Smart Packaging Market Size | Companies | Industry Trends

Smart Packaging Market Size Anticipated to Attain USD 68.99 Billion by 2032

Status: Published Category: Advanced Packaging Insight Code: 5055 Format: PDF / PPT / Excel

The global smart packaging market size was estimated at USD 36.04 billion in 2022 and is expected to reach around USD 68.99 billion by 2032 with a registered CAGR of 6.8% from 2023 to 2032.

Smart Packaging Market Size 2023 - 2032

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Smart packaging entails strategically integrating advanced technologies, such as RFID tags, sensors, and QR codes, within product packaging to drive enhanced business outcomes. This innovative approach empowers manufacturers to actively monitor and trace their products across the complete supply chain, encompassing production, distribution, and end-consumer engagement. By infusing packaging solutions with heightened intelligence, smart packaging enables proactive thinking, seamless communication, and interactive capabilities with the packaged product and discerning consumers.

The adoption of smart packaging delivers a range of substantial advantages. Firstly, it elevates the customer experience by providing additional functionalities and features that optimize convenience, safety, and usability. Embedded sensors within the packaging facilitate real-time monitoring of vital parameters like humidity, temperature, and integrity, ensuring optimal product quality and integrity throughout the entire value chain.

Moreover, smart packaging bolsters product safety and security. Manufacturers can achieve robust product tracking, authentication, and anti-counterfeiting measures by leveraging advanced technologies like RFID tags and QR codes. This safeguards consumer well-being, protects brand reputation, and fosters trust within the marketplace.

Furthermore, smart packaging supports sustainability initiatives by optimizing inventory management, reducing waste, and enabling efficient recycling processes. By leveraging RFID tags, supply chain operations can be streamlined, minimizing excess inventory and mitigating environmental impact. QR codes provide consumers valuable information on proper disposal methods and recycling options, facilitating responsible post-consumption practices.

Ultimately, smart packaging catalyzes ensuring superior product quality, optimizing supply chain efficiency, and cultivating enduring customer relationships. By integrating advanced capabilities such as sensing, evaluation, identification, tracking, and reporting, smart packaging enables manufacturers to consistently meet rigorous quality standards while delivering a seamless and enriched customer experience.

Smart Packaging is experiencing robust and consistent growth, driven by its ability to adapt to the ever-changing and demanding market landscape. With the continuous advancement of smartphones, which enable enhanced advertising and authentication applications, consumer expectations are on the rise. They now seek packaging solutions that are more intelligent and interactive. Concurrently, significant investment and significant packaging companies invest substantial resources into smart packaging. However, it is essential to note that the regulatory environment is also becoming increasingly stringent, potentially imposing restrictions on promising emerging technologies.

The amalgamation of these factors, along with the evolving social demographic, highlights the challenges the smart packaging industry faces. Nevertheless, it also underscores the vast array of opportunities available across all active and intelligent packaging sectors, provided they remain receptive and adaptable to change.

From Traditional to Smart: The Evolution of Food Packaging in the Smart Packaging Era

By 2025, approximately two-thirds of the global population is projected to reside in urban areas. This urbanization trend is driving a significant increase in demand for convenient and value-added food products that adhere to high-quality standards. Meeting these diverse requirements necessitates innovative advancements in the food processing sector and food packaging.

Despite being one of the largest producers of food and agro-based products, India faces a significant challenge as approximately 20% of the produced goods go to waste due to inadequate processing and packaging infrastructure. However, the food processing industry holds immense potential, with the capability to attract investments of around Rs. 1,50,000 crores over the next decade and generate employment opportunities for approximately 9 million individuals.

Concurrently, the Indian packaging industry is experiencing a steady growth rate of 12% annually. It encompasses a broad spectrum of companies, totalling approximately 22,000, ranging from raw material manufacturers to machinery suppliers.

Post-harvest storage conditions profoundly influence the shelf life of food products. Storage temperature, relative humidity, and gas concentrations directly impact the spoilage rate of perishable items. Moreover, the optimal storage conditions vary depending on the type of food product.

