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    US Smart Retail Packaging Market

    ID: MRFR/PNT/16883-HCR
    100 Pages
    Snehal Singh
    October 2025

    US Smart Retail Packaging Market Research Report: By Application (Food & Beverages, Cosmetics, Personal Care, Electronics, Pharmaceuticals, Household Products), By Material Type (Plastic, Paper & Paperboard, Metal, Glass, Biodegradable Materials), By Technology (RFID, NFC, QR Codes, Sensors, Smart Labels) and By End Use (Retail, E-commerce, Wholesale, Logistics, Supply Chain) - Forecast to 2035

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    US Smart Retail Packaging Market Infographic
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    US Smart Retail Packaging Market Summary

    As per MRFR analysis, the US smart retail-packaging market size was estimated at 8.75 USD Billion in 2024. The US smart retail-packaging market is projected to grow from 9.24 USD Billion in 2025 to 16.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.64% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US smart retail-packaging market is experiencing robust growth driven by sustainability and technological advancements.

    • Sustainability initiatives are becoming increasingly central to packaging strategies, reflecting a broader consumer preference for eco-friendly solutions.
    • Technological integration, particularly through IoT and data analytics, is enhancing operational efficiency and consumer engagement in the packaging sector.
    • Customization and personalization are gaining traction, allowing brands to create unique packaging experiences that resonate with consumers.
    • Key market drivers include consumer demand for enhanced convenience and the need for regulatory compliance and safety standards.

    Market Size & Forecast

    2024 Market Size 8.75 (USD Billion)
    2035 Market Size 16.0 (USD Billion)

    Major Players

    Avery Dennison (US), Smurfit Kappa (IE), Mondi Group (GB), Sealed Air (US), Amcor (AU), WestRock (US), Tetra Pak (SE), DS Smith (GB), Sonoco Products (US)

    US Smart Retail Packaging Market Trends

    The smart retail-packaging market is currently experiencing a transformative phase, driven by advancements in technology and a growing emphasis on sustainability. As consumers become increasingly aware of environmental issues, there is a notable shift towards packaging solutions that minimize waste and enhance recyclability. This trend is not merely a response to consumer demand; it is also influenced by regulatory frameworks that encourage eco-friendly practices. Companies are investing in innovative materials and designs that not only protect products but also communicate their sustainability credentials effectively. This evolution in packaging is reshaping the competitive landscape, compelling businesses to adapt swiftly to maintain relevance in a rapidly changing market. Moreover, the integration of smart technologies into packaging is gaining traction. Features such as QR codes, NFC tags, and IoT connectivity are being incorporated to enhance consumer engagement and provide real-time information about products. This technological infusion allows brands to create a more interactive experience, fostering loyalty and trust among consumers. As the smart retail-packaging market continues to evolve, it appears poised to play a crucial role in the broader retail ecosystem, influencing purchasing decisions and shaping brand perceptions. The ongoing developments suggest a future where packaging is not just a protective layer but a vital component of the consumer experience.

    Sustainability Initiatives

    The push for sustainable practices is reshaping the smart retail-packaging market. Companies are increasingly adopting eco-friendly materials and designs to meet consumer expectations and comply with regulations. This trend reflects a broader commitment to reducing environmental impact and promoting responsible consumption.

    Technological Integration

    The incorporation of advanced technologies into packaging solutions is becoming more prevalent. Features such as QR codes and IoT connectivity enhance consumer interaction and provide valuable product information. This trend indicates a shift towards creating a more engaging and informative packaging experience.

    Customization and Personalization

    There is a growing demand for customized packaging solutions that cater to individual consumer preferences. Brands are leveraging data analytics to create personalized experiences, which can enhance customer satisfaction and loyalty. This trend highlights the importance of understanding consumer behavior in the smart retail-packaging market.

