The global smart packaging market is projected to expand at a CAGR of 5.2 percent, reaching $43.6 billion, in less then a decade.
The rising number of older people and changes in lifestyle of consumers, growing demand for advanced packaging solutions from the food processing and pharmaceutical sectors, rising consumer concern about food waste reduction, and demand for smart and usable packaging are all contributing to the market's growth.
Furthermore, the industry is expected to be driven by the increasing e-commerce market and rising industrialization in emerging economies like India, as well as strong demand for superior logistics and supply chain management, over the forthcoming years.
However, the high cost of smart packaging and brand owners' reluctance to pay an additional cost for it are expected to limit the market's growth.
The modified atmosphere packaging segment commanded the majority of the overall smart packaging market based on packaging technology. The growing demand for fresh and high-quality packaged food products such as bread, fruits and vegetables, processed meat, fish, seafood, and dairy products is largely responsible for this segment's dominance. Furthermore, the market for changed atmosphere packaging is driven by an on-the-go lifestyle, a move toward easy-to-handle & compact packaging, and emerging economies. The cost of gas packaging machinery and materials used in changed atmosphere packaging, on the other hand, is high. This could stifle the demand for changed atmosphere packaging.
The pharmaceutical segment is expected to rise at the fastest CAGR during the seven year period, depending on the application. The increasing integration of barcodes, RFID, and sensors technology in the pharmaceutical industry to track information about medicines' expiry date, use, and dosages, as well as the developments in the pharmaceutical industry, are all contributing to this segment's rapid growth.
Asia-Pacific is expected to rise at the fastest CAGR during the period. This region's rapid growth can be attributed to people's evolving lifestyles, the demand for packaging solutions with longer shelf lives, and the demand for fresh and high-quality food. Furthermore, a rise in counterfeit goods in developing countries such as India has compelled businesses to use technologies such as RFID during packaging. However, in the case of intelligent packaging systems, security and privacy concerns are expected to be major roadblocks to the market's growth over the coming years.