The core functions of a food packaging system encompass containment, protection, convenience, and communication. Consequently, an effective packaging solution strives to deliver products to end-users in the optimal condition intended for their use.

Smart packaging represents an innovative technology that capitalizes on the communication capabilities of packaging to facilitate decision-making processes and harness the advantages of enhanced food safety and quality. Intelligent packaging is a system equipped with smart features such as sensing, detecting, tracing, recording, and communicating. These intelligent functions facilitate decision-making processes to prolong shelf life, enhance product quality, improve safety measures, provide essential information, and issue warnings regarding potential issues.

  • Instance, Coca-Cola implemented dynamic QR Codes on their products, incorporating new content that offered unique experiences to customers whenever they scanned the QR Codes—this strategic initiative aimed to foster customer engagement and interaction with the brand.

Driving Efficiency and Connectivity: Harnessing Intelligent Packaging within the Smart Packaging Market

Intelligent packaging encompasses a wide range of technologies that collectively serve specific functions and provide information to consumers regarding food products. There are three main types of intelligent packaging, each with its primary function. These technologies differ not only in their physical and chemical compositions but also in how they communicate detected changes and the quantity and nature of data they can transmit. Additionally, they vary in their mechanisms for capturing and disseminating data.

Instance, On May 20, 2022, Sealed Air, a reputable member of AIPIA (Active & Intelligent Packaging Industry Association), launched its new digital packaging brand, Prismiq. Prismiq offers various solutions, including design services, digital printing, and intelligent packaging. This comprehensive portfolio of offerings is designed to cater to the diverse needs of businesses in the packaging industry, empowering them to harness cutting-edge technologies and elevate their packaging capabilities. By leveraging Prismiq's innovative solutions, companies can enhance their packaging designs, incorporate digital printing techniques, and take advantage of intelligent packaging technologies for added functionality and value.

  • Interactive packaging: This type of packaging serves as a data carrier, allowing for the storage and retrieval of information related to the storage, distribution, and traceability of food products. Interactive packaging, also known as automatic identification devices, facilitates the efficient flow of information within the food supply chain. The main objectives of interactive packaging include ensuring traceability, preventing theft, and providing counterfeit protection. Standard technologies in this category include barcode labels (such as 2D codes) and RFID tags, which enhance convenience and enable data transmission. Sensor-enabled RFID tags can also monitor storage conditions (e.g., temperature, humidity, and light) and food quality throughout the supply chain.
  • Sensors: Sensors play a crucial role in packaging by gathering information about the package and its contents. They can detect changes in the environment and assess the condition or operational history of the packaged material. Sensors are designed to monitor specific functionalities such as pH levels, time, temperature, hydrogen sulphide, or carbon dioxide presence. In food packaging, sensors are used to ensure the quality and safety of food products, with the sensors integrated into the packaging materials. Sensors consist of a receptor and a transducer, providing a continuous signal to measure chemical or physical properties.
  • Indicators: Unlike sensors, indicators do not provide quantitative information or store measurement data and time. Instead, they offer visual or qualitative (sometimes semi-quantitative) information about the packaged food through colour changes. Indicators primarily convey information through colour intensity variations or irreversible diffusion. They are commonly used to indicate temperature changes, gases and volatiles, pH changes, and microbiological contamination. Indicators serve as visual cues regarding the condition or environment of the packaged food.

Smart Packaging Validation in Pharma: Ensuring Quality and Compliance

In recent years, the role of packaging has undergone significant evolution. Modern consumers are now more informed and discerning, seeking packaging solutions that are not only cost-effective and visually appealing but also assure the product's authenticity and relevant details about the medication intake. The pharmaceutical industry is transitioning from conventional packaging approaches to smart packaging solutions to meet these evolving consumer demands.

