The global active packaging market size is estimated to grow from USD 19.2 billion in 2022 at 7.5% CAGR (2023-2032) to reach an estimated USD 39.51 billion by 2032.
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Conventional packaging materials, such as plastics, glass, and cardboard, are primarily designed to be passive and non-reactive. However, in today's modern packaging landscape, there is a growing emphasis on adopting active packaging strategies that actively contribute to preserving the quality of the product. These innovative packaging concepts, known as Active Packaging, are intentionally formulated to incorporate substances that interact with the internal atmosphere of the packaging or the product itself. Businesses can proactively enhance product freshness and quality maintenance by leveraging these active packaging solutions.
A shared characteristic among all active packaging concepts is their ability to engage with the packaged product or the internal atmosphere of the packaging, with the ultimate goal of preventing quality deterioration and extending shelf life. However, it's important to recognize that quality loss can arise from various factors, depending on the product's nature. Consequently, specific types of active packaging are necessary to achieve the desired effects in each situation. This tailored approach ensures that the active packaging employed is optimally suited to address the specific quality challenges associated with a particular product, thereby maximizing its effectiveness.
Active packaging is increasingly gaining popularity in the industrial sector because it enhances product longevity and maintains quality standards. Notably, the food industry extensively utilizes active packaging to preserve perishable items and prevent spoilage. However, the growing costs associated with incorporating active packaging components, such as sorbents, into food products may hinder market growth in the foreseeable future.
Furthermore, the relaxation of lockdown restrictions following the COVID-19 pandemic has witnessed a surge in online food delivery demand, opening up new revenue streams within the global active packaging industry. Simultaneously, advancements in package engineering have contributed to this trend. The rise of urbanization, diverse socioeconomic factors, and increased disposable income have further propelled the demand for packaged, frozen, and ready-to-eat meals.
The expanding global trade patterns, particularly in fresh produce, meat, and frozen commodities, have increased demand for specialized packaging solutions. This is driven by the necessity to ensure product freshness, quality maintenance, and extended shelf life during transportation and distribution. With an improved transportation network on the horizon, global trade is expected to experience growth, which, in turn, presents opportunities to expand the active packaging market. The enhanced trade infrastructure will facilitate efficient and timely delivery of goods, benefiting the active packaging industry by creating a larger market and increasing demand for effective packaging solutions.
The healthcare sector is experiencing expansion due to factors such as the aging population, rising rates of chronic illnesses, and the growing demand for over-the-counter (OTC) medicines. In response to stringent regulations on pharmaceutical product packaging, there is increasing investment in active packaging solutions. The market for active packaging is expected to grow throughout the forecast period due to the escalating complexity of items that require preservation or delivery to remote locations while maintaining their integrity. These active packaging solutions play a crucial role in ensuring the safety, efficacy, and stability of pharmaceutical products, thereby meeting the evolving needs of the healthcare industry.
The active packaging industry is witnessing a surge in demand driven by the growing popularity of packaged and ready-to-eat foods. Additionally, the beverage sector, encompassing products such as beverage pouches and bottled water, is expected to positively impact the active packaging market. The increasing disposable income of consumers plays a significant role in driving the expansion of packaged products. Consumers with more disposable income are more inclined to purchase convenient, packaged food and beverage options. This consumer trend towards convenience and on-the-go consumption is fueling the demand for active packaging solutions to maintain these products' quality, freshness, and safety throughout their shelf life.
During the forecast period, the global active packaging systems market is expected to be primarily driven by reduced tracking time and efficient product monitoring. These capabilities enable enhanced supply chain management and improved quality control, fueling demand for active packaging solutions. Moreover, leading corporations investing significant amounts in research and development (R&D) are anticipated to introduce new and innovative products, further driving market growth.
However, expanding the active packaging market may face challenges and obstacles. Rising prices of raw materials and manufacturing costs directly impact the overall cost of active packaging solutions. This could hinder the market's growth, as higher costs may limit adoption and affordability for certain businesses. Overcoming these challenges will require optimizing production processes, exploring alternative materials, and improving cost-efficiency to maintain market competitiveness and drive sustainable growth.
The North American Active Packaging market is projected to exhibit a compound annual growth rate (CAGR) of 6.4% during the forecast period from 2021 to 2032. However, the recent outbreak of the COVID-19 pandemic has posed temporary challenges for active and intelligent packaging manufacturers in the region. These challenges are expected to have short-term effects.
The lockdown measures implemented to contain the spread of the virus have resulted in several issues for manufacturers. Supply chain disruptions have occurred, leading to delays and difficulties in sourcing raw materials required for manufacturing. Additionally, labour shortages have been observed, further impacting production capabilities. Fluctuating prices of materials and other resources have caused budgetary concerns and the potential for increased production costs. Furthermore, shipping problems have arisen, affecting the timely delivery of products.