    US Smart Retail Packaging Market Drivers

    Integration of IoT and Data Analytics

    The integration of Internet of Things (IoT) technology and data analytics is significantly influencing the smart retail-packaging market. By embedding sensors and connectivity features into packaging, companies can gather real-time data on product conditions and consumer interactions. This capability allows for improved inventory management and enhanced customer engagement. Recent studies indicate that the use of IoT in packaging can reduce waste by up to 30%, thereby appealing to environmentally conscious consumers. As businesses recognize the potential of data-driven insights, the smart retail-packaging market is poised for substantial growth, driven by the demand for smarter, more connected packaging solutions.

    Consumer Demand for Enhanced Convenience

    The smart retail-packaging market is experiencing a notable shift driven by consumer demand for enhanced convenience. As lifestyles become increasingly fast-paced, consumers are seeking packaging solutions that simplify their shopping experience. This trend is reflected in the growing preference for smart packaging that offers features such as easy-open designs, resealability, and portion control. According to recent data, approximately 65% of consumers in the US express a preference for packaging that enhances usability. This demand for convenience is prompting manufacturers to innovate and invest in smart packaging technologies, thereby propelling growth in the smart retail-packaging market.

    E-commerce Growth and Packaging Adaptation

    The rapid growth of e-commerce is reshaping the smart retail-packaging market. As online shopping continues to gain traction, there is an increasing need for packaging that can withstand the rigors of shipping while ensuring product integrity. Smart packaging solutions that offer durability and protection during transit are becoming essential. According to market analysis, e-commerce sales in the US are projected to reach $1 trillion by 2025, necessitating innovative packaging solutions that cater to this expanding market. Consequently, manufacturers are focusing on developing smart packaging that not only meets the demands of e-commerce but also enhances the unboxing experience for consumers.

    Regulatory Compliance and Safety Standards

    Regulatory compliance and safety standards are pivotal drivers in the smart retail-packaging market. The US government has implemented stringent regulations regarding food safety and product labeling, necessitating the adoption of smart packaging solutions that ensure compliance. For instance, the Food and Drug Administration (FDA) mandates clear labeling and traceability for food products, which can be effectively achieved through smart packaging technologies. This regulatory landscape compels manufacturers to invest in smart packaging that not only meets safety standards but also enhances transparency. As a result, the smart retail-packaging market is likely to witness increased adoption of technologies that facilitate compliance and improve consumer trust.

    Sustainability and Eco-Friendly Innovations

    Sustainability is a driving force in the smart retail-packaging market, as consumers and businesses alike prioritize eco-friendly solutions. The increasing awareness of environmental issues has led to a demand for packaging that minimizes waste and utilizes recyclable materials. Companies are investing in smart packaging technologies that incorporate biodegradable materials and reduce carbon footprints. Recent surveys indicate that over 70% of consumers in the US are willing to pay more for sustainable packaging options. This shift towards sustainability is prompting innovation within the smart retail-packaging market, as manufacturers strive to meet consumer expectations while adhering to environmental regulations.

    Market Segment Insights

    By Application: Food and Beverages (Largest) vs. Pharmaceuticals (Fastest-Growing)

    In the US smart retail-packaging market, the application segment showcases a diverse distribution of share among its key categories. The Food and Beverages segment holds the largest share, driven by the increasing demand for convenience and sustainable packaging solutions. This category effectively addresses consumer preferences for ready-to-eat products and fresh food preservation, solidifying its dominant position. Conversely, the Cosmetics Personal Care and Electronics segments are also significant but lag behind in market share, showcasing the varied packaging needs across different consumer products. Growth trends within the sector are primarily influenced by technological advancements and changing consumer behavior. The Pharmaceuticals segment is experiencing rapid growth, emerging as the fastest-growing application due to heightened health awareness and the increasing importance of product safety and traceability. Moreover, the demand for innovative packaging that enhances user experience continues to prop up sectors like Household Products, while sustainability remains a vital driver across all applications.

    Food and Beverages: Dominant vs. Pharmaceuticals: Emerging

    The Food and Beverages segment stands out as the dominant force in the application category of the US smart retail-packaging market. This segment is characterized by its adaptability to new trends, focusing on sustainable materials, and innovations that cater to consumer convenience, such as resealable pouches and smart labels. In contrast, the Pharmaceuticals segment, while currently emerging, is rapidly gaining traction due to the increasing demand for safe, efficient packaging solutions that ensure product integrity. Both segments are evolving, yet Food and Beverages maintains a stronghold with its established market presence, while Pharmaceuticals is set to witness accelerated growth driven by advances in packaging technology and regulatory requirements.

