The role of packaging has transformed from protecting and identifying the products to driving sales through appealing graphics.
Smart packaging capitalises on technology using features such as sensors, indicators, and wireless communication to increase user engagement, product quality, and supply chain efficiency.
IDTechEx has determined that businesses that use these technologies to their advantage can increase value for brands and consumers and will grow the smart packaging market to USD 2.6 billion in 2033, including electronic hardware.
However, the value would be higher if it encompassed infrastructure, software, and services.
IDTechEx's new report provided market research and intelligence on innovative and exciting new technologies. IDTechEx's report discusses technology and its consequent market value in the emerging smart packaging industry. This included over 20 interviews with industry players, including fast-moving consumer goods (FMCG) players.
It detailed the needs of end users and evaluated multiple applications to assess the underlying technologies. This included technologies such as NFC/RFID (wireless item identification) and printed/flexible sensors and presented numerous case studies of smart packaging deployments to support this.
Drivers of the smart packaging industry are underpinned by the continuous growth in e-commerce over the last two decades. Consequently, this has raised the demand for general packaging and has changed packaging design priorities to include more sustainability and delivery optimisation. This removed the focus on designs that attract traditional shoppers at retail stores.
Furthermore, stores increasingly have fulfilment centre functions, and the need for streamlined inventory management has driven the adoption of item-level smart labelling.
The pandemic accelerated the adoption of wireless ID, including using QR codes. Consumers uptake of these technologies has propelled brand owners to invest in smart packaging.
As a result, there has been a significant drive towards the connected experience. Brands interact with their consumers on landing sites through QR codes and NFC.
Smart packaging can also facilitate healthcare delivery by monitoring medicine intake compliance for an aging population. This is useful for medical trials and many patients requiring regular medication.