While these challenges have created obstacles for the active and intelligent packaging industry in the short term, they will gradually be resolved as the situation improves. As the pandemic subsides and measures are relaxed, the industry will likely regain stability and resume its growth trajectory in the North American market.
The North American active packaging solutions market is primarily driven by the imperative to effectively control the increasing incidence of foodborne diseases resulting from inadequate food packaging practices. The market's growth is attributed to ongoing innovations and strategic initiatives organizations undertake to develop advanced packaging solutions.
From a geographical perspective, the United States is projected to account for a significant share of the demand for active packaging solutions in the North American region, owing to its substantial market size and well-established industry. This is further bolstered by stringent regulations and standards governing food safety and packaging practices in the country. Canada and Mexico are also expected to contribute to the demand for active packaging solutions, albeit relatively less than the United States.
Based on research conducted by the Centers for Disease Control and Prevention, it has been found that in the United States alone, approximately 48 million cases of foodborne illnesses occur annually, affecting roughly one in six Americans each year. These illnesses have led to an estimated 128,000 hospitalizations and 3,000 deaths.
The rising awareness regarding foodborne diseases and the growing consumer demand for fresh and high-quality packaged food has significantly contributed to expanding the active and intelligent packaging market. Manufacturers are increasingly focused on ensuring longer shelf-life for their food products, thus driving the adoption of active packaging solutions. This market trend is driven by the collective goal of enhancing food safety, improving product quality, and addressing consumer concerns regarding foodborne illnesses.
The proliferation of counterfeit products, particularly within the pharmaceutical and personal care sectors, has prompted companies to adopt advanced technologies like RFID (Radio Frequency Identification) in their packaging processes. This growing concern over counterfeiting and other factors has significantly increased the demand for active packaging solutions.
However, the adoption of active packaging faces certain challenges. The initial capital investment required to install and implement these systems is relatively high, which can pose a barrier to entry for some companies. Additionally, security concerns related to these advanced packaging systems, such as data privacy and unauthorized access, present additional challenges for market growth. Overcoming these challenges will require continuous innovation, cost optimization, and addressing security issues to ensure the active packaging market's widespread adoption and sustained growth.
Amcor's healthcare lidding solution offers exceptional performance, particularly in environments requiring heat sterilization. This advanced technology not only ensures the preservation and sterilization of the packaged products but also prevents the absorption of drugs into the packaging. By effectively addressing these critical requirements, Amcor's healthcare lidding technology brings significant value to the healthcare industry and supports the safe and efficient packaging of combination products.
In the United States, retailers heavily depend on fresh-cut operations at the back of stores, often working in collaboration with regional processors. An example of such a company is Church Brothers Farms, which primarily serves the food service industry, with approximately 16% of its products being supplied to retail establishments. This suggests that a significant portion of the country's retail sector has yet to transition to Modified Atmosphere Packaging (MAP).
The North American Active Packaging market, demonstrates a moderate level of consolidation, with several key players holding prominent positions in the region. Notable companies in this market include BASF SE, Bemis Company Inc., Honeywell International Inc., Amcor Ltd, Landec Corporation, Crown Holdings Inc., and Ball Corporation.
These companies maintain a significant market presence and actively invest in various strategies to enhance their market share. This includes forging strategic partnerships with other organizations and developing new products to cater to evolving customer needs and market demands.
These key players aim to strengthen their competitive positions and expand their market reach within the North American Active Packaging industry by pursuing such initiatives.
Packaging has become a crucial component in modern trade, particularly in ensuring the preservation and quality of food products. Its primary function is to protect packaged goods from external factors impacting their quality and safety. Additionally, packaging facilitates product transportation, storage, and dispensing, making these processes more efficient and convenient.
The increasing significance of packaging in various industries has led to continuous advancements in production methods and techniques. Manufacturers constantly strive to improve packaging solutions to enhance product protection, extend shelf life, and meet consumer expectations. This dynamic growth in the importance of packaging drives innovation and improvements in packaging materials, designs, and technologies.
Packaging plays a vital role in safeguarding products' quality, safety, and integrity while also contributing to the overall convenience and efficiency of the supply chain and consumer experience.
According to experts' forecasts, the future of food packaging lies in the emerging generations of active packaging. Currently, advanced packaging solutions constitute approximately 5.8% of the total packaging market value, with active systems accounting for 36% of this segment. Although active packaging represents a small share in terms of overall packaging sales value, there are indications of rapid growth in the coming years.
The interest in active packaging solutions is evident in the increasing number of patent applications and granted patents. These solutions were initially introduced in Japan and the USA and have gradually entered the European market. The delayed introduction in Europe may be attributed to more stringent legal regulations governing packaging. However, the growing number of research projects focused on their development reflects the intensifying interest in active and intelligent packaging in Europe.
