Smart Packaging Market - By Technology (Active Packaging, Intelligent Packaging, Modified Atmosphere Packaging), By Application, By Packaging Type (Primary Packaging, Secondary Packaging, Tertiary Packaging), By Material (Solid, Liquid) & Forecast, 2024-2032

Smart Packaging Market Size

Smart Packaging Market was valued at USD 21.3 billion in 2023 and is expected to grow at a CAGR of over 8% between 2024 and 2032. The market is experiencing significant growth, driven primarily by the increasing demand for product safety and extended shelf life.
 

As consumers become more health-conscious, there is a growing preference for food & beverages that are fresh and safe to consume. Smart packaging technologies, such as time-temperature indicators and moisture control packaging, help ensure the quality of perishable goods, addressing consumer concerns and boosting market demand.
 

The growing adoption of Internet of Things (IoT) technologies is significantly influencing the packaging sector. Smart packaging solutions, which incorporate sensors and RFID tags, facilitate the real-time tracking of products throughout the supply chain. This integration enhances logistics and inventory management, boosts operational efficiency for businesses, and offers consumers increased transparency regarding the origin and journey of their purchased products.
 

For instance, in July 2024, Appetite Creative and Tetra Pak collaborated to redesign an interactive smart packaging experience for a European fruit juice producer. The summer-themed campaign, accessible via QR codes, encouraged users to mix juice flavors and offered personalized recipes. The experience also included incentives such as competitions and real-time tracking of consumer behavior.
 

Sustainability concerns are also propelling the growth of the smart packaging market. Governments and consumers are increasingly pushing for eco-friendly packaging solutions, leading companies to innovate with materials that are both intelligent and sustainable. Smart packaging that reduces waste, optimizes resource use, and enhances recyclability is becoming a focal point for manufacturers, aligning with global sustainability goals and contributing to the overall market expansion.
 

The adoption of advanced technologies in packaging, such as smart sensors, RFID tags, and integrated IoT systems, comes with significant costs. These include expenses related to Research and Development (R&D), manufacturing, and installation of cutting-edge equipment. Additionally, the maintenance and upgrading of these technologies can further strain budgets, particularly for small to mid-sized companies. High initial investments may deter some businesses from adopting these innovations, despite their potential long-term benefits. The cost barrier can limit the accessibility of advanced packaging solutions, impacting the overall market growth and technology adoption rates. Investing in advanced packaging technologies, such as smart sensors and IoT systems, presents a major financial challenge. The initial expenses cover not only the technology itself but also the associated costs of integrating, maintaining, and upgrading these systems. For many companies, especially smaller ones, these high costs can be prohibitive, slowing the adoption of innovative solutions.
 

Smart Packaging Market Trends

The packaging industry is increasingly embracing eco-friendly materials as part of its sustainability efforts. Companies are replacing traditional plastics with biodegradable, recyclable, and compostable alternatives in response to growing consumer demand and stricter environmental regulations. Innovations include plant-based materials such as bioresins and recycled paper, which help reduce carbon footprints and minimize waste. This shift highlights the industry's commitment to aligning with global sustainability goals and meeting consumer expectations for environmentally responsible products.
 

Closed-loop recycling systems are gaining traction as companies work to create a circular economy in packaging. These systems focus on reusing and recycling materials to minimize waste and conserve resources. Investments in advanced technologies for efficient collection, sorting, and processing of packaging materials are enabling their reintegration into the production cycle. This approach not only reduces environmental impact but also enhances resource efficiency and lowers costs. Embracing closed-loop systems supports greater sustainability and long-term environmental stewardship in industry.
 

For instance, in September 2023, the World Packaging Organization (WPO) and the Active & Intelligent Packaging Organization (AIPIA) signed a Memorandum of Understanding (MoU) to collaborate on promoting sustainable smart packaging. This partnership aims to enhance material science in active packaging and support innovations in sustainability, aligning with global industry goals.
 

Smart Packaging Market Analysis

Based on technology, the market is divided into active packaging, intelligent packaging, and modified atmosphere packaging. The intelligent packaging segment is expected to register a CAGR of over 10% during the forecast period.
 

• Intelligent packaging provides interactive features such as QR codes, NFC, and Augmented Reality (AR), which improves consumer engagement and provides additional product information. This rising demand for more interactive and informative packaging solutions drives market growth.
   
• Rapid technological advancements in sensors, RFID, and communication technologies have made intelligent packaging more accessible and cost-effective. These technologies enhance functionality such as real-time monitoring of product conditions and personalized consumer interactions.
   
• Intelligent packaging helps optimize supply chain management through real-time tracking and monitoring, reducing losses, and improving inventory management. The need for more efficient and transparent supply chains in industries such as food and pharmaceuticals boost the demand for intelligent packaging solutions.

Based on material, the smart packaging market is divided into solid and liquid. The solid segment is expected to dominate the global market with a revenue of over USD 25 billion by 2032.
 

• Solid packaging materials, such as plastics, glass, and metals, are widely utilized in consumer goods, food & beverages, pharmaceuticals, and personal care products. Their versatility in terms of durability, protection, and ease of handling makes them a preferred choice for packaging solutions. The robustness of solid packaging materials ensures that products are securely contained, preventing damage and extending the shelf life, which is crucial for maintaining product quality and safety.
   
• The solid packaging segment benefits from ongoing innovations and advancements in materials and manufacturing processes. The development of new & high-performance materials and sustainable packaging solutions enhances the functionality and appeal of solid packaging. For instance, innovations, such as biodegradable plastics and advanced composite materials, are meeting the increasing consumer demand for eco-friendly options. Additionally, solid packaging’s ability to support branding and marketing efforts through customizable designs and printing contributes to its dominance in the market, as companies seek packaging solutions that offer both practical benefits and aesthetic appeal.