Smart packaging in the pharmaceutical sector encompasses innovative technologies that enhance the functionality and capabilities of packaging. These advanced packaging solutions go beyond traditional packaging methods by incorporating intelligent features such as tracking, monitoring, and information dissemination. By adopting smart packaging, the pharmaceutical industry aims to offer enhanced product protection, improved safety measures, and increased consumer engagement.

  • Instance, 14 April 2021, Bostik's introduction of a smart blister packaging solution for pharmaceutical products represents an essential innovation in the industry. This launch demonstrates Bostik's commitment to providing advanced packaging solutions that cater to the evolving needs of the pharmaceutical sector. The smart blister packaging solution incorporates cutting-edge technology to enhance safety, convenience, and functionality for patients and healthcare providers. Bostik's solution offers numerous benefits throughout the product lifecycle by integrating smart features.

The shift to smart packaging enables pharmaceutical companies to address consumer concerns regarding product authenticity and provide crucial information about dosage instructions and medication usage. Additionally, smart packaging can facilitate improved supply chain management, track inventory, and enhance patient compliance with medication regimens.

The pharmaceutical industry is implementing various smart packaging solutions to meet the evolving needs of consumers and enhance medication delivery and management. Some of these innovative solutions include:

  • Paper-based RFID tags: These environmentally friendly tags replace plastic and enable efficient tracking and identification of medication throughout the supply chain.
  • Unique bag-type combination products: Designed for convenient reconstitution of dry powder medications before administration, these products simplify the process for patients.
  • Intelligent ink: Ink that changes colour when exposed to heat or light is used to indicate proper storage conditions for medication, ensuring its effectiveness and safety.
  • Self-dose patient-controlled injector: This device minimizes pain and discomfort for patients who require regular doses of medication, enabling them to administer the medication themselves.
  • Smart closures with NFC or Electronic Dose Pack: These closures record the date and time when each dose of medication is taken and transmit the data for analysis. This helps track medication adherence and provides valuable insights for patients and healthcare providers.
  • 2D barcode for Vaccine Vial Monitors: These barcodes capture important product information such as lot numbers and expiration dates. Smart devices can scan the barcode to access details about the product's authenticity and safety considerations.
  • Intelligent inhalers: These inhalers utilize breath actuation and provide instructions to patients on proper device usage. Patients can connect the inhalers to their smartphones to set reminders and provide feedback on device usage.

Smart packaging plays a crucial role in enabling real-time tracking of shipments, which offers numerous benefits for businesses and users alike. The ability to monitor the location of a consignment provides valuable information for tasks such as invoicing, reordering, and improving product handling processes. By incorporating tracking features into packaging, businesses can streamline operations and enhance the overall customer experience.

Furthermore, smart packaging enhances access to critical information about products. This includes storage instructions, reconstitution processes, administration guidelines, and proper disposal after use. By providing users with comprehensive information, smart packaging promotes safe and effective product usage while empowering individuals to make informed decisions.

Looking toward the future, sensor-enabled packaging holds even more significant potential. With sensors integrated into packaging, monitoring stock levels in real-time becomes possible, ensuring timely replenishment and efficient production planning. This data-driven approach enables businesses to adjust their production and supply strategies based on actual stock availability, minimizing delays and optimizing inventory management.

QR Codes and Smart Packaging: Enhancing Traceability and Supply Chain Efficiency

Barcodes have long been recognized as reliable and efficient smart packaging technology. However, traditional one-dimensional barcodes have limitations regarding how much information they can hold. In contrast, two-dimensional barcodes, also known as smart packaging codes, offer significantly greater data storage capacity by utilizing a combination of dots and empty spaces within a compact area.

QR codes are a prominent example of two-dimensional barcodes and have gained widespread adoption due to their compatibility with smartphones equipped with cameras and internet connectivity. By scanning QR codes with their smartphones, consumers can access a wide range of content, including product information or any other content that manufacturers wish to present. Manufacturers and retailers leverage QR codes for detailed product traceability and efficient supply chain management.