    By Material Type: Plastic (Largest) vs. Biodegradable Materials (Fastest-Growing)

    In the US smart retail-packaging market, the distribution of market share among material types reveals plastic as the dominant force, maintaining a significant lead due to its versatility and cost-effectiveness. Following plastic, paper and paperboard are also prominent, leveraging their sustainability appeal as consumer preferences tilt towards environmentally friendly options. Metal and glass, while important, occupy smaller shares, particularly in packaging where lightweight solutions are prioritized. Growth trends indicate a strong shift towards biodegradable materials, which are rapidly gaining traction as consumers and brands alike strive for sustainability. The increase in regulatory pressures and the growing awareness of environmental concerns are driving innovation in biodegradable options, fostering an emerging market segment that is likely to see accelerated investment and development as companies seek to enhance their eco-friendly credentials.

    Plastic (Dominant) vs. Biodegradable Materials (Emerging)

    Plastic packaging is characterized by its lightweight, durability, and affordability, making it the preferred choice for a diverse range of products in the retail sector. Its widespread use results from the material's adaptability and ability to preserve product integrity. In contrast, biodegradable materials represent an emerging segment that seeks to address the environmental impact of traditional plastics. These materials are designed to decompose naturally, gaining traction among environmentally-conscious consumers and retailers. As regulations surrounding plastic use tighten and consumer demand for sustainable options rises, biodegradable materials are poised for significant growth, prompting manufacturers to innovate and enhance their offerings in this space.

    By Technology: RFID (Largest) vs. QR Codes (Fastest-Growing)

    In the US smart retail-packaging market, RFID holds the largest market share among technological innovations, thanks to its ability to enhance inventory management and reduce shrinkage. QR Codes follow as a fast-growing segment, attracting attention for their cost-effectiveness and ease of use, particularly in enhancing consumer engagement and providing detailed product information. The growth trends in this segment are driven by the rise in demand for improved supply chain efficiency and the increasing adoption of smart packaging solutions. With retailers focusing on enhancing customer experience and operational efficiency, technologies like NFC and Smart Labels are also gaining traction. This versatility and integration capability of these technologies make them integral to the future of retail packaging.

    Technology: RFID (Dominant) vs. Smart Labels (Emerging)

    RFID technology stands as the dominant force in the US smart retail-packaging market, offering unparalleled advantages in real-time inventory tracking and loss prevention. It enables retailers to streamline operations and enhance customer satisfaction through improved stock management. In contrast, Smart Labels represent an emerging trend, characterized by their ability to combine printed information with digital features, thus providing dynamic product data to consumers. They are increasingly popular due to their versatility, enabling improved customer interaction and inventory visibility. As retailers increasingly prioritize sustainability and efficiency, both RFID and Smart Labels are positioned to play critical roles in revolutionizing packaging solutions.

    By End Use: Retail (Largest) vs. E-commerce (Fastest-Growing)

    The market share distribution in the US smart retail-packaging market shows retail as the largest segment, driven by the high demand for innovative packaging solutions to meet consumer needs. Retail remains critical, contributing significantly to revenue and establishing strong brand loyalty through effective packaging design and functionality. On the other hand, e-commerce is rapidly gaining traction as online shopping trends increase, pushing demand for efficient, cost-effective packaging solutions that protect products during shipping and enhance customer satisfaction. In terms of growth trends, e-commerce is the fastest-growing segment due to the significant shift toward online shopping, especially post-pandemic. This trend is propelled by technological advancements in packaging solutions designed to improve logistics and reduce waste. Retailers are increasingly investing in smart packaging technologies to maintain competitiveness and attract discerning consumers. This dynamic environment fosters continuous innovation and adaptation in packaging materials, designs, and functionalities.