This suggests a rising demand for active and intelligent packaging solutions in Europe, highlighting the industry's drive towards innovative and technologically advanced packaging systems to meet evolving consumer expectations and regulatory requirements.
Active packaging is a solution where the packaging, product, and environment interact to bring about beneficial changes. These systems, through chemical, physical, and biological activities, actively modify the conditions of the packaged food. As a result, they extend the food's sustainability and shelf life while ensuring or significantly improving its microbiological safety and sensory properties, all while maintaining its overall quality.
Among the various segments within the active packaging market, oxygen scavengers hold the largest market share and are expected to continue leading the market in the projected period. The primary objective of oxygen scavenger technology is to limit the presence of oxygen, which can lead to deteriorative reactions in various items such as food, metals, and medications. By reducing oxygen levels, oxygen scavengers help preserve the quality and extend the shelf life of these products. This technology plays a crucial role in preventing oxidative processes, maintaining freshness, and enhancing the overall stability of packaged items.
High oxygen levels within food packages can lead to detrimental effects such as increased microbial growth, the development of off-Flavors and off-Odors, colour changes, and nutritional losses. These reactions significantly reduce the shelf life of food products. Therefore, controlling oxygen levels in packaging is crucial to minimize food deterioration and spoilage reactions.
Oxygen-absorbing systems offer an effective solution to regulate package oxygen levels as an alternative to vacuum sealing or gas flushing methods. These systems improve product quality and extend shelf life by actively absorbing oxygen from the package's environment. They help mitigate the negative effects of excess oxygen, preserving the freshness, taste, and appearance of food products.
Additionally, implementing oxygen-absorbing systems can be economically beneficial. They can reduce packaging costs by eliminating the need for excessive vacuum or gas flushing processes. Moreover, by enhancing the shelf life and maintaining product quality, these systems increase profitability for food manufacturers and suppliers.
Oxygen-absorbing systems are vital in controlling oxygen levels within food packages, mitigating spoilage reactions, and improving product quality while offering economic advantages for packaging operations.
Enzymatic oxygen scavenging systems involve enzymes that react with a substrate to effectively scavenge oxygen from the environment. While effective, these systems tend to be more costly than iron-based systems due to the expense associated with the enzymes used for oxygen scavenging.
One limitation of enzymatic oxidation systems is their sensitivity to various environmental factors. Factors such as temperature, pH level, water activity, and the presence of solvents or substrates in the sachet can significantly impact the performance and effectiveness of these enzyme-based systems. As a result, their widespread use is often limited.
The sensitivity of enzymatic systems to external conditions requires careful optimization and control of these factors to ensure optimal oxygen scavenging. This added complexity and potential limitations contribute to the higher cost and relatively narrower application range of enzymatic oxygen scavenging systems compared to iron-based alternatives.
The active packaging market is highly competitive, with several key players vying for market share and driving innovation in the industry. Leading companies such as [insert examples of key players] dominate the market with their extensive product portfolios and established customer base. These companies offer diverse, active packaging solutions, including oxygen scavengers, moisture control agents, antimicrobial coatings, and temperature indicators. In terms of market reach, multinational corporations have a global presence and cater to a wide range of industries, including food and beverages, pharmaceuticals, and consumer goods. They leverage their strong distribution networks and brand reputation to gain a competitive edge. Regional players, on the other hand, focus on specific geographical markets and cater to the unique needs of local customers. Startups and smaller companies also play a significant role in the active packaging landscape, often bringing disruptive technologies and innovative solutions. They leverage their agility and flexibility to quickly adapt to changing customer demands and emerging trends. While these companies may have a smaller market share, their potential for growth and disruption should be noticed. In addition to product offerings, companies differentiate themselves through pricing strategies, customization capabilities, sustainability initiatives, and technical expertise. The active packaging market is continuously evolving, driven by stringent regulations, increasing consumer awareness, and advancements in packaging materials and technologies. Companies that can effectively navigate these dynamics, innovate, and provide value-added solutions will likely gain a competitive advantage in this dynamic market.
Major key players in the Active packaging market includes R. Grace and Company (U.S.), Ampacet Corporation (U.S.), Ball Corporation (U.S.), Graham Packaging Company Inc. (U.S.), Rexam plc. (U.K.), Amcor Limited (Australia), Landec Corporation (U.K.), Bemis Company, Inc. (U.S.), Constar International Inc. (U.S.), Mitsubishi Gas Chemical Company (Japan), Crown Holdings Incorporated (U.S.), Klockner Pentaplast (Subsidiary Of Blackstone Group) (U.S.)
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