Latin America Active and Intelligent Packaging Market Size

Latin America Active & Intelligent Packaging Market Analysis

The Latin America Active and Intelligent Packaging market is expected to register a CAGR of 5.2% over the forecast period (2021 - 2026). With the recent COVID 19, the active and intelligent packaging manufacturers were flooded with a pool of issues expected to last only for the short term. Some of the lockdown effects include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the final product's production to inflate and go beyond budget, and shipping problems.

• With the growing urban population and changing lifestyle trends worldwide, the demand for ready-to-eat, frozen meat, and packaged food is increasing. The supply of frozen foods, meat products, vegetables, and fruits surpass boundaries, giving regional markets global exposure. Moreover, with the retail industry propelling rapidly, the need for attractive and advanced packaging is also increasing.
• The increase in counterfeit products, especially in the pharmaceutical and personal care industries in emerging economies, also compelled companies to use technologies, such as RFID, during packaging. All these factors account for a substantial rise in the demand for active and intelligent packaging. However, the initial capital needed due to higher costs of installation and implementation and security issues regarding these systems is challenging the market's growth.
• RFID is one of many automatic identification technologies that offer some potential benefits to meat production, distribution, and retail chain. These include traceability, inventory management, labor-saving costs, security, and the promotion of quality and safety. The prevention of product recalls it is also considered a key role of RFID technology. Thus, it acts as a major driving factor for the increased demand from the customers for such products for packaging.
• Although intelligent packaging is distinctly different from active packaging, the features of intelligent packaging enable the user to use it to check the effectiveness and integrity of active packaging systems, bringing added features and complementing each other. Intelligent packaging can be considered the enabler of the other packaging features that end-user industries can utilize, and in the process, help their customers offer quality products.
• Furthermore, the introduction of revolutionary industry 4.0 and the spread of the pandemic has increased the use of connected packaging powered by various software such as Microsoft Azure cloud services to benefit the retailers/e-tailers, brand owners, and food manufacturers in the region. This is driving the market studied.