Smart Retail Packaging Market Size

Global Smart Retail Packaging Market Overview

Smart Retail Packaging Market Size was valued at USD 42.12 billion in 2023. The Smart Retail Packaging market is projected to grow from USD 45.00 billion in 2024 to USD 71.04 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% during the forecast period (2024 - 2032). The Smart Retail Packaging, the self-heating food packaging techniques make it easy for consumers to have a snack, a hot beverage, and a snack. It also helps to communicate and monitor food quality using time-temperature indicators.


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Smart Retail Packaging Market Trends

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  Changing lifestyle patterns in emerging countries due to rapid urbanization.

  
  

The major driving factor for the smart packaging market growth of due to change in lifestyle of people. Presently, people demand four basic aspects for food packaging that includes convenience, communication & marketing, containment, and protection & preservation. With growing urbanization, these aspects become major factors that are considered by people as they are more concerned about the freshness of food and protection against dust, dirt, smell, water vapors, heat, oxygen, light, insects, and microbes. In addition, people notice what is communicated through the packaging such as preparation instructions, nutritional facts, and ingredients list. smart packaging helps in providing complete monitoring over the informational aspects. Beauty products and cosmetics uses plastic packaging, owing to its properties like lightweight, cost-effectiveness, and versatile nature. However, it causes environmental problems, allowing manufacturers to seek an eco-friendly option, thus opting for smart packaging, which offers more eco-friendly solutions. Hence, this increases the consumption of smart packaging.

However, better packaging is more expensive than standard form of packaging due to the expenses of sensors and radio frequency identification (RFIDs) used for the packaging applications, which are contributing to the failure over the mass applications for packaging systems. Furthermore, it leads to the collection of customer data, which, according to the manufacturers, might lead to manipulative and conflictive circumstances in the future, restraining the market.

Smart Retail Packaging Market Platform Segment Insights

Smart Retail Packaging Insights

Based on technology, the Smart Retail Packaging Market segmentation includes Active Packaging, Intelligent Packaging. The Intelligent Packaging technology held the majority share in 2022. This technology is growing faster in the food sector, with enormous potential to improve convenience for consumers. Intelligent packaging can report the condition on the outside packaging and directly measure the quality of the product inside the package. Biosensors for pathogen or toxic identification, a significant concern in food and intelligent packaging, are helping it by attaching antibodies to a plastic attaching surface which can give a sign of a false sense of security to the customers.

Technological encroachments support this demand for intelligent packaging. For instance, the advent of advanced packaging machinery has enabled companies to manufacture new packaging solutions incorporating communications technologies, such as Rfid, sensors, etc.

Figure 1: Smart Retail Packaging Market, by Technology, 2022 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Smart Retail Packaging Application Insights

The Smart Retail Packaging Market segmentation, based on application, includes Food & beverage, Personal care, Automotive, Healthcare, Others. Food & beverage application dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2030. This is due to the increasing demand for smart packaging solutions that can help to improve the safety and quality of food products, reduce waste, and enhance the consumer experience. The use of smart packaging in the food and beverage industry can help to ensure that products are fresh and sate to consume, reduce spoilage and waste, and provide consumers with information about the product's origin, ingredients, and nutritional value. These all factors for Smart retail Packaging positively impact the market growth.

Smart Retail Packaging Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Smart Retail Packaging market is expected to exhibit a significant CAGR of 6.3% growth during the study period. This is due to the active and intelligent packaging manufacturers were flooded with a pool of issues that are expected to only last for the short term. Some of the effects of the lockdown 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.

Further, Asia-Pacific the growing geriatric population, rising number of chronic ailments, and increased demand for over-the-counter pharmaceuticals contribute to the Healthcare segment's growth. Active packaging solutions are becoming more popular as pharmaceutical packaging rules become more stringent. The market for active packages is expected to grow throughout the projected period, owing to the increasing complexity of products that must be stored or transferred to remote locations while keeping their integrity. As a result, Asia-Pacific, particularly India, and China, is expected to drive the marketing platform market growth.

Figure 2: SMART RETAIL PACKAGING MARKET SIZE BY REGION 2022 & 2030Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the India, China, U.S., UK, Canada, France.

