The global smart packaging marketsize was estimated at USD 6.65 billion in 2015, growing at a CAGR of 8.91% from 2016 to 2024. Rising use of smart packaging to increase the shelf life and traceability of food products is expected to witness the positive impact on overall industry growth in the forecast period.
Smart packaging is a combination of specialized materials, science, and technology that enhances the packaging functionality by implementing active and intelligent packaging in conventional packaging. It helps to prevent food spoilage, enhance food product attributes such as aroma, taste, and flavor, and also helps in brand protection, premium pricing, and waste reduction.
In the U.S., food & beverage segment emerged as a dominant application in 2015, accounting for 44.5% of the total revenue share. Growing demand for ready to eat and serve food products in the region owing to changing the lifestyle of the urban population in the nation is likely to have a positive impact on the segment growth over the forecast period.
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.
High raw material prices for manufacturing flexible plastics is likely to hamper the market growth over the forecast period. Rising investment in developing intelligent packaging with sensing devices such as NFC (near-field communication), RFID (radio-frequency identification), and smart labels is expected to create new opportunities for industry development in future.
A recent trend like rising use of wireless technologies in combination with smart packaging in the food & beverage industry to provide consumers with real-time conditions of the perishable goods is likely to drive the industry demand. In addition, rising use of smart packaging in the pharmaceutical and healthcare industry on account of its improved durability, flexibility, and lightweight properties is likely to fuel market growth.
Active packaging segment has emerged as a dominant segment in 2015, accounting for 72.2% of the overall industry revenue share and is expected to continue its dominance over the forecast period. The segment is expected to gain momentum owing to its superior moisture control and corrosion protection properties.
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. 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.
Intelligent packaging is expected to be the fastest growing segment, occupying a majority of the market revenue share in 2015. The product segment accounted for 27.8% of the industry share in 2015. Additional advantages including improved human interface along with the ability to modify immediate product environment are expected to drive the demand.
The growing use of intelligent packaging in transforming the human interface of the products is likely to drive demand over the forecast period. Rising use of smart labels, RFID tags in the various end-use industries including manufacturing, warehousing, healthcare is likely to drive the industry demand in the upcoming years.
Food & beverage was the largest application of smart packaging in 2015, accounting for 47.3% of the revenue share. Rising 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 segment growth.
Furthermore, 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 was the second largest application accounted for around 10% of the global market in 2015 and is expected to grow at a significant CAGR of over the forecast period. 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.
Rising use of smart packaging 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.
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. The U.S. is a major consumer of smart packaging in this region owing to rising emphasis by the government to enhance the packaging quality in terms of environmental friendliness in the nation.
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 legislation is expected to fuel the industry growth.
Asia Pacific region is expected to grow at the fastest pace over the projected period. Growing health awareness among consumers in Asia Pacific region especially in developing countries including China and India coupled with the growing disposable income of consumers is anticipated to boost the pharmaceutical market in the region over the projected period.
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.
The market is consolidated in nature and is, therefore, marked by an extensive presence of mergers and acquisitions. Avery Dennison is integrating EVRYTHNG’s software-as-a-service (SaaS) platform into its new DirectLinkTM interactive packaging solution.
Base year for estimation
Actual estimates/Historical data
2013 - 2014
2016 - 2024
Volume in Kilotons, Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Germany, UK, China, India, Brazil
Volume forecast, revenue forecast, competitive landscape, growth factors and trends
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