product segment accounted for over 25% of the market in 2015. Additional advantages including improved human interface coupled with the ability to modify immediate product environment are expected to drive the demand over the next eight years. Growing application scope in the end-use industries including pharmaceutical, automotive OEM, metal wrapping and food & beverage is likely to fuel the demand.
North America emerged as the largest market accounting for almost half of the global market in 2015. Rapid growth in the industries such as food & beverage, pharmaceutical, automotive, logistics, and manufacturing coupled with steady recovery from economic recession is expected to drive the demand over the next few years. Rising spending capability of consumers coupled with growing concerns on improving the general health in the region is expected to drive the smart packaging industry over the forecast period.
Europe is expected to witness a significant share of demand on account of rising emphasis by the government to reduce the toxic content in packaging material. Rising R&D activities in the pharmaceutical industry on improving the compliance to stringent legislations is expected to fuel the industry growth.
Competitive Market Share Insights
Key industry participants include 3M, BASF, Du Pont, Avery Dennison Corp., Amcor Limited, Sealed Air Corporation and International Paper. Avery Dennison, a leading player in labeling and packaging materials and solutions, and EVRYTHNG, Web of Things software company, announced a collaboration agreement to make packaging and shopping more intelligent. Avery Dennison is integrating EVRYTHNG’s software-as-a-service (SaaS) platform into its new DirectLinkTM interactive packaging solution.
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