In addition to QR codes, other smart packaging codes encompass technologies such as smart labels, data matrix codes, RFID, and NFC chips. These solutions effectively transform the packaging into data carriers and digital tools. 

  • For instance, startups utilize QR data matrix codes on their products to establish unique digital identities, enabling enhanced product tracking and authentication.

Integrating two-dimensional barcodes and smart packaging codes empowers manufacturers and retailers to leverage packaging for information dissemination, product traceability, and supply chain optimization. These technologies offer versatile possibilities and contribute to digitizing and advancing packaging capabilities in diverse industry sectors.

NFC (Near Field Communication) is a cutting-edge wireless technology that facilitates seamless communication between devices, predominantly smartphones or NFC readers, and NFC-enabled tags or labels. When integrated into packaging, these NFC tags offer valuable functionalities such as authentication, product information dissemination, or interactive content engagement with a simple tap or scan by compatible devices.

On the other hand, data matrix codes represent sophisticated two-dimensional barcodes capable of efficiently storing substantial volumes of data. These codes find utility in packaging by encoding essential information like serial numbers, batch numbers, or expiration dates. Employing barcode scanners or smartphone apps, these data matrix codes can be effortlessly scanned to support diverse applications, including inventory management, traceability, and quality control.

Leveraging smart packaging codes goes a long way in enhancing package traceability while streamlining product authentication through the utilization of consumer scan data. This proactive approach plays a vital role in combatting counterfeiting practices. Moreover, smart packaging captivates consumers, and implementing smart codes equips businesses with highly pertinent data points, subsequently amplifying brand awareness and fostering customer retention.

Smart Packaging Market Dynamics: Regional Factors Shaping Market Evolution

Based on the research conducted during the covered period, the smart packaging market is projected to experience the most significant growth rate in the Asia-Pacific region.

Smart packaging represents the latest breakthrough in the Korean packaging industry, offering technological advancements that enhance consumer interaction and communication with products. This technology enables the creation of user-friendly and convenient products and packages. Some packages are equipped with technology that provides users with product information, such as usage instructions and remaining shelf life until the expiration date.

The smart design aligns with the growing emphasis on sustainability, considering the environmental impact and delivering more convenient and user-friendly products through innovative packaging designs. These smart designs empower consumers of all ages to easily use products. For example, a new medical pill bottle features an "easy cap" with a device inside that cuts the aluminium foil when the cap is twisted and opened. This not only ensures the safety and integrity of the product but also enhances customer convenience.

Innovative packaging designs incorporating smart technology can have unexpected economic effects as various technological fields converge within a single package. Moreover, new packaging technologies offer benefits to companies as well. Through interactive packaging, companies can trace the journey of their products from store shelves to consumers, facilitating better supply chain management.

The Korean packaging industry, valued at $30.3 billion annually, surpasses the size of the entire design industry. Its economic impact generates 159,351 jobs, contributing to an impressive annual growth rate of 6.8%, which is higher than the current average growth rate of the economy, according to the Korea Packaging Industry. With increased product exports, the Korean packaging industry will produce more packages that effectively protect products during transportation, ensuring their quality in varying weather conditions until they reach customers.

Smart Packaging Market: Comparative Analysis of Leading Players and Competitive Strategies

The smart packaging market is characterized by intense competition and a diverse range of players offering innovative solutions. Key players in the market include industry leaders such as Amcor PLC, known for its comprehensive portfolio of intelligent packaging solutions. Avery Dennison Corporation, a prominent provider of labelling and packaging materials, excels in integrating technologies like RFID and NFC to enable product tracking and authentication. BASF SE stands out with its advanced materials and sensor technologies that enhance the functionality of smart packaging. Smartrac Technology Group specializes in RFID and NFC technology solutions, catering to global clients with product authentication and supply chain optimization offerings. Stora Enso Oyj is recognized for its renewable packaging solutions, including intelligent paper packaging and connected platforms. Thinfilm Electronics ASA excels in printed electronics and NFC-based smart packaging solutions. 3M Company offers diverse smart packaging solutions, including intelligent labels and adhesives. Sealed Air Corporation stands out with its comprehensive portfolio of smart packaging solutions, particularly for food, healthcare, and industrial applications. With continuous advancements and new entrants in the market, the smart packaging landscape is highly dynamic, fostering innovation and driving the industry forward.

