Asia is anticipated to show a significant growth rate in the global smart packaging market during the forecasted period. The growth is attributed to the presence of a large developing population with rising incomes leading to sustainable growth in demand for products. In addition, awareness towards utilising eco-friendly materials has caused companies to mould their processes towards environmental needs. North America is anticipated to show a significant share of the market during the forecasted period. Inclusion of major players and availability of funds towards innovative technologies are driving this sector forward.
The smart packaging industry is a novel idea in the space of packaging which has a few roadblocks. The initial cost of adoption is extremely steep which might turn a few players away from this solution. These smart packaging means could possibly illustrate data about products like never seen before. That being said, creating awareness and acceptability towards this form of packaging will be a challenge within the general public. Governments might have a huge hand to play here, as the incentives to cater environmental needs could be crucial in leading the way for adoption.
Key players of the smart packaging market include TempTime, PakSense, American Thermal Instruments, Avery Dennison, R.R. Donnelly Sons & Company, 3M, BASF, Du Pont, Amcor Limited, Sealed Air Corporation, and International Paper.
Impact of COVID-19
The recent pandemic outbreak of COVID-19 across the globe pose to have significant distress and loss in almost every country. The pandemic has affected the global economy by directly affecting production and demand, disrupting supply chain and market, and by its impact on financial markets & firms. The unprecedented outbreak of COVID-19 has a mixed impact on the global smart packaging market in 2020. With high unemployment numbers and less disposable income available, demand for products will decrease. On the other hand, there is a shift of customers purchasing through the online channel. The growth of this distribution channel has been fast tracked due to the pandemic. Companies will be able to capture market share if they can think strategically and implement marketing campaigns geared towards the online industry. The majority of companies will own less capital that can be used in switching over to smart packaging options thus leading to a decrease in the rate of adopting environmentally friendly raw materials as a source for packaging within the industry. Here government intervention will be crucial as benefits and tax deductions will help companies in the transition period.
The Food and Beverage sections of the application segment accounted for the largest share of the Smart Packaging market in 2023
Based on applications, the smart packaging market is classified into food & beverage, automotive, health care, personal care, and others. The food and beverage segments accounted for the largest share of the smart packaging market in 2023. The rise of demand for products is the majority driver along with the need to improve the sustainability aspect involved in packaging. Healthcare has the second highest market share and is expected to show expedited grow as well, due to the introduction of a health care pandemic into the society.
