The intelligent packaging market is projected to grow at a CAGR of 10.59% to reach US$11.083 billion by 2025, from US$6.059 billion in 2019. The need for machine-readable data to be incorporated in packaging has given rise to the introduction of intelligent or smart packaging systems. Intelligent packaging is a part of the communication system which is capable of providing knowledge and information about a product.
The complexity of products, advances in packaging technology, and investments in research and development are some of the major market drivers. North America and Europe are expected to hold a significant market share due to the stringent government regulations regarding food and beverage packaging along with a high adoption rate of technological advancements. On the other hand, the Asia-Pacific region is experiencing fast growth in the global intelligent packaging market. These solutions offer benefits like convenience, tamper-proof, and theft resistance among others. The demand for these solutions is expected to witness maximum growth due to the increasing penetration of technologies and focus on curbing counterfeit products.
The growing consumer preference for convenience food is driving the demand for intelligent packaging solutions, fueling the market growth in the forecast period.
There is a growing preference for the consumption of convenience and ready-to-eat foods owing to the growing urbanization where there is an increasing shift from rural to urban areas that have brought in changes in dietary conditions as well. In countries like India, citizens have started moving away from the traditional form of food consumption which includes cooking at home and eating together. Nowadays there has been a shift in the trend where there is an adoption of a busy lifestyle and women have also started working, leading to a growing preference for convenience foods and beverages. This has further increased the per capita income and has led to an increased level of affluence among the middle-income group, bringing in a change in food habits. In developed regions like North America, many people have adopted individual lifestyles. Furthermore, a high disposable income has raised the limit of expenditure further leading to consumer unwillingness on spending more time in food preparation and have shown a preference for leisure activities instead. Thus, promoting the consumption of convenience food, where intelligent packaging is expected to provide detailed information about the food product to a wide range of consumers. This is further creating a high market demand among the well-educated consumers in the developed regions, in addition to the other regions of the world.
Geographically, North America and Europe are accounted to hold a significant market share in the global intelligent packaging market during the forecast period.
In the North American and European regions, there are favorable opportunities for the intelligent packaging market to thrive in the forecast period and in the upcoming years. This is due to the early adoption of technological advancements and innovations. Furthermore, the presence of stringent government regulations regarding food and beverage packaging is driving the market demand in these regions. In pharmaceuticals, the integration of intelligent packaging technologies like NFC (Near Field Communication) is a novel technology that is adding high value to the development of smart pharmaceutical labels. Additionally, with the diffusion of digital technologies in almost every business in these regions, the digital identification of pharmaceuticals is further adding on to fuel the market growth at present and in the upcoming years. Some of the applications of intelligent packaging technology include dosing advice, optimization of internal logistics processes, and protecting brand identity among other applications, providing convenience to a wide range of patients in these regions. Furthermore, a high health expenditure coupled with a high prevalence of chronic diseases and a growing geriatric population is driving the market demand owing to the increased patient compliance during the treatment course which can be effectively monitored because of the intelligent packaging technology. This feature of smart or intelligent packaging for use in drug compliance can be seen as an opportunity for the market to thrive in the upcoming years.
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