Some major key players in the smart packaging market include: 3M, Avery Dennison Corporation, Ball Corporation, BASF SE, Crown International Paper, R.R. Donnelley & Sons Company, Stora Enso, Sysco Corporation, Zebra Technologies Corp. (Temptime Corporation).

Recent Development:

  • June 23, 2023, During the AIPIA World Congress, notable advancements in smart packaging were showcased, including Wiliot's groundbreaking battery-free IoT pixels utilizing RFID technology. These pixels have the unique capability of self-powering by harvesting ambient radio waves. This innovation marks a significant development in smart packaging, enabling enhanced functionality and sustainability by eliminating the need for traditional power sources like batteries.
  • Jun 20, 2022, Sealed Air's Prismiq suite of digital technologies for printing, smart packaging, and design revolutionizes the landscape of flexible packaging by enabling enhanced connectivity and integration.

Segments Covered in the Report:

By Type

  • Active Packaging
    • Oxygen Scavengers
    • Moisture Scavengers
    • Self-Venting Films
    • Ethylene Scavengers &Emitters
    • Microwave Susceptors
    • Antibacterial Films
    • Temperature Control Packaging
    • Carbon Dioxide Scavengers/Emitters
    • Ethanol Emitters
    • Flavour/Odour Absorbers
    • Antioxidants
  • Intelligent Packaging
    • Indicators
    • Sensors
      • Bio Sensors
      • Gas Sensors
    • Data Carriers
      • Barcodes
        • 2D Matrix Codes
        • Quick Response Codes
        • Augmented Matrix Codes
      • RFID Tags
  • Modified Atmosphere Packaging

By Application

  • Food & beverage
  • Personal care
  • Automotive
  • Healthcare
  • Others

By Material

  • Solid
  • Liquid

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)

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About The Author

Swapna is a seasoned research consultant with expertise in conducting and analysing complex research projects across various industries. With a deep passion for knowledge discovery and a commitment to delivering actionable insights, Swapna has successfully collaborated with numerous organisations to help them make informed decisions and drive strategic growth. Swapna has developed a strong track record of designing and implementing research methodologies that generate high-quality data and meaningful results. Through careful attention to detail and a meticulous approach. She possesses a diverse skill set, including proficiency in data collection techniques, statistical analysis, and data visualisation. With expertise in both qualitative and quantitative research methods, Swapna is adept at crafting research frameworks tailored to the unique needs and objectives of each project. By leveraging advanced analytical tools and software, Swapna transforms complex data sets into concise and impactful reports that drive actionable insights.

Swapna excels in working closely with clients, understanding their research goals, and translating those goals into effective research strategies. Through clear and concise communication, Swapna ensures that research findings are presented in a manner that is easily understandable and actionable, enabling clients to make informed decisions and drive positive outcomes. She stays updated with the latest advancements in the field, constantly refining her skills and knowledge to provide cutting-edge research solutions. As a research consultant, Swapna is dedicated to helping organizations uncover valuable insights, solve complex problems, and achieve their strategic objectives. With a passion for research excellence and a commitment to client satisfaction, She is a trusted partner in driving evidence-based decision-making and empowering businesses to thrive in todays dynamic market landscape.


The global smart packaging market size was accounted at USD 38.27 billion in 2023 and it is expected to reach around USD 68.99 billion by 2032.

The global smart packaging market is poised to grow at a CAGR of 6.8% from 2023 to 2032.

The Asia Pacific region will dominate the global smart packaging market during the forecast period 2023 to 2032.

Forbes, Koreaherald, Worldpackaging, Deloitte, McKinsey & Company, White paper, newspaper, and news.