    Retail (Dominant) vs. E-commerce (Emerging)

    Retail stands as the dominant end-use segment, representing a vast portion of the US smart retail-packaging market. This segment is characterized by high customization demands and a focus on sustainability, as brands strive to meet consumer expectations for eco-friendly packaging. Retail packaging plays a vital role in attracting consumers on shelves, with features like eye-catching designs and informative labels enhancing product visibility. Conversely, E-commerce is emerging as a significant segment driven by the proliferation of online shopping platforms. It emphasizes durability and functionality, with packaging designed to withstand the rigors of transport while ensuring the safety of products. E-commerce packaging solutions are evolving to incorporate advanced materials and designs that not only safeguard items but also enhance the unboxing experience for consumers.

    Get more detailed insights about US Smart Retail Packaging Market

    Key Players and Competitive Insights

    The smart retail-packaging market is currently characterized by a dynamic competitive landscape, driven by innovation, sustainability, and technological advancements. Key players such as Avery Dennison (US), Sealed Air (US), and WestRock (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Avery Dennison (US) focuses on integrating smart technology into packaging solutions, aiming to improve supply chain transparency and consumer engagement. Sealed Air (US) emphasizes sustainability, developing eco-friendly packaging materials that reduce environmental impact while maintaining product integrity. WestRock (US) is leveraging digital transformation to optimize its operations and enhance customer experiences, indicating a collective shift towards more responsive and responsible packaging solutions.

    The business tactics employed by these companies reflect a trend towards localizing manufacturing and optimizing supply chains to meet consumer demands more effectively. The market structure appears moderately fragmented, with several players competing on innovation and sustainability rather than solely on price. This competitive environment is shaped by the collective influence of these key players, who are increasingly collaborating to address common challenges and capitalize on emerging opportunities.

    In October 2025, Avery Dennison (US) announced a partnership with a leading tech firm to develop smart labels that utilize IoT technology, enhancing real-time tracking capabilities for retailers. This strategic move is likely to bolster their market share by providing retailers with actionable insights into inventory management and consumer behavior, thereby improving operational efficiency. Similarly, in September 2025, Sealed Air (US) launched a new line of biodegradable packaging solutions, which aligns with growing consumer demand for sustainable products. This initiative not only strengthens their brand image but also positions them as a leader in eco-friendly packaging, potentially attracting environmentally conscious consumers.

    In August 2025, WestRock (US) unveiled a digital platform designed to streamline the packaging design process for clients, allowing for rapid prototyping and customization. This innovation is expected to enhance customer satisfaction by providing tailored solutions that meet specific market needs, thereby reinforcing WestRock's competitive edge. Furthermore, in July 2025, Tetra Pak (SE) expanded its operations in the US by investing in advanced manufacturing technologies aimed at increasing production efficiency and reducing waste. This expansion reflects a strategic commitment to sustainability and operational excellence, which is becoming increasingly vital in the current market landscape.

    As of November 2025, the competitive trends in the smart retail-packaging market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing supply chain resilience. The shift from price-based competition to a focus on technological advancement and sustainable practices is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and deliver reliable, high-quality solutions that meet evolving consumer expectations.

    Key Companies in the US Smart Retail Packaging Market market include

    Industry Developments

    In recent months, the US Smart Retail Packaging Market has seen significant developments, particularly in sustainability and technological advancements. Companies like Sealed Air and Mondi Group are increasingly focusing on eco-friendly packaging solutions, aligning with consumer demand for sustainable products. In June 2023, Tetra Pak announced enhancements in their smart packaging technology, integrating IoT capabilities to improve supply chain transparency and reduce food waste. This move represents an industry trend towards interconnected packaging solutions. Additionally, in March 2023, Ball Corporation expanded its product lines with new recyclable aluminum options, reflecting a shift towards circular economy practices.

    The market valuation of companies such as International Paper and Smurfit Kappa has seen a notable increase as they adopt innovative packaging solutions, accelerating growth in the sector. Notably, in October 2022, Sonoco Products Company acquired TruTag Technologies, emphasizing the rising importance of RFID technology in smart packaging. This acquisition is significant as it illustrates the growing trend of integrating technology into packaging for improved inventory management. The US Smart Retail Packaging Market is continuously evolving, driven by consumer preferences for sustainable and smart solutions, making it a crucial area for investment and development in the coming years.

