Smart Packaging Market By Packaging Type (Active Packaging, Intelligent Packaging, & Modified Atmosphere Packaging), Industry Vertical (Automotive, Food & Beverage, Healthcare, Personal Care, and Others), and Material Type (Solid, and Liquid), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032

Market Perspective

The Smart Packaging Market size was worth around USD 18.47 billion in 2022 and is projected to attain a valuation of USD 37.40 billion by 2032 at a CAGR of around 6.31% between 2023 and 2032.

Smart packaging is the inclusion of technologies and other systems such as sensors or biosensors, RFID, and other systems that assist in maintaining the quality of the packed product along with tracking external factors that may hamper the product. Smart packaging is used majorly for sensitive products such as healthcare, personal care, and food & beverages that are reactive or may change their qualities upon contact with certain conditions. It is primarily used in the food & beverage industry for preserving nutritional value and avoiding contamination of food or beverages.

In healthcare, it is extensively used for products that are light or temperature sensitive. R&D in packaging technologies and materials has resulted in significant changes in processes as compared to traditional packaging methods. Recent innovations have provided substantial demand for atmospherically controlled packaging solutions. It, in turn, has further created opportunities for smart packaging in extra-sensitive products. It is also utilized in containing beverages at lower temperatures irrespective of the external environment.

North America and Europe are observed to be attributing exponentially owing to the availability of infrastructure, technological advancements, and shifting consumer preferences. Asia Pacific is anticipated to observe the highest growth amongst all regions through the forecast period. Strategic partnerships and acquisitions between smart packaging manufacturers and solution providers are resulting in the further establishment of the smart packaging market.

Key Insights

• Based on packaging type, the active packaging segment held the largest market share in 2022
• Based on industry vertical, the food & beverage segment dominated the market in 2022
• based on material type, the solid segment generated the highest revenue in 2022
• based on region, North America accounted largest market share in 2022

Shifting Consumer Preferences to Augment Market Growth

The market for smart packaging is experiencing significant growth due to changing consumer preferences, driven by a shift towards healthier lifestyles and more health-conscious food choices. Consumers are increasingly opting for food products that come in smart packaging because it preserves the quality of the product as well as enhance its value and experience. Moreover, smart packaging techniques such as the utilization of direct contact packaging materials with infused components that add to the shelf life, provide informative value that is closely monitored, ensuring the quality and safety of food products.

Apart from this, the widespread awareness of food contamination issues coupled with rapid urbanization has propelled consumer demand for smart packaging solutions. Therefore, it is evident that the traditional packaging methods are no longer sufficient to meet consumer expectations as the market is experiencing a change in consumer sentiment.

Lack of Capital Infrastructure in Developing Regions May Restrain Market Expansion

The market for smart packaging is experiencing significant growth due to changing consumer preferences, driven by a shift towards healthier lifestyles and more health-conscious food choices. Consumers are increasingly opting for food products that come in smart packaging, as it not only preserves the quality of the product but also enhances its value. The widespread awareness of food contamination issues, coupled with rapid urbanization, has propelled consumer demand for smart packaging solutions. Traditional packaging methods are no longer sufficient to meet consumer expectations, and smart packaging technologies have emerged as an effective solution to address these concerns.

Smart packaging technologies provide informative value that is closely monitored, ensuring the quality and safety of food products. This has led to an increase in consumer confidence and satisfaction, which is driving the demand for smart packaging solutions globally.

Recent Developments

In January 2023: Stora Enso acquired De Jong Packaging Group, a Netherland-based company that specializes in corrugated packaging solutions in the Benelux region. De Jong is one of the largest companies in the region.

In February 2022: Avery Dennison Corporation announced the acquisition of TexTrace, a technology-developing company in RFID products. The deal includes ownership of employees, and intellectual property as well. TexTrace will continue its operations under the same name in Frick, Switzerland.

