Smart Packaging Market Size (2024 - 2029)

Smart Packaging Market Analysis

The Smart Packaging Market size is estimated at USD 22.67 billion in 2024, and is expected to reach USD 31.98 billion by 2029, growing at a CAGR of 7.12% during the forecast period (2024-2029).

Smart packaging refers to a specific type of sensor-equipped packaging system used for various items, including food and medication. The technology used in smart packaging helps increase product quality, shelf life, freshness monitoring, and customer and product safety. When products are packaged using intelligent technology, these systems provide details about the product's quality and freshness.

• The smart packaging market's growth is driven by consumer lifestyle changes brought on by rapid urbanization and increased use of individualized personal items with advanced integrated innovation. The market depends on untapped geographic areas that offer enormous opportunities for competitors. Owing to increasing concern about health and hygiene, especially after the pandemic, the demand for sustainably packaged organic food has increased worldwide.
• According to the Dubai Chamber of Commerce and Industry Euromonitor, between 2020 and 2025, the growth rate of packaged staple food in the United Arab Emirates was the highest at 4%. In developing countries like India, China, Thailand, and Indonesia, the market for organic packaged food has recorded positive growth in the past few years. This is expected to lead to an increase in the demand for smart packaging in these countries in the future.
• According to a survey by YouGov in September 2023 about consumer spending on sustainable food products in India, 38% of the respondents were willing to pay 10% more for sustainably packaged food and drinks than conventionally packaged food products. On the other hand, 4% of respondents were willing to pay more than 100% for sustainably packaged food and beverages.
• Eco-smart packaging features a printed QR code on the outside of the box that connects to a webpage with all available product quick start guides (QSG). Customers can quickly download the PDF version corresponding to their new LMI product by scanning the QR code on the box with their smartphone and then perusing the QSGs on the associated homepage.
• Smart packaging also presents economic potential based on digitization, making it compatible with Industry 4.0. Sealed Air launched its digital packaging brand with a portfolio of design services, digital printing, and intelligent packaging solutions. Additionally, in October 2023, the digital technology studio Appetite Creative, in collaboration with packaging company Tetra Pak, launched a new interactive, innovative packaging for European fruit juice producer Rauch.
• However, the high cost of capital for installment, security issues, new techniques for fabricating such sensors and indicators compatible with packaging standards, and consumer awareness are vital restraints and challenges to the market's growth. Building a supporting infrastructure is an additional expense for end users who lack the infrastructure required to enable these package functionalities. To maximize the efficiency and efficacy of investments, every link in the supply chain has developed equivalent technological proficiency due to the existing market structure.

Smart Packaging Industry Segmentation

Smart packaging refers to systems with embedded sensor technology used with foods, pharmaceuticals, and many other products. 

The smart packaging market is segmented by technology (active packaging and intelligent packaging), end-user vertical (food, beverage, healthcare, and personal care), and geography (North America (the United States and Canada), Europe (Germany, the United Kingdom, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Latin America, and Middle East and Africa). Factors affecting the market's evolution in the near future, such as drivers and constraints, have been covered in the study. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.