    Future Outlook

    US Smart Retail Packaging Market Future Outlook

    The smart retail-packaging market is projected to grow at a 5.64% CAGR from 2024 to 2035, driven by technological advancements, sustainability trends, and consumer demand for enhanced product information.

    New opportunities lie in:

    • Integration of IoT-enabled packaging solutions for real-time inventory management.
    • Development of eco-friendly materials to meet sustainability regulations.
    • Implementation of augmented reality features for enhanced consumer engagement.

    By 2035, the market is expected to achieve substantial growth, driven by innovation and consumer preferences.

    Market Segmentation

    US Smart Retail Packaging Market End Use Outlook

    • Retail
    • E-commerce
    • Wholesale
    • Logistics
    • Supply Chain

    US Smart Retail Packaging Market Technology Outlook

    • RFID
    • NFC
    • QR Codes
    • Sensors
    • Smart Labels

    US Smart Retail Packaging Market Application Outlook

    • Food and Beverages
    • Cosmetics Personal Care
    • Electronics
    • Pharmaceuticals
    • Household Products

    US Smart Retail Packaging Market Material Type Outlook

    • Plastic
    • Paper
    • Paperboard
    • Metal
    • Glass
    • Biodegradable Materials

    Report Scope

    MARKET SIZE 20248.75(USD Billion)
    MARKET SIZE 20259.24(USD Billion)
    MARKET SIZE 203516.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)5.64% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies Profiled["Avery Dennison (US)", "Smurfit Kappa (IE)", "Mondi Group (GB)", "Sealed Air (US)", "Amcor (AU)", "WestRock (US)", "Tetra Pak (SE)", "DS Smith (GB)", "Sonoco Products (US)"]
    Segments CoveredApplication, Material Type, Technology, End Use
    Key Market OpportunitiesIntegration of advanced tracking technologies enhances supply chain transparency in the smart retail-packaging market.
    Key Market DynamicsTechnological advancements drive innovation in smart retail-packaging, enhancing consumer engagement and sustainability efforts.
    Countries CoveredUS

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    FAQs

    What is the expected market size of the US Smart Retail Packaging Market in 2024?

    The US Smart Retail Packaging Market is expected to be valued at 4.5 billion USD in 2024.

    What is the projected market size of the US Smart Retail Packaging Market by 2035?

    By 2035, the US Smart Retail Packaging Market is projected to be valued at 8.5 billion USD.

    What is the expected compound annual growth rate (CAGR) for the US Smart Retail Packaging Market from 2025 to 2035?

    The expected CAGR for the US Smart Retail Packaging Market from 2025 to 2035 is 5.952%.

    Which segment will have the largest market share in the US Smart Retail Packaging Market in 2024?

    The Food & Beverages segment is expected to hold the largest market share, valued at 1.8 billion USD in 2024.

    What will the value of the US Smart Retail Packaging Market for Cosmetics be in 2035?

    The Cosmetics segment is projected to reach a value of 1.7 billion USD in 2035.

    Who are the key players in the US Smart Retail Packaging Market?

    Major players include Sealed Air, Sonoco Products Company, Ecovative Design, PackTech, and Tetra Pak.

    What is the estimated value of the Personal Care segment in the US Smart Retail Packaging Market in 2024?

    The Personal Care segment is estimated to be valued at 0.8 billion USD in 2024.

    What are the growth drivers for the US Smart Retail Packaging Market?

    Key growth drivers include increasing demand for sustainable packaging solutions and technological advancements.

    How will the Pharmaceuticals segment perform in terms of market size by 2035?

    The Pharmaceuticals segment is expected to reach a market size of 1.0 billion USD by 2035.

    What is the expected market size for the Electronics segment in the US Smart Retail Packaging Market by 2035?

    The Electronics segment is projected to attain a value of 1.0 billion USD in 2035.

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