North America marketing platform market accounts for the second-largest market share. The rising demand for packaged food is boosting the active packaging market. The growing inclination of customers toward packaged and ready-to-eat foodstuffs is propelling the active packaging market, and this trend is expected to continue within the forecast period. Chopped and packaged fruits and vegetables employ active packaging to a large extent, releasing gases within the packaging.

Moreover, retailers in the United States are heavily reliant upon fresh-cut operations at the back of stores using regional processors. For instance, Church Brothers Farms is one such company that predominantly caters to the foodservice, with around 15% of its product going to retail, which indicates that a major portion of the country has yet to switch to MAP.

The Europe Smart Retail Packaging Market is expected to grow at the fastest CAGR between 2022 and 2030. The European Union Guidance to the Commission Regulation (EUGCR) No. 450/ 2009 (EU, 2009) description, active packaging is a type of food packaging that is enabled with the extra function of providing a protective barrier against external influence. This rises in the demand for fresh foods in the region significantly contributed to the need for oxygen scavengers. They react with the oxygen in the package and protect the product from degradative oxidation reactions, keeping them fresh.

Moreover, With the increasing number of consumers consuming multiple medicines, the pressure on NHS to track the drug delivery and that they are used before the expiration, and the vaccines, etc., reach in the designated environment. This is further increasing the expectations in this sector to use advanced technologies, such as intelligent packaging.

The healthcare industry poses many challenges to packaging, such as products’ regulations, stipulations, instructions, etc. Pharmaceutical packaging is highly focused on creating tamper-proof and child-resistant packaging. But counterfeit operations can mimic these packaging trades and give the illusion of a legit product. In Germany, healthcare device packaging is experiencing growth as hospitals are concentrating more on sterile and disinfected packaging of medical devices due to a rise in viral infections and various stringent government safety regulations.

Overall, the Europe region is a dynamic and rapidly evolving market for Smart Retail Packaging, with local and international players competing for a market share.

Smart Retail Packaging Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Smart Retail Packaging market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of Smart Retail Packaging industry by adopting new technologies that will enable features, including sensors, radio-frequency identification (RFID), programmable alerts, electronic anti-tamper safeguards, and tracking systems, are all making rapid progress. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Smart Retail Packaging market is highly competitive, with many vendors offering similar products and services.

The major players in the Smart Retail Packaging industry include 3M, Avery Dennison Corporation, Ball Corporation, among others. 3M is a global industrial machinery manufacturing company. The 3M Company is a multimillion-dollar US global corporation with interests in consumer goods, worker safety, industry, and US healthcare. The company manufactures almost 60,000 products that are currently used in homes, businesses, schools, hospitals, and other industries under many different brands. Avery Dennison Corporation is a global material science and manufacturing company engaged in designing and manufacturing a wide range of labeling and functional materials. It operates through three business segments: label and graphic materials, retail branding and information solutions, and industrial and healthcare materials. The label and graphic materials segment is involved in manufacturing and selling pressure-sensitive label and packaging materials and films for graphic and reflective products.

The Smart Retail Packaging Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Smart Retail Packaging market include

• 3M


• Avery Dennison Corporation


• Ball Corporation


• BASF SE,


• Crown


• International Paper


• R. Donnelley & Sons Company


• Stora Enso


• Sysco Corporation


• Zebra Technologies Corp.

Smart Retail Packaging Industry Developments

• September 2021: Avery Dennison Corporation launched its AD Maxdura Tire Tag for the tire industry. The new product enables tracking and tracing through the logistic chain and makes it easier to identify tires at warehouses and dealerships.


• May 2021: BASF joined Digital Watermark Initiative “HolyGrail 2.0” for smart packaging recycling. Under the auspices of AIM, the European Brands Association, BASF, and more than 120 companies and organizations from the packaging value chain joined forces in the initiative to prove the viability of digital watermarking technologies for accurate sorting and the business case at a large scale.

Smart Retail Packaging Market Segmentation

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  North America
  

  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  

  
  
  
  


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  Europe
  

  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  

  
  
  
  


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  Asia-Pacific
  

  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Rest of Asia-Pacific
  
  

  
  
  
  


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  Middle East & Africa
  

  
  
  • Saudi Arabia
  
  
  • South Africa
  
  
  • UAE
  
  

  
  
  
  


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  South America
  
  
  
  
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    Brazil
    
    
  
  
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    Argentina
    
    
  
  
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    Rest of South America