Smart packaging market to reach USD2.6 billion by 2033

The role of packaging has evolved over time, from simply protecting and identifying the product to driving sales via enticing graphics. Smart packaging is the latest iteration, using sensors, indicators, and wireless communication to enhance user engagement, product quality, and supply chain efficiency.

According to IDTechEx, a research and consultancy firm, establishing business models that utilize these technologies to unlock increasing amounts of value for brands and consumers will grow the smart packaging market to USD2.6 billion in 2033. This figure just covers the electronics hardware - the smart packaging market value will be much higher if infrastructure, software, and services are included.

Continuous growth in e-commerce over the last two decades is raising the demand for general packaging and changing the priorities of packaging design. That includes more emphasis on sustainability and delivery optimization and less focus on designs that attract traditional shoppers at retail stores. Stores are increasingly serving fulfillment center functions, and the need for streamlined inventory management is driving the adoption of item-level smart labeling.

The COVID-19 pandemic accelerated the adoption of wireless ID, including the use of QR codes for track and trace schemes and NFC for wireless payment. Consumers' adoption of these technologies has triggered many brand owners to investigate smart packaging use cases.  The result has been a significant drive towards the connected experience, with brands interacting with consumers on landing sites accessed by QR codes and NFC.

Smart packaging can also assist in facilitating healthcare delivery for an aging population. In case studies discussed in the IDTechEx report, smart packaging can be used to monitor medicine intake compliance in medical trials and, ultimately, by many patients requiring regular medication. This is achieved by using smart blister packaging that can wirelessly communicate a patient's medicine adherence to the doctor or even provide timely reminders to their smartphone.

Smart packing comprises current and emerging technologies, often with very different purposes. These include:

•           RFID for wireless item identification (usually invisible to the consumer), as well as other identification technologies, including QR codes and capacitive ink approaches.

•           Electronic Articles Surveillance (EAS) for anti-theft (usually invisible to the consumer)

•           Data loggers for temperature, shock, vibration, and time/location monitoring

•           Interactive smart packaging, including light-up, and measuring (such as smart blister packs)

•           Printed, flexible and organic electronics, including displays, sensors, and batteries.

•           Chemical indicators: temperature, frozen chemical visual indicators, and active packaging for produce and pharmaceutical monitoring.

To grasp the rapid developments in this area, companies can find more information in IDTechEx's Smart Packaging 2023-2033 report. This provides market research and intelligence on many emerging technologies, with in-depth technology and market evaluation of this emerging industry, drawing on over 20 interviews with industry players, including fast-moving consumer goods (FMCG) players. It discusses in detail the needs of end users, evaluates multiple applications, assesses the underlying technologies such as NFC/RFID and printed/flexible sensors, and presents many case studies of smart packaging deployments. The firm will also be holding a webinar on smart packaging case studies, a roadmap for the adoption of smart packaging technologies, and other related topics.