The smart packaging industry is anticipated to grow from USD 22,257.6 million in 2020 to USD 38,662.0 million by 2030 at a CAGR of 5.5% from 2021 to 2030.
Modified atmospheric packaging techniques, such as embedded sensor technology, are included in smart packaging and are created to extend and monitor the packaged products' shelf life. The components are typically added to the packaging material to enhance the performance of the package system. Smart packaging, which is used chiefly with foods and pharmaceuticals, provides effective monitoring of external packaging conditions and periodically precisely measures the quality of the interior product. Additionally, biosensors are commonly used in this system because they are essential for detecting pathogens and dangerous substances. Numerous advantages of smart packaging include decreased counterfeiting, increased safety, and longer shelf life.
The commercialization of printed electronics is the main factor driving the world market. The growing use of smart labels by organized retail chains supports this. Additionally, the tremendous advancement in consumer lifestyles brought on by the world's fast urbanization and digitalization serves as a crucial growth-inducing element. The rising demand for pharmaceutical items and the growing popularity of online pharmacy services among the general public is also creating a favorable picture for the market. Following this, the ongoing premiumization of several medications, mainly due to the COVID-19 pandemic, further fosters market expansion.
The market is additionally fueled by expanding online and offline organized retail chains globally, rising packaged food product consumption, and burgeoning nanotechnology use in food and beverage (F&B) applications. The preference for environmentally friendly packaging options, intensive research and development (R&D) efforts, and incorporating these solutions with radio-frequency identification (RFID) technology are a few more drivers fueling the market growth for the smart packaging industry.
Restraints and Challenges:
The fact that many grocery and retail chain stores were forced to limit in-store shopping due to the pandemic was a significant barrier that businesses in the smart packaging sector had to overcome. This inspired lots of individuals to look into online grocery purchasing options.
The biggest difficulties facing businesses in the smart packaging industry are finding ways to incorporate pricey new technologies into the packaging while maintaining or lowering customer pricing. The creation of innovative manufacturing processes for technologically sophisticated sensors that can adhere to current packaging regulations and teaching consumers about the advantages of this kind of packaging are additional hurdles.
The smart packaging industry was considerably impacted in 2020 by the COVID-19 pandemic. The primary causes were severe lockdowns in some areas and several issues, including a lack of trucks, fewer deliveries, and employees affected by COVID-19 infections. As governments enacted harsher regulations, issues like reduced air freight capacity, port congestion, roadblocks, and logistical disruptions in Southeast Asia worsened.
Many businesses were compelled to drastically reduce or, at least temporarily, stop their production. Most businesses are just now beginning to recover. However, organizations in the worldwide smart packaging market saw the opposite outcome. Many people choose to stay in their homes. They were placing an online order for food. Because people wanted their food to be packaged as hygienically as possible, the necessity for smart packaging increased.
- In May 2022, Sealed Air introduced prismiq, a brand for digital packaging that offers design services, digital printing, and smart packaging options.
Sealed Air Corporation acquired Foxpak Flexibles Ltd. (Foxpak) in February 2022 to broaden its offering of digital smart packaging solutions for top international brands.