Smart Packaging Market Size

Smart Packaging Market Analysis

The Smart Packaging Market size is estimated at USD 22.67 billion in 2024, and is expected to reach USD 31.98 billion by 2029, growing at a CAGR of 7.12% during the forecast period (2024-2029).

Smart packaging refers to a specific type of sensor-equipped packaging system used for various items, including food and medication. The technology used in smart packaging helps to increase product quality, shelf life, freshness monitoring, and customer and product safety. When products are packaged using intelligent technology, these systems provide details about the product's quality and freshness.

• The smart packaging market's growth is driven by consumer lifestyle changes brought on by rapid urbanization and increased use of individualized personal items with cutting-edge integrated innovation. In addition, the global packaging market business depends on the untapped geographic areas that offer enormous open doors for market competitors for its growth. Owing to increasing concern about health hygiene, especially after the pandemic, there has been an increased demand for sustainably packaged organic food worldwide.
• According to the Global Organic Trade Guide, the consumption of organic packaged foods in the United States was estimated to be worth USD 14.96 billion in 2016, and it is expected to have surpassed USD 21 billion in 2022. Moreover, even in developing countries like India, China, Thailand, and Indonesia, the market size for organic packaged food has been positive in the past few years. This may have consequently pushed the demand for smart packaging in these countries for the future.
• Several smart packaging manufacturers across the globe are constantly innovating products with their consistent effort to support environmental sustainability coupled with smart packaging initiatives. In December 2022, LMI Technologies (LMI), the manufacturer of 3D scanning and inspection solutions, announced that it had stopped using single-use, plastic-based foams and any other plastic materials in product packaging and had begun packaging and shipping all its products with 100% recyclable and biodegradable materials. The transition to the new eco-smart packaging was underway, and the company anticipated to have switched over the great majority of its products by the beginning of 2023. The new eco-smart packaging features a printed QR code on the outside of the box that connects to a webpage with all the product quick start guides (QSG) that are currently available. Customers can quickly download the PDF version corresponding to their new LMI product by scanning the QR code on the box with their smartphone and then perusing the QSGs on the associated homepage.
• However, the high cost of capital for instalments, security issues, new techniques for fabricating such sensors and indicators compatible with current packaging standards, and awareness among consumers are key restraints and challenges to the market's growth.
• After the pandemic outbreak, the European Organization for Packaging and the Environment called on the European Commission to recognize packaging as an essential component of the product groups identified as critical, like perishable goods, especially food items, to maintain the uninterrupted flow of goods. In this context, StePac, which supplies its solutions in European countries, developed an advanced modified atmosphere packaging, effectively reducing the food products' ripening and ageing processes.
• Another factor expected to drive the market in the future is e-commerce or online purchasing. Until now, online buying of groceries was limited only to cosmopolitan or metro cities, but soon, it may be a preferred mode of buying in small cities and towns. This is further anticipated to create growth in the packaging sector and boost the development of active and intelligent packaging.