According to a new market research report from Meticulous Research titled, "Smart Packaging Market by Packaging Technology (Modified Atmosphere Packaging, Active Packaging {Ethanol Emitters}, Intelligent Packaging {Indicators}), by Application (Food & Beverages, Pharmaceuticals, Automotive), Geography – Global Forecast to 2027," the smart packaging market is expected to grow at a CAGR of 5.2% from 2020 to 2027 to reach $43.6 billion by 2027.
Based on packaging technology, the overall smart packaging market is segmented into modified atmosphere packaging (MAP), active packaging and intelligent packaging. The intelligent packaging segment is expected to grow at the highest CAGR during the forecast period. The increasing demand for packaged food, rising inclination toward food safety from chemicals and contamination by food manufacturers, and increased number of drugs that have high moisture sensitivity are the major drivers for the growth of this segment.
Based on application, the overall smart packaging market is segmented into food and beverages, pharmaceuticals, automotive, personal care and others. In 2020, the food and beverages segment is estimated to command the largest share of the overall smart packaging market. The large share of this segment is mainly attributed to the rising use of active products in the F&B industry, coupled with growing emphasis to preserve the quality and safety of packaged products.
Geographically, North America is estimated to command the largest share of the global smart packaging market in 2020. The largest share of this region is primarily attributed to the rising adoption of smart packaging solutions, growing demand for packaged and frozen foods, rising food safety concerns and changing lifestyles.
Impact of COVID-19 on the Smart Packaging Market
The global impact of COVID-19 will significantly affect the smart packaging market in 2020. This is mainly due to strict lockdowns in some regions and several problems, such as truck shortages, reduced deliveries and employees contracting COVID-19. In addition, truncated air freight capacity, port congestion, roadblocks and logistic disruptions in Southeast Asia are expected to escalate as stricter measures are implemented by governments. All these factors are restricting the demand for smart packaging. However, with many people buying groceries online for the first time amid the pandemic, new habits could also form with COVID-19 accelerating the take-up of food E-commerce. E-commerce is expected to continue to expand over traditional retail channels. This is resulting in rising demand for smart packaging. In August 2020, Carlsberg Brewery Malaysia focused on digital marketing and e-commerce to recover from huge revenue and profit drops suffered during the COVID-19 pandemic.
Further, shopping for medicines online was at a nascent stage in emerging countries before the pandemic. But given the current circumstances and the need for social distancing, there has been an exponential rise in this practice. Pointing out that online ordering of medicines will be on the rise due to the need for social distancing, while the pandemic continues to wreak havoc, there will be a need for more robust packaging to avoid any damages. This, in turn, has increased the need for packaging solutions that are suited for e-commerce, which will ensure more investments in packaging research, design, innovation, and practices suited to this rising trend.
QR codes, holograms, and RFID tags are already being adopted in pharma packaging. Now, experts feel that driven by safety and quality concerns, pharma packaging will see a renewed focus on product authenticity and safety. This, in turn, may lead to greater adoption of smart packaging techniques like blockchain and IoT.
The key players operating in the global smart packaging market according to the study are: 3M (U.S.), Avery Dennison Corporation (U.S.), American Thermal Instruments (U.S.), Temptime Corporation (U.S.), Smartrac N.V. (Netherlands), BASF SE (Germany), Thin Film Electronics ASA (U.S.), Stora Enso (Finland), International Paper (U.S.), Amcor plc (Switzerland), Emerson Electric Co. (U.S.), R.R. Donnelly & Sons (RRD) Company (U.S.), Sealed Air Corporation (U.S.), and Smartglyph Ltd. (U.K.) among others.
Visit https://www.meticulousresearch.com/product/smart-packaging-market-5119/ for more information or to download the study. (Editor’s note: a fee applies to download the full study.)