North America dominated the global smart packaging market in 2023, accounting for a share of over 35%. The region's advanced technological infrastructure and high levels of innovation drive the adoption of smart packaging solutions, such as RFID and NFC technologies, across various industries. Additionally, North American companies are increasingly focusing on enhancing supply chain efficiency and improving consumer engagement, which smart packaging facilitates through real-time tracking and interactive features. Strong consumer demand for personalized and sustainable packaging also fuels market expansion, supported by favorable regulatory environments and substantial investments in R&D.
 

The U.S. market is expanding rapidly, driven by technological advancements and a growing emphasis on consumer experience. The country's robust technology sector fosters innovations in packaging solutions, with major companies implementing smart features such as digital tracking and interactive labels. The U.S. consumer market's preference for convenience, transparency, and sustainability accelerates the adoption of smart packaging technologies.
 

China’s smart packaging market is expanding swiftly due to a surge in e-commerce, increasing consumer demand for product transparency, and advancements in technology. The rapid growth of the e-commerce sector drives the need for smart packaging solutions that enhance supply chain efficiency and improve consumer engagement. Companies in China are increasingly adopting technologies such as RFID and QR codes to provide real-time tracking and interactive features. Additionally, the Chinese government’s supportive policies for technological innovations and sustainable practices further stimulate market growth, making China a significant player in the global smart packaging sector.
 

For instance, Sino-Pack/PACKINNO 2025, scheduled for March 4-6, 2025, at the Guangzhou Import and Export Fair Complex, will spotlight China's growing role in the global packaging industry. The event will showcase China's advancements in smart, innovative, and sustainable packaging solutions, featuring cutting-edge technologies and designs. The exhibition's integration of online and offline platforms will aim to further enhance global business connections, reflecting China's increasing influence and innovation in the sector.
 

South Korea is witnessing robust growth in the smart packaging market, driven by its advanced technological infrastructure and innovation-focused industry landscape. The country’s emphasis on integrating cutting-edge technologies, such as NFC and IoT, into packaging solutions supports its growth. South Korean companies are actively adopting smart packaging to enhance product security, improve consumer experiences, and streamline logistics. Additionally, increasing consumer awareness about sustainability and the demand for eco-friendly packaging solutions contribute to the market's expansion, supported by strong government initiatives that promote green technology.
 

Japan’s smart packaging industry is growing due to its focus on technological innovation and high consumer demand for convenience and quality. Japanese companies are leading the adoption of advanced packaging technologies, including RFID and smart labels, driven by a strong emphasis on product authenticity & traceability. The rise in e-commerce and the need for efficient supply chain management further propel the market. Additionally, Japan's commitment to sustainability and environmental regulations encourages the development of smart & eco-friendly packaging solutions, supporting the market’s continued expansion.
 

Smart Packaging Market Share

Amcor Plc and Avery Dennison Corporation are the key players in the smart packaging industry, each holding a significant share due to their advanced technological solutions and extensive industry experience. Amcor Plc, a global leader in packaging, has established itself at the forefront of smart packaging through its innovative use of technologies such as RFID and smart labels. The company's commitment to sustainability and smart packaging solutions has positioned it as a major provider, catering to diverse industries with enhanced functionality and environmental benefits.
 

Avery Dennison Corporation has made substantial strides in the smart packaging sector with its cutting-edge RFID and intelligent labeling solutions. Avery Dennison’s focus on integrating smart technologies into packaging not only improves traceability and inventory management but also enhances consumer engagement and product safety. Both companies leverage their expertise to drive market growth and innovations, solidifying their positions as leading players in the market.
 

Smart Packaging Market Companies

Major players operating in the smart packaging industry are:

• Amcor Plc
• Avery Dennison Corporation
• BASF SE
• DuPont
• Sealed Air
• Smurfit Kappa Group plc
• Thin Film Electronics ASA
   

Smart Packaging Industry News

• In April 2024, DS Smith partnered with Bioenzymatic Fuel Cells (BeFC) to develop recyclable smart packaging solutions. The collaboration focuses on enhancing supply chain efficiency by using recyclable paper, real-time tracking, and reducing wastage through accurate product monitoring. This initiative aligns with DS Smith's USD 125 million investment in circular economy innovation.
   
• In November 2023, TOPPAN Digital Inc. showcased its smart packaging solutions at the AIPIA World Congress in Amsterdam. The company presented NFC-tagged packaging, an ID authentication platform, and eco-friendly tags, highlighting their efforts to enhance consumer engagement, prevent grey market diversion, and promote sustainable packaging initiatives.
   

The smart packaging market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Technology

• Active packaging
  • Oxygen scavengers
  • Moisture absorbers
  • Ethylene absorbers
  • Antimicrobial agents
  • Temperature control packaging
  • Flavor/Odor absorbers 
• Intelligent packaging
  • Time-temperature Indicators (TTIs)
  • RFID tags and QR codes
  • Freshness indicators
  • Gas sensors
  • Smart labels
  • Interactive packaging
• Modified atmosphere packaging

Market, By Application

• Food & beverages
• Healthcare & pharmaceuticals
• Cosmetics & personal care
• Logistics & transportation
• Automotive & industrial products
• Consumer electronics
• Others

Market, By Packaging Type

• Primary packaging
• Secondary packaging
• Tertiary packaging

Market, By Material

• Solid
• Liquid

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA