Active and Intelligent Packaging Market Size

Active & Intelligent Packaging Market Analysis

The Active and Intelligent Packaging Market size is estimated at USD 14.48 billion in 2024, and is expected to reach USD 19.89 billion by 2029, growing at a CAGR of 6.55% during the forecast period (2024-2029).

• Active packaging systems are being developed to extend the shelf life of foods and increase the period that the food is of high quality. Active packaging allows packages to interact with food and the environment and plays an important role in food preservation. Food processing companies drive active packaging demand to keep food fresh for extended periods and throughout the supply chain to reduce food waste and promote more convenient packaging for consumers.
• According to the UN environment program, approximately 1.3 billion metric tons (1.43 billion tons) of all food produced globally is lost or wasted every year. In the United States, an estimated 133 billion pounds of food are wasted yearly, valued at USD 161 billion. Innovative active packaging solutions can be implemented to reduce food wastage. In the future, the demand for active packaging may grow as they are intended to reduce food waste and improve food safety.
• Increasing demand for security and tracking solutions drives growth in the active and intelligent packaging market. For instance, RFID tags provide the ability to identify, control, and manage the food supply chain. These are more advanced, reliable, and efficient than conventional barcode tags for food traceability. RFID tags for monitoring the products' temperature, relative humidity, pressure, pH, and light exposure are already available on the market, aiding in enhancing food quality and safety.
• The primary advantage of active and intelligent packaging lies in its ability to interact with the enclosed product, playing a dynamic role in its preservation. The process keeps track of tagged information throughout the supply chain. Active packaging may change food composition and organoleptic characteristics, provided the changes are consistent with the food provisions. However, it also raises contamination issues, as plastic seepage into foods may lead to health complications.
• Furthermore, the emergence of the COVID-19 pandemic has led to an increase in visible behavioral changes due to a higher inclination toward safe and traceable food on e-commerce platforms and raised public consciousness of health and safety in general. According to an IBM study, approximately 71% of consumers were willing to pay an additional average premium of around 37% for companies providing full transparency and traceability of their products.