Segmentation Analysis

Based on packaging type, the market is further categorized into active packaging, intelligent packaging, and modified atmosphere packaging. Active packaging dominated the packaging type in 2022, with significant use in healthcare and food & beverage products. Active packaging solutions support and improve the quality of the product by releasing or absorbing compounds to prevent the product from spoilage or damage. These key characteristics have resulted in a surge in demand for active packaging technologies in various industry verticals. It is expected that active packaging solutions and products will continue to dominate the segmental share throughout the forecast period.

Intelligent packaging solutions are expected to experience exponential growth in the coming years, owing to the emergence of advanced technologies such as RFID and other codes that can track product conditions. Intelligent packaging solutions also offer the use of environmentally friendly materials, which can minimize the impact on the environment and supply chain. As a result, demand for intelligent packaging solutions is anticipated to grow significantly through the forecast period.

Based on industry verticals, the market is further categorized into automotive, food & beverage, healthcare, personal care, and other verticals. The food & beverage industry was the dominant industry vertical in the smart packaging market in 2022, in terms of revenue. The increasing use of active and intelligent packaging products, coupled with governmental norms and regulations to preserve the quality of packaged food products from the manufacturing process until consumption, has been a key factor contributing to its dominance.

The rise in demand for convenient food products, driven by changing consumer preferences towards healthier food options, is expected to further drive developments in the smart packaging category, resulting in market expansion. Moreover, the healthcare and personal care verticals are anticipated to experience significant growth in the smart packaging market due to the increasing importance of health and wellness among consumers.

Based on material, the market is further categorized into solid and liquid. In 2022, solid materials for smart packaging dominated the segmental revenues due to their ever-growing utility in manufacturing processes. It is estimated that solid packaging materials will observe the highest growth through the forecast period.

North America to accrue the largest revenues due to rapid industrial developments and increasing online verticals

North America is set to maintain its dominant position in the smart packaging market throughout the forecast period. The region has a highly developed industrial infrastructure and is home to many of the world's largest packaging companies, which provide innovative smart packaging solutions.

Moreover, advancements in packaging material quality and technology along with government initiatives promoting the use of eco-friendly packaging materials are expected to accelerate the smart packaging market growth in North America. The region's continuous demand for smart packaging materials, driven by advancements in various industry verticals, is also contributing significantly to market expansion.

Within North America, the United States is the largest contributor to revenue, followed by Canada due to the increasing number of manufacturing units in the country. For instance, Jones Packaging Inc., and Thin Film Electronics ASA agreed to integrate NFC Opensense technology of Thin Film for the manufacturing of pharmaceutical packaging to establish manufacturing processes in Canada

Asia Pacific to Observe Fastest Growth Owing to Rapid Expansion of Healthcare and Food & Beverage Industry

The Asia Pacific region is poised to experience the fastest growth in the smart packaging market during the forecast period. This is largely due to the rapid expansion of the healthcare, personal care, and food & beverage industries. The key countries driving this growth are India, China, and Japan.

India, in particular, is a major emerging market for smart packaging and credit goes to significant market developments and robust capital infrastructures in the country. The expansion of these industries, fueled by increasing consumer demand and easy dispatches, is driving the demand for smart packaging solutions in the region.

Moreover, the food & beverage industry in the Asia Pacific is offering lucrative opportunities for smart packaging solutions. With consumers increasingly demanding safe and high-quality food products, the need for smart packaging that can ensure product safety, freshness, and traceability is rapidly growing.

Competitive Landscape

• AERO Verpackungs GmbH
• Amcor Plc
• AVERY DENNISON CORPORATION
• BASF SE
• Crown
• DuPont
• eutecma gmbh
• Sealed Air
• Stora Enso
• Tetra Pak Group
• 3M

The global Smart Packaging Market is segmented as follows:

By Packaging Type

• Active Packaging
• Intelligent Packaging
• Modified Atmosphere Packaging

By Industry Vertical

• Automotive
• Food & Beverage
• Healthcare
• Personal care
• Others

By Material Type

• Solid
• Liquid

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America